Morning comment 12/4/2017 - UBS
- Chinese consumer prices were largely as expected, and are really of no concern to the Chinese. Consumer inflation is nearly always a local affair. In the case of China, food is important (China does not export food). In the case of the US, housing is important (the US does not export housing).
- Chinese producer price inflation slowed a little from recent elevated levels. Producer prices are also of limited use internationally. The relationship between Chinese export prices and prices in stores in the US and Europe is tenuous. US export and import prices are due.
- UK labor market data will be watched for evidence that wages may be reacting to somewhat higher inflation. UK consumers have seen real incomes suffer recently, and have maintained their living standard only by cutting back on saving. Bank of England Governor Carney is due to speak.
- US Secretary of State Tillerson is in Moscow. It is not clear whether there will be a meeting with Russian President Putin. US President Trump lifted a hiring ban on federal government, but media attention is more focused on White House spokesperson Spicer's grasp of basic historical facts.
