US: FOMC minutes and vehicle sales data in focus - Nomura

Analysts at Nomura suggest that recently, FOMC minutes have provided valuable insights into the Committee’s thinking (and diverse views) on inflation, financial conditions and risks and for the 12-13 December meeting minutes scheduled to be released today, their attention will focus on three areas: inflation, labor markets and fiscal policy.

Key Quotes

 “Vehicle sales: We forecast December light vehicle sales to come in at a pace of 17.0mn saar (Consensus: 17.5mn saar). November total light vehicle sales registered at 17.4mn saar, slightly weaker than our and market expectations. We expect solid labor market conditions to sustain consumer demand for light vehicles near term. Further, efforts to clear out prior model-year vehicle inventories likely have pushed up sales. However, continued moderation in sales after a strong increase in September implies replacement demand following the storms has likely waned, pointing to a further slowdown.”