This Global Week Ahead ends with a 2-day meeting of G7 leaders in Ise-Shima Japan. According to the Government of Japan’s website, G7 leaders will discuss:

•  Global Economy & Trade (global growth)
•  Foreign Policy (Middle East, Ukraine, and North Korea)
•  Climate Change & Energy
•  Development (Japan hosts the 6th annual Tokyo International Conference on African Development in August)
•  Quality Infrastructure Investment
•  Health (public health emergencies like Ebola)
•  Women

Aides to President Obama also set up, at least half a year ago, a visit to nearby Hiroshima, Japan. That visit happens this Friday – in advance of the official G7 visit to Shima. The President’s visit will make him the first sitting U.S. head of state to set foot in the city devastated by an atomic bomb (in August 1945). 

The U.S. State Department hopes Obama’s Friday, May 27th Hiroshima visit will become part of his diplomatic legacy. It will symbolize his pursuit of a nuclear-free world and the maturation of Japan-U.S. relations.

As a backdrop to these important G7 prime minister meetings, be aware. The Shima Peninsula (志摩半島, Shima Hantō) is home to Japan's most sacred Shinto religious shrines, the Ise Shrines. 

The peninsula has been designated as Ise-Shima National Park given its natural beauty and cultural importance. Shima has evolved into a resort area popular with Japan’s nearby urban populations in the cities of Nagoya and Osaka. 

Trees and stones have long been objects of deep devotion in Japan. Originally there were no shrine buildings at sacred locales like Shima. Instead a tree, forest, a large boulder, or a mountain — festooned with ropes — would be the focus of worship. 

Nature worship was then ported to a set of buildings. The Ise Grand Shinto nature shrine is one of the grandest. It consists of two groups of wood buildings — Naiku and Geku. 

Here’s an amazing fact:

Every twenty years, Japanese Shinto priests totally rebuild the two 1300 year-old shrines to nature on an adjoining site. The idea? To directly experience once-in-a-generation renewal. 

Let’s hope a tone of renewal plays out for Japan’s economy and the world’s economy across the rest of 2016 and into 2017. Global indicators out this week look helpful in that regard.

The best-looking Zacks #1 Rank (Strong Buy) global stocks over the weekend included:

BASF SE, the German diversified chemicals giant with a $69 billion market capitalization. The Zacks VGM score is B (Buy) Rating. 

Valeo SA ADR, the Paris, France-based auto-truck component maker with an $11.7 billion market capitalization. It has 4 Business Groups: Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems. The Zacks VGM score is a B (Buy) rating.

Enbridge (ENB), the Canadian oil-products/pipeline company with a $37 billion market capitalization. It operates the world’s longest crude oil and liquids pipeline. The Zacks VGM score is also a B (Buy) rating.

In the global week ahead, both Germany and France should see improvement in their respective manufacturing PMIs. Better macro data will be fully consistent with the fresh high Zacks #1 ranks tied to Germany’s BASF and France’s Valeo.  

Oil prices should keep climbing towards $50 a barrel, in part on stronger seasonal gasoline demand this summer. This helps Canada’s Enbridge ship more oil down its pipelines.

Global/Macro Facts That Matter This Week—

On Monday, the composite PMI for the Eurozone was 52.9 versus a prior 53.It’s basically in line. The Eurozone Manufacturing PMI was 51.5 and Services was 53.1. Both of these are in line with prior readings, too.

The preliminary German manufacturing PMI showed up as 52.4, versus a prior 51.8.Services PMI showed up at 55.2 versus a prior 54.5. Both are stronger.

The preliminary French manufacturing PMI showed up at 48.3, versus a prior 48.The prelim services PMI showed up as 51.8 versus a prior 50.6. Both are stronger.

Mexico’s retail sales are up +5.1% y/y, versus a prior +9.6% y/y reading.

The Fed’s Bullard speaks in Beijing. The Fed’s Harker speaks in Philadelphia.

On Tuesday, the Eurozone ZEW economic sentiment index should be 23 vs. a prior 21.5. The German ZEW current conditions should be 49 vs. a prior 47.7. The German ZEW economic sentiment should be 12 vs. a prior 11.2. All of these reading are stronger.

Germany’s final GDP growth reading looks to be +1.6% y/y, in line with the prior reading.

The U.S. new home sales number should be 521K versus a prior 511K.

On Wednesday, the German IFO business climate index should be 106.8 versus a prior 106.6. The German IFO current conditions should be 113.4 versus a prior 113.2. The German IFO expectations index should be 100.8 versus a prior 100.4.

The U.S. FHFA house price index looks up +0.5% m/m, slightly better than a +0.4% m/m prior reading.

The Bank of Canada announces its latest rate call.

The Fed’s Kaplan speaks in Houston.

On Thursday, Swedish consumer confidence looks to be 98 vs. a prior 97.1, economic tendency 105.5 vs. a prior 104.6, manufacturing confidence a 108.6 vs. a prior 107.9. All of these reading are stronger.

Spain’s final GDP will grow +3.4% y/y.

The U.K. 2nd estimate of GDP will be +2.1% y/y.

U.S. durable goods ex-transport should be up +0.3% m/m versus a prior -0.2% m/m reading.

U.S. initial claims look solid at 275K.

The Fed’s Bullard speaks in Singapore.

On Friday, University of Michigan sentiment should be 95.5 versus a prior 95.8.

U.S. annualized GDP should be +0.8% q/q for Q1 in the second estimate.

The seasonally adjusted Mexican unemployment rate should be 4.22%.