The Sino-US talks are to be continued in September as a fresh 5 percent increase of American tariffs on Chinese goods came into effect on Sunday. But a schedule for this round of negotiations in Washington is yet to be announced in the coming days.
The US east coast is preparing to be hit by the tropical hurricane Dorian which has already brought devastation to the Bahamas. The hurricane may just spare Florida and but now Georgia and the Carolinas are expecting it as the oil-producing Gulf of Mexico also found itself spared.
The Brexit storm
The national crisis surrounding the Brexit in the UK goes on unabated after Prime Minister Boris Johnson managed to get the Parliament suspended for the duration of September and till mid-October. Protests against the Johnson government have come to the front stage as the opposition desperately looks for options to prevent a no-deal divorce from the European Union.
Among the options the Labour Party is exploring is a vote of non-confidence amidst the constitutional turmoil.
Chancellor Sajid Javid is set to announce on Wednesday a one-year spending plan that will see an increase in funding for the health services, police force and education, in a move that many interpret as a preparation for an early general election after the Brexit date on October 31.
US vice-president Mike Pence is visiting London on Thursday as the UK hopes to secure a trade deal with the Trump administration. Pence will hold high-level meetings before moving on to Ireland where people and politicians alike ask for prevention of a border with Northern Ireland.
On Friday, markets will be watching arguably the most crucial data of the month, the US non-farm payrolls and hourly wages.
Central bank news
On Wednesday, the US Federal Reserve is releasing its monthly beige book that compiles data on the country’s economy from the central bank system’s 12 districts. The beige book will provide the markets with a clearer picture of the economic health amidst the trade war with China and questions surrounding the Fed’s interest rate policy, particularly during its policy meeting later this month.
Chairman Jerome Powell is speaking in Switzerland’s Zurich on Friday, while New York Fed president John Williams, Boston Fed president Eric Rosengren and St Louis Fed president James Bullard are poised to give speeches throughout the week.
The Bank of England Governor Mark Carney and other bankers will on Wednesday update the Parliament regarding the Brexit’s economic impact.
The Reserve Bank of Australia is meeting on Tuesday for a decision on its interest rates. The RBA which was the first major central bank to start cutting rates this year is this time expected to keep them at 1 percent while stating its openness for easing as circumstances warrant.
The Bank of Canada also is meeting on Wednesday. The BoC is largely anticipated to keep its rates on hold while signaling a cut in October.