STORY: From Trump’s approaching trade deadline to interest rate decisions at some of the major central banks, these are the stories to watch in business and finance in the coming week.
:: Look Ahead
:: Trump’s deadline approaches
As U.S. President Donald Trump’s August 1 deadline for countries to reach trade deals or face steep tariffs approaches, market optimism is high.
Japan and the U.S. just struck a deal. And the European Union says an agreement that averts 30% tariffs is within reach.
Any market reaction to negative headlines could easily be exacerbated by summer-thinned trading and knock world stocks off record highs.
:: Federal Reserve drama
Trump’s beef with central bank Chair Jerome Powell shows no signs of easing.
And it could add drama to Wednesday’s meeting – though investors expect the Fed to hold interest rates steady for now.
The July employment report out Friday is expected to show an increase of 102,000 jobs, according to Reuters forecasts.
:: Uncertainty in Japan
The Bank of Japan has a lot to consider when it meets Wednesday and Thursday.
A new U.S. trade deal has reduced economic uncertainty and increased the likelihood that Japan will hit the BOJ’s inflation target.
But political uncertainty mounts with speculation that Japan’s prime minister will step down after a disastrous electoral showing, paving the way for more dovish policy.
:: Canada’s inflation fears
The Bank of Canada is widely expected to keep interest rates on hold when it meets on Wednesday.
It comes as the yield on 30-year Canadian bonds has zoomed almost 70 basis points higher since early April.
And the BoC has fretted about Canada’s retaliatory tariffs on U.S. goods proving inflationary.
Canada’s debt markets are increasingly attracting fast-money hedge funds, setting them up for outsized sell-offs when those inflation concerns spike.
