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

 


World Week Ahead: Yellen testifies to Congress

World Week Ahead: Yellen testifies to Congress

By Margreet Dietz

July 14 (BusinessDesk) - US Federal Reserve Chair Janet Yellen’s testimony to Congress will offer a key focus in the coming days, while investors will also try to gauge whether earnings support the improved outlook for the world’s biggest economy.

On Tuesday, Yellen is scheduled to deliver her semi-annual policy testimony to the Senate Banking Committee, and the next day to the House Financial Services Committee.

Last week minutes of the June Fed meeting showed that policy makers are planning to end their monthly bond-buying program after the October gathering.

Speculation continues to rise over the timing of the first increase in interest rates, despite assurances from Yellen that the central bank isn’t in any rush to do so.

Other Fed speakers this week include Dallas Fed President Richard Fisher who will discuss monetary policy, in Los Angeles on Wednesday, and St Louis Fed boss James Bullard who will talk about the economy and monetary policy, in Owensboro, Kentucky, on Thursday.

The latest quarterly US earnings will also provide direction with a slew of banks and tech companies on deck this week: Citigroup, Goldman Sachs, JPMorgan Chase, Bank of America, Google, Intel, General Electric, Yahoo and eBay.

While Wall Street advanced on Friday, those gains did not make up for declines earlier in the week. For the past five sessions, the Dow Jones Industrial Average slid 0.7 percent, the Standard & Poor’s 500 index dropped 0.9 percent, while the Nasdaq Composite Index shed 1.6 percent.

On Friday, the Chicago Board Options Exchange Volatility Index, also referred to as the investors’ fear gauge, dropped 4.1 percent to 12.08.

The coming days will offer fresh clues on the US real estate market in the form of the housing market index on Wednesday, and housing starts on Thursday.

Other US economic data due for release include retail sales, Empire State manufacturing survey, import and export prices, and business inventories, all due Tuesday; industrial production, Atlanta Fed business inflation expectations, due Wednesday; weekly jobless claims, and Philadelphia Fed survey, due Thursday; and consumer sentiment, and leading indicators, due Friday.

In Europe, the Stoxx 600 Index slumped 3.2 percent last week, while the UK’s FTSE 100 fell 2.6 percent as concern about one of Portugal’s biggest banks fuelled doubt about the euro-zone’s recovery.

“This Portugal news, while in and of itself isn’t going to bring down the European economy, is a reminder that things aren’t fixed yet,” Jordan Irving, co-founder of Conshohocken, Pennsylvania-based Irving Magee Investment Management, told Bloomberg News. “Things may be more tenuous than investors believe, and some bets are off the table.”

Oil declined last week as concern eased that the conflict in Iraq would constrain supply.

“Prices rose on speculation the flow of Iraqi crude would drop with the rise in violence and that guess turned out to be wrong,” Stephen Schork, president of the Schork Group in Villanova, Pennsylvania, told Bloomberg News.

Still, the International Energy Agency warned that the risks to supply were still high in several regions and that there was “little room for complacency” in both crude and product markets.

"Supply risks in the Middle East and North Africa, not least in Iraq and Libya, remain extraordinarily high," the IEA said in its monthly report, according to Reuters. "Oil prices remain historically high and there is no sign of a turning of the tide just yet."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news