Monday 19th June 2017

No surprise in the French election. Most of those who bothered to vote, supported Macron’s party for the National Assembly. Over the channel May looks in disarray. And, as we embark on a quiet week for data, Phil Dobbie discusses with NAB’s Ray Attrill the changing structural forces that seem intent on holding back inflation. Is underemployment partially responsible? How the economy is shifting is perhaps demonstrated with the Amazon intention to purchase Wholefoods, promising lower prices driven by greater efficiencies – even more part time workers perhaps. As to more immediate influences, Ray suggests the biggest driver on the markets this week could come from the known unknowns – perhaps Brexit related, or something from President Trump’s twitter handle.