Global Equities Watching U.S. This Week: Sebastian

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Aug. 18 (Bloomberg) -- Savantah Sebastian, equities economist at Commonwealth Bank, talks with Angie Lau about the major stories impacting global equities in the week ahead, including news from the Federal Reserve, the Reserve Bank of Australia and economic data from the United States and Japan. He speaks on “First Up.”

Events this week with an economist at commonwealth bank.

He joins us live in sydney.

It is good to see you.

On the schedule this week, a lot of stuff is flowing out of the united states.

How integral is this going to be for global equities?

Look, i think we really will be focusing on the u.s. this week.

You've got some of that top shelf economic data coming out.

Inflation prices coming out tonight.

It's likely we will see core inflation coming in at about .2%. we are well contained.

I think the inflation story will start to rear its head toward the end of this year when it comes to the u.s. also, we've got housing data coming out.

We are starting to see a turnaround in the u.s. housing sector.

I think we will start to see a bit of a momentum shift.

Expecting some big blips.

Around an 8% turnaround.

Similar in building permits.

Looking toward the middle of the week, you have the info -- it is probably the point where the fed will be discussing more about its exit strategy now that they are winding back stimulus and it will and over the next -- it will end over the next couple of months.

Later this week, friday, saturday, the fed central bankers and some noble central bankers getting together to discuss some global central bankers getting together to discuss -- later this week, friday, saturday, the fed central bankers and some global central bankers getting together to discuss monetary and fiscal policy.

The details and the semantics -- schematics have been centered around labor markets and labor market trends around the globe.

There will be a few key speakers discussing labor market momentum . that is probably going to be of key focus more than monetary policy focus.

Next indeed, the annual symposium titled -- indeed, the annual symposium titled "reevaluating labor market dynamics." the labor market was critical in australia.

The reserve bank governor meeting with parliament this week in kind of an off schedule grilling, if you will?

Exactly right.

It was surprising.

It was not part of the schedule last week.

Late last week, we found out the reserve bank governor will be going up in front of the house of representatives economics committee.

It normally happens semiannually . it was expected to happen in november.

It seems to have, really.

It normally takes place on friday.

It is on a wednesday.

I think it comes down to the high lift in the unemployment rate to a 12 year high.

Policy makers may be concerned about that and wanting to find out what the fed will do when it comes to the labor market -- the fed's view when it comes to the labor market.

The growth around housing prices is also potentially concerning.

It is more a lack of stock in the housing market at the moment , but i think there will be some mathematics around -- some h thematics around how we are lending in this country going forward.

Today, china's property prices.

When you take a look at the rest of asia as it plays into looking -- taking a look at the equity story here, how much does the economics this week in terms of this data have an impact for investors?

? i think the property price story in china -- there are some signs that the property market -- there is no question it is cooling.

In terms of japan, the export numbers are starting to show signs of lifting.

The ongoing devaluation of the japanese yen has been a very good environment for boosting exports.

The asian region is central to the global clothes -- global growth story.

I think we will probably see the key focus on thursday.

We will get the manufacturing readings across the globe.

It kicks off in australia and asia.

It is an early read.

We have seen some very good signs in the last couple of months.

You would like to see an ongoing improvement to those numbers.

It does mean the export numbers, the trade numbers, the retail sales numbers will be a lot more supportive for growth.

Keep on that.

You will start to get the european and u.s. numbers as well thursday night.

The european numbers are a bit

This text has been automatically generated. It may not be 100% accurate.

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