Quote:
‘If I were to lay the blame for the crisis on any one group of people, it would be the economists.’ Roger Bootle (1953-)
The News:
Brazil to impose taxes on foreigners investing in Brazilian stocks and bonds to curb the real.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
04:00 AU Reserve bank of Australia Minutes of MPC meeting show members now more concerned about inflation.
04:45 JP auction result of 20-year JGB: average yield 2.094%, stop 2.107%, bid-to-cover 3.02.
07:00 DE September PPI –0.5% M/M, -7.6% Y/Y, versus +0.5% and –6.9% August.
09:30 GB September Public Finances (£15.5B to £26B, Net Borrowing £12B to £18.5B, vs +£10.4B and £16.1B August).
09:30 GB September M4 Money Supply (+0.2% to +0.6% M/M, +9.9% to +11.7% Y/Y, versus +0.1% and August).
13:30 US September PPI (-0.8% to +0.4% M/M, -4.9% to –3.9% Y/Y, versus +1.7% and –4.3% August).
13:30 US September PPI Ex-food & energy (-0.1% to +0.2%, +1.8% to +2.1% Y/Y, vs +0.2% and +2.3% August).
13:30 US September Housing Starts (590K to 620K, Building Permits 585K to 620K, versus 598K and August).
13:30 CA August Wholesale Sales (-1.5% to +1.5% M/M versus +2.8% July).
13:30 CA September Leading Indicators (+0.4% to +1.5% M/M versus +1.1% August).
14:00 CA Bank of Canada interest rate decision (unanimously expected unchanged at 0.25%).
16:00 US Fed’s Warsh on the financial crisis at the San Francisco Fed’s Asia Economic Policy conference, Santa Barbara.
20:15 GB Bank of England’s King speaks, Edinburgh.
The Psychology:
US dollar continues to weaken.
The Risk:
The authorities start trying to slow currency appreciation.
Today’s most interesting chart: NZD
Powering ahead again, retracing over 78.6% of last year’s losses.
