U.S. GDP, Pfizer, Obama at West Point: Week Ahead May 26-31

May 26 (Bloomberg) -- The U.S. economy probably shrank last quarter for the first time in three years, data this week may show.

Reports on home prices, consumer confidence, personal spending and durable goods orders will also be released.

Pfizer Inc. faces a deadline for its $117 billion bid for AstraZeneca Plc.

Egypt holds its vote for president, while European Union leaders meet in Brussels for initial talks on choosing the next president of the European Commission.

President Barack Obama delivers the commencement speech at the U.S. Military Academy at West Point.


-Pfizer deadline for AstraZeneca bid. The U.S. drug company will be blocked from making another takeover push for six months if AstraZeneca doesn’t reopen talks over Pfizer’s final offer of 69.4 billion pounds. The deadline is 17:00 local time (12:00 EDT).

-Egypt’s presidential election. Abdel-Fattah Al-Seesi, the former army chief who pushed President Mohamed Mursi from office in July, is widely expected to win. He’s running against just one other candidate, politician and poet Hamdeen Sabahi. The Muslim Brotherhood is banned from taking part in the two-day poll. Results are expected on June 5.

-The Bank of Japan releases the minutes of its April 30 meeting, at which the central bank forecast inflation would reach 2.1 percent in fiscal 2016. 08:50 in Tokyo (05/25 19:50 EDT).

-Chinese Foreign Minister Wang Yi begins a two-day trip to South Korea to lay the groundwork for a visit by President Xi Jinping later this year. Wang, in his first trip to South Korea as foreign minister, will likely discuss ways to contain North Korea’s nuclear program amid concern China isn’t exerting enough pressure on that country.

-EU Energy Commissioner Guenther Oettinger holds talks in Berlin with Russian Energy Minister Alexander Novak and OAO Gazprom Deputy Chief Executive Officer Alexander Medvedev on Ukraine’s demand for lower gas prices. Timing to be determined.

-U.S. Memorial Day. The national holiday honors members of the U.S. armed services who died in all wars. U.S. equity and bond markets are closed. The U.K. also has a national holiday.

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

-ECONOMY: Peru GDP (first quarter), Czech business, consumer confidence (May).

-CENTRAL BANKS: Israel rate decision.

-U.S. NCAA lacrosse championship game. 13:00 in Baltimore.


-Orders to U.S. factories for durable goods probably declined in April after the biggest back-to-back gains since the middle of last year, according to a Bloomberg survey. The strength in March indicates business investment in equipment will rebound in the second quarter. The Commerce Department reports at 08:30 in Washington.

-U.S. home prices in 20 U.S. cities probably climbed at a slower pace in the year ended March, according to a Bloomberg survey, as the residential real-estate market continued to cool. The S&P/Case-Shiller index is released at 09:00 in Washington.

-U.S. consumer confidence was probably little changed in May from a month earlier, according to a Bloomberg survey, underscoring the importance of faster job and income growth to consumer sentiment. The Conference Board releases its gauge at 10:00 in New York.

-Deutsche Bank Global Financial Services Investor Conference. Speakers include Daniel Pinto, chief executive officer of JPMorgan Chase & Co.’s investment bank; John Gerspach, chief financial officer of Citigroup Inc.; and John Shrewsberry, CFO of Wells Fargo & Co. Starts at 08:30 in New York. Through May 28.

-EU leaders meet in Brussels to discuss the outcome of the European Parliament elections and hold initial talks on choosing the next president of the European Commission. Timing to be determined.

-Texas Congressional Fourth District primary. Ralph Hall, at 91 the oldest House member in history, faces former federal prosecutor John Ratcliffe. Hall is seeking an 18th term that he says will be his last. Ratcliffe’s backers include some small-government activist groups. Hall led Ratcliffe 45% to 29% in the first-round primary held in March.

-Code Conference. Speakers include Microsoft Corp. Chief Executive Officer Satya Nadella, Comcast Corp. CEO Brian Roberts and Twitter Inc. CEO Dick Costolo. In Rancho Palos Verdes, California. Through May 29.

-Hungary’s Central Bank Governor Gyorgy Matolcsy speaks at a conference in Budapest. Starts at 08:45 CET (02:45 EDT).

-ECONOMY: South Korea consumer confidence (May), Hong Kong trade (April), Denmark GDP (first quarter, preliminary), South Africa GDP (first quarter).

