Why @taylorswift13 matters to markets
- Taylor Swift, who is apparently a popular music artist, recently used social media to urge US citizens to vote. Swift has more social media followers than economists (correct this by following me on Twitter @PDonovan_Econ). Recent electoral surprises in the US and elsewhere were caused by the votes of people who do not normally vote. New voters reduce US mid-term election predictability.
- The Bank of Italy gave their opinion that the current Italian budget proposal is largely a waste of money. The government had an emergency meeting last night, with concern voiced about the market reaction. Ultimately, the risk of default in Italy is very low – Italy can finance its own debt, as one of the wealthiest nations on the planet.
- France, Italy and the UK offer industrial production data. The UK also offers trade and monthly GDP figures. The EU-UK divorce process remains interminably tedious, but optimistic noises helped push sterling higher.
- US producer price inflation signals corporate pricing power. The details may show how Trump trade taxes are being passed on (users of imported steel and aluminum do seem inclined to raise prices). Williams of the Fed defended rate increases as a means of controlling financial risk.