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Disinterest in denuclearization

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The possibility of a North Korea-South Korea summit, a North Korea-US summit and a denuclearized Korean Peninsula was announced by China. Markets do not really care. Markets were not that interested in the escalation of tensions, so the reverse is also of limited interest.
  • US fourth quarter GDP is to be revised again. Markets tend to pay less attention to revisions than to the initial data, an action so illogical as to question the rational market hypothesis. The detail includes things like the PCE deflator, which is a focus for the Fed.
  • The Bank of England's Agents' survey provides some anecdotal evidence from the UK economy, in the wake of the EU transition deal. This is a survey, and survey evidence should always be mistrusted – but people may be more willing to answer a central bank survey.
  • The Fed's Bostic joined the long list of people who know what they are talking about in pointing out the bubble of cryptocurrencies. The bubble deflated a lot over the past quarter. However, belief in Bitcoin requires a near religious level of faith. It is unlikely that sensible comments from knowledgeable economists will sway the converts. More losses will be needed.