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

 

World Week Ahead: Earnings and Yellen

Monday 10 October 2016 09:00 AM

World Week Ahead: Earnings and Yellen

By Margreet Dietz

Oct. 10 (BusinessDesk) - The latest US quarterly earnings season and a speech by Federal Reserve Chair Janet Yellen on Friday, days after the minutes from the September Fed meeting are released, are poised to dominate this week.

Yellen will speak at a conference in Boston on Friday, in the wake of a Labor Department report last Friday that underpinned bets that the Fed will raise rates before the end of the year. US employers added 156,000 workers in September, compared with an upwardly revised 167,000 in August.

In a Reuters poll after the September jobs data, 14 of 15 primary dealers, banks that do business directly with the Fed, forecast a rate hike at the central bank's December meeting. This compared with 13 of 14 dealers in a Sept. 2 poll following the August jobs report.

Meanwhile, traders now are pricing a 64 percent chance of an increase in December, up from 53 percent the previous week, and a 17 percent chance of a hike as early as November, according to Bloomberg.

With the heightening prospect of a rate rise, Wall Street retreated on Friday. The Dow Jones Industrial Average fell 0.2 percent, the Standard & Poor’s 500 Index retreated 0.3 percent and the Nasdaq Composite Index also slid 0.3 percent.

The US dollar however strengthened. It will rise to US$1.05 against the euro by the end of the year from US$1.1201 on Friday, according to Deutsche Bank’s forecasts.

"The dollar will get reasonable support into that period of time between the elections and the Fed tightening," Alan Ruskin, global co-head of foreign-exchange research in New York at Deutsche Bank, told Bloomberg. "It will be hard to shift the market expectations in terms of a Fed rate hike in December."

Before Yellen, other Fed officials scheduled to speak this week include Chicago Fed President Charles Evans today, New York Fed's William Dudley and Kansas City Fed's Esther George on Wednesday, Philadelphia Fed's Patrick Harder on Thursday, and Boston Fed's Eric Rosengren on Friday.

Meanwhile, Alcoa, Citigroup, JPMorgan Chase and Wells Fargo are among companies to kickstart the latest US quarterly earnings season.

"If there's something that can help the outlook for earnings, then it's going to be good news for the stock market. It is the most important variable," Hugh Johnson, chief investment officer of Hugh Johnson Advisors in Albany, New York, told Reuters. "What's needed is something that's going to make this look undervalued."

Last week, the Dow dropped 0.4 percent, while the S&P 500 slid 0.7 percent and the Nasdaq declined 0.4 percent.

The latest clues on the US economic state of affairs will show up in the form of reports on the labour market conditions index, due today; the NFIB small business optimism index, due Tuesday; weekly jobless claims and import and export prices, due Thursday; as well as the producer price index, retail sales, business inventories, and consumer sentiment, due Friday.

In Europe, the Stoxx 600 Index fell 0.9 percent on Friday. The pound sank, hitting fresh three-decade lows on Friday, amid fresh concerns about the impact of a ‘hard’ Brexit on the nation’s economy.

Bank of England Governor Mark Carney is set to speak on Friday.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:

Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: