Yellen Testimony, China GDP, GM, JPMorgan: Week Ahead July 14-19

Federal Reserve Chair Janet Yellen delivers her semiannual testimony to two congressional committees on the outlook for the U.S. economy.

China’s economy probably grew 7.4 percent in the second quarter, holding steady from a year earlier as the government allows the currency to weaken and loosens property controls. U.S. retail sales probably accelerated in June.

General Motors Co. (GM) Chief Executive Officer Mary Barra testifies before a Senate subcommittee on vehicle recalls stemming from faulty ignition switches.

The BRICS heads of state meet in Brazil. The European Parliament votes on ex-Luxembourg Prime Minister Jean-Claude Juncker’s nomination to be president of the European Commission.

JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS), Google Inc. (GOOG) and General Electric Co. (GE) report results.

Golf’s British Open begins.

MONDAY, JULY 14

-Summit of BRICS heads of states. Finance and trade ministers meet today. Tomorrow on July 15, Brazilian President Dilma Rousseff, Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping and South African President Jacob Zuma gather to discuss topics including the group’s new development bank for funding infrastructure and sustainable development projects, and a reserve fund that member countries can use in case of a balance of payments crisis. In Fortaleza, Brazil. The BRICS leaders on July 16 will hold a working session in Brasilia with South American heads of state.

-China new bank lending may have increased in June as the government loosens credit to support growth. The central bank will report the lending numbers as well as money-supply data by July 15. Date and time to be determined.

-ECB President Mario Draghi testifies before the Committee on Economic and Monetary Affairs of the European Parliament. 19:00 in Strasbourg, France (13:00 EDT).

-David Jones Ltd. (DJS) shareholders vote on a A$2.15 billion ($2 billion) takeover bid from South Africa’s Woolworths Holdings Ltd. (WHL), with the company’s largest shareholder Solomon Lew abstaining. Approval would clear the way for A$3.91 billion of acquisitions in Australia by Woolworths, which has made a separate offer for Country Road Ltd. (CTY), conditional on the vote’s outcome.

-U.S. government bond auctions, Fed debt purchases. Click here for weekly schedule.

-ECONOMY: Singapore GDP (SGDPYOY) (second quarter), Euro-area industrial production (May), Slovak CPI (SLCPLYOY) (June), Hungary industrial output (May, final), Romania current account (May).

-CENTRAL BANKS: Mauritius interest rate.

-EARNINGS: Citigroup Inc. (C)

TUESDAY, JULY 15

-Yellen before U.S. Congress. Federal Reserve Chair Janet Yellen delivers her semiannual testimony to the Senate Banking Committee on the outlook for the economy and will face questions about the Fed’s eventual withdrawal of monetary stimulus two weeks before its July 29-30 policy meeting. 10:00 in Washington.

-U.S. retail sales probably accelerated in June from a month earlier, boosted by stronger demand for automobiles as the economy strengthened in the second quarter. The consumer accounts for about 70 percent of the economy. The Commerce Department’s data will be released at 08:30 in Washington.

-JPMorgan Chase & Co. second-quarter earnings. The bank will probably report a decline in net income on a 20 percent drop in fixed-income and equities trading revenue. The results are likely to take a back seat to investor questions about the health of Chief Executive Officer Jamie Dimon, who disclosed July 1 that he had throat cancer. Earnings released at 07:00 in New York. Dimon typically speaks on the analyst conference call, which is scheduled for 08:30.

-Former Luxembourg Prime Minister Jean-Claude Juncker speaks to the European Parliament in Strasbourg, France, at 10:00 CET (04:00 EDT), followed by a vote at 13:00 on his nomination to be president of the European Commission.

-Bank of England Governor Mark Carney, Deputy Governor Andrew Bailey and Financial Policy Committee members Donald Kohn and Martin Taylor testify before the House of Commons Treasury Committee on the central bank’s June Financial Stability Report. The bank introduced measures last month to curb riskier mortgage lending. 10:00 in London (05:00 EDT).

-Croatian President Ivo Josipovic hosts a summit with his southeastern European counterparts in Dubrovnik to discuss European integration. German Chancellor Angela Merkel will attend. The leaders will also meet with business executives from the region’s largest companies, such as supermarket chain Agrokor d.d. Time TBA.

