STORY: From a potential shift by a major central bank to a health check for Corporate America - these are the stories to watch out for in business and finance over the coming days.
How healthy is Corporate America?
Fourth-quarter results will begin rolling in this week from the likes of Wells Fargo, Citigroup and BlackRock.
Investors will be looking for any signs of a potential economic slowdown filtering through the companies’ bottom lines.
Meanwhile, the December U.S. consumer price index is due Thursday.
Signs that inflation continues to ease will reinforce “peak rates” and fuel talks of future rate cuts.
Investors will keep a close eye on Tokyo’s inflation numbers Tuesday.
The Tokyo data surged to a four-decade high in the previous reading.
In turn, the Bank of Japan raised the tolerance ceiling for 10-year government bond yield.
The BOJ maintains the move was a one-off.
But the yen has strengthened to seven-month highs on rising expectations for a further hawkish shift.
The U.K.'s November economic output data on Friday will likely point to a looming lengthy recession.
It comes against the backdrop of transport strikes, a softening housing market and red-hot inflation.
Prime Minister Rishi Sunak has pledged to halve inflation - but Deutsche Bank sees high inflation persisting through 2023, and no rate cuts until 2024.
It’s a greener picture in much of Europe, with inflation tumbling - thanks to a decline in wholesale natural gas and power prices.
It'll take time for that to translate into lower household bills - and economic recovery may still be a way off...
But the anticipated recession might not be as bad as expected.
Gas prices and data releases in the coming days will be watched closely.