What to Watch in the Week Ahead and on Monday, November 15
12/11/2021 19:30
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ON MONDAY
U.S. President Joe Biden is scheduled to host a bipartisan bill-signing ceremony for his
Bipartisan Infrastructure Investment and Jobs Act.
Amazon.com Inc is expected to reach a deal with Hilton Worldwide Holdings Inc to sell virtual
doctor services to the hotel chain's staff and corporate employees, in a boost for the online
retailer's nascent healthcare business.
Lawyers for two Ohio counties and pharmacy chain operators CVS Health Corp, Walgreens Boots
Alliance Inc and Walmart Inc are expected to deliver closing arguments in the first trial
nationally in lawsuits accusing the companies of fueling the U.S. opioid epidemic. The counties
accuse the pharmacy operators of failing to prevent addictive painkillers from being diverted
for illicit uses, resulting in an oversupply of opioids in their communities.
The state of Washington is slated to take the three largest U.S. drug distributors to trial over
allegations they fueled the country's deadly opioid epidemic. Washington Attorney General Bob
Ferguson has opted to take the case to trial after arguing that a proposal by McKesson Corp,
AmersourceBergen and Cardinal Health Inc to pay $21 billion to settle the thousands of opioid
lawsuits against them is "not nearly good enough."
WTO members are seeking to break a more than year-long deadlock over talks on waiving
intellectual property rights for COVID-19 drugs and vaccines ahead of a major ministerial
meeting later in November.
A federal judge in Tampa, Florida, is set to hear arguments by members of the U.S. military and
by federal contractors who oppose the Biden Administration's COVID-19 vaccination mandate. The
plaintiffs leading the class action said they want the judge to block the mandate because it
does not allow for exceptions for religious opposition to vaccines.
A trial is expected to begin in San Francisco federal court on genetic biotech company Illumina
Inc's claims that Chinese rival BGI's gene-sequencing products infringe five of its patents. The
court already found that BGI directly infringed the patents. The jury will decide if the patents
are valid, if BGI infringed willfully and/or induced others to infringe, and what damages
Illumina may be entitled to. The parties have also been involved in several other legal disputes
in the U.S. and worldwide. The trial is scheduled to end Nov. 23.
Former Johnson & Johnson talc supplier Imerys is likely to seek mediation in their respective
Chapter 11 cases after Imerys failed to obtain the votes it needed for its proposed
reorganization plan, which included a settlement with Cyprus over talc-related liabilities
Imerys acquired when it purchased certain Cyprus assets in 1992. Both cases are before Judge
Laurie Silverstein in Delaware.
Canada's manufacturing sales and wholesale trade data for September are on the economic
schedule. Manufacturing sales is likley to have slipped 3% compared with a 0.5% rise in the
previous month. Wholesale trade data for September is expected to have risen 1.1% from 0.3% in
the earlier month.
LIVECHAT-REUTERS GLOBAL MARKETS FORUM
Even as the COP26 climate summit in Glasgow drafts "cover texts," including provisions to phase
out coal, end fossil fuel subsidies and set up rules on global carbon offsets, etc., to "keep
1.5 alive" and implement the Paris climate accord, the Reuters Global Markets Forum brings
together a special line-up of guests to discuss how these climate change goals will get funded,
what the Net Zero Standard for Oil and Gas – the required standards to help discern how energy
companies are seeking to tackle climate change - will look like, and other burning questions
like who will pay to clean up the fossil fuel industry, including dismantling oil and gas
facilities. Join us on the Reuters Global Markets Forum for discussions on the COP26 climate
summit with Philip Gass, transitions and energy program lead at IISD (0400/0900) and Margret
Trilli, CEO & CIO at ImpactAssets (1300/1800). To join the discussions, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum.
REST OF THE WEEK
U.S. retail giant Walmart Inc is expected to post a slight rise in third-quarter sales on
Tuesday, benefiting from consumers doing their early Christmas shopping as a battle with supply
chain problems deepens. Investors and analysts will be on the lookout for what Walmart
executives will have to say about the all-important holiday season and how the company will be
able to manage surging costs while keeping up with record demand. On the same day, Home Depot
Inc is expected to report a rise in third-quarter same-store sales, helped by sustained demand
for building materials and tools from professional contractors. Wall Street will be paying close
attention to the company's profit margins as it spends heavily to counter supply chain
disruptions and get products on store shelves in time for the holiday season. On Wednesday,
Lowe's Companies Inc is expected to report a dip in third-quarter sales as demand from the
company's core base of do-it-yourself home improvement customers slows. Wall Street will also be
paying close attention to the company's profit margins as, like rival Home Depot, it spends
heavily to counter supply chain disruptions.