-CENTRAL BANKS: Hungary rate decision.

-EARNINGS: Genting Bhd.

-Los Angeles Clippers owner Donald Sterling must respond by today to charges that he damaged the NBA with racist comments. Sterling can present his side at a June 3 hearing in front of the board of governors of the league, which is seeking to force him to sell the Clippers franchise.


-Obama at West Point. U.S. President Barack Obama speaks to the graduating cadets at the U.S. Military Academy. Obama used his 2010 address to the West Point graduating class to outline a national security doctrine moving away from the pre-emptive war policy of President George W. Bush. The president speaks each year at one of the service academies. About 11:00, West Point, New York.

-Hagel’s Travels. U.S. Secretary of Defense Chuck Hagel begins a 12-day trip that will focus on alliances in Asia and Europe. After a brief visit to a base in Alaska, Hagel will participate in regional conferences with counterparts in Singapore and Brussels, then travel through Romania to visit a U.S. ship in port en route to France for the 70th anniversary commemorations of D-Day.

-Sanford C. Bernstein Strategic Decisions Conference. Scheduled speakers include Brian Moynihan, CEO of Bank of America Corp.; Michael Corbat, CEO of Citigroup; Larry Fink, CEO of BlackRock Inc.; and Gary Cohn, chief operating officer of Goldman Sachs Group Inc. Through May 30.

-Anadarko Petroleum Corp.’s $5.15 billion pollution settlement. A bankruptcy judge will hear arguments for and against the accord between the energy company and the U.S. government over environmental damage left behind by its Kerr-McGee unit. After hearing arguments, the judge will make a recommendation to a U.S. District Court judge. 11:00, U.S. Bankruptcy Court, Manhattan.

-Brazil rate decision. Banco Central do Brasil may end the world’s longest tightening cycle and keep borrowing costs unchanged at 11 percent as economic growth decelerates. 19:00 in Brasilia (18:00 EDT).

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

-ECONOMY: China industrial profits (April), Slovakia PPI (April).

-EARNINGS: Koninklijke Ahold NV.


-U.S. first-quarter GDP. The U.S. economy probably shrank for the first time in three years, according to a Bloomberg survey, as harsh winter weather curbed capital spending and inventories climbed at a slower pace. The Commerce Department publishes its second estimate of first-quarter GDP at 08:30 in Washington. In its first estimate on April 30, the Commerce Department said the economy expanded by 0.1 percent.

-General Motors Co. suits may be consolidated. A panel of federal judges will hold a hearing on whether 79 lawsuits over the loss of value of recalled cars should be combined in one court and, if so, where. One lawyer is demanding for as much as $10 billion for car owners claiming their vehicles lost value because of defects that led to a 2.59 million-vehicle recall. 09:30 in Chicago. (10:30 EDT).

-Ukrainian Prime Minister Arseniy Yatsenyuk gives the keynote speech at the Charlemagne Prize ceremony honoring EU President Herman van Rompuy in Aachen, Germany. Starts at 11:00 CET (05:00 EDT).

-The New Libya Oil & Gas Forum 2014 takes place in London. Officials from across the country’s oil industry are scheduled to speak, including Nuri Berruien, chairman of National Oil Corp. 08:00 in London (03:00 EDT). Through 05/30.

-Fake French-wine seller Rudy Kurniawan sentencing. The man described by the government as once “the biggest and most successful wine counterfeiter in the world” should be imprisoned for as long as 14 years and forfeit $20.7 million, prosecutors say. Kurniawan’s lawyers are requesting a shorter sentence and a fine of no more than $12,500. 10:00, U.S. District Court, Manhattan.

-Cuba Visit. U.S. Chamber of Commerce President Thomas Donohue speaks at the University of Havana while leading a delegation of business leaders, including Cargill Inc. CFO Marcel Smits, on a fact-finding trip to the island. The group will meet with Cuban entrepreneurs, government officials and other leaders. Times to be determined.

-White House conference on youth sports injuries. President Barack Obama hosts a meeting of sports-medicine specialists on how to improve the prevention and treatment of injuries including concussions. In Washington. Times to be announced.

-The International Grains Council publishes its monthly supply and demand report for wheat, corn, rice and soybeans. 15:00 in London (10:00 EDT).

