February 4, 2023

Eureka News

All the News All the Time

Live News: China stocks gain as easing of Covid spasms boost markets

Residents queue for Covid-19 tests in Beijing’s Chaoyang District on Sunday © Wu Hao/EPA-EFE/Shutterstock

After a period of unrest, change and mourning in China, Vice Premier and Covid-19 Tsar Sun Chunlan said the fight against the virus had entered a “new phase”. The potential, albeit gradual, release of Beijing’s zero-Covid policy is likely to make the headlines, as will the resulting inflationary pressures. State institutions and corporations will continue to face the delicate task of showing respect to late President Jiang Zemin without offending incumbent Xi Jinping.

Now that power is restored in some parts of Ukraine, the focus is on the fight to increase ammunition production in the West. Industrial capacity and the disrupted global supply chain will be high on defense ministers’ agendas at the annual European Intervention Initiative in Oslo and the annual European Defense Agency conference in Brussels. Also this week, Russia’s President Vladimir Putin could respond to US counterpart Joe Biden, who said he was ready to talk about ending the conflict.

Nationwide’s falling home price index continues to dampen UK Christmas spirit. Will Halifax’s home price index numbers tell the same story on Wednesday? News of record food inflation has certainly prepared us for the forthcoming retail sales figures from the British Retail Consortium in November and are likely to figure prominently in discussions at the Associated British Foods AGM.

It will be a week of sports around the world. The men’s soccer World Cup in Qatar reaches the quarterfinals. The Pakistan-England Test cricket series is taking place and the final of the ISU Grand Prix of Figure Skating gets underway in Italy on Thursday.

The Nobel Prizes will be awarded at a ceremony in Oslo on Saturday.

economic data

This week’s highlights include the Halifax-Halifax house price and the UK, Russia and EU Purchasing Managers’ Indices. Also watch out for EU Retail Sales, German Factory Orders and Industrial Production, EU Q3 Gross Domestic Product and BRC Sales and US Trade Balance figures.

companies

A staff member restocks shelves at a Lululemon store in London. The retailer reports results on Monday © Bloomberg

This week the selection of results is slim, but Costco Wholesale is expected to rise as demand for fresh groceries, groceries and fuel remains resilient despite decades of inflation. Lululemon Athletica reports on Thursday and Carl Zeiss Meditec on Friday.

In the UK news, we’re likely to hear more about Mulberry’s claim that luxury shoppers are avoiding London for Europe since the decision to end VAT-free shopping in the UK. Chief Executive Thierry Andretta said: “We are losing 45 to 50 percent of our potential business [at the Bond Street store] due to the end of the tax exemption [shopping].”

Read the full calendar for next week here.