North Korea
The ongoing tensions on the Korean peninsula are likely to set the tone for financial markets throughout the week. Markets remained jittery all last week, with equities and other risk assets enduring bouts of selling after a fresh nuclear test and threats of the US receiving more “gift packages” from the Pyongyang regime.
Bank of England
The Bank of England will meet to decide interest rates this week, with the announcement due at the usual time of midday on Thursday. Expectations that the Monetary Policy Committee is moving closer to raising rates has been tempered by a slight slowdown in inflation and concerns that growth is precarious. Policymakers are expected to leave the Bank Rate unchanged at 0.25% and make no adjustments to the size of the asset purchase programme.
The pound has been sensitive to rate hike speculation but with MPs sitting and scrutinising Brexit talks again, politics could be the chief driver of sterling crosses over the coming weeks. Nevertheless, markets will be keen to see what, if anything, the Bank has say about the path of growth and inflation.
UK inflation
With the Bank announcement on Thursday, the CPI inflation report on Tuesday will be closely monitored for any signs of mounting pressures on prices. After peaking in May at 2.9%, CPI inflation has since eased back to 2.6% in June and July.
US inflation
US CPI inflation data for August is due on Thursday, with the numbers eyed as the last piece of the puzzle ahead of the Federal Reserve meeting the following week. Persistently sluggish inflation has dampened expectations for a third rate hike this year. The headline CPI reading eased up by just 0.1% in July, missing expectations for a 0.2% rise. Core PCE inflation, the Fed’s preferred measure, slid back to 1.4% in July from 1.5% in June, extending a run of slowing price growth that has persisted for most of the year.
Economic Calendar (All times BST)
Monday, 11 September
00:50 – Japan core machinery orders
07:00 – Japan preliminary tool orders
09:00 – Italy industrial production, quarterly unemployment rate
13:15 – Canada housing starts
Tuesday, 12 September
02:30 – Australia NAB business confidence
09:30 – UK CPI, PPI inflation
15:00 – US JOLTS job openings
Wednesday, 13 September
00:50 – Japan PPI inflation
01:30 – Australia Westpac Consumer Sentiment
07:00 – Germany final CPI inflation
08:15 – Switzerland PPI inflation
09:30 – UK average earnings, unemployment rate
10:00 – Eurozone employment change, industrial production
13:30 – US PPI and core PPI inflation
15:30 – US crude oil inventories
Thursday, 14 September
00:01 – UK RICS house price balance
02:30 – Australia employment change, unemployment rate
03:00 – China industrial production, fixed asset investment
07:45 – France final CPI inflation
08:30 – Swiss National Bank Libor rate, monetary policy assessment
09:30 – UK retail sales
12:00 – Bank of England monetary policy summary, official bank rate
13:30 – Canada new housing price index
13:30 – US CPI, core CPI and weekly unemployment claims
23:30 – New Zealand Business NZ manufacturing index
Friday, 15 September
10:00 – Eurozone trade balance
12:00 – Bank of England quarterly bulletin
13:30 – US retail sales, core retail sales, Empire State manufacturing index
14:15 – US capacity utilisation rate, industrial production
15:00 – US preliminary University of Michigan consumer sentiment
Corporate Calendar
Monday, 11 September
Associated British Foods (LON:ABF) – trading update
Tuesday, 12 September
Ashtead Group (LON:AHT) – Q1 results
JD Sports (LON:JD) (JD.) – Interim results
Wednesday, 13 September
Dunelm Group (LON:DNLM) (DNLM) – final results
Galliford Try (LON:GFRD) – final results
Thursday, 14 September
Oracle Corp (NYSE:ORCL) – Q1/2018, EPS estimate 0.605
GVC Holdings (LON:GVC) (GVC) – interim results
WM Morrison Supermarkets (LON:MRW)(Wm) Supermarkets (MRW) – interim results
Next (LON:NXT) (NXT) – interim results
Booker Group (LON:BOK) (BOK) – Trading update
Safestore Holdings (LON:SAFE) (SAFE) – Trading update
Friday, 15 September
J D Wetherspoon PLC (LON:JDW) (JDW) – final results
Source: Bloomberg
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