1. Paris Air Show: All eyes are on Boeing as the Paris Air Show kicks off Monday.
Crude prices have increased 10% so far this week. That’s despite new evidence of weakness in major economies including China and Germany, developments that would typically act as a drag on oil futures.
Oil has trended higher since OPEC and allies including Russia agreed in December to slash production. The deal called for the removal of 1.2 million barrels a day from world markets starting this month.
Crude prices got another boost this week after the Wall Street Journal reported that Saudi Arabia is planning to slash its oil exports.
There’s still a long way to go, however. Prices are still well below the $75 per barrel level reached during a recent high in October.
2. Ghosn indicted again: Former Nissan (NSANY) chairman Carlos Ghosn has been indicted for the second time since his arrest in Japan nearly two months ago.
Prosecutors indicted Ghosn on two new charges. They allege he committed a breach of trust by transferring personal investment losses to Nissan, and understated his personal income between 2015 and 2018.
His Japanese legal team said Friday that they planned to apply for bail immediately. Ghosn was first indicted last month on charges of under-reporting his income during an earlier time period.
The auto executive has strongly denied the allegations against him. In a court appearance on Tuesday, he said he had been unfairly detained on “meritless and unsubstantiated accusations.”
Since his arrest, Ghosn has been removed as chairman by Nissan and Mitsubishi Motors (MMTOF). Renault (RNSDF) and the French government have stood by him, presuming him innocent until proven otherwise.
3. What the Fed worries about: The Federal Reserve could be deprived of vital economic data if the US government shutdown continues, central bank chairman Jerome Powell has warned.
The US government has been partially shut for 20 days because Congress and the White House failed to reach a spending deal.
The US Commerce Department, which publishes reports the Fed uses to gauge the health of the economy, is among the agencies affected by the shutdown.
“We would have a less clear picture of the economy, if it would go on for much longer,” Powell said on Thursday.
3. Markets rise: Global stocks are starting off the week on a positive note.
The British pound briefly jumped as much as 0.5% to above $1.28 after the Evening Standard newspaper said Brexit could be delayed. The London newspaper, which is edited by former UK treasury chief George Osborne, cited UK cabinet ministers as the source of the information. The pound quickly gave back most of its gains.
The US Bureau of Labor Statistics will publish inflation reports for December at 8:30 am ET.
Macy’s (M) stock plunged nearly 18% on Thursday — the worst day in its history — after the company reported sluggish sales for November and December and trimmed its guidance.
4. Coming this week:
Monday: Paris Air Show, US Treasury foreign ownership report
Tuesday: Adobe earnings, US housing starts, US Senate hearing on tariffs
Wednesday: Fed decision and press conference, earnings from Oracle (ORCL) and Barnes & Noble (BKS)
Thursday: US leading indicators, Bank of England rate decision, earnings from Kroger (KR) and Red Hat (RHT)
Friday: US existing home sales, Markit flash US manufacturing PMI