Quote:
‘Auditors are people who have found accountancy too exciting. Their professional task is to walk the battlefield long after the shouting is over, bayoneting the wounded.’ Sir John Banham (1940-)
The News:
Deputy Bank of England governor Bean says economic slowdown to ‘drag on for considerable time’ and ‘the shocks impinging on us this is at least as challenging a time as back in the 1970’s’.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP July Corporate Services Prices +1.3% Y/Y versus revised +1.3% June.
04:45 JP auction result of twenty-year JGB: coupon 2.10%; average yield 2.14%; stop 2.143%; bid-to-cover 3.41.
07:00 DE Q2 GDP –0.5% Q/Q, +1.7% Y/Y, versus revised +1.3% and +2.6% Q1.
07:10 DE September GfK Consumer Confidence 1.5 versus revised 1.9 August.
09:00 DE August IFO (Climate 95.9 to 98.0, Current 102.3 to 105.7, Expectations 89.5 to 91.0, vs 97.5/105.7/90.0 Jul).
09:30 GB July BBA Mortgages (versus £2.11B June).
14:00 US June Case/Shiller House Price Index (-17.3% to –15.9% Y/Y, versus –15.8% May).
15:00 US August Consumer Confidence (50 to 56 versus 51.9 July).
15:00 US July New Home Sales (510K to 570K annualised versus 530K June).
19:00 US FOMC Minutes of meeting August 5th.
The Psychology:
Fortieth meeting of ASEAN economic ministers starts (continues to 27th).
The Risk:
Treasury yields drop as stock markets ever more wary.
Today’s most interesting chart: South Korean won
Weakening dramatically.
