March 29, 2024

The Week Ahead: Central Bankers Will Debate Policy, and OPEC Meets on Output

Economic data that was published last week gave a mixed picture on the British economy. Retail sales, bolstered by sunny weather and royal wedding celebrations in May, rose 1.3 percent from the month before. But industrial production slipped 0.8 percent in April from the month before.

The committee’s vote will give some indication of how its members view the numbers, according to Peter Dixon, a senior economist at Commerzbank. “Obviously the weakness of industrial production argues for a change of view, but the strength of retail sales may well confirm them in their belief that the soft patch in the early months of the year was a temporary effect driven by the weather,” Mr. Dixon wrote.

— Amie Tsang


Economy

The Fed will release results of stress tests of big banks.

The Federal Reserve is scheduled to release on Thursday the results of its annual stress tests of major banks, a measure of whether the banks can withstand an economic downturn or an unexpected financial market calamity. Last year’s tests strained one bank but did not produce any failures; this year’s are expected to be harder. Six foreign banks will have their United States operations publicly evaluated for the first time: Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, RBS and UBS. All eyes are on Deutsche Bank, which is in the midst of a major restructuring.

— Emily Flitter


Economy

Europe’s finance ministers will discuss a Greek bailout.

Greece and its creditors will try to agree Thursday on a blueprint to help the beleaguered country stand on its own once it comes off its third, and final, international bailout later this summer. As Greece emerges from a ruinous crisis, its creditors are drawing up plans to prevent another wide-ranging economic disaster.

— Prashant S. Rao


Energy

OPEC faces pressure to increase output.

Pressure is building on the Organization of the Petroleum Exporting Countries to ease the 18-month production curbs that have helped prices of Brent crude more than double to around $73 a barrel since their lows in early 2016. OPEC and other major oil producers including Russia plan to meet in Vienna on Friday and Saturday, and the group is already in the sights of President Trump, who has called prices artificially high. But how much the producers will lift output remains under debate.

— Stanley Reed

Article source: https://www.nytimes.com/2018/06/17/business/central-bankers-opec-output.html?partner=rss&emc=rss

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