The U.S. Federal Open Market Committee releases its monetary policy statement as a pickup in the world’s biggest economy sharpens debate over timing of the first benchmark interest-rate increase since 2006.
The U.S. economy probably expanded in the second quarter as payrolls increased and the jobless rate held at 6.1 percent in July, separate reports in the coming week may show.
Unemployment and inflation figures will be published across Europe.
Companies releasing earnings include Anheuser-Busch InBev NV (ABI), Berkshire Hathaway Inc. (BRK/A), BP Plc (BP/), Nissan Motor Co. (7201), Pfizer Inc. (PFE), Rolls-Royce Holdings Plc (RR/), UBS AG (UBSN) and Volkswagen AG.
Cycling’s Tour de France finishes in Paris.
MONDAY, JULY 28
-Mexican energy reform. Mexico’s lower house begins to debate four bills passed by Senate that set the framework for oil and gas contracts for international companies entering the country after constitutional amendments opened the industry last year for the first time since 1938. If approved without changes the four proposals will go to President Enrique Pena Nieto for enactment.
-The U.S. Senate will vote this week on an $11 billion bill passed by the House that would authorize funds for road repairs, mass transit improvements and other infrastructure projects through May 2015. Time to be determined.
-White House awards. President Barack Obama honors recipients of the 2013 National Medal of Arts and National Humanities Medal, including DreamWorks Animation SKG Chief Executive Officer Jeffrey Katzenberg, musician Linda Ronstadt and radio host Diane Rehm. In Washington. Time to be announced.
-The Australian Grains Industry Conference will discuss the global grains and dairy outlook and the future of the country’s agriculture. Speakers include Minister of Agriculture Barnaby Joyce. 09:30 in Melbourne (07/27 19:30 EDT). Through 07/29.
-The U.K. House of Lords debates a motion calling on Prime Minister David Cameron to reconsider his decision to downgrade the role of leader of the chamber to a non-cabinet post. Cameron promoted Tina Stowell to the job earlier in July and she’ll be paid less than her male predecessor, Jonathan Hill. Timing in London to be determined.
-Market Research Service holds its Canada Crop Tour to assess the potential of the 2014 crop. 12:00 in Winnipeg. (13:00 EDT). Through 07/31.
-U.S. government bond auctions, Fed debt purchases. Click here for weekly schedule.
-CENTRAL BANKS: Israel rate decision.
TUESDAY, JULY 29
-U.S. home prices in 20 cities probably rose at a slower pace in the year ended in May as smaller wage gains limited sellers’ ability to raise prices. The S&P/Case-Shiller index of property values will be issued at 09:00 in Washington.
-U.S. consumer confidence probably increased in July to the highest level in more than six years as a brighter employment picture bolstered households. The Conference Board releases the number at 10:00 in New York.
-U.S. carbon emissions hearings. The U.S. Environmental Protection Agency holds hearings in four cities starting today on its proposal to curb carbon emissions from existing power plants, which has drawn opposition from business groups who say it would raise electricity prices and force plants to close prematurely. Click here for cities, full schedule.
-The U.S. House Energy and Commerce Committee meets with members of the Federal Energy Regulatory Commission to discuss topics including the impact of proposed Environmental Protection Agency rules to limit carbon emissions and the reliability of the electric grid. 10:00 in Washington.
-ECONOMY: Brazil total outstanding loans (June), South Korea current account balance (June), Japan jobless data (June), Japan retail sales (June), U.K. mortgage approvals (June), South Africa M3 money supply (June), South African private-sector credit (June), South African quarterly labor force survey (second quarter).
-EARNINGS: Twitter Inc., American Express Co. (AXP), Pfizer Inc., Merck & Co. (MRK), Aflac Inc. (AFL), Express Scripts Holding Co. (ESRX), Linde AG, BP Plc, Renault SA (RNO), Casino Guichard-Perrachon SA (CO), Deutsche Bank AG, UBS AG.
