Your Sunday briefing: a big week for policy makers

(Bloomberg) — Hello, again.

It’s been quite a tough week for the markets and the next seven days might not get any easier as global policymakers need to take a stance against inflation. Here’s a little something to get you ready.

The big rate decision(s): Fed officials are on track to raise rates by 75 basis points this week. One could argue for more growth, but there are compelling arguments for not shocking the markets, writes Craig Torres. Also coming this week, Sweden’s Riksbank on Tuesday; the Swiss National Bank, Norges Bank and Bank of England, all of which are expected to rise by half a point or more on Thursday; and the Bank of Japan on Friday, when policymakers are expected to persist with an unchanged stance despite concerns over yen weakness.

The big market said to itself: Investors burned by inflation are seeing things start to get worse. Even commodities and real estate – which rallied earlier in the year even as stocks and bonds fell – are fast disappearing as safe havens, as the persistent rise in underlying inflation pushes the Fed to continue its aggressive rate hikes.

The big farewell: Queen Elizabeth’s state funeral takes place in London on Monday, bringing the days of mourning to a close (and what could be London’s longest queue). King Charles III will host a reception for visiting world leaders, including Presidents Joe Biden and Emmanuel Macron, but not Vladimir Putin.

The big meeting: Many world leaders will then travel from London to New York, where the general debate begins on Tuesday at the annual United Nations General Assembly against the backdrop of Russia’s invasion of Ukraine. Biden will also have his first bilateral meeting with new British Prime Minister Liz Truss during the week.

The Big Earnings: FedEx management will face analysts on Thursday, a week after surprising the market by withdrawing its full-year earnings forecast. Investors will also analyze other earnings reports from companies like General Mills and Costco to see how they are faring in a turbulent economic environment.

The big opinion: Democrats might be tempted to think that recent legislative successes — from the Cut Inflation Act to the partial cancellation of student debt — will give the party a midterm boost, but David A. Hopkins argues otherwise in Bloomberg Opinion. Yet President Joe Biden could use them to make the point to fellow Democrats that he deserves a shot at a second term in 2024.

The big trip: It’s not too late to book your flight to Singapore. The city-state is hosting a slew of events over the next month, including the SuperReturn summit for private equity and venture capital and Formula 1 racing, which returns after a two-year pandemic-induced hiatus. But be prepared to shell out for the privilege, with many high-end hotel rooms priced at $2,000 or more already booked. But at least you’ll know where to grab a cocktail.

ICYM our Big Take: burglaries, secret payments and double crosses – sounds like something out of a John Le Carré novel. Jordan Robertson and Drake Bennett tell how the arrest of an exhausted Chinese spy exposed Beijing’s methods of economic espionage.

The Great Empire: Still with China, Alfred Cang and Jack Farchy report on the cash flow problems facing the magnate who runs a quarter of the country’s copper trade. It is a crisis that could spread across the world.

And finally, George Cipolloni jokes that he found a “cheat code” – a term adapted from his teenage son’s video games – for the bond market. Find out how Penn Mutual Asset Management’s balanced strategy beat its benchmark in the latest episode of the “What Goes Up” podcast.

Have a good week. We meet on the other side.

©2022 Bloomberg LP

About William G.

Check Also

Following Prosafe SE’s (OB:PRS) latest kr302m market cap drop, institutional owners may be forced to take tough action

To get an idea of ​​who actually controls Prosafe SE (OB:PRS), it is important to …