MNI Global Morning Briefing

     LONDON (MNI) - Friday starts with the publication of producer price

inflation for Spain and Sweden at 0800BST and 0830BST, respectively. At 0930BST

the ONS releases figures on retail sales and at 1330BST durable goods orders for

the US are published.

     Spain's monthly PPI declined in March by 0.2%, hitting a three months low.

Annual producer price inflation accelerated in March to 2.4% after holding

steady at 1.7% for three consecutive months.

     Producer prices in Sweden increased by 1.0pp in March to 1.2% m/m. Annual

prices on the other hand remained on Feb's level of 6.3% in March. Both series

remain comfortably above their long-term averages.

     UK retail sales expected to ease

     UK retail sales came in stronger than in expected in March. Monthly sales

have been rising for three consecutive months and registered at 1.1% in March

while annual sales grow by 6.7%. According to the MNI median retail sales are

expected to fall in April by 0.3% m/m. On an annual basis markets expect sales

to decelerate and grow by 4.5%. Retail sales excluding fuel rose 1.2% m/m and

6.2% y/y in March and are expected to fall 0.3% on the month and decelerate on

the year (4.0%).

     Figure 1: Retail Sales m/m and Retail Sales excl. Fuel m/m

     GRAPH

     Source: Bloomberg/Market News

     Durable goods orders are about to decline

     Durable goods orders in the US are expected to fall by 2.3% in April after

a revised 2.8% gain in March. Boeing orders fell sharply to just 4 in April from

44 in March. Durable goods orders are expected to rise by 0.2% outside of the

transportation component.

     Friday remains quiet in terms of speeches which ECB's Nowotny being the

highlight of the day.

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