Money

Week ahead: UK debate, retail earnings, US economy


The leaders of the UK’s major political parties, Boris Johnson and Jeremy Corbyn, will face off in their first televised debate. It’s also another big week in the retail sector, as some of the industry’s biggest players in the US report earnings.

Here’s what to watch.

UK debate

Mr Johnson, UK prime minister and Conservative party leader, and Labour’s Mr Corbyn will go head-to-head in a live debate on November 19.

The event is the first of several debates ahead of the UK election next month. Among them, Mr Johnson and Mr Corbyn will debate on December 6, six days before voters go to the polls. A larger seven-way debate featuring leaders from major political parties will occur on November 29.

You can find more of the FT’s election coverage here.

Retail earnings

A bevy of American retailers will report quarterly earnings, with investors looking for signs of continued strength in consumer spending.

Retail sales have been a bright spot in the economy, rebounding more than expected in October from a sluggish September, even as big-ticket purchases eased. Meanwhile Walmart, the world’s largest retailer, raised its profit forecast last week after a strong third quarter.

Investors hope for similarly upbeat results from Target, Macy’s, Home Depot and Lowe’s this week. Other retailers in the earnings line-up include Foot Locker, TJX, Nordstrom, Gap and Victoria’s Secret owner L Brands.

The earnings reports will come at a time when US retailers are preparing for the start of the holiday shopping season, which kicks off next week following the Thanksgiving holiday. Retail sales in November and December are forecast to rise between 3.8 and 4.2 per cent year-over-year to as much as $730.7bn, according to the National Retail Federation.

US economy

Housing data and minutes from the Federal Reserve’s latest meeting will give Wall Street a fresh look at the domestic economy and monetary policy.

On the data front, reports will focus on the US housing market. Investors will parse figures on the construction of new homes and sales of previously owned homes, as well as a survey on builder sentiment.

Earnings reports from Home Depot and Lowe’s will also add to the assessment of the housing market, providing a picture of how much consumers have been willing to spend on home improvements.

The Fed will release minutes from its October meeting on November 20, giving investors a window into policymakers’ thoughts on interest rates. The central bank cut rates for a third time this year as officials responded to muted inflation growth and global economic uncertainty. But it also signalled an end to the “mid-cycle adjustment”, saying it would “continue to monitor the implications of incoming information.”

The list of Fed speakers this week includes New York Fed president John Williams and Cleveland Fed president Loretta Mester.



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