The US Federal Reserve will announce its latest interest-rate decision. The consensus is that the Fed fund rate will be cut by 0.25% to 5.25%. However, some believe that it could be reduced by as much as 0.50%.
The Bank of Japan and the Bank of England will also announce their latest interest-rate decisions. The Japanese central is expected to keep interest rates on hold. Whilst it wants to normalise interest rates, the BoJ wants to do it gradually.
The Bank of England is also expected to stand pat on the base rate. It wants to cut interest rates further. But it has been deterred by wage growth that remains strong and inflation that is still above its target of 2%.
Staying with interest rates, the People’s Bank of China could keep the loan prime rate at a record low of 3.35%. China is trying to walk a fine line between a need to stimulate the economy and ensuring that commercial banks remain profitable.
The US will announce retail sales for August. A slowdown in the annual retail sales growth rate from 2.7% to 2.2% could be an additional data point that the US economy is coming off the boil.
On the corporate front
Delivery giant FedEx (NYSE: FDX) has provided a strong profit forecast for 2025. It has also outlined ambitious cost-reduction targets for the year. FedEx, which is seen as a barometer of the US economy, will be judged on its ability to deliver on its pledges, when it reports first-quarter results.
Top Glove (KLSE: 7113) may report full-year results, though the announcement has yet to be confirmed. The world’s largest glove maker appears to have turned a corner. But more needs to be done. The company expects order volumes to pick up and it also believes that natural latex prices will stabilise. However, the key will be whether Top Glove can pass on price increases to customers and make them stick.
TikTok will argue in the US Court of Appeals for the District of Columbia that a government ban on its activities is unconstitutional. The social media company said the ban by US lawmakers violates American’s rights to free speech.
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Disclosure: Top Glove is a component of DKIP’s MMM portfolio.
