A quieter week in Australia for data after last week’s Federal Budget and labour force figures which confused the economic outlook and China’s April economic data that didn’t advance our understanding of where our most important trading partner is heading.
A busier week in the US, but Japan and New Zealand will dominate towards the end of the week with estimates of first quarter growth and a national budget respectively.
In Europe a near crisis meeting in Brussels tonight, our time, to discuss the bailout package for Portugal and the troubled rescue of Grece which is threatening the entire eurozone with more stability.
This meeting will be held against the backdrop of the shock arrest of IMF head, Dominique Strauss-Kahn in New York on sex charges.
The IMF is the partner with the EU in the bailouts of Greece, Ireland and Portugal.
It will have to give its approval for any changes to Greece’s package and the final arrangements for Portugal’s financial aid.
The charges against Mr Kahn will confuse events and raise questions about the Fund’s administration.
Here the release tomorrow of the Minutes from the RBA’s May Board meeting will be looked at closely for further clues as to how soon the Bank might act on its bias to raise interest rates again.
Last Thursday’s jobs figures for April and the weak retail sales figures were issued after the board meeting.
March housing finance data later today from the Australian Bureau of Statistics should show a bounce after several months of weakness.
The Westpac/Melbourne Institute’s consumer confidence data for May (due on Wednesday) is likely to have fallen again on the back of more tough talk from the Reserve Bank on interest rates, budget cutbacks and news of a fall in employment in April.
ABS data on car sales (today) and lending finance (tomorrow) and imports for April will also be issued.
March quarter wages price index also due on Wednesday is likely to show a further pick up in the pace of wages growth, which is a key factor the RBA is looking at as it considers the timing of the next rate rise.
Average weekly earnings are out Thursday and will also go into the mix at the RBA.
Corporately, results are due from James Hardie (4th quarter, final and outlook) midweek.
DuluxGroup half year financial results are out later today.
German construction group Hochtief, which controls Leighton Holdings, releases results tonight in Europe. They won’t be nice after Leighton’s big losses announced last month.
Hochtief owns around 54% of Leighton. Senior executives from Hochtief and its new controlling shareholder, ACS of Spain, are due in Australia this week for discussions with Leighton’s board and management.
Uranium miner and explorer, Paladin Energy will deliver a third quarter investor update as well this week.
The week’s meeting will be dominated by annual meetings from OZ Minerals and Adelaide and Brighton, both mid week.
Also holding meetings are Golden State Resources, Alkane Resources, ThinkSmart Ltd, Red Sky Energy and Peak Resources, Empire Energy Group, Intrepid Mines, Petsec Energy, MAp (Macquarie Airports), Metal Story, Gold One International, Central Asia Resources, Maryborough Sugar Factory and Bass Metals.
And meetings will also come from Intrepid Mines, Dragon Mining Ltd, Magma Metals, Shaw River Resources, Vantage Goldfields, Tap Oil, Vita Life Sciences, Green Rock Energy, Central Asia Resources, Promesa Ltd, Sultan Corporation, Wild Acre Metal, XState Resources, Pacrim Energy, Highlands Pacific, Spark Infrastructure, InvoCare Ltd, Blackcrest Resources, oOh!media Group, PanAust Ltd, Challenger Energy, Future Corporation Australia, Hazelwood Resources and Triton Gold.
In New Zealand the 2011-12 NZ budget will be released on Thursday and will give us a better idea of how the government will finance the rebuilding of Christchurch.
Japanese GDP for the March quarter will be out on Thursday and is expected to show a second consecutive decline reflecting the impact of the earthquake.
The AMP’s Dr Shane Oliver says this will mark Japan’s sixth recession since 1993.
The Bank of Japan will release the minutes of its last policy meeting on Thursday ( it cut its forecasts for the economy at the last meeting) and also releases its interest rate decision for May on Friday.
In the US, a big week for the depressed US housing sector, with data likely to show a further improvement in home builder conditions due tonight, new housing starts and permits due tomorrow and existing home sales due Thursday.
The Fed also releases minutes from its last meeting and these will be examined for any more detail on the thinking about what happens with the present bout of quantitative easing end next month.
The Fed also releases industrial production data for April as well.
US mortgage rates have been dragged lower to well under 4.8% (for a standard 30 year fixed rate mortgage) in recent weeks by declining US bond yields.
But surveys of business conditions in the New York and Philadelphia regions are likely to show a slight softening in May.
The coming week will be marked by earnings releases from a number of major US retailers, including Wal Mart and Home Depot.
Results also scheduled for next week include Target Corp, a rival to Wal Mart; the No. 1 U.S. clothing chain Ga
