Industrial production in France during September painted a mixed picture of the Eurozone's second-largest economy, which is struggling to create more jobs. Industrial production rose 1.8 per cent year-on-year in September, in line with expectations. However on a month-on-month basis things were slightly better, with production rising 0.1 per cent compared to the forecast figure of 0.4 per cent drop. The French economy is hindered with record high unemployment, despite President François Hollande embracing billions of euros worth of tax breaks for businesses and households and supporting reforms to make businesses more flexible.
David Cameron was speaking yesterday about the European reform stating the European Union must not turn into a clique that discriminates against countries that don't use the Euro. Mr Cameron spelled out that the European Union and the Eurozone "are not the same thing" and that needs to be accepted by countries that are within the euro-area. Cameron said it is a matter of "cardinal importance" that there is recognition that the EU is a union "with more than one currency", Mr Cameron said, and those countries such as Britain that choose not to use the single currency do not bear any costs of supporting the euro. Donald Tusk, the president of the European Council, will begin discussions with member states on the issues raised by UK Prime Minister David Cameron's plan to renegotiate Britain's membership of the EU. Mr Cameron this week sent a letter to Mr Tusk detailing his objectives in trying to redraw the terms of Britain's membership. Mr Tusk, the former president of Poland, said in a tweet on Tuesday that receipt of the letter means negotiations can begin. The UK prime minister is hoping to seal a deal with the EU's 27 member states in the next few weeks.
In China The consumer-price index rose 1.3 percent in October from a year earlier, according to the National Bureau of Statistics, missing the 1.5 percent estimate and down from 1.6 percent in September. The producer-price index fell 5.9 percent, its 44th straight monthly decline. With lingering deflation risks, along with weakening trade, this opens the door for additional stimulus as inflation remains about half the government’s target pace. The People’s Bank of China is seeking to stabilize the economy without fueling a renewed surge in debt.
09:30 – GBP: UK Unemployment Rate expected to remain unchanged at 5.4%
13:15 – EUR : ECB President Mario Draghi makes a speech