The week kicks off with a G8 leaders’ summit in Northern Ireland. Syria will dominate the gathering and the British agenda on tax avoidance is likely to be long on rhetoric, short on binding specifics.
But for the economics file, this meeting could still yield big news. For a start, Japanese prime minister Abe is there – the man who has launched one of the most aggressive stimulus drives in history yet has already seen the yen climb back to the level it held before he started.
The financial backdrop could hardly be more volatile with emerging markets selling off dramatically since the Federal Reserve warned the pace of its dollar creation could be slowed.
Berlin has said the G8 leaders are likely to discuss the role of central banks and monetary policy, and Angela Merkel will hold bilateral talks with Abe during the summit. President Barack Obama travels to Berlin after the summit for talks with Merkel.
We’ve seen an early version of the draft communiqué which talked of more reforms being needed and welcoming Japan’s efforts to galvanise its economy while warning it to keep an eye on medium-term stability – all fairly predictable stuff. But that was put together by the British hosts before the latest bout of turmoil so it will be interesting to see whether a greater sense of urgency has been injected into proceedings.