U.S. Jobs, Fed Minutes, Lew, ECB, Alcoa: Week Ahead Jan. 6-11
Jan. 6 (Bloomberg) -- U.S. employers probably added close to 200,000 jobs for a second month, capping the strongest year of payroll growth since 2005, data this week may show.
Janet Yellen may win approval from the U.S. Senate to become the 15th Federal Reserve chairman and first woman to head the central bank.
The Federal Reserve will release minutes from its meeting of the Federal Open Market Committee, and the European Central Bank and Bank of England will make interest-rate decisions.
German Chancellor Angela Merkel will give a press conference on her policy priorities.
U.S. Treasury Secretary Jacob J. Lew travels to France, Germany and Portugal for talks on boosting global growth and financial stability.
Alcoa Inc. kicks off the U.S. earnings season by reporting results. Samsung Electronics Co., Monsanto Co. and Infosys Ltd. are also among companies releasing earnings.
MONDAY, JAN. 6
-U.S. service industries probably expanded at a faster pace in December than in the previous month, according to a Bloomberg survey of economists, indicating momentum in the economy as the year drew to a close. Services account for about 90 percent of the economy. The Institute for Supply Management releases its report at 10:00 in Washington.
-U.S. factory orders probably rose in November, according to a Bloomberg survey, indicating demand for capital goods rebounded after weakening during the federal government’s partial shutdown the previous month. The Commerce Department reports at 10:00 in Washington.
-Janet Yellen’s nomination to lead the Federal Reserve may receive approval in a Senate vote. President Barack Obama has nominated Fed Vice Chairman Yellen to replace Ben S. Bernanke, whose second term as chairman expires on Jan. 31. Yellen, a main architect of the Fed’s record stimulus, would become the 15th chairman and first woman to head the central bank.
-U.S. Congress returns from the holiday break facing a Jan. 15 deadline to extend current spending or pass legislation to fund the government for the rest of the fiscal year ending Sept. 30. The budget agreement approved by the House and Senate in December only set priorities. Congress must reach agreement on specific spending plans in a single appropriations bill to avert a second shutdown in four months. It also must decide whether to suspend the federal debt ceiling beyond Feb. 7.
-U.S. unemployment benefits. Senate Democratic Majority Leader Harry Reid has scheduled a test vote on a bill to revive for three months the extended unemployment benefits for 1.3 million Americans that expired on Dec. 28. If at least 60 senators approve it, the bill will go to the Senate floor for a vote. House Republican leaders have said they’ll consider extending benefits only if there are dollar-for-dollar cuts elsewhere.
-Charter’s possible Time Warner Cable bid. Charter Communications Inc. may approach Time Warner Cable Inc. this week with an offer to acquire the cable-services company for about $62 billion including debt, according to people with knowledge of the matter. While Charter’s offer is about $135 a share, Time Warner Cable may seek more than $150 a share, they said.
-North Sea oil producers will compile cargo-loading schedules for the main crude types including Brent, Forties, Oseberg and Ekofisk. From 08:00 in London (03:00 EST).
-Bank of Israel publishes the minutes of its last interest-rate meeting. No timing was given.
-ECONOMY: China HSBC Services PMI (Dec.), Taiwan inflation (Dec.), U.K. services PMI (Dec.), euro-area services PMI (Dec.), German inflation (Dec., provisional)
-EARNINGS: HTC Corp.
-U.S. college BCS Championship game. No. 1 Florida State University (13-0) plays No. 2 Auburn University (12-1) in college football’s national championship game at the Rose Bowl. 17:30 in Pasadena, California (20:30 EST).
-Fourth day of the fifth and final Ashes cricket Test between Australia and England in Sydney. 10:30 local time (1/5, 18:30 EST).
TUESDAY, JAN. 7
-U.S. Treasury Secretary Jacob J. Lew meets in Paris with French President Francois Hollande and Finance Minister Pierre Moscovici, before traveling to Berlin for talks Jan. 8 with German Finance Minister Wolfgang Schaeuble. He will then head to Lisbon for meetings with Portuguese officials. The talks will focus on policies to boost growth and financial stability.
-The U.S. trade deficit probably narrowed in November as the nation’s energy bill declined and a pickup in economies overseas propelled export gains, according to a Bloomberg survey. The Commerce Department releases the data at 08:30 in Washington.
