Key Economic News To Watch This Week: Dec. 5
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A quick preview of the key economic events for the upcoming week:
The European debt crisis will continue to take centre stage this week – with the ECB interest rate decision and the EU Summit taking place.
Monday, 5 December
German Chancellor Angela Merkel and French President Nicolas Sarkozy announce joint proposals for treaty changes for the European Union. Following the debt crisis, emphasis will be placed on tighter fiscal control and legally enforceable budget rules.
A quick preview of the key economic events for the upcoming week:
The European debt crisis will continue to take centre stage this week – with the ECB interest rate decision and the EU Summit taking place.
Monday, 5 December
German Chancellor Angela Merkel and French President Nicolas Sarkozy announce joint proposals for treaty changes for the European Union. Following the debt crisis, emphasis will be placed on tighter fiscal control and legally enforceable budget rules.
Related: French-German split may spell doom for EU summit
United States Vice-President Joe Biden meets Greece’s new Prime Minister Lucas Papademos for the first time in Athens.
Wikileaks founder Julian Assange attends a Supreme Court hearing in London. Assange is expected to appeal against extradition charges to Sweden over alleged sex crimes.
Related: Wikileaks on the verge of a complete shutdown due to financial blockade
Portugal’s finance minister, Vitor Gaspar, travels to London to meet UK Chancellor George Osborne, to discuss the eurozone crisis ahead of Thursday’s EU Summit in Brussels.
Reserve Bank of Australia announces its interest rate decision. The latest economic data from down-under, coupled with inflationary pressures, raises the chance of another rate cut by 25bps to 4.25 percent.
The United States releases the latest manufacturing index – a leading indicator of economic activity. The figure is expected to rise to 53.6, a positive expansionary figure.
Tuesday, 6 December
The eurozone announces its Q3 GDP figures. Analysts expect a sluggish 0.2 percent quarter-on-quarter growth.
Related Statistics: GDP, Unemployment Rate
Australia too, announces its Q3 GDP results. A 1.2 percent quarter-on-quarter growth is expected, with a 2.3 percent year-on-year result.
Related Statistic: Australia GDP
Ireland’s finance minister, Michael Noonan unveils the country’s 2012 budget. In order to qualify for IMF-EU loans, Noonan is expected to continue with deep austerity cuts.
Wednesday, 7 December
Greece ministers vote on the nation’s 2012 budget.
Related: EU confirms 1 trillion euros bailout fund, 50% Greek writedown
Related Story: The no-win Greek debt buyback trap – Lessons from Ecuador: Eduardo Levy-Yeyati
The FTSE Company announces the new list of companies in its FTSE-indices.
Thursday, 8 December
With economists predicting poor eurozone growth and the ECB president Marco Draghi warning of a “mild recession” next year, analysts are expecting the Bank to effect another 25bps rate cut – a move that would help avoid a double-dip recession. Should the debt crisis cause borrowing rates to rise to unacceptable levels, the ECB might be left with no choice other than to fulfil its dreaded “lender of last resort” role.
Related: Europe faces recession risk
Related: Markets cheer but questions and doubts remain after EU debt deal
Leaders of the 27 countries of the European Union gather in Brussels for solutions to the eurozone’s sovereign debt crisis. The challenges are aplenty as the bloc has to determine if the ECB can be convince to stand as a “lender of last resort”, if and how the EFSF can be leveraged, if the IMF can step up with much-needed liquidity, or if a new European Monetary Fund would be set up.
Related: IMF steps in with new liquidity for Europe
Friday, 9 December
Croatia signs its European Union accession treaty and is expected to become the bloc’s 28th member in 2013.
Saturday, 10 December
Cristina Fernandez is sworn into office as a second-term president of Argentina after a sweeping electoral victory in October.
Related: Argentine President re-elected, buoyed by strong economic performance
The Nobel Peace Prize is presented to the 2011 joint recipients in Oslo, and also in Sweden.
Related: And the Nobel Prize goes to…
Sunday, 11 December
A parliamentary election takes place in Ivory Coast following a violent vote dispute in November 2010 that left more than 3,000 dead. Former president, Laurent Gbagbo, faces crime against humanity charges at the International Criminal Court in The Hague on December 5th.
