Another big week for Australian earnings (see above story).
But internationally the coming week brings consumer inflation data for China, the US and Britain, where the Bank of England’s inflation report will also be released.
UK inflation has been high now for the past year and shows no sign of easing, even as the economy is showing signs of slowing.
China’s will be the most important with a rise from December’s 4.6% annual rate back towards 5%.
That might help explain the interest rate rise in China last week.
Inflation, meanwhile, is putting Group of 20 finance ministers and central bankers, meeting in Paris at the end of this week, under pressure to come up with a coordinated response rather than risk a piecemeal tightening of monetary policy.
Vietnam cut the value of its currency by 7% late last week, the biggest devaluation in its history, to try and combat growing pressures in the economy. That devaluation will add to those pressures. South Korea left interest rates steady, when the market had been looking for an increase.
In Australia it’s another big week for interim profits with the likes of BHP Billion, Brambles and Qantas among those reporting.
The ANZ and Westpac will issue their first quarter updates later in the week to complete reports from the big four.
BHP’s interim figures will dominate the week after Rio Tinto’s 2010 profit bonanza last week.
Fosters reports and the market is looking for the timing on the demerger of its beer and wine businesses.
Wesfarmers also is down to release its results and the market is looking for higher profits from the Coles Group (Woolies is out on February 25) and to see the impact on earnings at the company’s coal business from the Queensland floods in November and December.
Interim or full year results will come on Monday from Leighton Holdings, Bendigo and Adelaide Bank, Paladin Energy, and Salmat and Australand Property Group, and on Tuesday from Brambles, GWA Group, CFS Retail Property Trust, CPA Commonwealth Property Office Fund and Foster’s Group.
On Tuesday Westpac Banking Corporation will deliver a first-quarter trading update to the market.
On Wednesday all eyes will be on first-half earnings results from BHP Billiton, CSL, Ardent Leisure, Dexus Property Group and Dominoes Pizza Enterprises, and The Reject Shop also report results.
Wesfarmers interim earnings results are set for release on Thursday, along with Qantas, ASX, Lend Lease Group, Prime Media Group and ConnectEast Group. AMP, Santos and Westfield Group will also release results.
On Friday, ANZ Banking Group will provide a first-quarter trading update to the market, Fortescue Metals Group will report interim earnings results, Consolidated Media Holdings, Billabong, Sims Metal Management and Tassal Group will all also report on first-half operations.
The minutes from the Reserve Bank’s February policy meeting and a speech by Assistant RBA Governor Lowe are likely to confirm the rates on hold for now but with a tightening bias message.
Meanwhile, housing (today) and lending finance figures for December (tomorrow) are likely to leave intact the impression that housing finance has stabilised after an earlier fall.
January car sales data (Wednesday) may attract greater than normal attention as it may be depressed as a result of the floods. (That’s what the industry figures showed at the start of this month.)
RBA assistant governor Phillip Lowe will address a corporate function in Sydney, while Prime Minister Julia Gillard will speak at a trans-Tasman business function in Auckland.
In the US, attention will be on retail sales for January (due Tuesday night, our time) which are expected to record a modest rise but are subject to greater than normal uncertainty due to the impact of snow storms.
Housing starts and permits data due will be watched closely for signs the housing sector has bottomed.
While headline inflation in the US is likely to have been boosted by higher food and energy prices in January, core inflation is likely to remain benign supporting the Fed’s assessment that monetary policy should remain easy.
The US Federal Reserve will release the minutes of its February policy meeting.
The US 4th quarter earnings season is winding down.
Dell is among the major’s reporting this week, along with Barrick Gold.
In China the focus will be on inflation data for January (due Tuesday) which are expected to show a rebound to around 5.4% (from 4.6% in December) as a result of another weather-related boost to food prices.
Watch for commentary on the impact of the emerging drought we wrote about on Friday.
The trade figures were not issued last week.
Property price data for January is likely to show another slowdown in residential property price growth to around 5.5% from 6.4% in December.
BNP Paribas is due to release half year figures, as does AXA in France and Barclays in London. Anglo American reports.
In Japan we get the first estimate for 4th quarter economic growth and a negative figure is expected, perhaps under 0.5% quarter on quarter.
And we also get the Bank of Japan’s latest interest rate decision.
European Union industrial production data is also due.
In the UK, consumer price index data for January is due, as well as the retail price index.
European Monetary Union (EU) fourth-quarter gross domestic product data is due, along with trade figures for December. US industrial production for January is due.
The International Labour Organisation