WEDNESDAY, JULY 30
-The Federal Open Market Committee releases monetary policy statement after two-day meeting. Federal Reserve Chair Janet Yellen told the U.S. Congress in mid-July the Fed plans to press on with record easing to combat persistent weakness in the job market. Yellen told lawmakers that the Fed will probably keep interest rates low for a “considerable period” after ending bond purchases, which may be announced in October. Fed officials are nearing their goals for full employment and price stability faster than forecast, sharpening the debate over the timing for the first rate increase since 2006. 14:00 in Washington.
-The U.S. economy probably expanded in the second quarter at about a 3 percent annualized rate, according to a Bloomberg survey, after shrinking at the start of the year by the most in five years. Corporate investment in equipment, faster inventory building and home construction helped spur a rebound. The Commerce Department issues the figures at 08:30 in Washington.
-Argentina deadline. The Latin American nation has until today to settle a lawsuit with disgruntled bondholders from its last default in 2001 to avoid triggering a new default on restructured debt. Click here for latest stories.
-South Korea holds special elections for 15 constituencies in a vote that could cost President Park Geun Hye a parliamentary majority if her ruling party fails to win at least four seats. Park, who needs legislative backing as she tries to implement a three-year economic plan aimed at accelerating growth, has seen her approval ratings slide since the deadly April 16 Sewol ferry tragedy that cost more than 300 lives.
-McKesson Corp. proxy battle. Shareholders will vote at their annual meeting on a proposal to reduce payouts to management if the company is taken over. Under the company’s current plan, CEO John Hammergren is eligible for $292 million in severance pay, including equity awards worth $140.6 million. 08:30 in Redwood City, California. (11:30 EDT).
-U.S. IPO. Synchrony Financial (SYF), the consumer credit business being spun off by General Electric Co., is seeking to raise as much as $3.3 billion in what would be the biggest U.S. IPO thus far in 2014. At the high end of the range, Synchrony is seeking a valuation of $22 billion. GE will maintain an 85 percent stake. The stock is expected to begin trading July 31 on the New York Stock Exchange.
-South Africa’s National Energy Regulator to decide on possible electricity tariff increases for power utility Eskom Holdings SOC Ltd. Time not given.
-Kenyan court hears fraud case against central bank Governor Njuguna Ndung’u. Time not specified.
-ECONOMY: ADP U.S. employment (July), Brazil IGP-M inflation index (July), South Korea industrial output (June), Japan industrial output (June), euro-area bank lending survey (second quarter), euro-area confidence indicators (July), German inflation (GRCP2HMM) (July), French consumer confidence (July), Spanish GDP (SPNAGDPQ) (second quarter), Spanish inflation (July), South African monthly budget balance (June), Swedish GDP (SWGDPAQQ) (second quarter).
-EARNINGS: Carlyle Group LP (CG), MetLife Inc. (MET), Whole Foods Market Inc. (WFM), WellPoint Inc. (WLP), Embraer SA, Tenaris SA, Gerdau SA, Nintendo Co. (7974), Singapore Airlines Ltd. (SIA), Holcim Ltd. (HOLN), Bayer AG, Barclays Plc (BARC), Total SA (FP), Endesa SA (ELE), Peugeot SA (UG), Banco Bilbao Vizcaya Argentaria SA (BBVA), Fiat SpA (F), Banco Espirito Santo SA.
THURSDAY, JULY 31
-U.S. Secretary of State John Kerry is scheduled to visit India for the annual session of the U.S.-India strategic dialog, seeking to build relations with the government of Prime Minister Narendra Modi, who took office in May. Times to be determined.
-The Puerto Rico Electric Power Authority, called Prepa, must repay on July 31 a $146 million bank loan to Citigroup Inc., unless the commonwealth’s power utility is able to renew its bank revolving credit facility. The utility, which supplies most of the island’s electricity, has $8.6 billion of debt and is a leading candidate to use a new debt restructuring law that enables certain public corporations to restructure their securities.
-The Czech central bank will probably hold its benchmark interest rate at what it calls the “technical zero” of 0.05% and maintain a limit on koruna FX gains. Announcement at 13:00 CET in Prague (07:00 EDT).
-Bank of Japan policy board member Takahide Kiuchi will make a speech and hold a press conference. 10:30 in Hyogo, western Japan (07/30 21:30 EDT).
