US Economy

Retail sales registered a strong 0.7 percent increase in November, with the increase for October was revised up to 0.5 percent. The monthly jump in sales was the strongest in eight months.

In terms of inflation, import prices fell 1.5 percent in November, pulled down by the continued slide in oil prices. The producer price index also fell for the month, declining 0.2 percent.

Data on business inventories showed a slight rise in October, suggesting only a small contribution to GDP from inventory building in the fourth quarter.

Global Economy

Financial strains in Europe related to the sovereign debt crisis reappeared this week when Greece's prime minister called a snap election for the country's president next week in parliament. A political crisis could break out in the country if the candidate of the governing coalition is not elected.

The ECB is finding it difficult to expand its balance sheet to its intended size of €3 trillion. ECB may turn to sovereign bond purchases in the first quarter of next year in a more aggressive attempt to reach its balance sheet target.