Asia Chart Pack Inflation fears should ease soon GDP growth has continued to slow while markets in the region have been stressed by the acceleration in inflation. We expect inflation to top out in coming months, with the peaks generally being lower... 26th January 2011 · 1 min read
US Housing Market Data Response New Home Sales (Dec.) The impressive increase in new home sales in December is mainly due to the rush to beat the deadline of a tax credit in California. Without that boost, new sales would have been broadly unchanged... 26th January 2011 · 1 min read
UK Economics Update Fears of stagflation overdone Yesterday’s disappointing GDP figures re-ignited concerns about a return to so-called “stagflation” – the toxic combination of high inflation and high unemployment/weak economic growth that plagued... 26th January 2011 · 1 min read
Europe Economics Focus Will the Emerald Isle ever regain its sparkle? The recent bail-out and banking support measures may have pulled Ireland back from the brink of imminent disaster. But the economy and the public finances remain in an extremely precarious position... 26th January 2011 · 1 min read
Asia Economics Update Korea's slowdown has probably bottomed out Today’s Q4 GDP data for Korea show that growth eased in q/q terms, as expected. The economy is likely to regain traction during the course of this year, while policymakers have rightly become more... 26th January 2011 · 1 min read
China Chart Pack Banks squeezed by reserve ratio hikes Interbank rates have spiked to multi-year highs ahead of Chinese New Year. This partly reflects seasonal factors, but also that successive required reserve ratio (RRR) hikes are squeezing banks’... 26th January 2011 · 1 min read
UK Economics Focus Will inflation ever fall back? The stubbornness of UK inflation has prompted suggestions that there has been an adverse shift in the relationship between growth and inflation and has raised concerns that the low inflation... 26th January 2011 · 1 min read
UK Data Response MPC Minutes (Jan.) Yesterday’s disappointing GDP figures re-ignited concerns about a return to so-called “stagflation” – the toxic combination of high inflation and high unemployment/weak economic growth that plagued... 26th January 2011 · 1 min read
UK Housing Market Data Response BBA Mortgage Lending (Dec.) The continued decline in mortgage activity in December capped off a weak year for lending to the housing market. The prospect of sluggish economic growth and subdued demand means that 2011 is unlikely... 26th January 2011 · 1 min read
Japan Data Response Small Business Confidence (Jan.) Conditions faced by smaller Japanese businesses appear to have stopped deteriorating but remain more difficult than the recent peaks seen in mid-2010. What’s more, the detail of the latest survey... 26th January 2011 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Jan.) Most of the peripheral euro-zone economies appear to have made some inroads into their large budget deficits last year, with Spain taking the lead. 25th January 2011 · 1 min read
Recoveries to lose momentum in 2011 There are few signs that the euro-zone recovery has yet to encompass domestic demand. Therefore, as the boost to growth from exports fades, all member states will see growth slow to some extent in... 25th January 2011 · 1 min read
US Housing Market Data Response House Prices (Nov.) The falls in house prices seen towards the end of last year are likely to continue throughout this year. We think that prices will fall by just over 5% in 2011, leaving them a little less than 5%... 25th January 2011 · 1 min read
Canada Data Response Consumer Price Index (Dec.) Higher energy prices and some base-year effects were behind the pick-up in headline inflation in December. Disinflationary pressures from excess capacity will continue to restrain core inflation... 25th January 2011 · 1 min read
Europe Economics Update Spanish bank plans unlikely to be a game changer News that the Spanish Government will force the troubled banks to boost their capital ratios is an encouraging sign that it is trying to tackle the economy’s fundamental problems. But we doubt that... 25th January 2011 · 1 min read
