I.M.F. to Talk of Greek Bailout, and Trump Will Meet Japan’s Leader on Trade

I.M.F. to Talk of Greek Bailout, and Trump Will Meet Japan’s Leader on Trade

- in Business
28
0

Mario Draghi is the president of the European Central Bank.

Credit
Yves Herman/Reuters

Here’s a look at what’s coming up this week.

ECONOMY

Fund faces a deadline for a deal with Greece’s creditors.

The International Monetary Fund will hold a crucial board meeting on Monday to discuss whether it will participate in Greece’s current bailout program, the country’s third in seven years. The I.M.F. has been squaring off with Greece’s European creditors over debt calculations and austerity conditions that Greece must meet to receive badly needed loan payments. If both sides don’t reach an agreement by Feb. 20, when European finance ministers are to meet in Brussels to review the program, the bailout could be thrown off course, pushing Greece into another potentially disastrous situation. Liz Alderman

A bank leader will discuss Trump’s effect on the eurozone.

Mario Draghi, the president of the European Central Bank, will speak to members of the European Parliament in Brussels on Monday and will probably face questions about what President Trump means for monetary policy and political unity in the eurozone. So far, Mr. Draghi has avoided commenting on Mr. Trump, but he may become more outspoken after Mr. Trump’s tumultuous first days in office. Mr. Draghi may also face questions about whether rising inflation in the eurozone will prompt the central bank to begin withdrawing its economic stimulus measures. Jack Ewing

December trade balance estimates are coming.

On Tuesday at 8:30 a.m., the Commerce Department will release its estimate of the trade balance for December. Economists expect to see a net deficit of $45 billion, slightly narrower than the $45.2 billion gap in November. The strengthening of the dollar in recent months could eventually hurt exports by making them more costly overseas, while bolstering imports as they become cheaper for American buyers. While economists don’t expect much change in the trade balance from the preceding month, they will be watching closely for any sign of the dollar’s impact. Nelson D. Schwartz

BANKING INDUSTRY

Several European lenders will report their 2016 results.

Investors will again have their eyes on European banks this week as several of the region’s largest lenders report their results for 2016. BNP Paribas and Société Générale of France and Unicredit of Italy are among the banks expected to update investors on their fourth-quarter and full-year results. Unicredit has already warned that it would post a loss of 11.8 billion euros, or about $12.7 billion, for 2016, with the bank taking €12.2 billion in charges in the fourth quarter as it seeks to clean up its balance sheet. Chad Bray

ECONOMY

Mexican banking leaders will meet as the peso weakens.

Mexico’s central bank board will meet on Thursday amid expectations that it will announce a rate increase to address rising inflation. A weakening peso and the government’s decision to deregulate gasoline prices at the beginning of the year led to the sharpest spike in inflation in almost two decades. Now the fuel shock is beginning to spread as prices of basic goods are rising and analysts forecast that inflation could surpass 5 percent. The peso has recovered some ground after hitting a historic low two weeks ago in the face of uncertainty about relations with the United States, which buys almost 80 percent of Mexican exports. That uncertainty puts more strain on the Mexican economy, as companies may delay investment plans while waiting to see what comes of talks to renegotiate the North American Free Trade Agreement. Elisabeth Malkin

TECHNOLOGY

Twitter will announce its 2016 earnings.

Twitter will report its financial results for the fourth quarter of 2016 and the full year on Thursday. Wall Street expects the beleaguered social media company to announce revenue of $736 million for the fourth quarter. As always, analysts will closely watch the company’s user growth figures, a point of difficulty for Twitter since its initial public offering in 2013. Mike Isaac

ECONOMY

Trump and Japan’s prime minister are poised to meet.

President Trump is scheduled to meet Prime Minister Shinzo Abe of Japan on Friday, with trade and currency issues high on the agenda. Mr. Abe’s goal is to defuse accusations by Mr. Trump that Japan benefits unfairly from trade with the United States, partly by keeping the yen artificially cheap. He may offer to channel Japanese investment into American industries in hopes of forestalling protectionism. Much is at stake: The United States is Japan’s most important overseas market, and the meeting could set the course for future bilateral trade negotiations. That is especially crucial, now that Mr. Trump has said Washington will no longer participate in the Trans-Pacific Partnership trade deal, negotiated by the Obama administration. Jonathan Soble

Continue reading the main story

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

In the Garden: Time to Put the Garden to Bed?

But wait, there’s a fourth category, the refuge