Hello, and welcome to the working week.
Tough conversations will get under way at the COP26 climate summit in Glasgow this week as global leaders try to agree on environmental targets, always assuming they manage to overcome transport problems and get there, that is.
The gathering will no doubt be buoyed by the news over the weekend that G20 leaders struck a deal to end international financing of coal power.
And while the earlier refusal of India and China to set revised goals will cast a pall over the Glasgow summit, other countries, such as Iraq and Bangladesh, are keen to secure funding commitments from richer nations for their green transitions.
It will come as no surprise that environmental campaigners are calling for higher carbon pricing at the gathering, but this time they will be joined by some of the world’s biggest banks, asset managers and insurance companies, which have formed a coalition known as the Sustainable Markets Initiative.
You can keep up with all our coverage of the conference here. The Financial Times paywall will also be dropped to coincide with COP26 on November 3.
While world leaders discuss climate change in Glasgow, Saudi Arabia, Russia and other oil producers will meet on Thursday to decide whether to increase more oil supply to the global market.
Opec and its allies have been gradually winding down the cuts, but some consumer countries believe it is not being done quickly enough.
There will be plenty of discussion this week about Mark Zuckerberg’s recent announcement that Facebook is changing its name to Meta. The social media platform’s growing emphasis on virtual reality is hard to ignore and investors will be keen to know what exactly the company is trying to achieve with this shift, which came close on the heels of the damning accusations levelled by ex-employee Frances Haugen.
Companies
BP’s third-quarter results are due on Tuesday. The oil major’s first half update was its best since 2019 and the recent increase in oil and gas prices could help it to build on that. However, many investors are uncertain that BP can manage the transition to renewables without a sacrifice to margins.
International Airlines Group reports on Friday. Travel restrictions have relaxed over the past few months, but the sector took a massive hit during the pandemic and IAG, which owns British Airlines, suffered a difficult first half to the year in which losses spiralled to €2bn. The reopening of the transatlantic travel corridor will be a plus for the bigger carriers, but concerns about rising fuel costs remain.
Economic Data
Higher levels of inflation have led central banks to signal a willingness to raise interest rates earlier than expected to curb rising prices.
The US Federal Reserve is widely expected on Wednesday to conclude its policy meeting with the announcement that it will start reducing its pandemic-era bond purchases, leaving investors to focus on how hawkish policymakers sound when they deliver the news.
The markets expect UK interest rates to rise on the back of inflationary pressures when the Bank of England meets on Thursday.
The US jobs report will be under close scrutiny on Friday after last month’s payrolls data showed that the US economy added just 194,000 jobs in September, well below forecasts, while consumer spending is on the rise.
Key economic and company reports
Here is a more complete list of what to expect in terms of company reports and economic data this week.
Monday
US, UK, eurozone, France, Germany, Canada, Mexico, Brazil, Czech Republic, India, Russia, Indonesia, Thailand, Vietnam, Taiwan and South Korea, manufacturing PMIs
US, ISM manufacturing index
Results: Ryanair interims
Tuesday
Australia, interest rate decision
Results: Air Canada Q3, BP Q3, Pfizer Q3, Standard Chartered Q3
Wednesday
US, UK, eurozone, France, Germany, Singapore, Egypt, Saudi Arabia, Qatar, services PMIs
US, factory orders
US, ISM services index
Results: Marriott International Q3, Next Q3
Thursday
UK, Bank of England interest rate decision
UK, PMI Construction
Germany, industrial orders
US, initial jobless claims
US, ISM manufacturing
Results: Airbnb Q4, BT interims, Sainsbury’s interims, Uber Q4, Wizz Air interims
Friday
UK, Halifax House Price Index
US, non-farm payrolls, unemployment rate, consumer credit
France, industrial production
Germany, industrial production
Results: IAG Q3
World events
Finally, here is a rundown of other events and milestones this week.
Monday
UK, all countries removed from red travel list
Mexico, presidency of UN Security Council begins
Tuesday
New York, mayoral election
Norway, International Energy Forum begins
Wednesday
Winner of Booker Prize for Fiction announced
Thursday
Opec+ meeting
India, festival of Diwali begins
Friday
ABBA release new album Voyage
Source: Economy - ft.com