-U.S. House Republican runoffs. In Alabama’s 6th Congressional District near Birmingham, state Representative Paul DeMarco and think tank co-founder Gary Palmer seek the seat of retiring Republican Spencer Bachus. Polls close at 20:00 EDT. North Carolina’s 6th District is also holding a runoff election.

-ECB Governing Board member Christian Noyer speaks on consumer credit at a press briefing in Paris. 09:30 CET (03:30 EDT).

-ECONOMY: Empire manufacturing (July), China coal prices (June), German ZEW investor confidence (July), U.K. Inflation data (June), U.K. producer prices (June), U.K. ONS house price report (May), U.K. BRC Sales (KPRSLFLS) (June), Swiss producer & import prices (June), Italian inflation (June, final), Poland CPI (POCPIYOY) (June), South Africa retail sales (May), Nigeria consumer-price inflation (June), Turkey unemployment (April). Israel consumer prices (June).

-CENTRAL BANKS: Chile rate decision, Australia July minutes, Japan rate decision.

-EARNINGS: Goldman Sachs Group Inc., Intel Corp. (INTC), Yahoo! Inc. (YHOO), Johnson & Johnson. (JNJ)

-Major League Baseball annual All-Star Game between teams representing the American League and National League. 19:30 EDT, Target Field, Minneapolis.

WEDNESDAY, JULY 16

-Yellen testimony before U.S. Congress. Federal Reserve Chair Janet Yellen delivers her semiannual testimony to the House Financial Services Committee. 10:00 in Washington. Yellen spoke yesterday on the same issues before the Senate Banking Committee.

-U.S. industrial production probably increased for a second straight month in June on the heels of stronger motor vehicle production, indicating manufacturing is helping to bolster the economy. The Federal Reserve will issue the data at 09:15 in Washington.

-China’s economy may have expanded 7.4 percent in the second quarter, holding steady from last year as the government allows the currency to weaken and loosens property controls. The National Bureau of Statistics will also announce home sales and power output. 10:00 in Beijing (7/15 22:00 EDT).

-Fed Beige Book. The Federal Reserve releases the Beige Book business survey based on reports from its 12 regional banks, which will give the Federal Open Market Committee anecdotal information about the economy before its July 29-30 meeting on monetary policy. Recent data indicate the U.S. economy is rebounding from a first-quarter downturn. 14:00 in Washington.

-Bank of Canada rate decision. The central bank will keep its benchmark policy rate at 1 percent, according to a Bloomberg News survey of economists. Governor Stephen Poloz said last month recent increases in inflation were driven by temporary factors and underlying inflation remains low. 10:00 in Ottawa (10:00 EDT).

-European Union leaders meet in Brussels to appoint the next chairman of EU summits and a foreign policy chief. Political party meetings start at 15:00 CET (09:00 EDT), followed by an evening summit.

-Delivering Alpha conference. Speakers include Jacob J. Lew, U.S. Treasury secretary; John Paulson, founder of Paulson & Co.; Jane Mendillo, chief executive officer of Harvard Management Co.; Ken Griffin, founder of Citadel LLC; Carl Icahn, chairman of Icahn Enterprises LP; and Chris Christie, governor of New Jersey. Presented by Institutional Investor and CNBC. Starts 08:30 in New York. Click here for full schedule.

-Brazil rate decision. Banco Central do Brasil may keep borrowing costs unchanged at 11 percent for a second straight meeting as inflation hovers near the top of policy makers’ target range amid decelerating economic growth. 19:00 in Brasilia (18:00 EDT).

-ECB Executive Board member Benoit Coeure speaks on the bank’s report on the International Role of the Euro. 10:30 in Frankfurt (04:30 EDT).

-The U.S. Energy Information Administration releases its weekly oil supply report. 10:30 in Washington.

-ECONOMY: U.S. producer price index (June), U.S. capital flows (May), Brazil retail sales (May), South Korea unemployment (June), China home sales (first half), China power output (June), Euro-area trade balance (May), U.K. jobless data (May), Swiss ZEW survey (July), Italian trade balance (May), Croatia CPI (CQPCIYOY) (June), Ghana producer-price inflation (June), Israel GDP (ISGSANYY) (first quarter).

-CENTRAL BANKS: China sells 50 billion yuan of six-month Treasury deposits. South Africa interest rate.

