Follow Paul Donovan

Argentinian austerity

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Argentina's government revealed an austerity plan, with the aim of restoring investor confidence. The Argentine peso weakened on the news, suggesting that there may be some way to go before confidence is restored. Turkish inflation accelerated, prompting the central bank to talk about changing monetary policy. One hopes "changing" means "tightening".
  • The Canadian who is governor of the Bank of England appears before Parliament to be questioned on policy and the EU / UK divorce. The governor's future is also likely to be discussed. There has been speculation that Carney will stay on longer – although of course there are qualified British economists who might be willing to undertake the salary as well.
  • The US ISM opinion poll of an unrepresentative sample of people who ask the wrong questions about how their companies are doing is due. The ISM manufacturing survey has had a 0% correlation with manufacturing output since 2010.
  • Euro area producer price inflation is scheduled. This is July data but gives a sense of company pricing power. It may also suggest how companies are handling US President Trump's consumer tax increases – are prices falling to absorb the tax rise, or is the tax being passed on to US customers?