The US will be dominated by second quarter earnings: we hear from Goldman Sachs, Johnson & Johnson, American Express, and Netflix - to name a few. From the Fed, there are a whole host of speakers ahead of the pre-monetary policy blackout period. Overnight, Chinese GDP expanded 4.7% in the second quarter. This missed the median estimate of 5.1%, the Hang Seng is -1.3% whilst the CSI is flat. Domestically, UK Rightmove House Prices fell -0.4% m/m and rose +0.4% y/y to an average GBP 373,493 in July, whilst London House Prices fell -0.4% m/m and rose +0.6% y/y.
As for highlights this week ahead, in the UK we have the King’s speech at 1200 GMT on Wednesday. King Charles will announce the full legislative agenda of the new government of British Prime Minister Keir Starmer, and we have inflation data out earlier that day. The headline inflation eased back to the Bank of England's 2% target in May, but policymakers are watching services prices most closely - they've been rising nearly 6% in annual terms. In Europe, the ECB will keep rates steady on Thursday, a month after its first rate cut in five years. Attention is on whether policymakers say more about further rate cuts. Euro zone inflation eased for the first time in three months in June, but rose in the dominant services sector, where it has not dropped this year. In China, it is the third plenum, a seminal event typically held every five years. On the agenda is an overhaul of the fiscal system trying to redirect income from Beijing to cash-strapped regional governments.
As for today, we have Eurozone industrial production, US Empire State Manufacturing, earning from Goldman Sachs earnings, and Jerome Powell is interviewed by David Rubinstein. Have a good day, good week and the 58 years of hurt continues...
