The markets are fairly calm and should remain so. In Asia, a certain optimism prevails after the announcement of a new super stimulus plan in Japan, the value of which would reach nearly 10% of GDP. However, this does not impress many people any more. What will be the reality behind these figures? This is the 3rd “colossal” stimulus package since spring 2020.
Retail sales rebounded in October in the UK (+0.8% mom) after having stabilised in September.
Consumption is therefore picking up again, even though new cases of Covid have exceeded 30,000 every day since July, almost uninterruptedly. The economic consequences of the epidemic rebound in Europe will not be comparable to previous waves. We return to this issue in the Weekly Economic Outlook today.
The Turkish lira continues to sink: the exchange rate against the US dollar rose above 11 yesterday after the policy rate was cut by 100bp to 15%, 5% below the inflation rate. Above all, the central bank has indicated that it may continue to do so. A real financial crisis threatens Turkey.
Economic agenda pretty much empty today.
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