Quote:
‘Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalised, and the State will have to take the road which will eventually lead to communism’. Karl Marx (1818-1883)
The News:
Vice governor of the People’s Bank of China warns the US to handle their ties with care following accusations they manipulate the Yuan’s exchange rate.
The Numbers:
Greenwich Mean Time, with expectations and previous figures in brackets.
08:30 EU27 Foreign Ministers’ meeting, Brussels.
09:30 GB December BBA Mortgages (versus 17,773 November).
15:00 US December Existing Home Sales (4.15M to 4.75M versus 4.49M November).
15:00 US December Leading Indicators (-0.7% to +0.2% versus –0.4% November).
18:00 US auction result of 20-year TIPS.
19:30 DE ECB’s Weber speaks, Düsseldorf.
23:50 JP December Corporate Service Price (-2.5% to –2.2% Y/Y versus –1.9% November).
23:50 JP Bank of Japan Minutes of December 18th/19thmeeting.
The Psychology:
Lunar New Year holidays today in many countries; China off all week.
The Risk:
Stock indices perched precariously on pivotal support.
Today’s most interesting chart: Spot Gold at €691 per ounce
Record high.
