The Week Ahead

World’s policy makers gather at Jackson Hole

Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi will be among the officials addressing this year’s instalment of the annual conference hosted by the Kansas City Fed. Their relief about a stronger global economy will be tempered by a growing unease that inflation remains inexplicably low.

The ECB is entering a crucial phase of its battle to restore euro-area price stability. It was in Jackson Hole three years ago that Draghi laid the groundwork for its 2.3 trillion-euro ($2.7 trillion) bond-buying program. The region’s recovery has gathered pace since the start of the year, allowing officials to pledge to start talks this fall about a strategy for 2018 that could include gradually reducing purchases to zero.

Earnings Season continues on

Broadcom Limited is expected to report earnings on Thursday 24th August after market close. The report will be for the fiscal Quarter ending Jul 2017. The consensus earnings per share (EPS) forecast for the quarter is $3.5. The reported EPS for the same quarter last year was $2.47. Other companies to watch for are AngloGold Shanti Limited, which is expected to report earnings on Monday 21st August before market open, Hewlet-Packard, due to report on Wednesday 23rd August after market close, and Staples Inc., which is expected to publish its earnings report on Thursday 24th August before the market open.

China's Great Wall has eyes on Fiat Chrysler Group

Shares in Fiat Chrysler Automobiles jumped 3.5% in Milan on Monday following the news that Chinese carmaker Great Wall Motor Company is sizing up Fiat Chrysler, producer of Jeep, the classic American off-roader. It is not yet entirely clear whether it is interested in the whole company or just the Jeep brand however earlier reports suggested that Great Wall had asked to meet Fiat executives to discuss buying the off-road make.

Set up in 1984, it is China's largest SUV and pick-up truck producer. If the bid is successful, it could accelerate Great Wall's push into the US market. Jeep, which celebrated its 75th birthday last year, is considered FCA's most marketable brand. Its reputation goes back to World War Two, when Jeeps were used extensively by the US military.