Daily update
Daily update
- The US debt ceiling face limps towards a conclusion. There is the normal posturing by politicians, but markets are optimistic that political extremists will be kept at bay and the deal will pass. In Congress, the House rules committee discusses the procedure ahead of a vote on the agreement tomorrow.
- The UK British Retail Consortium shop price index rose to 9% y/y. This does not reflect prices in the economy, only prices in stores—but this is the area where profit-led inflation is most likely to occur. The BRC (representing retailers) did not mention profit margins because the first rule of profit-led inflation is that you do not talk about profit-led inflation.
- Spanish May consumer price inflation and Italian April producer price inflation are both due. Neither are, perhaps, first-tier economic releases but the fixation on prices at the moment will focus some market attention on the numbers.
- The US Conference Board consumer sentiment data is as subject to partisan bias as is its University of Michigan rival. The Dallas Fed manufacturing activity survey is always a delight—not because of the data but because of the comments section. Anyone using sentiment data should read the Dallas Fed comments, as a reminder of who bothers to fill in surveys.
