Talk and taxes

Daily update

The economic calendar includes several central bank announcements, as well as the release of the Bank of Japan’s minutes. With limited investor focus on other central bank remarks, the Bank of Japan minutes may attract particular attention.
UK fiscal policy continues to occupy disproportionate amounts of time. UK Chancellor Reeves seemed to hint at more taxes in a speech yesterday. The median UK household pays a low income tax by the standards of other advanced economies, but the politics of taxing the median household further may be difficult.
France releases some government borrowing numbers. Ordinarily, these would not be a market focus, but the revolving door of French governments and the unsustainable nature of the French fiscal deficit might push this higher in investors’ attention.
US off-year elections saw string results for Democrats, but the outcome is more likely to excite political operators than investors in financial markets. Of more note, the US National Association of Realtors reported that the median age for a first-time US home buyer has hit 40. Excluding Gen Z from home buying has varied economic consequences.