NEW YORK, May 20 (Reuters) - Following is the view from editors in the Americas on the events in the week ahead:
Highlights:
* Debt talks resume in Washington
* Israeli Prime Minister Netanyahu addresses U.S. Congress
* IMF succession may get resolved at G8 meeting
* Canada holiday on Monday, its markets closed
U.S. DEBT CRISIS
The U.S. House of Representatives returns from recess and talks intensify over the huge U.S. debt. A panel of Republicans and Democrats headed by Vice President Joe Biden now looks the best placed to break an impasse over lifting the government's $14.3 bln debt ceiling. Republicans are demanding specific spending cuts before agreeing to raise the ceiling, which economists say is essential to avert an international financial crisis. On Wednesday, prominent figures, including Bill Clinton, Gene Sperling, Mitch Daniels and Paul Ryan, will speak at an all-day 'Fiscal Summit' sponsored by the Pete Peterson Foundation to air ideas on the issue.
MIDEAST
Israeli Prime Minister Benjamin Netanyahu will be in Washington on Monday and Tuesday making two high profile speeches following President Barack Obama's outlining of the U.S. approach to the Middle East and Arab-Israeli peace. Netanyahu will speak to the AIPAC Israel lobby group on Monday and to a joint session of the U.S. Congress on Tuesday. Netanyahu has been resolute in rejecting Obama's proposal that Israel return to its 1967 borders, a long-time Palestinian demand and an idea which he called indefensible. Obama's proposal further strained relations with Netanyahu and did not augur well for a resumption of the peace process soon.
IMF LEADERSHIP
Selection of a new IMF chief to replace Dominique Strauss Kahn remains in focus. For the front runner French Finance Minister Christine Lagarde to succeed, the vote of the largest IMF shareholder the United States will be critical. Leaders of the Group of Eight richest countries plus Russia, may seal the deal when they meet in France on Thursday. They want to resolve the issue quickly as euro zone governments and the IMF are weighing how to deal with Greece's failure to make much progress reducing its fiscal deficit and whether it needs a revised bailout plan. U.S. President Barack Obama will be in Europe through the week.
MARKETS
Wall Street looks elsewhere for impetus next week as euro zone sovereign debt fears heat up. Stocks are squeezed into a narrowing range by the slowing U.S. economy despite the strong earnings season. The Greek fiscal tragedy is undermining the euro again, and this is bad for stocks since the currency has been highly correlated with equities. How long this lets the dollar off the hook is unclear but investors are not fleeing U.S. assets after the debt ceiling was hit. The $99 billion in U.S. Treasuries auctions will test market confidence in Washington's ability to tackle the national debt.
U.S. CONSUMERS BEND, DON'T BREAK
April was a tough month for U.S. households as gasoline prices neared $4 a gallon. Still, data on Friday is expected to show spending slowed but didn't crumble. Economists look for a 0.5 percent gain in the U.S. Commerce Dept.'s personal income and spending data for April compared to the 0.6 percent rise in March, although inflation once again is likely to have eaten up most of the increase. The data would be the latest sign the economy got off to a soft start in the second quarter. Revised GDP figures on Thursday should show growth was a little firmer at a 2.2 percent pace at the start of the year, but hardly worth writing home about. Initial jobless claims are seen holding just above the 400,000 level, suggesting little if any headway in reducing unemployment.
FED SPEAKERS
The Federal Reserve's public debate over how soon to start tightening monetary policy continues next week. An advocate of tighter policy, St. Louis Fed President James Bullard, gives a speech Monday evening, while easy money backer Boston Fed President Eric Rosengren speaks on regulatory issues. Bullard speaks again on Tuesday as does higher-interest rate champion Kansas City Fed President Thomas Hoenig, whose speech title provocatively associates the Fed's recent bond buying with high foreclosure rates. Fed Governor Elizabeth Duke speaks on saving and investing patterns on the same day. Minneapolis Fed President Narayana Kocherlakota, who has said the Fed is likely to begin tightening this year, speaks on monetary policy on Wednesday.
CANADA
Canadian markets are closed on Monday for Victoria Day. No major economic data due for release this week. Results from Canada's Big Six banks are expected to show they remain solidly profitable.
LATAM
Mexico, whose economic growth slowed sharply during the first quarter, is expected to keep interest rates low at next Friday's central bank meeting. Minutes from the last policy review showed growing division on the institution's policy board over Mexico's inflation outlook, so investors will look for signs of clarity in this department. Also on Friday, Chile's central bank will release minutes from its April meeting. Investors speculate the minutes might signal policymakers will ease the intensity of future interest rate hikes. Meanwhile, Brazil releases its April unemployment report on Thursday. Latin America's economies, like most emerging markets, have recovered well from the 2008 recession but are now struggling to deal with inflation and strong currencies.
