UBS Daily Brief
- An article in the Wall Street Journal cites a Brookings Institute report that claims 8% of Greek GDP is lost every year to public corruption and other factors. Although certain to be disputed this is unlikely to help investor sentiment.
- As ECB finance ministers meet in Madrid, Notwony of the ECB says be believes that Greece has initiated a request for funds under the modern day Marshall Plan. As Europe has not seen fit to say what the structure of this plan is, markets do not know how it will work..
- Euro area CPI is due for March, forecast at 1.5% yoy on the headline. The level of CPI is not interesting in itself (there is no Euro inflation threat). The interest lies in relative inflation rates. Greek inflation rates mean that the drachma is effectively appreciating.
- The US remains serenely untroubled by clouds of ash or (at the moment) darkening fiscal skies. Michigan consumer sentiment should be positive today (we and the market look for a reading of 75). Home sales should bounce post the cold weather in February.