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Interminable despair

| Posted by: Paul Donovan | Tags: Paul Donovan

  • How interminable can the interminably tedious process of the UK /EU divorce get? The government is set to lose today's Parliamentary vote. The government will need a new plan next Monday. Media reports suggest the 29 March exit date may be extended. Economists quietly despair that this will never end, either way.
  • The US government is still shut down. US senators are meeting. Some Republicans are minded to reopen the government. Whether tax rebates will be paid is not clear. The IRS is reportedly planning to get staff to work without pay. Other government staff forced to work without pay were hit by a mysterious illness, impeding government.
  • Neither snow, nor rain, nor government shutdown shall stop the publication of US inflation data. Producer price data will be hit by energy prices (headline and core both affected), but it gives an indication of pricing power at a time of rising labor costs.
  • ECB President Draghi is testifying today. Investors are less interested in the testimony itself, and more interested in the outlook. A PBoC deputy governor said China will continue to offer tax cuts. This sort of pom-pom waving cheerleading is likely to become a regular feature of the Chinese economic landscape.