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| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Canadian who is governor of the Bank of England appears before Parliament. In theory this is about the bank's economic forecasts, focusing on trends not details. In reality this is all about the politics of the EU divorce. Attempts to remove UK Prime Minister May have failed so far. France and others are objecting to parts of the withdrawal agreement.
  • German ECB member Weidmann is to speak. Investors are interested in when the ECB starts to raise rates. Expectations that a German will replace Draghi as ECB president have lessened, however. Williams of the Fed effectively confirmed a December US rate hike.
  • German producer price inflation signals pricing power in an economy that is operating above its trend rate of growth. US housing starts data may have more focus than usual, as housing data has been weaker of late.
  • The economics of continued equity weakness is limited. Most Americans do not own meaningful amounts of equity, limiting wealth effects from moderate equity declines. The cryptocurrency bubble transferred proper money from the many bubble buyers to the few bubble sellers. The more dramatic bursting of that bubble ends the process, but bubble ownership was not concentrated enough to have serious economic effects.