-Ex-SAC Capital Advisors manager’s trial. Jury selection begins in a U.S. federal trial against former SAC money manager Mathew Martoma on charges he used illegal insider tips related to an Alzheimer’s drug to make $276 million in profits and avoid losses. The trial may last three weeks. In November, SAC agreed to plead guilty to securities fraud and end its investment advisory business as part of a record $1.8 billion settlement of the U.S. probe into insider trading at the firm. SAC founder Steven Cohen has not been charged with a crime in any of the investigations. 09:00 in New York.
-CES. The International Consumer Electronics Show in Las Vegas will feature innovations in health care, robotics and wearable technologies. Speakers will include Intel Corp. Chief Executive Officer Brian Krzanich, Sony Corp. CEO Kazuo Hirai, Sony Electronics Inc. President Phil Molyneux, Yahoo! Inc. CEO Marissa Mayer and Cisco Systems Inc. CEO John Chambers. Open to general public today at 08:30 (11:30 EST). Through Jan. 10.
-Samsung Electronics Co. preliminary fourth-quarter results. The world’s largest maker of smartphones and televisions releases operating profit and sales figures. Operating profit may miss analysts’ estimates of 10.3 trillion won ($9.8 billion) as slowing growth for handsets, its most profitable business, and flat panels crimps earnings. Before 09:00 in Seoul (1/6, 19:00 EST).
-ECONOMY: Taiwan trade data (Dec.), Australia trade balance (Nov.), Taiwan exports (Dec.), euro-area inflation (Dec., estimate), French consumer confidence (Dec.), German unemployment (Dec.)
-Last day of the fifth and final Ashes cricket Test between Australia and England in Sydney. 10:30 local time (1/6, 18:30 EST)
WEDNESDAY, JAN. 8
-Fed minutes. The Federal Reserve releases minutes from the Dec. 17-18 meeting of its Federal Open Market Committee, which announced plans to start trimming monthly bond buying to $75 billion from $85 billion starting this month. The purchases have swelled the Fed’s balance sheet to more than $4 trillion as Fed Chairman Ben S. Bernanke sought to put millions of jobless Americans back to work. 14:00 in Washington.
-China’s export growth may slow in December from a month earlier, underscoring challenges for the world’s second-biggest economy as it tries to sustain growth while rolling out reforms. Exports rose 12.7 percent in November, pushing the trade surplus to the highest in more than four years. 10:00 in Beijing (01/07, 21:00 EST), yet to be confirmed.
-Rex Tillerson, Exxon Mobil Corp.’s chief executive officer, and Singapore Prime Minister Lee Hsien Loong are scheduled to attend the opening ceremony for Exxon’s new ethylene plant on Singapore’s Jurong Island. 09:00 in Singapore (1/7, 20:00 EST).
-The U.S. Energy Information Administration releases its weekly oil-supply report. 10:30 EST in Washington.
-New York Governor Andrew Cuomo, a 56-year-old Democrat facing re-election, gives his fourth state-of-the-state address. He’s expected to propose rebates on local property taxes outside of New York City and a renter’s credit for city residents. Cuomo and the legislature also face a call from New York Mayor Bill de Blasio to pass a tax increase on the city’s wealthiest residents to fund universal pre-kindergarten. 13:30 in Albany.
-ECONOMY: ADP U.S. employment (Dec.), U.S. consumer credit (Nov.), Turkey industrial production (Nov.), South Africa gross reserves (Dec.), euro-area unemployment (November), German trade balance (November), German factory orders (November), Irish unemployment (December)
-EARNINGS: Bed Bath & Beyond Inc., Family Dollar Stores Inc., Monsanto Co.
-Baseball Hall of Fame winners are announced by the Baseball Writers’ Association of America. Time to be determined.
THURSDAY, JAN. 9
-European Central Bank rate decision. The ECB’s Governing Council will probably keep its benchmark interest rate unchanged at 0.25 percent amid a strengthening recovery in the euro area. The meeting in Frankfurt will be the first since Latvia joined the region as its 18th member and may focus on supervisory topics, as the ECB wraps up the first of three stages of its probe into bank balance sheets. The decision will be announced at 13:45 CET (07:45 EST) and ECB President Mario Draghi will hold a press conference at 14:30 CET (08:30 EST).
