The Week Ahead  31.10.2023

Its set to be a busy week for macro news. In Asia, the Bank of Japan will make an interest rate call today. The current rate stands at -0.1%, however rising inflation and bond yields is adding pressure on the bank to adjust the current low-rate policy. Despite this, economic forecasts expect the rate to stay at -0.1%. In the US, the focus will be on the Federal Reserve’s interest rate call on the 1^st. Economists believe there will be one more rate hike before the end of 2023 however recent Jay Powell comments suggest that hike may come in the December meeting. On the 3^rd US unemployment data will be released with the current rate at 3.8%. In the UK on the 2^nd the Bank of England will make an interest rate call. Expectation is for the rate to stay at 5.25%.

Earnings

On the earnings front, Toyota, the world’s second-largest car manufacturer will publish their Q2 earnings on the 1^st. The world’s largest company, Apple, with a market cap of $2.6Tr, will release its Q2 earnings on the 2^nd. And on the 3^rd, energy giant Royal Dutch Shell will publish their Q3 earnings. With the recent rally in energy prices, it will be interesting to see how impactful this is on quarterly performance.

Chart of the Week

Bitcoin has experienced a strong rally YTD, up c.108%. In recent weeks, weak macro news and tensions in the middle east have resulted in a selloff in growth assets, but not Bitcoin. The crypto’s value is up c.27% over the last month as investors grow more confident trading it in funds and on exchanges as the regulatory landscape becomes clearer.