Are you enjoying the start of the new lunar calendar year? The Year of the Rabbit should represent hope, peace and prosperity. And we all need more of these things in 2023. For now, this week will likely focus on the more pressing issues of the present, not least China’s ability to vaccinate its citizens during the festive season.
Industrial disputes with emergency workers are set to continue as England and Wales stage another strike on Monday. Cabin crew at Portugal’s national carrier TAP will go on strike on Wednesday amid a dispute over the airline’s pay offer and working conditions.
In Westminster politics on Tuesday, Labour’s shadow foreign secretary David Lammy will strike a more positive tone as he sets out his party’s policy priorities. He is likely to focus on the UK’s relationship with the EU.
Coincidentally, Monday is the 10th anniversary of former prime minister David Cameron’s speech on Europe, in which he promised to renegotiate Britain’s relationship with the EU and propose a referendum on membership. Maybe Lammy will refer to it.
Also in the UK but unrelated to the British government, Nigeria is due to face a high-stakes trial at the High Court in London on Monday. The case involves a long-running attempt to overturn an $11 billion arbitration award that left the Nigerian government owing more than a quarter of its foreign reserves to an obscure oil and gas company.
The main election news of the next seven days will be the second round of voting for the presidency of the Czech Republic, which will conclude on Saturday. Former NATO commander Petr Pavel is the leader. Also, Donald Trump is back. The former US president is expected to make his first public appearance on the 2024 campaign and name his South Carolina leadership team on Saturday.
The fourth week of the month should be called survey week. Over the next seven days, we’ll compare with G7 purchasing managers’ index updates and the Confederation of British Industry’s industrial trends survey on Tuesday, followed by Germany’s Ifo Business Climate report on Wednesday, as well as other consumer confidence measures.
On Thursday, the US released its first estimate of gross domestic product movement in the fourth quarter of last year. Spain will follow suit on Friday. Inflation updates are expected from the UK, Australia, Spain, Sweden and Singapore on Wednesday. Japan will also report measures of living standards related to the consumer price index.
In central bank news, European Central Bank board member Fabio Panetta is scheduled to address the European Parliament’s Economic and Monetary Affairs Committee on Monday. Across the Atlantic, the Fed is entering its purdah period ahead of the next Federal Open Market Committee meeting on January 31, and the Bank of Canada’s monetary policy committee is expected to raise interest rates by another 25 basis points to 4.50 percent. more likely to signal a break.
Technical gains are the main theme this week; Investors remain concerned about the sector’s prospects after announcements of a number of significant job cuts by some of the largest companies. The approach he took MicrosoftAccording to our West Coast editor Richard Waters, Tuesday’s second-quarter numbers could be a model for other Big Tech players. Microsoft CEO Satya Nadella managed to strike a note of cautious optimism when he announced 10,000 job cuts last week to reduce the cost base.
It’s going to be another week (like every week) for Elon Musk followers Tesla reports fourth-quarter numbers on Wednesday. The company is slashing prices of electric cars to boost demand in the US and Europe. We’re guessing Musk will include the FT’s latest figures, which include the billionaire’s lawyer’s claims in court last week.
The war in Ukraine has boosted the fortunes of the world’s biggest defense contractors, and governments have vowed to increase spending on weapons and other military equipment. Investors will be looking for comments Lockheed Martin (Tuesday report) and Northrop Grumman (on Thursday) to see if these pledges will generate future returns.