Europe Week Ahead: Rate decisions, ‘fiscal cliff’ looms
Friday, December 14, 2012 - 03:23
Dec. 14 - Interest rate decisions, German Ifo, a looming U.S. ‘fiscal cliff’ and an interview with Ireland’s Prime Minister to keep investors busy next week.
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Welcome drug look ahead at next week's key events investor focus likely the -- once again on the looming US fiscal cliff. The uncertainty it's causing Credit Suisse senior advisor -- caucus that's if negotiations remained deadlocked he could pose problems in the media. An immediate sounder fiscal cliff is clearly a problem because if we do not see. Some longer term agreement. All of fiscal policy in the United States. Then there is the risk of war -- -- tax increases in public expenditure cuts which would drive the American economy back into recession from. In the first quarter of 23 team. Scotiabank goes as far as to say that no agreement could -- world growth by as much as 1% next year putting up to 25 million jobs at risk. -- plenty of data to digest two from Germany we get the info sentiment index for December. This week the German think -- half its growth full cost be Europe's biggest economy to zero point 7%. It did that if that after a brief contraction this quarter domestic demand would help the German Economy pickup next year. In the UK what job preparation and retail sales data. Bank of England will release its quarterly bulletin also minutes from its meeting earlier this month. On Friday it will -- UK final GDP figures for Q3 and latest reading on public sector net borrowing. -- to have JFK consumer confidence numbers both from Germany and the UK. In terms of events ECB chief Mario Draghi kicks off the week testifying in the European Parliament at the monetary dialogue. Then on Tuesday the Spanish economy minister at least think he endorses you took in congress to explain the banking bailout. I don't Friday and Italian prime minister Mario Monti is a year end news conference. He's expected to cool for his reforms to be continued by whoever succeeds him and he may also signal whether or not he aims to run for office. I would also have an interview with the Irish prime minister and nick -- on Thursday. Earlier this month honesty tell it sixth raft of spending cuts and tax hikes in the foot before yes. On and takes over the EU presidency in January. There's also -- off of interest rate decisions across the region in Norway Czech Republic Sweden Hungary and Turkey. Reuters poll of economists suggest that I took three countries will cut rates. Bank of Japan also meets on interest rates on Thursday but the focus really will be on the Japanese parliamentary elections this Sunday. Daiwa capital markets Chris if you connect to see inspections -- all the way to secure a landslide victory which may mean rising competition for corporate Europe thankful it. That would mean. Far more pressure on the bank of Japan's east policy more aggressively. No place downward pressure on the yen exchange rate so corporate Japan should be looking to regain a lot of market shaft that it has lost at the expense of companies in Europe the US and Asia. Over the coming years. In Egypt supporters and opponents of Islamist president Mohammed -- Haven't trashed in Alexandria ahead of a referendum on a new constitution. The referendum held on two days because there aren't enough judges willing to monitor all polling stations. Mosques egyptians to accept or reject the basic goal must be in place before national elections can be held the next yet. Well that's -- look ahead to next week I'm Nigel Stephenson and this is sort --
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