(Compiled by Stella Dawson (646) 223 6102)) Keywords: WEEKAHEAD/AMERICAS
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Highlights:
* Debt talks resume in Washington
* Israeli Prime Minister Netanyahu addresses U.S. Congress
* IMF succession may get resolved at G8 meeting
* Canada holiday on Monday, its markets closed
U.S. DEBT CRISIS
The U.S. House of Representatives returns from recess and talks intensify over the huge U.S. debt. A panel of Republicans and Democrats headed by Vice President Joe Biden now looks the best placed to break an impasse over lifting the government's $14.3 bln debt ceiling. Republicans are demanding specific spending cuts before agreeing to raise the ceiling, which economists say is essential to avert an international financial crisis. On Wednesday, prominent figures, including Bill Clinton, Gene Sperling, Mitch Daniels and Paul Ryan, will speak at an all-day 'Fiscal Summit' sponsored by the Pete Peterson Foundation to air ideas on the issue.
MIDEAST
Israeli Prime Minister Benjamin Netanyahu will be in Washington on Monday and Tuesday making two high profile speeches following President Barack Obama's outlining of the U.S. approach to the Middle East and Arab-Israeli peace. Netanyahu will speak to the AIPAC Israel lobby group on Monday and to a joint session of the U.S. Congress on Tuesday. Netanyahu has been resolute in rejecting Obama's proposal that Israel return to its 1967 borders, a long-time Palestinian demand and an idea which he called indefensible. Obama's proposal further strained relations with Netanyahu and did not augur well for a resumption of the peace process soon.
IMF LEADERSHIP
Selection of a new IMF chief to replace Dominique Strauss Kahn remains in focus. For the front runner French Finance Minister Christine Lagarde to succeed, the vote of the largest IMF shareholder the United States will be critical. Leaders of the Group of Eight richest countries plus Russia, may seal the deal when they meet in France on Thursday. They want to resolve the issue quickly as euro zone governments and the IMF are weighing how to deal with Greece's failure to make much progress reducing its fiscal deficit and whether it needs a revised bailout plan. U.S. President Barack Obama will be in Europe through the week.
MARKETS
Wall Street looks elsewhere for impetus next week as euro zone sovereign debt fears heat up. Stocks are squeezed into a narrowing range by the slowing U.S. economy despite the strong earnings season. The Greek fiscal tragedy is undermining the euro again, and this is bad for stocks since the currency has been highly correlated with equities. How long this lets the dollar off the hook is unclear but investors are not fleeing U.S. assets after the debt ceiling was hit. The $99 billion in U.S. Treasuries auctions will test market confidence in Washington's ability to tackle the national debt.
U.S. CONSUMERS BEND, DON'T BREAK
April was a tough month for U.S. households as gasoline prices neared $4 a gallon. Still, data on Friday is expected to show spending slowed but didn't crumble. Economists look for a 0.5 percent gain in the U.S. Commerce Dept.'s personal income and spending data for April compared to the 0.6 percent rise in March, although inflation once again is likely to have eaten up most of the increase. The data would be the latest sign the economy got off to a soft start in the second quarter. Revised GDP figures on Thursday should show growth was a little firmer at a 2.2 percent pace at the start of the year, but hardly worth writing home about. Initial jobless claims are seen holding just above the 400,000 level, suggesting little if any headway in reducing unemployment.
FED SPEAKERS
The Federal Reserve's public debate over how soon to start tightening monetary policy continues next week. An advocate of tighter policy, St. Louis Fed President James Bullard, gives a speech Monday evening, while easy money backer Boston Fed President Eric Rosengren speaks on regulatory issues. Bullard speaks again on Tuesday as does higher-interest rate champion Kansas City Fed President Thomas Hoenig, whose speech title provocatively associates the Fed's recent bond buying with high foreclosure rates. Fed Governor Elizabeth Duke speaks on saving and investing patterns on the same day. Minneapolis Fed President Narayana Kocherlakota, who has said the Fed is likely to begin tightening this year, speaks on monetary policy on Wednesday.
CANADA
Canadian markets are closed on Monday for Victoria Day. No major economic data due for release this week. Results from Canada's Big Six banks are expected to show they remain solidly profitable.
LATAM
Mexico, whose economic growth slowed sharply during the first quarter, is expected to keep interest rates low at next Friday's central bank meeting. Minutes from the last policy review showed growing division on the institution's policy board over Mexico's inflation outlook, so investors will look for signs of clarity in this department. Also on Friday, Chile's central bank will release minutes from its April meeting. Investors speculate the minutes might signal policymakers will ease the intensity of future interest rate hikes. Meanwhile, Brazil releases its April unemployment report on Thursday. Latin America's economies, like most emerging markets, have recovered well from the 2008 recession but are now struggling to deal with inflation and strong currencies.
(Compiled by Stella Dawson (646) 223 6102)) Keywords: WEEKAHEAD/AMERICAS
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.