Leaders of the North Atlantic Treaty Organization (NATO) member countries are meeting this week in London for the organization’s 70th anniversary.
Divisions in NATO
The mood at the 70th birthday of the history’s largest and longest-lasting military alliance, however, is likely to be rather down –not so unexpected at this time of the Trump era.
While Trump continues to pressure member states to contribute the collective defense with their fair share, a deep division regarding Turkey’s role within the alliance is playing on. A spat between the French President Emmanuel Macron who designated Nato “brain-dead” and his Turkish counterpart Tayyip Erdogan who called him “brain-dead” has already revealed a lot of what may be coming as the allies remain at odds on how to defend the Baltic members against a potential Russian invasion.
The Reserve Bank of Australia (RBA) is gathering for its final monetary policy meeting this year on Tuesday. Most of the analysts expect the central bank’s cash rate to remain at the current record low of 0.75 percent.
RBA Governor Philip Lowe earlier reiterated that the interest rates were to be kept low for an “extended period” well into next year as he stated it would be “extraordinarily unlikely” for Australia to go into the negative rate territory.
The Bank of Canada (BoC) is also meeting on Wednesday as financial forecasters predict no change in the central bank’s rates.
The December 4 monetary policy meeting will most likely keep the rates at the current 1.75 percent.
US Jobs and Other Data
On Friday, markets around the world will tune in for the release of non-farm job additions to the US economy. The expansion in the employment sector is expected to have continued in October. The unemployment rate is predicted to remain on hold at the historic low 3.6 percent.
The jobs and other economic data this week will be a crucial set of information for the US Federal Reserve ahead of its policy meeting on December 11.
In Other News
With the December 15 deadline for Trump’s threat of imposing more tariffs on Chinese imports nearing, markets’ watch over the Sino-US talks will resume. US officials may announce a trip to Beijing after the Chinese invited them for negotiations.
Elsewhere in Britain, the political fallout between Prime Minister Boris Johnson and his main rival Jeremy Corbyn of the Labour Party goes on before voters head to the polls on December 12.
In Asia, protests in Hong Kong and the South Korean-Japanese relations, as well as provocative acts by North Korea, will remain a part of the news cycle.
Monday: China Caixin Manufacturing PMI, Germany Manufacturing PMI, UKMManufacturing PMI, ECB President Lagarde Speaks, US ISM Manufacturing PMI
Tuesday: Australia RBA Interest Rate Decision, Australia RBA Rate Statement, UK Construction PMI, UK BoE MPC Treasury Committee Hearings
Wednesday: Australia GDP, UK Composite PMI, UK Services PMI, US ADP Nonfarm Employment Change, US ISM Non-Manufacturing PMI, Canada BoC Interest Rate Decision, BoC rate statement, US Crude Oil Inventories
Thursday: Australia Retail Sales, Eurozone GDP, Canada Ivey PMI
Friday: German Industrial Production, US Nonfarm Payrolls, US Unemployment Rate, Canada Employment Change