Tiptoeing through the tightening
- There were several comments from ECB speakers yesterday (including the ECB chief economist, who like all chief economists should be revered and listened to without question). The message was in line with leaks – that the ECB will finally debate ending its bond buying program.
- In the UK, the world's most tedious political crisis continues. A cabinet subcommittee is to meet today to discuss Plan B for Brexit (which essentially means following EU customs union rules for a time). Advocates of exit worry that Plan B will become Plan A .
- US credit data is due, which is of mild interest to markets. The Eurozone offers GDP data, which is "final" (though not really final) and of little interest to markets. Dutch and Irish consumer price inflation may get a second glance - Eurozone inflation data has been surprising positively.
- The EU announced a list of products subject to a 25% consumer tax – products all partially made in the US. Ahead of tomorrow's G6 plus 1 summit, French President Macron indicated France may not sign the statement if the US does not change its approach. Clearly, this is a terrifying threat (though it does rather emphasise US isolationism, which markets may worry about).