Following the lull of Christmas, we are definitely back in the swing of things news wise, and the week ahead is going to be a packed one with lots going on across the globe. But on a lighter note, as you read through the serious and potentially impactful news for the week, at the end of the article you have croquetas and pet blessings to lighten the mood (hence the cute picture).
In the global business and financial world, Monday’s attention is focused on the eurozone, where the Eurogroup will meet and the trade balance and industrial production will be published, both data for November, both of which showed positive results the month before. The week starts without notable macro references in Spain, but on a business level, Faes Farma, Inmobiliaria del Sur and Naturhouse pay dividends. All on a day in which the New York Stock Exchange will not open its doors due to a holiday.
On Tuesday, inflation data from Germany and the unemployment rate from the United Kingdom will be revealed. Likewise, we will learn about the ZEW surveys in the Eurozone and Germany. Then, on Wednesday, will know the data on inflation in the United Kingdom and the Eurozone. At the same time, the UK production price indices will be known. Macroeconomic references that will show the evolution of prices in the last month of the year and will help to indicate the degree of dynamism of the European economies.
The week will end with the publication of the current account balance in the Eurozone and the trade balance of Spain. Likewise, the production price index (PPI) will be known in Germany and the week in Europe will close with the publication of retail sales in the United Kingdom.
The UK is set for a controversial and divisive week of discussion, the UK´s involvement in the US-led airstrikes on Houthi positions in Yemen leading the week after the Lib Dems called for Parliament to be recalled due to the lack of consultation before the attack. Prime Minister Rishi Sunak is set for his ministerial statement on Monday which may include his excuses, and it´s possible that the Speaker will allow urgent questions.
The controversial Rwanda bill returns to the Commons on Tuesday and Wednesday where it is not expected to be welcomed by all.
Also on Tuesday, justice that needed a TV drama and an election year to prompt support continues in the limelight, as the public enquiry into the Post Office Horizon scandal continues on Tuesday. If not for the ITV show, you might not even realise the enquiry is ongoing, and started 4 years ago. Senior figures from Government-backed Fujitsu, the company responsible for the Horizon software, are due to give evidence all week.
There will be a lot of global news this week, with Ukraine back in the headlines, not because in a time of any crisis a British PM visits and gives them money, but rather world figures will be in Davos for the World Economic Forum, which begins on Tuesday with Ukrainian president Volodymyr Zelenskyy, Chinese premier Li Qiang, European Commission chief Ursula von der Leyen, NATO head Jens Stoltenberg and US National Security Advisor Jake Sullivan among notable speakers.
In the USA, various macroeconomic references of the main world power will be published on Monday, highlighting at the beginning of the week the Manufacturing Empire indicator, which will give a picture of the manufacturing sector.
The next day, the evolution of US industrial production in December will be published after registering a slight recovery the previous month, rising 0.2% monthly. We will also know the data on retail sales (in November sales rose 0.3%). Like every Wednesday, the weekly mortgage applications will be known.
On Thursday the 18th, data from the Philadelphia FED survey and construction licences will be published. To end the week, we will know the evolution of the University of Michigan Confidence indicator and the sale of homes built.
In the Asia-Pacific region, on Tuesday we will know the evolution of Japan’s PPI, which, in line with the evolution of the CPI, is again expected to moderate, which could delay the tightening of the current ultra-loose monetary policy.
On Wednesday the 17th we will learn about various references from China, highlighting the evolution of retail sales and industrial production in China. A similar rebound to the previous month is expected, largely driven by the base effect.
The week will end with the publication of Japan’s CPI, which is expected to continue the disinflation process.
Tuesday is International Croqueta Day, where we can all celebrate the humble crispy-coated potato foodstuff, popular in Spain of course, and we have local holidays on both Tuesday and Wednesday in San Fulgencio. Wednesday is also the feast of San Anton de Abad, which is the day dedicated to those who would like to have their pets blessed in the Catholic church (although the blessing often takes place outside). You can find out more about this evet, and everything else that takes place on a daily basis, with The Leader Daily Briefing, published on the website, theleader.info, and also available in podcast form on your favourite platform.
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