UBS economic update

The Euro area Pangloss tests have produced their incredible results. As long as one avoids all the bad news, all is for the best in this best of all possible worlds. Unless you are a weak Euro bank, in which case there is little reason to assume wholesale funding markets will reopen.

The Financial Times reports that six German banks failed to provide details of their sovereign holdings. Only Greece's ATEbank (which failed the test) joined them such discretion. At least we have something to benchmark German banks by.

The only real data item today is the Dallas Fed survey of manufacturing confidence. This is not normally a focus, but on a quiet day it may be contrasted with some of the strength in Euro data. US new home sales are also due.

UBS has launched a new daily written product "Macro Keys", which aims to provide thought provoking comment from our senior economists and strategists. Today, Larry Hatheway highlights why we see no double dip, and no inflation threat.


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