Global update
- China took centre stage in the past week. Economic data showed an encouraging picture of a rebalancing of the recovery from public demand towards private demand and exports.
- Pressure for Yuan appreciation is rising from many sides.
- US credit is still being tightened but the pace is slowing down.
- Euroland has left the recession with Germany taking the lead. More positive growth data is in the pipeline in the coming quarters, forcing ECB to revise up their growth forecasts.
- The Danish budget for 2010 was expensive in our mind and on the border of what should be advised.
- In Sweden, industrial production data was revised substantially to show that industrial production had bottomed a few months ago rather than continuing down.
Market movers ahead
- US retail sales take centre stage next week. The US consumer is at the centre of the sustainability debate and hence the data will be important for sentiment surrounding the recovery. Also look out for speeches by Fed chairman Bernanke and vice president Kohn.
- Euroland inflation data to show a further decline in core inflation.
- Data on Q3 GDP in Japan should show another decent increase of 3.9% q/q.
- Little news out of Scandi. Swedish data on house prices and unemployment are the main ones to watch.
