UBS morning audio comment 13/2/2017

• Japanese GDP came in a little weaker than expected. Domestic demand disappointed, and it was exports that helped the headline figure. This may be a source of some tension with the US (presidential golf game notwithstanding) given US President Trump's focus on getting Americans to buy things made in America.
• Fed Chair Yellen is due to speak tomorrow, and this is likely to be the focus for financial markets. Is there a need to signal a change of pace for tightening policy? Should quantitative policy be tightened more aggressively? Does easing bank regulation (which is a policy easing) warrant a Fed response?
• German wholesale prices are due. Hardly momentous in the normal course of events, but of some interest as inflation moves sharply into focus in the euro area (surprising positively, with some economies reaching 3%). European Commission forecasts are due. Hardly momentous (period).
• The German Chancellor and the French Prime Minister are due to meet, with a backdrop of US attacks on the integrity of the EU, Greece, the UK, and volatility in the Franco-German bond spread.