-EARNINGS: BlackRock Inc. (BLK), Bank of America Corp., Yum! Brands Inc. (YUM), EBay Inc. (EBAY), Taiwan Semiconductor Manufacturing Co. (2330)

THURSDAY, JULY 17

-U.S. housing starts probably rose in June for the fourth gain in the last five months, according to a Bloomberg survey, as builders responded to a pickup in demand. The Commerce Department releases data at 08:30 in Washington.

-GM ignition-switch hearing at U.S. Senate. General Motors Co. Chief Executive Officer Mary Barra testifies before the Senate Subcommittee on Consumer Protection, Product Safety, and Insurance. Also testifying are Anton R. Valukas, who wrote a report for the GM board on the company’s delays in recalling 2.59 million small cars for faulty ignition switches; and Ken Feinberg, who is administering a compensation program for accident victims, including at least 13 who died. 10:00 in Washington.

-Pentagon funding. The U.S. Senate Appropriations Committee votes on legislation to fund the Pentagon for fiscal 2015, including whether to finance operations of the A-10 Warthog aircraft fleet for another year. The House already has passed a bill providing $491 billion in discretionary spending for the department. 10:30 in Washington.

-Obama fundraising. President Barack Obama travels to New York City to headline a fundraiser for House Majority PAC, a political action committee that is supporting Democrats running for U.S. House seats in the November midterm elections. Time, location to be announced.

-Chinese President Xi Jinping tours South America for the second time since taking office last year, paying state visits to Brazil, Argentina and Venezuela before arriving in Cuba. Xi is scheduled to speak to Brazil’s congress during his visit. Through July 23.

-French President Francois Hollande visits Ivory Coast, Niger and Chad to discuss security issues and economic development. He will meet local leaders and visit French military bases. Through July 19; times TBA.

-Hungarian central bank chief Gyorgy Matolcsy speaks at a conference on his country’s first-half economic performance at 11:10 in Budapest (04:11 EDT).

-The U.S. Energy Information Administration releases its weekly natural gas supply report. 10:30 in Washington.

-The National Confectioners Association releases its estimates for North American Cocoa Grindings in the second quarter. At 16:00 in New York.

-ECONOMY: U.S. initial jobless claims (weekly) Bloomberg U.S. consumer comfort (weekly), U.S. building permits (June), Philadelphia Fed survey (July), Hong Kong unemployment rate (June), EU car registrations (June), euro-area inflation (June, final), euro-area construction output (May), Poland industrial output (June), Poland PPI (POPPIYOY) (June).

-CENTRAL BANKS: Turkey rate decision, Egypt rate decision, Russia weekly FX and gold reserves.

-EARNINGS: Google Inc., Morgan Stanley (MS), Blackstone Group LP (BX), International Business Machines Corp. (IBM), UnitedHealth Group Inc. (UNH), Tata Consultancy Services Ltd. (TCS), Bajaj Auto Ltd. (BJAUT)

-Golf’s British Open Championship begins at the Royal Liverpool course. Through July 20.

FRIDAY, JULY 18

-U.S. consumer sentiment probably climbed in July, according to a Bloomberg survey, fueled by strength in the labor market. The Thomson Reuters/University of Michigan’s preliminary reading for the month is released at 09:55 in Washington.

-Former Italian Prime Minister Silvio Berlusconi is expected to get the ruling in his appeal of convictions for abuse of power and engaging a minor in prostitution. If the verdict is upheld, 77-year-old Berlusconi will be permitted a final appeal with the Supreme Court before the conviction is rendered definitive. He faces a seven-year prison term if his appeal fails. In Milan, time TBA.

-ECONOMY: U.S. leading indicators (June), BOE trends in lending report (three months to May), CML mortgage data (June).

-EARNINGS: General Electric Co., LG Display Co. (034220)

-SOVEREIGN RATING UPDATES: Bosnia & Herzegovina (Moody’s), Croatia (Moody’s), Cyprus (Moody’s), Germany (Fitch), Iceland (S&P), Luxembourg (Fitch), Uganda (S&P), U.K. (DBRS).

SATURDAY, JULY 19

-No major events scheduled.

To contact the reporters on this story: Greg Miles in New York at gmiles1@bloomberg.net; Heather Langan in London at hlangan@bloomberg.net; Jim McDonald in Tokyo at jmcdonald8@bloomberg.net

To contact the editors responsible for this story: Andy Davidson at adavidson@bloomberg.net Nancy Moran

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