Ease into the new week.
(Bloomberg) — Pessimists and optimists will struggle for dominance this week, from the Swiss alps to the stock markets of China. This is what to expect from both sides as the days unfold.
The big forum: The global elite returns to Davos during the winter for the first time in three years as the World Economic Forum tackles a slate of concerns, from Russia’s war in Ukraine to fears of global recession, inflation and the increasingly evident signs of climate change. Here’s an insider’s tour of the “polycrisis.”
The big buy: Chinese tech stocks are back in favor for global investors, with a 60% rally in the Hang Seng Tech Index since an October low spurring bullish calls from Goldman Sachs Group Inc. to Morgan Stanley. But a new regulatory regime that no longer tolerates free-wheeling growth means the days of guaranteed outperformance may not return.
The big balance: While China’s central bank has pledged to avoid massive monetary stimulus this year in an attempt to encourage growth while maintaining price stability, Bloomberg Economics predicts it will trim its one-year rate on Monday. GDP, production, investment and retail sales data will likely all show a hit from the 2022 Covid restrictions and the subsequent explosion in infections after curbs were lifted.
The big data: After surprising markets last month with a tweak to its yield curve policy, the Bank of Japan will also be under scrutiny. It’s expected to stand pat this week, even as a CPI report on Friday will probably show core inflation hitting 4% — double the BOJ’s target. Bank Indonesia may raise rates by 25 basis points to support the rupiah. Watch for a slowdown in Australia’s job growth.
The big take: Wall Street may have had a tough 2022, but it just had its best decade ever, with the six biggest banks minting $1 trillion in profit. Listen to how they did it.
The big serve: Novak Djokovic returns to the Australian Open this week after being deported during last year’s scandal-plagued tennis tournament. The Serbian’s three-year visa ban was overturned in November, allowing him to seek a 22nd Grand Slam win to draw level with defending champion Rafael Nadal as the all-time most successful men’s singles player.
And finally, if you didn’t get invited to Davos, here’s how to crash the party in a tent.
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