Thursday 1st September 2022

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Euro area inflation is the highest since the creation of the Euro and NAB’s David de Garis says markets are no pricing in a greater than 50 percent change that the ECB will lift rates by 75 basis points next week. That’s helped support the Euro today, whilst the pound falls further, to levels we saw in early 1985, when mullets were fashionable. Still are for some, of course. Australia’s construction sector has taken a battering, driven by weather and higher supply costs, but private sector credit growth remains strong. China’s PMIs show an economy that is taking a long time to recover – in part because of COVID, but hot weather has also had an impact. Friday’s jobs numbers will focus attention now, but the new ADP report has shown jobs growth for larger businesses and a fall in small business employment.