Daily update
Daily update
- Asian equities fell after a weekend of protests in China against zero-COVID policies. Markets do not like the uncertainty the protests present. There are also now questions about the future direction of zero-COVID policies, and whether additional damage will be done to domestic demand.
- The data calendar is relatively quiet. The US Dallas Fed manufacturing sentiment survey is of limited interest, but the comments section is a reminder of the presence of political polarization in economic survey evidence. The UK CBI releases retail survey evidence—the UK consumer is experiencing demand destruction and very negative real wage growth.
- ECB President Lagarde speaks after an uncharacteristically long silence. However, a blog from ECB Chief Economist Lane last Friday is likely to be more interesting. This detailed Lane’s inflation thinking. Lane mentioned the role of margin expansion in current inflation, and issues in returning real wages to positive growth.
- Federal Reserve President Williams speaks at the New York Economics Club. Economists have clubs because they are sorta social—demented and sad, but social. Fed Chair Powell’s comments on Wednesday may get more attention, but Williams’ comments (and those of Brainard two weeks ago) are more likely to set out medium-term thinking.
