1 / RUMBLINGS FED-FLATION
Markets will listen carefully to what the Federal Reserve has to say about inflation at the end of their two-day meeting on Wednesday, amid fears that billions of dollars in fiscal stimulus could fuel higher consumer prices.
After years of very low inflation, a range of measures, including the Fed's preferred core personal consumption expenditure (PCE) price index, are on the rise. The PCE rose 3.8% in the 12-month period to May, its biggest jump in three decades.
The Fed insists the fact that the gains in consumer prices will be temporary and that he has the tools to fight an inflationary surge. Signs that policymakers may seek a more sustained rise in consumer prices maynt raise fears of an earlier than expected loosening of easy money policies and harm stocks.
- ANALYSIS-The employment-inflation compromise, exiled from Fed policy, could mean a hot summer find out more
2 / START OF DEBT
EU to issue first bond as part of 800 billion post-pandemic stimulus fund 'euros, maybe in a few days.
The joint bond issue may not do for Europe what the secretary Treasury Alexander Hamilton made in 1790 for the newly formed United States - create a fiscal union. There are no plans to make the fund permanent.
However, do not underestimate the importance: The EU is on track to become one of the biggest issuers with € 80 billion of stimulus fund bonds sold this year. And the arrival of big liquid bonds will not be lost on investors or the ECB, which can buy the debt for a big stimulus.
- So that the EU prepares the first bond issue, a reality check for "safe asset " hopes learn more
3 / DELEVER AGIR, AGAIN
China reports May production and retail sales dataWednesday. Both are expected to be lower than the April figures, but will give a new insight into the economic outlook for the world's second largest economy.
So far, domestic consumption remains sluggish. Exports have been overcompensated this year, but that is starting to change as the rest of the world opens up and spends less on Chinese manufactures.
Recent data shows Beijing is back on the debt relief campaign it abandoned last year when the pandemic hit - meaning subtle measures to curb the yuan's rise, limited budget spending and targeted, scrutiny of the real estate and local sectors and measures to cool commodity prices.
- China 's highest producer inflation for over 12 years highlights pressures mondials on prices find out more
4 / MEET- YOU
High level meetings in the days to come w I will not keep the geopolitical issues boiling and the Turkish and Russian markets on the prowl .
On Monday, the NATO summit will begin in Brussels, including a first face-to-face meeting between US President Joe Biden and his Turkish counterpart Tayyip Erdogan. On the agenda are Syria, Afghanistan and "important differences " according to a senior US official, with Ankara and Washington at odds on a multitude of issues.
On Wednesday, Biden will take on Russian President Vladimir Putin in Geneva for what promises to be heated talks with disputes aseas on election interference, cyber attacks, human rights and Ukraine.
- Biden and Putin meet in a 18th century Swiss villa for the summit find out more
5 / GROWTH WITHOUT THEFT
The Bank New Zealand's newly hawkish reserve reserve set to see its first quarter growth forecast surpassed? The kiwi 's GDP lands on Thursday, and the central bank believes it is going to be negative, putting the country back into technical recession.
Partial indicators, however, say it may not be so. While the absence of foreign tourists will be keenly felt, consumptiondomestic has been robust and commodity prices - especially milk and wood - have moved favorably.
A beat may not mean a lasting strength, but a big surprise would suggest an economy on more solid footing than the RBNZ enjoys, adding pressure to normalize politics even faster than the aggressive tible reported last month.
- New Zealand manufacturing sales increase in the first quarter
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