TARP testimony time

Tuesday 18 November 2008 - TARP testimony time

Presented by Paul Donovan




+ Bernanke and Paulson appear before the House Financial Services Committee on the TARP (which is no longer a TARP, as toxic assets have nothing to do with it). Use of funds, and auto bail outs are likely topics. Japan's media reports Ford may sell some of its Mazda stake to raise cash.


+ Japan's Minister of Finance, Nakagawa, says that the dollar should remain the world's reserve currency - somewhat ironic, as Japan's companies have led the way in abandoning the dollar as an invoicing currency. We see the dollar continuing to lose private sector reserve status.


+ Several ECB speakers are due today - we expect them to maintain the recent more dovish tone to their remarks, though it is unlikely that there will be any indication of an acceleration in the somewhat stodgy ECB easing response to date.


+ US and UK inflation data are due - US PPI is seen -1.6% headline, with UK RPI and CPI both weakening. Inflation is a lagging indicator so these are somewhat academic numbers. We expect US and UK inflation pressure to veer towards deflation next year.

Category:

News & Politics

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• ubs
• economics
• paul
• donovan
• credit
• financial
• crisis
• markets
• fed
• bernanke
• paulson
• car
• companies
• japan
• dollar
• deflation

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paulson is a criminal