Photo: Flickr Machine Project
From Goldman’s Fiona Lake, a real quick overview of the week ahead, and what it all symbolizes.The week ahead is pretty much 2012 in microcosm, touching on many of the themes which are likely to dominate the early part of 2012. The data – namely the business surveys, Asian export data, US labour market data and the final reading of our GLI for December will enable us to gauge the spillover from the European crisis into the macro data. For sure, activity has slowed, but it is arguably not as weak as expected. The batch of inflation data – mainly from Asia and Switzerland – with provide an indication of the room central bankers have to ease policy further in response to slower data. So far the evidence is somewhat mixed. In addition, the minutes of the FOMC meeting will be examined for hints of further easing in the form of a change of policy communication and/or expansion of the Fed’s balance sheet in the near future. Finally the Iowa Caucus kicks off the process of choosing the Republican candidate for the US presidential election as well as the heavy political calender in 2012. We have to wait until next week for the first event in the European political calender as Merkel and Sarkozy meet on January 9. We will go on to examine these themes and what to watch in early 2012 in the rest of the daily.
Hope you’re ready!