In the Global Week Ahead, traders need their split screens. There are three big official government gatherings going on. Then, there is the start of major companies reporting on their latest third quarter earnings performances.

The tone has been good on earnings and terrible with governments.  

The Chinese meet -- to mostly re-elect their leaders. The Europeans meet -- to stick it to the U.K. on Brexit. Prosperous Catalans want to stick it to Spain. And the U.S. government meets with Mexico and Canada -- to stick it to them.

One of the major puzzles for economists like me: Why is all of the radically tough political posturing going on?

Consider this. The U.K. will mark a 4.3% unemployment rate. Yet, that nation is furious (or stupid) enough to want to leave the Eurozone. Over in the USA, the harsh tone is no better understood. The U.S. economy just marked a 4.2% unemployment rate. In Mexico, it is 3.4%. Yet, the 25-year-old North American Free Trade Agreement is on its way to the gallows.

Go figure.

This contempt for joint stability and prosperity starts where?

On Tuesday evening in the USA, the 19th National Congress of the Communist Party of China starts.
This huge meeting occurs every five years. The main purpose is to elect leaders and reaffirm leadership roles including through multiple powerful committees. The other order of business is to assign policy priorities over the coming five years.

One issue stands apart from the rest this time: President Xi Jinping’s grip on power will be solidified. He is entering the second of the two permitted five-year terms as leader.

Normally, this Congress would partly focus on anointing Xi’s successor a half-decade ahead of time. The fact that no successor is being groomed indicates to some Xi could be setting himself up for a longer term than tradition allows.

Next Thursday and Friday, there is a hard-edged EU Leaders’ Summit.

The EU’s Chief Brexit Negotiator Michel Barnier recently said “we have reached a state of deadlock.” This remark refers to negotiations on the UK’s exit penalty.

EU leaders won’t engage the U.K. in talks over Brexit transition issues and a follow-on trade agreement before a stiff penalty is paid up front. Therefore, this Summit has a “hard Brexit” tone. The next Summit is scheduled for December 14–15.

In the USA, keep a close eye on NAFTA talks.

The U.S. dramatically increased tensions in the talks by proposing a “sunset clause.” This would force re-negotiations of the $1 trillion pact every five years. Sources told Reuters the atmosphere at the talks is “horrible.”

Expect Mexico to suffer the most damage if NAFTA talks break down. Most of its exports go to the USA. Analysts expect growth to slow and the peso to weaken.
Mexico’s finance minister, Jose Antonio Meade, said this on record. His country is analyzing tariffs and import substitution plans -- in case NAFTA is scrapped.

The peso is near a five-month low. Mexican stocks have lost almost -4% since mid-August. And dollar bond prices have slipped across the curve, the 2026 issue trading at three-month lows.

Top Zacks #1 Rank (STRONG BUY) Stocks—

I continue to think. The 19th Chinese National Congress prompted some window dressing, by a number of sectors managed by officials going to the event. ??????Here are some Asian stock tickers that stand out. These three firms have a good likelihood of benefitting from an ongoing Mainland China rise.

(1) Canon : This $39 billion in market cap Japanese office automation and equipment maker is worth a fresh look. The stock has a long-term Zacks VGM score of A.

(2) Geely Auto Holdings (GELYY Quick QuoteGELYY - Free Report) : This is a big $31 billion in market cap Chinese automaker. The stock has a long-term Zacks VGM score of B.

(3) Anglo American (NGLOY Quick QuoteNGLOY - Free Report) : This is a big $27 billion in market cap miner. The long-term Zacks VGM score is A.

Key Global Macro—

In the USA, earnings season picks up. Potential candidates for the job of Fed Chair will get highlighted in the press. Housing Permits and Starts hit the tape. And it is the end of the 4th round of NAFTA talks.

Fifty-nine S&P 500 firms release earnings this week.

The names include Netflix, Morgan Stanley, Goldman Sachs, U.S. Bancorp, Amex, eBay, KeyCorp, Bank of NY/Mellon, American Airlines, General Electric, Verizon and Procter & Gamble.

In Europe, tech heavyweights SAP and ASML report, as do Unilever, Daimler, and Nestle.

Earnings for the S&P 500 should grow +4.4% y/y in Q3. Earnings for Europe's STOXX 600 should increase +5.3%.

On Monday, Turkey’s unemployment rate came in at 10.7%.

On Tuesday, the Reserve Bank of Australia (RBA) releases its minutes.

The U.K.’s consumer price index (CPI) looks to be +2.7% y/y.

The Eurozone’s HICP consumer price index looks to be +1.5% y/y, and +1.1% in the ‘core’ reading.

The ZEW indexes come out. The German current conditions are forecast to be 89 from 87, and economic sentiment to 20 from 17. For the Eurozone, current conditions goes from 34 from 35.5, and economic sentiment goes to 33 from 31.7.

The U.S. capacity utilization rate should be 76.1%.

On Wednesday, the Fed’s Fischer speaks in NYC. The Fed’s Dudley and Kaplan speak in NYC, too.

The ECB’s Draghi speaks in Frankfurt.

The ILO unemployment rate in the U.K. is 4.3%.

Russia’s unemployment rate is 4.9%.

U.S. building permits should be 1.26M and starts 1.2M. Those are decent numbers.

The Fed releases its beige book.

On Thursday, Australia’s unemployment rate comes out. It is at 5.6%.

Retail sales on Mainland China should grow another +10.1% y/y, yet again.

The unemployment rate in the Netherlands is 4.7%, while the SCB unemployment rate in Sweden is 6.0%.

U.S. initial claims should stay low at 243K.

On Friday, the unemployment rate in Mexico is 3.4% in seasonally adjusted terms.

The Fed’s Yellen speaks in Washington.