Hello and welcome to the working week.
After a period of unrest, change and mourning in China, vice-premier and Covid-19 tsar Sun Chunlan said the fight against the virus had entered a “new stage”. The potential unlocking, albeit gradual, of Beijing’s zero-Covid policy is likely to be in the headlines, as will the ensuing inflationary pressures. State institutions and businesses will continue to face the delicate task of paying respects to the late president Jiang Zemin without offending the incumbent, Xi Jinping.
Now that electricity has been restored to some parts of Ukraine the struggle to increase ammunition production in the west is in focus. Industrial capacity and the interrupted global supply chain will be high on the agenda for ministers of defence at the annual European Intervention Initiative (EI2) in Oslo and the annual European Defence Agency conference in Brussels. This week may also see Russia’s president Vladimir Putin respond to US counterpart Joe Biden, who said he was open to talk about ending the conflict.
Nationwide’s plummeting house price index continues to damp Christmas spirits in the UK. Will Wednesday’s Halifax house price index figures tell the same story? News of record food inflation certainly has us braced for the upcoming BRC November retail sales figures and is likely to play a big role in the AGM discussions of Associated British Foods.
It will be a week of sports across the world. NBA season is now well under way in the US and the men’s football World Cup in Qatar will reach the quarter-final stage. The Pakistan-England Test series takes place, and the ISU Grand Prix of Figure Skating Final starts in Italy on Thursday.
Elsewhere, the Nobel Prizes will be awarded at a ceremony in Oslo on Saturday.
Economic data
Highlights this week include the November Halifax House Price Index and Purchasing Managers’ Index reports for the UK, Russia and EU. Also look out for EU retail sales, Germany’s factory orders and industrial production, EU third-quarter gross domestic product and British Retail Consortium sales, plus trade balance figures from the US.
Companies
It’s slim pickings for results this week, but Costco Wholesale is expected to rise owing to resilient demand for fresh food, groceries and fuel, despite decades-high inflation. Lululemon Athletica reports on Thursday and Carl Zeiss Meditec on Friday.
In UK news, we are likely to hear more on Mulberry’s claim that luxury shoppers are shunning London for Europe since the decision to end VAT-free shopping in the UK. Chief executive Thierry Andretta said: “We are losing 45-50 per cent of our potential business [at the Bond Street store] due to the end of the tax free [shopping].”
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, November ISM non-manufacturing Purchasing Managers’ Index (PMI) data
China, Caixin general services PMI data
Russia, November S&P Global Services PMI
UK, November S&P Global/Cips Composite PMI
EU, October retail sales figures
EU, November S&P Global Composite PMI
Mexico, November consumer confidence data
Bank for International Settlements publishes quarterly report on global markets
Tuesday
US, October trade balance figures
UK, BRC November retail sales
UK, November S&P Global/Cips Construction PMI
Germany, October factory orders
Germany, November S&P Global Construction PMI
Australia, RBA interest rate decision
FT Advancing Sustainability in the Service Sector online. Speakers include Infosys vice-president Mitrankur Majumdar, Swissport International chief strategist Nadia Kaddouri and more. Register for free online.
Results: Ashtead Q2
Wednesday
China, November trade balance figures
Japan, Bank of Japan Nakamura speech
Russia, November foreign exchange reserves
UK, November Halifax House Price Index
UK, Bank of England Phil Evans speech at UK Finance on Basel 3.1 consultation
EU, GDP growth rate, third estimate Q3
EU, employment change Q3
Germany, October industrial production
France, trade balance figures
Italy, October retail sales figures
Australia, Q3 GDP figures
FT The Global Boardroom summit begins online, discussing strategies for a new geopolitical and economic reality
Thursday
UK, ONS economic activity and social change in the UK, real-time indicators
UK, KPMG and REC jobs report
Australia, business lending figures and RBA bulletin
Brazil, trade and agricultural figures
Mexico, November inflation Producer Price Index rate
Balfour Beatty and British American Tobacco trading updates
Results: Costco Wholesale Q1, Lululemon Athletica Q3, DS Smith HY
Friday
Russia, November inflation rate
China, November inflation rate consumer price index (CPI)
China, November monthly PPI figures
US, November PPI figures
US, preliminary December Michigan Consumer Sentiment index
Associated British Foods annual meeting
Results: Carl Zeiss Meditec Q4
World events
Finally, here is a rundown of other events and milestones this week.
Monday
Netherlands, St Nicholas Eve/Sinterklaas
Pakistan, last day of the first England vs Pakistan Test match in Rawalpindi
Switzerland, WHO meeting in Geneva to review the new pandemic accord
Belgium’s biggest criminal trial, on the Brussels attacks that killed 32 people and left hundreds injured, is due to start
Tuesday
Saint Nicholas Day
Ukraine, annual Army Day to celebrate the efforts of the armed forces
Albania, first EU-western Balkans summit to take place in the western Balkan region
US, first auction of offshore wind development rights off the California coast
Qatar, final group-stage World Cup match
Wednesday
Fiftieth anniversary of Apollo 17 launch, the final moon landing mission
Norway, defence ministers meet at the annual European Intervention Initiative (EI2) in Oslo, to discuss regional security after the Russian invasion of Ukraine
Canada, COP15. Biodiversity summit starts in Montreal, hosted by China
Italy, Milan’s Teatro alla Scala opera season opens with Boris Godunov
Guatemala, Christmas season kicks off with the annual “Burning of the Devil”
‘Thursday
Belgium, European Defence Agency annual conference begins in hybrid format
Feast of the Immaculate Conception
France, Lyon’s four-day Fête des Lumières begins
Friday
Qatar, World Cup quarter-finals kick off
Pakistan, the second of three Pakistan vs England test series matches starts in Multan
UN Genocide Prevention Day and the 74th anniversary of the 1948 Genocide Convention
Tanzania, Independence day
Saturday
International Human Rights Day
Norway, Nobel Prize award ceremony takes place in Oslo
Sunday
Italy, ISU Grand Prix of Figure Skating Final ends in Turin
Burkina Faso, Proclamation of Independence Day
Source: Economy - ft.com
