Focus continues to be on the geo-political development in Ukraine, albeit a moreconciliatory as president Putin yesterday eased fear of an imminent Russianintervention. Finnish president Niinistoe will meet Putin for talks in Sochi.
In the data calendar focus will be on US data. We expect industrial production to haveincreased 0.2% m/m in July. Indicators for industrial production together with ISMmanufacturing have been suggesting strong manufacturing but weak total workinghours in manufacturing in the labour market report suggest subdued industrialproduction. We expect the University of Michigan consumer confidence to haveimproved slightly to 83.1 in August from 81.8 in July, mainly on the back of lowerfuel prices. Finally, we expect producer prices to have increased only a modest 0.1%m/m in August mainly due to lower energy prices.
In our view Fitch will upgrade Ireland’s sovereign credit rating with one notch to AfromBBB+ in connection with its review of Ireland today on the back of theimproving outlook for public finances, stronger growth and a more resilient bankingsector. This will bring Fitch’s rating in line with Standard & Poor’s but one notch aboveMoody’s.
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