Look Ahead to 30/08: Germany consumer price index; EIA oil inventories; Prudential, Salesforce earnings

(Video Transcript)

German inflation expected to remain high

Hello and welcome to the Look Ahead to Wednesday 30 August 2023. I'm Angela Barnes and you're watching IGTV. Let's start with the economic calendar and Germany because its latest preliminary consumer price index data is released at 7am with expectations for it to come in at 6% year-over-year for August.

It stood at 6.2% in July and in June was at 6.4%. So the range of inflation is expected to fall again slightly, but it is still at a high level with food prices continuing to have an upward effect.

Moving to the US, because we'll get the latest Automatic Data Processing (ADP) employment change for August, which is expected to fall to 280,000 from 324,000 month-over-month. On Wednesday, we will also get second-quarter estimate GDP figures in the US for Q2. Growth is expected to be annualised 2.4% quarter-over-quarter versus 2% in the preliminary estimates.

The buck's not stopping here!

Well, we will be keeping across the US dollar and, if we look at the US dollar price chart, it's marginally higher against the basket of currencies as investors await more data this week, including the data just mentioned, of course, against the Japanese yen.

I'm just going to pull up the US dollar Japanese yen chart as well, because that one, interestingly, well, it briefly hit a nine-month high on Monday while slipping against other currencies. So investors will also be keeping an eye out for potential intervention to shore up the struggling Japanese currency as well.

The personal consoumption expenditure (PCE) price index to Thursday and non-farm payrolls on Friday will be the other key US economic data this week that could impact the dollar.

Concerns rock the oil price

Moving on, we'll be keeping across the EIA crude oil inventory data for the week ending 25 August. Let's just pull up the WTI price chart. Very little movement, but actually up now 0.56%. Brent also trading slightly higher today. But, you know, the scenario does remain the same with crude oil here with Brent and WTI.

There are concerns over demand in China and possible US interest rate hikes. But these offset by the tight supply demands stemming from those Saudi Arabia crude output cuts and the possibility of OPEC also extending cuts.

A tropical storm hit western Cuba as well yesterday and is heading towards Florida. It is likely to cause power outages and disrupt oil production on the eastern side of the US Gulf Coast.

Keeping an eye on prudential

Moving on to the corporate calendar now and we will have half-year earnings from Prudential. The insurance company stock, if I just pull up the price chart here, has climbed from the end of October to January by 76%. But since then, it has fallen by about 30% and, for the year so far, it's down about 13%. We'll be keeping across that.

Delivery Hero results positive

Also tomorrow, we will be getting a result as well from Delivery Hero. The online food ordering company posted positive results on the 9 August with improvement in consumer products and saw an acceleration in year-over-year growth in Q2.

We'll also be hearing from Salesforce with their Q2 results. I'm just going to bring up their price chart now as well. The shares have climbed since the end of December 2022, but then peaked in July this year and have since steadily declined by about 11%. The cloud computing giant is expected to benefit from its effort in artificial intelligence with many analysts expecting it to boost overall revenue by at least $4 billion annually by 2025.

Well, that's all we've got time for today and that's your overview for tomorrow. Thank you very much for watching and do tune in for more charts and shows on our YouTube channel and for updates on our social media accounts, including Instagram. Thank you very much for watching.