Economy.com Daily Update: December 12, 2019

Today's Economy

The market’s valuation of equity influences the value of the collateral backing outstanding debt.

The increase in new filings is attributed to the calendar configuration.

The big question remains if the government will seek a debt reduction.

ECB President Christine Lagarde will launch a strategic review of the bank's objectives in January.

Commentary

As consumers keep faith in the labor market, they are opening their wallets to major purchases.

The region will leave stagnation behind.

With little else to pick up the slack, consumer spending must not falter.

We expect the Federal Open Market Committee to keep its target range for the fed funds rate unchanged.

Today's Economic Indicators

Canada
RPS House Price Index
Nov. 2019: 2.7%
House prices rose 0.1% in November across the 13 largest Canadian markets, causing year-ago price growth to rise to 2.7% from 2.4% in October.

Germany
Consumer Price Index
Nov. 2019: 1.1%
German headline consumer inflation remained unchanged in November at 1.1% y/y.

France
Consumer Price Index
Nov. 2019: 1.2%
France's EU-harmonized inflation rate increased to 1.2% y/y in November after hitting 0.9% in October.

Euro Zone
Industrial Production
Oct. 2019: -0.5%
Euro zone industrial production disappointed and fell by 0.5% m/m in October, building on a 0.1% decline in September.

India
Consumer Price Index
Nov. 2019: 5.5%
India’s inflation for November surged above expectations to 5.5%, up from 4.6% in October and well above the Reserve Bank of India’s target for this year.

India
Industrial Production
Oct. 2019: -3.8%
India's industrial production slumped by 3.8.% y/y in October, worse than our expectation of a 1.7% fall but still softer than the 4.3% y/y decline in September.

Mexico
Industrial Production
Oct. 2019: -3.0%
Mexico’s industry reported an annual contraction in October, as the economy remains stagnant.

Euro Zone
Monetary Policy
Dec. 2019: 0.0%
The European Central Bank kept its main policy rates unchanged during its December meeting.

Russian Federation
Foreign Trade
Oct. 2019: US$12.4 bil
Russia’s trade balance had another rough month in October.

United States
Jobless Claims
December 07: 252,000
Jobless claims spiked in the week ended December 7, but this was largely a seasonality issue due to the Thanksgiving holiday, and the jump should be taken with a large grain of salt.

United States
Producer Price Index
Nov. 2019: 0.0%
The producer price index for final demand was unchanged in November, bucking our and consensus expectations for a modest gain.

United States
St. Louis Fed Financial Stress Index
December 06: -1.33
Financial market stress increased in the week ended December 6, the first increase in four weeks.

United States
Natural Gas Storage Report
December 06: -73 bil cubic feet
The decline in natural gas inventories was slightly under analyst predictions, which will have a small negative effect on prices.

Uruguay
Industrial Production
Oct. 2019: -7.8%
Industrial production in Uruguay tumbled in October, posting a loss of 7.8% relative to the same period a year earlier.

United States
Financial Accounts - Households
2019Q3: $113.83 tril
U.S. household wealth rose in the third quarter despite a flat stock market as growth in housing wealth held steady.

Argentina
Consumer Price Index
Nov. 2019: 52.1%
The statistics office’s national consumer price index increased 4.3% in November, up from 3.3% in the previous month and 3.2% a year earlier.

United States
Financial Accounts - Nonfinancial Corporate
2019Q3: $16.96 tril
Nonfinancial corporate business wealth increased by $435 billion to $16.96 trillion during the third quarter behind an increase in the value of real estate and financial assets.

Japan
Tankan Survey
2019Q4:

Japan
Retail Sales
Oct. 2019: