Photo: Stuck in Customs on flickr
OK, maybe saying “only” is a bit hyperbolic, but there’s no doubt that the big show this week is in China, and it will happen on Thursday, and it’s the December CPI.It’s hard to think of a more salient issue in the global economy right now than emerging market inflation, and given the significance of only Chinese growth on a host of other markets (especially commodities, though certainly not only commodities) this is what matters.
The number to watch: 4.6% inflation for December, which is slightly cooler than the 5.1% we got in November. If it comes in tame, or a little cool, then that’s excellent news. However if it’s real hot, and it send a clear signal to Beijing to keep cool, then you better watch out.
As for other stuff, this week in the US will be dominated by earnings, plus various housing numbers, all of which will probably be pretty sour.
On that same day, we get Q4 GDP for China, which is expected at 9.4%.