Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


World Week Ahead: US jobs, Fed watch

World Week Ahead: US jobs, Fed watch

Jan. 6 (BusinessDesk) – Following Wall Street’s lacklustre start to 2014, the latest US jobs data will take centre stage to gauge the odds that Federal Reserve policy makers might announce a further easing of their bond-buying program after their meeting at the end of this month.

This week will see the release of the latest ADP employment report, weekly jobless claims and, importantly, the monthly government jobs data. The state of the American labour market forms a key ingredient to the FOMC’s take on the US economy’s need for ongoing stimulus.

Last month the Fed announced its decision to start cutting its monthly pace of bond purchases to US$75 billion in January, from US$85 billion. The minutes of that meeting, which will be released on Wednesday, will also be scrutinised for potential clues on the monetary policy road ahead.

The Labor Department report on January 10 may show the economy added 195,000 jobs in December, according to a Bloomberg survey, while a Reuters survey predicted US employers to have added 197,000 jobs. The unemployment rate is expected to hold steady at 7 percent, the lowest level in five years.

Before then, speeches by several Fed officials will also be monitored closely.

On Tuesday, Boston Fed Bank President Eric Rosengren will talk on the economic outlook in Hartford, Connecticut, while San Francisco Fed Bank President John Williams will speak on the economy and monetary policy in Phoenix, Arizona.

On Thursday, Kansas City Fed Bank Esther George will discuss banking and the economy in Madison, Wisconsin, while Minneapolis Fed Bank President Narayana Kocherlakota is set to talk in Minneapolis, before St Louis Fed Bank President James Bullard will speak on the economy and monetary policy in Indianapolis on Friday.

“Everything comes down to Fed expectations versus reality,” Larry Milstein, managing director in New York of government-debt trading at RW Pressprich & Co, told Bloomberg News.

The next two-day FOMC meeting starts on January 28. When Fed Chairman Ben Bernanke’s term expires at the end of this month, Fed Vice Chair Janet Yellen is set to succeed him.

Policy makers of the European Central Bank and the Bank of England are scheduled to meet this week.

Other US economic data scheduled for release this week include reports on factory orders and the ISM non-manufacturing index, due Monday; international trade, due Tuesday; the ADP employment report on Wednesday; weekly jobless claims on Thursday; and wholesale trade on Friday.

The US Treasury is scheduled to sell US$64 billion of notes and bonds this week.

And the next quarterly earnings season will get underway too this week as Alcoa reports results after the markets close on Thursday. Analysts forecast earnings for S&P 500 companies increased by 5.2 percent in the fourth quarter, according to data compiled by Bloomberg.

"If you have earnings growth and the economy is better, then stocks can go up," John Fox, director of research at Fenimore Asset Management in Cobleskill, New York, told Reuters.

Last week—shortened by the New Year’s holiday on January 1, the Dow Jones Industrial Average edged 0.05 percent lower, the Standard & Poor’s 500 Index fell 0.5 percent, while the Nasdaq Composite Index shed 0.6 percent

In Europe, the Stoxx 600 Index edged almost 0.1 percent lower last week. The UK’s FTSE 100 fell 0.3 percent, France’s CAC 40 shed 0.7 percent, while Germany’s DAX dropped 1.6 percent.

In the coming days, the latest reports on the economy here will arrive in the form of euro-zone PMI services as well as the region's Sentix investor confidence, and German CPI, on Monday; German unemployment, euro-zone CPI and PPI, due Tuesday; euro-zone unemployment, due Wednesday, and euro-zone confidence data, due Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news