MNI European Morning Briefing

     LONDON (MNI) - There is a full data calendar on both sides of the Atlantic

Wednesday, with German inflation numbers and US Q2 GDP the standout features.

     The European calendar gets underway at 0700GMT, with the publication of the

Swiss KOF Economic Barometer. At the same time, the Spanish flash August

inflation data will be released.

     German state inflation data is also expected from 0700GMT, kicked of by the

release of the Saxony numbers

     Bundesbank Board member Andreas Dombret speaks at the live stream press

conference between Bundesbank and BaFin, in Frankfurt, starting at 0800GMT.

     The main UK data will be released at 0830GMT, when the Bank of England's M4

numbers and the Lending to Individuals report is published.

     Housing activity in the UK has softened somewhat in recent months as

household's grapple with rising inflation, subdued wage growth and an uncertain

business landscape. In June, mortgage approvals subsequently fell to a

nine-month low of 64,700.

     Casting our attention to July, analysts reckon we will see a pickup. The

median of analysts' forecasts is 65,800, with expectations as high as 66,600 and

as low as 64,000.

     At 65,800, this is in line with data published by UK Finance (formally the

BBA) earlier this week, who reported approvals up to 41,600 in July versus

40,400 in June.

     According to the BOE, secured lending rose to stg4.1bn in June and all

analysts see this figure retreating in July. Taking the median of analyst

expectations, a outturn of stg3.5bn is expected in July.

     Back on the Continent, at 0900GMT, the European Economic Sentiment

Indicator will be published, alongside the business climate Index.

     The US calendar gets underway at 1100GMT, with the release of the MBA

weekly applications index.

     The Federal German flash August inflation data will be released at 1200GMT.

     At 1215GMT, the ADP August employment report will cross the wire, with the

2nd estimate of the Q2 GDP data expected at 1230GMT.

     Second quarter GDP is expected to be revised up to a 2.7% rate from the

2.6% gain in the advance estimate. Analysts expect PCE and inventories growth to

be revised up, offset by a downward adjustment to the government component. The

chain price index is expected to be unrevised at a 1.0% rate of growth.

     At the same time, the Canadian payroll data will be published.

     Federal Reserve Governor Jerome Powell will speak on The Role of Boards at

Large Financial Firms at the Large-Bank Directors Conference in Chicago, with

audience Q&A, starting at 1315GMT.

     The latest US help-wanted online index data is expected at 1400GMT, with

the DOE weekly crude oil stocks numbers expected at 1430GMT.

     The latest US farm prices data will be released at 1900GMT.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com