With the French election now finally in the rearview mirror, this week's focus is on global inflation releases, with the spotlight falling on the US and China, as well as retail sales in the US. We also have BoE and RBNZ rates meetings. In other data we note industrial production in the Eurozone, UK and Norway along with US retail sales and Fed speakers.
Key developed market events
Just two work days after we reported that Home Capital had already used up half of its C$2 billion emergency "lifeline" credit facility (yielding 22.5%) and was seeking additional emergency funding, on Monday Canada's most troubled alt-mortgage lender provided a liquidity update in which it said that it had drawn an addition C$400 million on its loan, leaving just C$600 million available.
In some good news for the distressed US retail sector, on Monday morning handbag retailer Coach confirmed long-running speculation, when it announced that it would acquire peer Kate Spade in a $2.4 billion deal. Coach will pay Kate Spade shareholders $18.50 a share in cash, a 28% premium to Kate’s closing price as of Dec. 27, the last trading day before the Wall Street Journal first reported that Kate was exploring a sale of the company after coming under pressure from an activist shareholder. In February, Kate Spade confirmed it was reviewing such options in February.
Gold Coins and Bars Demand Rises 9% In Q1, 2017
Submitted by Nicholas Colas of Convergex
April Was Cruel… To the US Tre