Follow Paul Donovan

Time to talk?

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The US is trying to persuade China to talk about trade, before more taxes are imposed on the long-suffering US consumer. Equity markets liked the news. Equity markets are made up of the companies that conduct nearly all of the world's trade. A report suggested that 60% of US companies in China have been negatively hit by existing US trade taxes.
  • The European Parliament has done something dramatic – words no one ever thought would be written. The Hungarian government was censured for eroding democratic standards, with a two-thirds majority of those voting. The Hungarian forint weakened on the news.
  • The ECB meets (boring). The Bank of England meets (boring). The Turkish central bank meets (maybe not so boring, with strong expectations of a rate increase). The Turkish government has banned real estate contracts in foreign currencies, resetting existing contracts into lira. Turkish President Erdogan fired the management of the sovereign wealth fund. The new chair of the sovereign wealth fund is Turkish President Erdogan.
  • Some Eurozone provinces have final consumer price data, of little interest to markets. The US has consumer price data, of more interest to markets. The core inflation rate is expected to be 2.4% y/y.