This week’s global economic highlight will be the US inflation report, while Federal Reserve Chair Jerome Powell will testify to Congress on Tuesday and on Wednesday. Markets see a 77% chance of the Fed cutting rates in September, with a cut fully priced by November. Politics will also remain in focus after last week's UK election, with investors monitoring the outcome second round of legislative elections in France early in the week. In New Zealand, the Reserve Bank will be in the spotlight on Wednesday afternoon. While no change in policy settings is expected, markets will be watching for any change in tone after some weak economic indicators and signs future inflation is headed lower. There'll be plenty to watch on the corporate front too, with the international quarterly corporate reporting season kicking off too. As usual, some of the US financial heavyweights will be first to announce results.