With the deadline fast approaching, German Chancellor, Angela Merkel is struggling to form a coalition Government. A self-imposed deadline of the end of this week was set for Merkel to form a coalition between the Christian Democratics, Free Democrats and the Green Party securing her a fourth term as Chancellor. However, topics including share of risks in the Euro area, cutting carbon emissions and immigrations are holding back the talks, although Merkel remains positive that ‘success is possible.’
The month on month UK Retails Sales posted better than expected this morning, with Non-Food Stores, especially the second-hand goods stores, contributing the most to the growth. However, compared to October last year, the reading fell by 0.3%, the first annual fall since March 2013. The growing inflation has played a part in the reduction of spending, whilst the unusually warm weather is also said to have reduced spending. The Pound was little unmoved on the reading.
Across the pond, FOMC members Lael Brainard and Robert Kaplan are set to speak. Brainard will be speaking about financial technology at the Third Annual Financial Stability Conference, whilst Kaplan is speaking at the Chartered Financial Analyst Society of Houston meeting. Also from the US, the Industrial Production figure and Philly Fed Manufacturing Index will be released, expected to post 0.5% and 24.5 retrospectively.