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The lustre of economic growth

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  • US employment data has burnished the lustre of economic recovery â€Â“ payrolls has averaged 180,000 over the past six months. The data showed full time employment improving, and a broad range of industries increasing employment.
  • Chinese export numbers came out stronger than expected for November, with an increase in demand for exports evident from both the US and the EU. This adds to the idea of a US led economic recovery.
  • China's exports to Japan fell, and Japanese third quarter GDP was revised lower - partially due to inventories (which is less of a concern) but also due to capex, which grew 0%. As the weaker yen impacts the Japanese economy only if companies spend the profits they make, this is troubling.
  • Central bank speakers are the main distraction today. The ECB's Mersch is scheduled after some uncharacteristically dovish comments from Weidmann of the Bundesbank. There is a trio of speakers from the US Fed, and Carney of the Bank of England will be guiding the forward guidance of forward guidance.

Listen to the audio version of this briefing.