Daily Economic Outlook: 25th November, 2015

PCE deflator data of the U.S. will draw markets' attention today.  The Fed's preferred measure of inflation, is likely to increase to 1.4% on the 'core' rate in October, says Lloyds Bank. This will boost the Fed confidence that inflation is returning to its target level.

The Chancellor's Autumn Statement in U.K. is likely to provide the day's domestic focus. The Autumn Statement provides a scope for a mid-year adjustment. 

"Although we expect the Chancellor to claw his way back to the balanced budget objective for 2019/20 - and the OBR to still project a surplus in the final year of the projections in 2020/21 - we look for a cumulative increase in borrowing of around £40bn over the 5-year forecast horizon. The overshoot for 2015/16 should still be sufficiently modest, however, to avoid any meaningful change for the planned gilt issuance in this fiscal year", argues Lloyds Bank.