Let’s see, there’s a big week ahead for markets – there’s the European Central Bank monetary policy decision, more delusions from Boris Johnson over Brexit, US retail sales, inflation in the US and China, Japanese GDP and Australian business and consumer surveys.
All heady stuff and potentially market-moving, but the biggest news this week will be the new iPhone line up from Apple and other product changes on Tuesday night, our time.
And in that suite of new iPhones – there are expectations of a new cheap version to try and boost sales and pit the iPhone against cheaper Android models from Chinese manufacturers.
Apple’s new product launch could very well change market sentiment if the updates are convincing.
The main part of Tuesday’s event will be the unveiling of the tech giant’s new generation of iPhones which could see Apple introduce upgrades for its current high-end iPhones, the XS and XS Max, and a new version of its lower-priced smartphone.
There’s also changes to Apple’s services businesses that include iTunes and the App Store.
US analysts expect Apple to announce pricing and a launch date for Apple TV+, the company’s video streaming service to pit it against Amazon, HBO and especially Netflix.
Apple shares are up 2.1% in the past week, 35% for the year to date, but still down 3.6% for the past 12 months.
Warren Buffett’s Berkshire Hathaway shares will be watched for reaction to the news because it is the company’s biggest shareholder.
Elsewhere in the US, there’s the retail sales data at the end of the week with another solid report for August. CPI inflation for August will be out on Thursday and according to the AMP’s Dr. Shane Oliver, is expected to show a small rise to 2.3% year on year (for the core measure).
In Britain, the Brexit circus continues with prime minister Boris Johnson expected to again try for the snap election. Mr. Johnson lost two key votes last week that further confused the path toward Brexit.
MPs backed a bill aimed at blocking the UK from leaving the European Union on October 31 without a divorce agreement, leading Mr Johnson to call for an election on October 15.
But a vote to schedule a general election in October failed to get the required two-thirds support in the House of Commons, with opponents seeking to first lock in the law that would have the Conservative government request a Brexit delay.
Mr. Johnson said last week he would “rather be dead in a ditch” than seek another delay. The Prime Minister plans to make a second bid tonight, our time, to call snap elections before the October 31 deadline. Meanwhile, the UK parliament is on track to be suspended for five weeks ahead of a Queen’s Speech on October 14.
A senior minister, Amber Rudd resigned from the government and as a Conservative Party member on the weekend in protest at the expulsion of 21 Tory rebel MPs last week. That pushes the Johnson government deeper into minority status.
Meanwhile, the European Central Bank ends its policy meeting on Thursday (September 12), and officials are widely expected to cut interest rates and layout plans for stimulus measures.
The ECB left its benchmark rates unchanged in July, but President Mario Draghi seemed to suggest that the bank could revive a quantitative easing program to boost a slowing economy. But analysts now think a rate cut will come first, then a plan for more measures.
Mr. Draghi will speak at a press conference following the ECB’s meeting, which comes one week before a rate decision by the US Federal Reserve which is now expected to cut rates after Friday’s weak August jobs data.
US retail sales are expected to rise by 0.2% after they grew a solid 0.7% in July for the strongest gain in four months.
Chinese data is expected to show a slight dip in CPI inflation tomorrow for August to 2.6% year on year, continuing low underlying inflation and a rebound in credit growth. Another negative reading is expected for Chinese factory gate inflation.
Car sales figures on Wednesday will be watched closely to see if there’s another fall.
In Australia, there’s July housing and other finance commitments out today and the NAB business survey tomorrow and the Westpac/MI consumer survey (Wednesday).
