Let the games begin. No, not the bitter battle between the two finalists in the Conservative Party leadership election – although you can watch that on the BBC on Monday. This week marks the start of the Commonwealth Games in Britain’s second largest city, Birmingham.
The opening day of the international sports festival will be marred by the other major event of the 2022 British summer: industrial action. The RMT will stage the latest in its series of walkouts over pay levels for rail industry workers on Wednesday, the same day Aslef – which represents train drivers ̵[ads1]1; counts votes on its strike ticket over members’ pay awards. Unrest continues to spread, with telecommunications engineers and dock workers either striking or choosing industrial action over wages.
Across the Channel, energy ministers from EU member states will meet in Brussels this week to decide on measures to end European dependence on Russian fuel supplies. The outlook is not good, according to Europe Express newsletter writer Valentina Pop. On Sunday, President Vladimir Putin will get his chance to stand on the podium as the Navy’s Fleet Day is celebrated in port cities across Russia.
If that’s all too depressing, then perhaps the prospect of further substantial compensation for the UK postmasters who suffered as a result of the faulty Horizon computer system is worth celebrating. Former High Court judge Lord John Dyson is expected to make an announcement on the final settlement for victims of the IT scandal following the government’s announcement of an interim payment totaling £19.5m in June.
The pick of the election news this week is Tunisia’s vote on a new constitution. Politicians and analysts say there is little doubt that the charter, drawn up by the populist leader Kais Saied, will be adopted even if they expect a low turnout.
All eyes will be on Washington on Wednesday for the Federal Reserve’s latest interest rate announcement. There are expectations of a tightening of monetary policy machinery with an increase of 75 basis points. At least one senior Fed governor wants the Federal Open Market Committee to go even further.
Then we will get data on growth – mentioned some recession – with quarterly GDP figures for the USA, Canada, France, Germany and the mass of countries in the Eurozone.
We’ve reached peak season with an A to Z (or at least X) of company names – ironic given that Tuesday’s list includes Alphabet.
The negative impact of the strong dollar has been seen across a range of US earnings this quarter. It is expected to resurface as an issue with a series of earnings announcements from Silicon Valley tech companies, which have some of the highest percentages of revenue from overseas.
Microsoft, which reports on Tuesday, has already cut its guidance based on the dollar, and Morgan Stanley issued a note last week saying the dollar could lead to disappointing guidance from Apple when it reveals its numbers on Thursday.
Attention will also be focused on the consumer goods industry with Unilever, Danone, Procter & Gamble, Reckitt Benckiser, Nestlé and Mondelēz all reporting this week. The concern among analysts is that shoppers are tightening their belts and choosing cheap supermarket products over multinational brands. The decision by Unilever and others to raise prices has not made the situation any easier.
Read the entire weekly calendar here.