Recap 2014-07-22




  • US CPI was stable at 2.1% YoY as exp. The Core measure, however, declined to 1.9% vs 2.0% exp and prev
  • FHFA House Prices rose 0.4% MoM vs 0.2% exp and 0.0% prev
  • Existing home Sales growth slowed to 2.6% vs 1.9% exp and 4.9% prev
  • The Bundesbank has come out in favor of higher German union wages, a “remarkable shift in stance from a central bank famed for its tough approach to keeping prices in check”. The Bundesbank’s chief economist told Spiegel (in an article published Sunday) that the recent union wage increase of 3% was welcome (despite being above the ECB’s inflation target of ~2%). The push for higher compensation underlies ECB concerns over the state of Eurozone inflation. FT
  • A Federal Reserve Staff paper notes that “The results highlight the potential for this type of macro prudential regulation to have a significant and broad influence on bank behavior.”
  • SF Fed: Starting wages of recent college graduates have essentially been flat since the onset of the Great Recession in 2007… The lackluster increases in starting wages for college graduates stand in stark contrast to growth in median weekly earnings for all full-time workers… This has created a substantial gap between wage growth for new college graduates and workers overall… In this Economic Letter we put the wage growth gap in a historical context and consider what is at its heart. In particular, we find that the gap does not reflect a switch in the types of jobs that college graduates are able to find. Rather we find that wage growth has been weak across a wide range of occupations for this group of employees, a result of the lingering weak labor market recovery.


  • Tue: AU CPI
  • Wed: BoE Minutes, EU Consumer Confidence, RBNZ, NZ Trade Balance, Japan Trade Balance, PMI, China HSBC Mfg PMI
  • Thu: EU PMI, UK Retail Sales, Italy Consumer Confidence, US Jobless Claims, US Markit Mfg PMI, New Home Sales, Japan CPI, NZ Business Confidence
  • Fri: GfK Consumer Confidence, IFO, Turkey Trade Balance, US DGO
  • Mon: US Markit PMI, US Pending Home Sales, Japan Unemployment, Australia New Home Sales, UK House Prices
  • Tue: US Consumer Confidence, NZ Building Permits