Poor Data = Weaker Outlook


We’ve just had plenty of the data from the EMU and while the market was mainly focused on the CPI, we’ve also had the data from Greece.

Retail sales in July declined 8,7% in y/y term, way more than in June (-1,7%) and much more than the market expected (-5,7%). While consumers had to operate under a huge uncertainty during the summer as Grexit fears were alive, and some of this demand may come back later in the year the data shows that the damage caused by lingering negotiations was large and Greece would face many hurdles to meet fiscal targets.