-Bank of England rate decision: The Monetary Policy Committee will probably keep its benchmark interest rate at 0.5 percent and its bond-purchase program at 375 billion pounds ($618 billion), in line with Governor Mark Carney’s forward guidance on policy. London 12:00 (07:00 EST)
-Falcone’s LightSquared bankruptcy reorganization. A federal bankruptcy judge will consider whether competing plans to reorganize Philip Falcone’s LightSquared Inc. are viable, beginning with one that would sell most of its assets to an entity owned by Dish Network Corp. Chairman Charlie Ergen. Ergen has been fighting with Falcone for control of LightSquared. 10:00 in New York.
-China’s rate of inflation may have declined in December from a month earlier as prices in service industries cool. Inflation slowed more than estimated in November as the decline in factory-gate prices eased. 09:30 in Beijing (01/08, 20:30 EST), yet to be confirmed.
-The U.S. Energy Information Administration releases its weekly natural-gas supply report. 10:30 EST in Washington.
-Bank Indonesia will announce its first monetary policy decision of 2014, after holding the key interest rate unchanged in December at 7.5 percent, the highest level in more than four years. The nation’s trade surplus rose to $777 million in November, exceeding economists’ estimates. Time to be determined.
-Daimler AG China roundtable. Greater China Chief Executive Officer Hubertus Troska and Nicholas Speeks, president of Beijing Mercedes-Benz Sales Service Co., comment on the German automaker’s plans in the country. 17:00 in Beijing (04:00 EST).
-Television Critics Association winter meetings. Broadcast and cable TV network executives, joined by writers, directors and actors, introduce new and returning programs that will run from January to May. Producers of shows including HBO’s “Game of Thrones” and the PBS series “Downton Abbey” will provide first looks at new episodes, along with access to cast members. Sessions start at 08:00 in Pasadena, California (11:00 EST).
-Tesco Plc, the U.K.’s largest retailer, and Marks & Spencer Group Plc, the biggest clothing retailer, report sales for the Christmas period.
-ECONOMY: U.S. initial jobless claims (weekly), Challenger U.S. job cuts (Dec.), South Africa manufacturing production (Nov.), U.K. trade balance (Nov.), euro-area economic confidence (Dec.), German industrial production (Nov.)
-CENTRAL BANKS: Bank of Korea monetary policy
-EARNINGS: Alcoa Inc., Fast Retailing Co.
FRIDAY, JAN. 10
-U.S. jobs report. Employers probably added close to 200,000 jobs for a second month, capping the strongest year of payroll growth since 2005, according to a Bloomberg survey. More than 2.2 million jobs were probably created in 2013, the most since about 2.5 million eight years earlier. The jobless rate is projected to hold at a five-year low of 7 percent. A pickup in employment along with faster wage gains is likely to provide Americans with the means to increase spending and fuel the economy. The Labor Department reports at 08:30 in Washington.
-Canadian December jobs report. The acceleration in hiring in recent months was probably sustained in December as employers added jobs, according to a Bloomberg survey. Employers added an average 26,500 jobs between August and November, compared with 6,000 in the first seven months of 2013. 08:30 EST in Ottawa.
-The U.S. Department of Agriculture releases its monthly supply-and-demand estimates for domestic and global crops including corn, soybeans, wheat and cotton. The USDA also releases its estimate of grain inventories as of Dec. 1 and its first outlook for winter-wheat seedings. 12:00 EST in Washington.
-The executive committee of German Chancellor Angela Merkel’s Christian Democratic Union party meets in Erfurt, eastern Germany, in its first high-level meeting since she was sworn in for a third term Dec. 17. The meeting, which is closed to the public, will end with Merkel giving a press conference on her policy priorities on Jan. 11 at 13:00 CET (07:00 EST).
-ECONOMY: U.S. wholesale inventories (Nov.), U.K. industrial production (Nov.), U.K. construction output (Nov.), Swiss unemployment (Dec.), French industrial production (Nov.), Spanish industrial production (Nov.)
-EARNINGS: Infosys Ltd.
SATURDAY, JAN. 11
-National Football League playoffs. In the postseason’s second week, division leaders host games including the Seattle Seahawks at 16:35 EST and New England Patriots at 20:15 EST today, and the Carolina Panthers at 13:05 EST and the Denver Broncos at 16:40 EST on Sunday. Their opponents will be determined in games played Jan. 4-5.
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