As expected, Emmanuel Macron won the run off and will be the next French president. Markets had already factored in this result so we see no immediate impact following this result.
Last week brought news of slow growth in the opening quarter of the year over in the US. Slower growth is likely down to temporary factors, including our old friend ‘residual seasonality’. Conversely, slower growth in the UK is likely less to be temporary.
Last week saw UK inflation hold steady at 2.3 percent, but that could be because Easter fell in April this year. Unemployment held steady too with the 3 months to February averaging 4.7 percent.
This week we focus on jobs on both sides of the Atlantic.
This week we look at Brexit, the Chinese economy and US inflation
This week’s focus is on the UK. Headline CPI inflation rose to 2.3 percent and retail sales grew 1.4 percent in February.
Last week, the Fed hiked rates 0.25 percent to take the target range to 0.75-1.0 percent. If Kristin Forbes had her way, the Bank of England would have done the same.
Last week, the European Central Bank (ECB) admitted less urgency in its fight with deflation, mostly because there is no deflation. At the same time, we gathered that the US economy created more jobs than was expected, clearing the way for an imminent rate rise.
This week’s news is all about China with reports on both the manufacturing and services PMI.
Last week's composite Purchasing Managers’ Index (PMI) survey for the eurozone was packed full of good-ish news.