• Larry Summers has withdrawn as a candidate to replace Ben Bernanke. Janet Yellen will now be the favourite.
  • The US and Russia have agreed a deal on Syria’s chemical weapons.
  • Barack Obama is making the debt ceiling a constitutional issue. He argued that it would be a fundamental change to the way the US is governed if one party was able to demand substantial changes in law by holding the credit of the US to ransom. I think that the Republicans have more to gain from digging in over the funding bill than the debt ceiling. Given Republican lawmakers’ entrenched positions, I expect a government shutdown. That is, unless Republican leaders can find a way of agreeing a temporary extension of current law while negotiations continue.

Data:

  • UK Rightmove House Price Index +4.5% YOY Sep.
  • Prelim. Michigan sentiment 76.8 d.e. A second monthly decline.
  • Retail sales 0.2% MOM d.e. Aug. +4.7% YOY.

Coming Up:

  • Draghi speech
  • Eurozone CPI
  • Eurozone currency account
  • Industrial production
  • China FDI
  • UK CPI
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