/EU: JPM economists noted that........>

US DATA REACT: /EU: JPM economists noted that developed markets' "core inflation

continues to downshift, led by the US and Japan." They added the "latest US

releases reinforce the message that growth and inflation are moving in different

directions. On the heels of" the recent "strong July employment report, which

pushed the unemployment rate to a 16-year low," last week's "core CPI and PPI

readings were lower than expected. And US hourly compensation was revised

downward for the past year, with unit labor costs declining 0.2%oya in 2Q17. The

disappointment on core inflation is notably not uniform across the DM. Indeed,

Euro area core inflation has surprised to the upside. However, stubbornly low

core inflation and wage cost growth are a common theme across a DM region

cruising at an above-trend growth pace and approaching full employment."