What to Expect This Week (October 19-25)

After another explosive week in the world’s financial markets, economic data in the the week ahead is expected to reflect a frightening deterioration of the global economy.

In the United States, Chairman’s Bernanke will give his testimony to the House Budget Committee. In Canada, retail sales are expected to decline, inflation to ease slightly and the Bank of Canada will probably reduce rates by another 25bps. In Europe, several central bankers are expected to give speeches and we expect the ECB to introduce new regulations for the financial sector. Also, German PMI, a business sentiment survey,  is likely to deteriorate in October. In the United Kingdom, the advanced GDP for Q3 should confirm how unavoidable is a technical recession and retail sales data is likely to have declined in September. In Japan, we expect the trade deficit to widen since exports probably deteriorated in September. In Australia and New Zealand we anticipate an increase in quarterly inflation. Finally, the Reserve Bank of New Zealand is expected to cut interest rates by another 100bps.

10/17/2008 3:09:39 PM