The new week begins in the shadow of rising coronavirus figures in some parts of the world, including the US and Australia.

Meanwhile, a busy week is ahead for central banks in Europe, Japan, and Canada.

The US stocks will focus on the second-quarter earnings of companies, especially major banks, that start to be announced this week. Economists will also look at data from China, including gross domestic product. There are growth data from the UK and CPI figures from the USA and Canada.


Last month, the European Central Bank (ECB) raised the emergency asset procurement program, designed to soften the economic blow resulting from the Covid-19 crisis, by 600 billion euros to a total of 1.35 trillion euros.

A change in interest rates already in the negative territory is not expected from the ECB meeting on Thursday. However, investors will be tuning into a press conference by the ECB President Christine Lagarde to see if the central bank is planning an early exit from the asset purchase program.


The Bank of Japan (BoJ) will provide tips on whether it will go beyond measures to mitigate policy decisions taken in response to the pandemic during its meeting this week.

The two-day monetary policy meeting that ends on Wednesday coincides with a time when Covid19 infections are rising again sharply in the capital Tokyo, but no interest rate change is expected from the bank.


The Bank of Canada (BoC) is holding this month’s monetary policy meeting on Wednesday.

No change in policy rate is expected from the BoC. However, while the need for stimulus continues to help maintain economic recovery, there is likely to be a debate about whether the pace of bond purchases is sufficient.

Huawei crisis

British Prime Minister Boris Johnson is expected to announce a decision to gradually remove the Chinese communications giant Huawei from the UK’s 5G network setup, after immense pressure from his own Conservative MPs and the Trump administration from the US.

According to Financial Times, the UK National Security Council will meet on Tuesday to examine a report by the National Cyber ​​Security Center which raises concerns about whether the Chinese telecom equipment manufacturer can supply kits for UK’s 5G networks.

The Trump administration is exerting pressure on all its allies not to use Chinese companies in their future networks, on the grounds they spy for the Chinese Communist Party. On the other hand, China accuses countries that do not want to work with Chinese own companies of being hostile.

Opec+ meeting

The expanded oil cartel Opec+ led by Saudi Arabia and Russia will hold a virtual meeting on Wednesday, with the expectation of alleviating restrictions on oil production by about 2 million barrels per day.

After a price war between Riyadh and Moscow, the group adopted 9.7 million barrel production cuts per day in April thanks to Washington’s intervention. The deal ended the price war between countries and served to compensate for the collapse in demand triggered by the coronavirus lockdowns worldwide.

According to a report by the Wall Street Journal, the Saudis want to reduce the supply cut from 9.7 to 7.7 million BPD.

EU meeting

EU leaders will meet in Brussels on Friday to discuss a 750-billion-euro coronavirus rescue package and the EU’s next-term budget, two topics that have led to fierce controversy and deep divergences.

Governments are engaging in intense diplomacy to create common ground before the two-day meeting.

G20 meeting

Saudi Arabia hosts the G20 finance ministers and central bank executives meeting to be held over the weekend.

The EU is expected to call for further co-operation on monetary and fiscal policy to tackle the coronavirus crisis at the meeting and continue to press for a global agreement for digital taxes despite US objections.

Economic Calendar

Monday: US Federal Budget Balance

Tuesday: UK Claimant Count Change, UK GDP, UK Manufacturing Production, UK Monthly GDP 3M/3M Change, German ZEW Economic Sentiment, US Core CPI

Wednesday: BoJ Outlook Report, UK CPI, Canada Core CPI, BoC Monetary Policy Report, BoC Interest Rate Decision, US Crude Oil Inventories, BOC Press Conference, New Zealand CPI

Thursday: Australia Employment Change, China GDP, China Industrial Production, UK Average Earnings Index +Bonus, UK Claimant Count Change, ECB Deposit Facility Rate, ECB Marginal Lending Facility, ECB Monetary Policy Statement, ECB Interest Rate Decision, US Core Retail Sales, US Initial Jobless Claims, US Philadelphia Fed Manufacturing Index, US Retail Sales, ECB Press Conference

Friday: Britain Retail Sales, Eurozone CPI, US Building Permits


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