Euro industrial production is expected to decline in March in line with the movementacross countries. The lower production is partly due to fewer working days in March.
We expect an increase in French inflation to 0.9% in April mainly as a result of thetiming of Easter. The final German and Spanish figures should remain unchangedfrom the flash estimate.
In the UK Bank of England May inflation report is released. Focus will be on theupdated assessment of the amount of slack in the UK economy, as it represents acrucial part of the updated forward-guidance framework. Given the recent strength inUK data, we expect the tone to be a bit more upbeat and thereby less slack to beprojected in the economy. UK unemployment data are also released and we expect adecline in the unemployment rate after it showed a large fall in February.
ECB’s Weidmann and Mersch speak in Berlin. It will be interesting to hear ifWeidmann will elaborate on yesterday’s Bundesbank story, cf. below.
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Danske Bank