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

-The Russian central bank reports weekly foreign-exchange and gold reserves at 15:00 in Moscow (07:00 EDT). International reserves fell 0.1 percent in the week ended May 9.

-China Telecom Corp. annual general meeting. 11:00 in Hong Kong (05/28 23:00 EDT).

-ECONOMY: U.S. initial jobless claims (weekly) U.S. consumer comfort (weekly), U.S. pending home sales (April), South Korea current account (April), Japan retail sales (April), Brazil IGP-M inflation index (May), Brazil total outstanding loans (April), Philippine GDP (first quarter).

-EARNINGS: Costco Wholesale Corp., Tata Motors Ltd.

-PGA Tour. The $6.2 million Memorial Tournament, hosted by Jack Nicklaus and won by Matt Kuchar in 2013, begins at Muirfield Village Golf Club in Dublin, Ohio. Tee times and pairings to be determined. Through June 1.


-Shangri-La Dialogue: Japanese Prime Minister Shinzo Abe delivers the keynote speech as political leaders and defense officials from Asia, Europe and the U.S. gather to discuss ways to improve regional security. U.S. Defense Secretary Chuck Hagel will be among the attendees as tension grows over China’s assertion of territorial claims in the East and South China Sea. In Singapore through 06/02.

-U.S. personal spending probably rose at a slower pace in April, according to a Bloomberg survey, after the biggest gain in almost five years put economic growth on track to accelerate in the second quarter. The Commerce Department reports at 08:30 in Washington.

-Japan will announce consumer prices for April, the first month after a sales tax was raised by 3 percentage points. Tokyo core consumer prices rose 2.7 percent on the year in the same month. 08:30 in Tokyo (05/29 19:30 EDT).

-Brazil GDP. Growth probably stalled in the first quarter as President Dilma Rousseff’s administration struggles to revive Latin America’s biggest economy. 09:00 in Rio de Janeiro (08:00 EDT).

-Canada March GDP. Canadian output expanded 1.8 percent in the first three months of 2014, according to a Bloomberg survey, which would be the slowest quarterly pace since 2012. 08:30 in Ottawa.

-North Atlantic Treaty Organization Secretary General Anders Fogh Rasmussen addresses a parliamentary assembly in Vilnius, Lithuania. The speech is likely to focus on security issues in the Baltics amid the conflict between Russia and Ukraine. Starts at 14:30 local time (07:30 EDT).

-Cancer conference. The American Society of Clinical Oncology’s annual meeting draws more than 25,000 specialists. Hundreds of studies will be presented, including data on experimental lung cancer drugs from AstraZeneca and immune-stimulating drugs from Roche Holding AG, Bristol-Myers Squibb Co. and Merck & Co. Starts at 13:00 in Chicago (14:00 EDT). Through June 3.

-Busan International Motor Show. Kim Choong Ho, co-CEO of Hyundai Motor Co., and Lee Sam Ung, president of Kia Motors Corp., will be among auto executives speaking at an event showcasing concept cars and technologies from companies selling vehicles in South Korea. Through June 8 in Busan, South Korea.

-The U.S. Energy Information Administration releases its monthly natural gas production report. 12:00 EDT in Washington.

-ECONOMY: University of Michigan U.S. consumer confidence (May, final), Chicago purchasing managers index (May), Japan industrial output (April), South Korea industrial production data (April), Japan unemployment (April), Sweden GDP (first quarter), Poland GDP (first quarter, final), Lithuania GDP (first quarter, final), Croatia GDP (first quarter, preliminary).

-CENTRAL BANKS: Colombia rate decision.

-EARNINGS: Mahindra & Mahindra Ltd.

-SOVEREIGN RATING UPDATES: Estonia (Fitch), France (DBRS), Latvia (S&P), Namibia (Fitch), Ukraine (Moody’s), Zambia (Moody’s).


-Saracens meets Northampton in the final of English rugby’s Premiership at Twickenham in London. 15:00 local time (10:00 EDT).

To contact the reporters on this story: James Amott in London at +44-20-3216-4206 or jamott@bloomberg.net; Greg Miles in New York at +1-212-617-5877 or gmiles1@bloomberg.net; Jim McDonald in Tokyo at +81-3-3201-3190 or jmcdonald8@bloomberg.net To contact the editors responsible for this story: Andy Davidson at +1-212-617-8977 or adavidson@bloomberg.net Nancy Moran, Tal Barak Harif

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