Business Lookahead: Make or break
STORY: From Argentina heading to the polls, to renewed trade tensions and talks between Washington, Beijing and Canada, these are the stories to watch in business and finance in the coming week.:: A mid-term dramaArgentina's mid-term elections on Sunday are shaping up as a make-or-break moment for one of the emerging markets' biggest reform stories. Right-wing President Javier Milei is looking to strengthen his minority position.His inflation-crushing economic reform program and deepening ties with Washington have delivered some of the best returns for emerging market investors since he took over in December 2023.Yet U.S. President Donald Trump's unprecedented backing has not stopped the peso's slide to record lows. :: Megacap-led earnings delugeMegacap tech and growth company earnings reports headline a massive week of U.S. corporate results that could shed light on the state of the “AI trade.”Apple and Amazon are among five of the "Magnificent Seven" reporting earnings. And one-third of S&P 500 constituents are set to report in the coming week alone, including Eli Lilly, Exxon, and Mastercard. Investors will also be scouring data for signs of the costs and impact of shifting U.S. trade policy. :: Counting on a cutMarkets are all but certain that the U.S. Federal Reserve will cut interest rates by a quarter-point when it concludes its meeting on Wednesday.Meanwhile, Trump is expected to meet with Chinese President Xi Jinping on Thursday on the sidelines of the Asia-Pacific Economic Cooperation CEO Summit. Their long-awaited rendezvous had been called into question following an escalation in trade tensions and a standoff over China's restrictions on rare earth exports.:: It’s not all about the FedThe Bank of Canada is also expected to cut rates for a second consecutive month on Wednesday.While a pick-up in inflation is not expected to stand in its way, Trump's announcement that all trade talks with the country are terminated will cast a cloud. On Thursday, the European Central Bank is expected to leave rates unchanged.There's still French political turbulence to contend with and an election in the Netherlands on Wednesday.
STORY: From Argentina heading to the polls, to renewed trade tensions and talks between Washington, Beijing and Canada, these are the stories to watch in business and finance in the coming week.:: A mid-term dramaArgentina's mid-term elections on Sunday are shaping up as a make-or-break moment for one of the emerging markets' biggest reform stories. Right-wing President Javier Milei is looking to strengthen his minority position.His inflation-crushing economic reform program and deepening ties with Washington have delivered some of the best returns for emerging market investors since he took over in December 2023.Yet U.S. President Donald Trump's unprecedented backing has not stopped the peso's slide to record lows. :: Megacap-led earnings delugeMegacap tech and growth company earnings reports headline a massive week of U.S. corporate results that could shed light on the state of the “AI trade.”Apple and Amazon are among five of the "Magnificent Seven" reporting earnings. And one-third of S&P 500 constituents are set to report in the coming week alone, including Eli Lilly, Exxon, and Mastercard. Investors will also be scouring data for signs of the costs and impact of shifting U.S. trade policy. :: Counting on a cutMarkets are all but certain that the U.S. Federal Reserve will cut interest rates by a quarter-point when it concludes its meeting on Wednesday.Meanwhile, Trump is expected to meet with Chinese President Xi Jinping on Thursday on the sidelines of the Asia-Pacific Economic Cooperation CEO Summit. Their long-awaited rendezvous had been called into question following an escalation in trade tensions and a standoff over China's restrictions on rare earth exports.:: It’s not all about the FedThe Bank of Canada is also expected to cut rates for a second consecutive month on Wednesday.While a pick-up in inflation is not expected to stand in its way, Trump's announcement that all trade talks with the country are terminated will cast a cloud. On Thursday, the European Central Bank is expected to leave rates unchanged.There's still French political turbulence to contend with and an election in the Netherlands on Wednesday.
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