It’s a shortened week in the UK and US thanks to public holidays, but there’s still enough going on to keep us ticking over.
Europe and the US will continue to lift restrictions placed to stop the spread of coronavirus.
In the corporate world carmaker Nissan will be in the spotlight when it is expected to unveil its strategy for the post-Carlos Ghosn era.
Any updates on the proposed €500bn EU recovery fund will also be closely watched.
EU recovery fund
The European Commission is this week preparing to table detailed plans for a €500bn recovery fund and upcoming multiannual financial framework (MFF), which runs from 2021-27. All 27 EU member states will need to be on board before any recovery fund plan sees the light of day.
The recovery fund debate became more fractious over the weekend after the so-called frugal four, Austria, Denmark, the Netherlands and Sweden, opposed the landmark Franco-German plan to offer grants to hard-pressed countries.
Once commission president Ursula von der Leyen presents her own plans Charles Michel, European Council president, is expected to oversee the negotiations, as he looks for an opportunity to hold an EU leaders’ summit aimed at settling the budget discussions.
Among the key questions that will need to be resolved are the level of the MFF, the fate of budget rebates received by frugal states, and the balance between grants and loans in the recovery fund as well as its size. In addition northern states are likely to make tougher demands for economic reforms as a condition for the funding.
MPs quiz Gove and Frost on EU talks
Michael Gove, the Cabinet Office minister, and David Frost, the UK’s chief negotiator, face questions from MPs on the overall progress made during three rounds of talks with the EU on their future relationship ahead of a fourth round and next month’s decision on the future of the negotiations.
Coronavirus this week
Monday
Tuesday
Wednesday
Thursday
Companies news
Monday
Wednesday
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Huawei extradition A decision on a key legal aspect of the trial over whether Huawei Technologies chief financial officer Meng Wanzhou can be extradited to the US from Canada will be announced on Wednesday. Ms Meng was arrested at the request of the US on charges of bank fraud and accused of misleading the HSBC bank about a Huawei-owned company’s dealings with Iran. Extradition hearing of Huawei’s Meng Wanzhou gets under way
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ExxonMobil Shareholders will vote on measures that include splitting the chief executive and board roles, reporting lobbying and disclosing climate risks, as the largest US oil producer holds a virtual annual shareholder meeting
Friday
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Occidental Petroleum Investors will get their first say on the oil company’s acquisition of Anadarko Petroleum on Friday when they vote on issuing shares and warrants to Berkshire Hathaway for helping finance the $38bn deal, which has led to sharp cuts to cover interest costs
Earnings reports
Nissan has a busy week. On Wednesday the carmaker will unveil its plans to revive its relationship with alliance partners Renault and Mitsubishi Motors.
On Thursday Nissan reports full-year results when a major strategy outline is expected to be announced by chief executive Makoto Uchida as he tries to draw a line under a tumultuous period that has been beset by boardroom infighting and a collapse of profits.
A restructuring of Nissan’s struggling European business is one of the changes anticipated.
A quiet week for US earnings but retailers Dollar General, Dollar Tree and Costco are all expected to report rises in first-quarter sales on Thursday on the back of customers stockpiling ahead of lockdowns.
On the Covid flip side investors will watch out for any damage store closures have brought to Ralph Lauren on Wednesday and Nordstrom on Thursday.
Software maker Salesforce.com, US printer maker HP and Texas-based PC and software group Dell Technologies also report this week.
In the UK Britvic will announce whether it will pay out an interim dividend while a further hit to profit is expected. The soft-drink maker has applied for government aid to ride out the Covid crisis.
Newspaper group Daily Mail and General Trust has half-year figures on Thursday. Full-year guidance has been cancelled due to the pandemic.
Nationwide posts preliminary annual results, with attention focused on the tentative reopening of the UK housing market.
The building society’s house price index is also out this week. A significant fall is expected as the effects of Covid-19 filter in and the index catches up with the lag between mortgage applications and approvals.
Insurer Provident Financial and commercial property group British Land also report this week.
Central banks
The Bank of Korea is expected to cut its base rate to a historical low of 0.50 per cent on Thursday.
Kenya and Poland are forecast to keep rates on hold when they meet on Wednesday and Thursday respectively, while Colombia is likely to cut its benchmark rate again on Friday.
Mexico’s central bank publishes its quarterly report on Wednesday, when it is also expected to revise its 2020 inflation and economic growth forecasts. It releases the minutes of its last meeting the following day.
Economic data
A raft of inflation data is out this week, with releases due from South Africa on Wednesday, Germany on Thursday and the eurozone, France, Poland and Kenya on Friday.
There are fears of prices rising after a wave of stimulus measures were introduced to try to boost economies hit hard by the pandemic, but for now it looks as though we will have another round of falls, meaning that in the short term at least the risk is that inflation will end up being too low. This week’s Market Questions has more.
For the UK supermarkets Kantar and Nielsen have grocery sales figures for May out this week. Stockpiling distorted March and April data but this month’s should take in the shift to people cooking their own food at home during lockdown.
Monday
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Germany: Ifo business climate Business sentiment collapsed in April after lockdown and May is expected to be just as bad
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Germany: GDP (detailed) No revisions to headline numbers are expected but the data should help to build a picture of how bad the second quarter will be
Wednesday
Thursday
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US initial unemployment claims The trend of falls is expected to continue, with the week ending May 18 forecast to come in at about 2.1m
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US durable goods New orders fell in March and are likely to weaken further for April as companies hold back on capital spending
Friday
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India GDP Growth is forecast to fall to 0.4 per cent in the first quarter from 4.7 per cent last quarter with worse to come — growth is thought likely to dip deep into negative territory next quarter
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Canada GDP A contraction in the region of 10 per cent is expected for March
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Sweden GDP The first quarterly estimate came in at minus 0.3 per cent and this is expected to be revised down substantially
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Japan industrial production Another fall is expected for April after a 3.7 per cent drop in March
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South Africa trade and budget balance
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EU recovery fund, Nissan strategy, inflation data - Financial Times
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