5 Important Developments to Follow This Week

Here are 5 important developments to follow this week. 2022 will start with a set of economic data for December.

1. December Employment Report

The US nonfarm payrolls report will be released on Friday. Job growth is expected to be 400,000, compared to 210,000 last month and 494,000 over the past six months. Expectations for the unemployment rate are that it fell from 4.2% to 4.1%.

2. OPEC Meeting

OPEC is meeting on Tuesday. At the previous meeting, the group reaffirmed its decision to continue increasing production in 2022 and said they expect Omicron to have a low impact on oil demand. Oil finished 2021 high 50%; WTI had its best year since 2009 and Brent had its best year since 2016. With demand recovering to pre-pandemic levels this year, oil prices are expected to be supported despite production increases from OPEC.

3. PMI and CPI Data

This week, PMI (Purchasing Managers Index) reports, an important measurement of economic activity, will arrive from around the world. While problems in supply chains remain, an increase in production can be expected as part of 'normalisation', but shifts in behavior and the Northern Hemisphere winter could slow growth in services. This week, we will also see CPI and PPI reports from various countries. South Korea, European countries and the Eurozone as a whole are starting this week's report flow. 2021 was a year of inflation and less pursuit of goods and experiences. So these two sets of reports will show how many regions exited 2021 and how they are preparing for this year.

4. Earnings Reports

The Walgreens Boots Alliance (NASDAQ:WBA) is leading the way. The US-based pharmaceutical retail company will submit the report on Thursday. The company is expected to report revenue of $32.46 billion, down 7% year-on-year, and earnings per share of $1.35, up 31%. Bed Bath & Beyond (NASDAQ:BBBY) will also report on Thursday. Office furniture manufacturer MillerKnoll (NASDAQ:MLKN), a combination of Herman Miller and Knoll, is expected to share $1.04 billion in revenue in the first quarter as a combined entity. WD-40 Company (NASDAQ:WDFC), Constellation Brands (NYSE:STZ), and PriceSmart Inc (NASDAQ:PSMT) will also be presenting reports.

5. Meeting Between Biden And Putin

US President Joe Biden and Russian President Vladimir Putin will hold a phone call this Thursday amid tensions on the Ukraine/Russia border. This will be the second meeting in three weeks, with 100,000 Russian troops deployed to the Ukrainian border. US and Russian officials are preparing to meet in Geneva on Monday, January 10, for the security agreement negotiations brought to light by the latest crisis.     Source: Investing.com