Another week is coming up on the global news front, with the top three political and economic issues at the start of 2019 still unresolved.
Britain has a looming March 29 deadline for its exit from the European Union, and still there’s no agreement on how it will curtail potential cross-border trade obstacles connected to the country’s withdrawal.
Closer to home, Friday is the day when the temporary funding that reopened the U.S. government after a 35-day shutdown is set to end.
And the trade war between the U.S. and China doesn’t seem to be moving any closer to a resolution, even as the March 1 deadline when new tariffs are set to take effect is looming.
Brexit: As U.K. Prime Minister Theresa May tries to renegotiate the country’s deal to withdraw from the European Union, expect another very long session in Parliament on Thursday, as bickering over what the next step should be continues.
Another U.S. government shutdown? Maybe. House Speaker Nancy Pelosi has said she has bipartisan support for a funding bill she plans to bring to the floor. The catch is that there’s allocation of money to fund the wall along the U.S.-Mexican border. And President Donald Trump has been adamant about building the wall. He does have one ace-in-the-hole: Trump could declare a national emergency and redirect funding allocated elsewhere to build his wall.
Trade War: U.S. negotiators–U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin–will be in China for another round of talks. With the March 1 deadline fast approaching, there was hope for a meeting between President Trump and China’s President Xi Jinping later this month, but that doesn’t seem to be the case. On Thursday Larry Kudlow, the White House’s top economic advisor, described the differences between the two countries as still “pretty sizable.” One key talking point for the U.S. is getting China to change its enforcement policy on intellectual property matters. What to look for? Some indication that the talks ended on a positive note. That could pave the way for another extension of the tariff deadline to allow more time for further negotiation.
Consumer Price Index: The report on the CPI is due out on Wednesday. Measuring the change in retail prices of a “market basket” of 80,000 goods and services, the report will provide a read on the current state of consumer purchasing power and rate of inflation.
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Earnings: Companies slated to report include Fossil Inc. and Tanger Factory Outlet Centers Inc. on Monday, Kering Group and Under Armour Inc. on Tuesday and Taubman Centers on Wednesday.
Fashion Week: The women’s shows for New York Fashion Week continue through Wednesday. After a day’s break to give buyers a chance to breathe and travel to across the pond, London Fashion Week begins on Friday and ends the following Tuesday.