-The International Grains Council publishes its monthly supply and demand report for corn, wheat, soybeans and rice. 15:00 in London. (10:00 EDT)
-The U.S. Energy Information Administration releases its weekly natural gas supply report. 10:30 in Washington.
-ECONOMY: U.S. initial jobless claims (weekly) Bloomberg U.S. consumer comfort (weekly), Challenger U.S. job cuts (July), Chicago purchasing managers index (July), Japan wages data (June), Argentina industrial production (June), Taiwan GDP (TWGDCONY) (second quarter), Singapore Unemployment (SIQUTOTA) (second quarter), Hong Kong retail sales (June), euro-area unemployment (June), euro-area CPI estimates (July), German unemployment (July), Italian inflation (ITCPEY) (July), Italian producer prices (June), U.K. GfK consumer confidence (July), South African producer prices (June), South African trade balance (June), Kenyan consumer prices (July), Turkey consumer confidence (July).
-EARNINGS: Tesla Motors Inc. (TSLA), Exxon Mobil Corp. (XOM), MasterCard Inc. (MA), ConocoPhillips (COP), Kellogg Co. (K), Vale SA (VALE5), Samsung Electronics Co., Sony Corp. (6758), BNP Paribas SA (BNP), Siemens AG, Air Liquide SA (AI), Assicurazioni Generali SpA (G), Hugo Boss AG, Eni SpA (ENI), BG Group Plc (BG/), AstraZeneca Plc (AZN), Lloyds Banking Group Plc (LLOY), Centrica Plc (CNA), Continental AG, Banco Santander SA (SAN), Telefonica SA (TEF), Vinci SA (DG), BT Group Plc (BT/A), Diageo Plc (DGE), BAE Systems Plc (BA/), Rolls-Royce Holdings Plc, Carrefour SA (CA), L’Oreal SA (OR), Volkswagen AG, Finmeccanica SpA (FNC), GDF Suez SA, Electricite de France SA, Anheuser-Busch InBev NV, Enel SpA. (ENEL)
FRIDAY, AUG. 1
-U.S. jobs report. Payrolls probably increased in July and the jobless rate held at 6.1 percent, an almost six-year low, according to a Bloomberg survey. The projected gain in net hiring is in line with the 230,000 average for the first half of the year, further evidence of progress in the U.S. labor market. While employers have been adding jobs at a faster pace this year, wages have been slow to accelerate, helping explain tempered consumer spending. The Labor Department reports at 08:30 in Washington.
-Manufacturing (NAPMPMI) in the U.S. probably expanded in July at the fastest pace of the year, boosted by the auto industry and indicating factories are helping propel the economy. The Institute for Supply Management’s index will be issued at 10:00 in Washington.
-China to announce final July manufacturing purchasing managers’ index. The indicator expanded in June at the fastest pace this year, adding to signs the government’s efforts to arrest a slowdown are helping to stabilize the world’s second-biggest economy. 09:00 in Beijing (07/31 21:00 EDT).
-ITC patent decision. A U.S. International Trade Commission judge is scheduled to announce his findings in a patent-infringement case Tela Innovations Inc. filed against HTC Corp., Nokia Oyj and LG Electronics Inc. over seven patents used in the newest chips in smartphone and tablet computers. In Washington. Time to be determined.
-Bank of Japan Governor Haruhiko Kuroda speaks in Tokyo. 12:30 (07/31 23:30 EDT).
-ECONOMY: U.S. vehicle sales (July), University of Michigan U.S. consumer confidence (July, final), HSBC China Purchasing Manager’s Index (July), Brazil trade balance (July), South Korea inflation data (July), South Korea trade data (July), Markit Economics final Japan manufacturing PMI (July), euro-area manufacturing PMIs (July), U.K. manufacturing PMI (July), South African manufacturing PMI (July).
-EARNINGS: Berkshire Hathaway Inc., Procter & Gamble Co., Chevron Corp. (CVX), Axa SA (CS), ArcelorMittal (MT), Royal Bank of Scotland Group Plc, Societe Generale SA (GLE), Intesa Sanpaolo SpA (ISP), Royal Dutch Shell Plc. (RDSA)
SATURDAY, AUG. 2
There are no events scheduled.