Live News Update: China’s Covid-19 cases drop as Hong Kong issues pre-flight health declaration

Live News Update: China’s Covid-19 cases drop as Hong Kong issues pre-flight health declaration

Let the games begin. No, not the fierce battle between the last two candidates in the Conservative Party leadership elections — although you can watch it on the BBC on Monday. This week is the beginning Commonwealth Games in the second largest city in Great Britain, Birmingham.

The opening day of the international sports festival will mark another major event of the British summer of 2022: industrial action. RMT will post the latest in its series of walkouts over pay levels for rail workers on Wednesday, the same day Aslef – which represents train drivers – counts votes in its strike ballot for members’ awards. Unrest continues to spread, with telecommunications engineers and dock workers striking or voting for industrial action over pay.

Across the Channel, EU energy ministers will meet in Brussels this week to decide on measures to end Europe’s reliance on Russian fuel supplies. The the odds are not good, according to Europe Express newsletter writer Valentina Pop. On Sunday, President Vladimir Putin will have the opportunity to speak at the Naval Fleet Day celebrations in port cities across Russia.

If that’s too depressing, then perhaps it’s worth celebrating the prospect of further significant compensation for UK postmasters over the failed Horizon computer system. Former Supreme Court judge Lord John Dyson is expected to announce the final settlement for victims of the IT scandal after the government announced an interim payment totaling £19.5 million in June.

This week’s election news selection is news from Tunisia to vote on the new constitution. Politicians and analysts say there is no doubt that the charter, drawn up by populist leader Kais Saied, will pass even if they expect a low turnout.

Economic data

All eyes will be on Washington on Wednesday for the Federal Reserve’s latest interest rate announcement. Expectations are a tightening of the monetary policy machinery with an increase of 75 basis points. At least one senior Fed governor would like that from the Federal Open Market Committee go even further.

Then we’ll get growth data — did someone mention recession — with quarterly GDP data for the US, Canada, France, Germany and a host of Eurozone countries.

Companies

We’ve hit peak earnings 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 was seen in a number of US earnings this quarter. That 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 reported on Tuesday, had already cut its dollar-based guidance, 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 FMCG industry with Unilever, Danone, Procter & Gamble, Reckitt Benckiser, Nestlé and Mondelēz reporting this week. Analysts worry that customers are tightening their belts, choosing cheap supermarket own-label products over multinational brands. The decision of Unilever and others that raise your prices it didn’t make the situation any easier.

Read the calendar for the entire week in advance here.



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