Weekly News 21.10–25.10.2019


This week, the ECB is to take its interest rate decision. Besides, traders will be following important indicators of the German economy – PPI and IFO. In Canada holds parliamentary elections and releases its latest data on retail sales. By the end of the week we will have learnt the first details of the upcoming IPO of Saudi Aramco. Google is to start the sales of its new smartphone.

 

October 21. German PPI. Election in Canada

Germany releases its producer price index (PPI) at 06:00 GMT. Analysts don’t expect positive data on one of the key inflation factors. Experts forecast a result of -0.2%.

A negative indicator will provide extra confirmation of economic recession in Germany, as well as a slowdown of growth throughout the European Union.


Canada is to hold an extraordinary parliamentary election. Its current Prime Minister Justin Trudeau has lately been accused of racism and forced to make an apology video. Despite the scandal, voters are likely to support the current regime due to stability in the country.

 

October 22. Retail sales in Canada. Japan-Korea dialogue

Canada releases the country’s data on August retail sales index at 12:30 GMT. The previous report recorded a drop of -0.1%. Traders now expect a positive value of 0.3%.

Note that the consumer price index released for the same month decreased by 0.1%. It is likely that the retail sales report will upset investors.


South Korea’s Prime Minister Lee Nak-yon will pay an official two-day visit to Japan to attend the Emperor Naruhito enthronement ceremony. Lee Nak-Young is expected to meet with his colleague Shinzo Abe.

We remind you that there was a deterioration in relations between the two countries due to disagreement on both military and trade issues.

 

October 23. New investigation into Donald Trump

Partners of President Trump’s former personal attorney Rudy Giuliani will make their appearance in the US federal court. Lev Parnas and Igor Fruman will be questioned about obtaining money to fund a number of election campaigns and lobbying.

In particular, they are interested in the connection between the suspects and the investigation into activities of the son of former US Vice-President Joe Biden in Ukraine. This trial is another blow to US President’s reputation, which is already tarnished.

 

October 24. ECB interest rate. Sales of Pixel 4

The European Central Bank takes its interest rate decision at 11:45 GMT. Experts expect the rate to be kept at 0.0%. However, next month ECB may release the control and loosen the monetary policy.

This is the last month for Mario Draghi as the head of the ECB. He will soon be replaced by the former IMF Managing Director Christine Lagarde.


Google starts selling its new Pixel 4 smartphone in the US. The model will cost $799, which is lower than the price of Apple’s flagship smartphones presented earlier.

The company continues to develop its production of smartphones, but the company is not able to capture the market at a rapid pace. We can learn more about it from the quarterly report of the IT giant, which it is to present on October 28.

 

October 25. German business activity. IPO Saudi Aramco

Traders will be monitoring October data on IFO German business climate Index, which comes out at 08:00 GMT. The forecast is 94.5 points. The dynamics of this indicator have been negative since November 2017. We believe that the scenario is most likely to be negative again.


Saudi Aramco is expected to have filed its IPO Prospectus by October 25. The document will be presented in Arabic. The English version is to be released on October 27

Aсcording to the Chairman of the company’s board of directors Yasser al-Rumayyan, the recent terrorist attacks on the country’s oil infrastructure will not affect the company’s plans for an initial public offering.


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