On Thursday, Macy's Inc is expected to report a jump in third-quarter sales as customers return
to stores after last year's pandemic restrictions, but investors will be more focused on the
company's holiday season forecast as global supply chain disruptions threaten to create a
shortage of products on store shelves. Separately, Kohl's Corp is expected to report a rise in
third-quarter sales, but, as for rival Macy's, investors will be more focused on the company's
comments around holiday season supply as global freight bottlenecks create shortages across
industries, especially in apparel. On Wednesday, TJX Cos Inc is expected to post an increase in
third-quarter revenue, as people buy more affordable clothing. Investors will look out for the
off-price chain's comments on current inventory levels, potential price increases and the impact
of higher freight and raw material costs on its margins.
On the U.S. economic tap, the Commerce Department, on Tuesday, is expected to report retail
sales advanced 1.1% in October, after rising 0.7% in the previous month. Core retail sales
likely rose 0.8%. A report by the Federal Reserve on Tuesday is expected to show industrial
production increased 0.7% in October, after a fall of 1.3% in September. Manufacturing output
likely jumped 0.8% in October, after dropping 0.7% in the previous month. Capacity utilization
is expected to have risen 75.7% in October. Import prices likely rose 1.0% and export prices
advanced 0.9% in October, the Labor Department is expected to report on Tuesday. On Wednesday,
the Commerce Department is expected to report housing starts rose to a seasonally adjusted
annual rate of 1.580 million units in October from 1.555 million units in the month before.
Building permits likely advanced to 1.630 million units in October from 1.586 million units in
September. The National Association of Home Builders/Wells Fargo Housing Market Index, on
Tuesday, is likely to remain unchanged at 80 in November. On Thursday, the Labor Department is
expected to report initial claims for state unemployment benefits fell 7,000 to a seasonally
adjusted 260,000 for the week ended Nov. 13. The Commerce Department, on Tuesday, is expected to
report business inventories it is likley to have inched up to 0.7% from 0.6% in September.
U.S. President Joe Biden is scheduled to travel to Woodstock, N.H., on Tuesday, to discuss a
Bipartisan Infrastructure Deal.
On Tuesday, Federal Reserve Bank of Atlanta President Raphael Bostic and Federal Reserve Bank of
Richmond President Thomas Barkin are scheduled to participate virtually in a panel before the
Federal Reserve Racism and the Economy: Focus on Financial Services event. Bostic, on Wednesday,
is likely to give closing remarks virtually before the Federal Reserve Community Development
Research Seminar Series event. Federal Reserve Bank of Philadelphia President Patrick Harker is
set to speak virtually on "Fintech and Financial Inclusion" before the Federal Reserve Bank of
Philadelphia Fifth Annual Fintech Conference on Tuesday. On Wednesday, Federal Reserve Bank
President Loretta Mester is set to give introductory remarks before virtual 2021 Financial
Stability Conference, "Planning for Surprises, Learning from Crises" organized by the Federal
Reserve Bank of Cleveland and the Office of Financial Research. On the same day, Federal Reserve
Board Governor Christopher Waller is likely to give "Thoughts on Stablecoins" before virtual
2021 Financial Stability Conference, "Planning for Surprises, Learning from Crises" organized by
the Federal Reserve Bank of Cleveland and the Office of Financial Research. Waller is expected
to speak on the economic outlook before the Center for Financial Stability Event on Friday.
Federal Reserve Bank of Chicago President Charles Evans, on Wednesday, is scheduled to speak
about current economic conditions and monetary policy in a moderated Q&A with Mid-Size Bank
Coalition of America. On Thursday, Evans is set to discuss current economic conditions and
monetary policy in a moderated Q&A with 2021 BKD Financial Services Symposium. On Wednesday,
Federal Reserve Bank of New York President John Williams is expected to give virtual keynote,
while Federal Reserve Bank of San Francisco President Mary Daly is set to participate in a
fireside chat virtually before the 2021 U.S. Treasury Market Conference co-organized by the
Federal Reserve System and on Thursday, Daly is scheduled to participate in virtual Fed Listens
2021: Pandemic Recovery and the role of Care Work event. On Tuesday, Daly is expected to speak
before the Commonwealth Club, San Francisco hybrid event. On Thursday, Federal Reserve Bank of
New York President John Williams is expected to participate in "Fireside Chat: The New Federal
Reserve and ECB Strategies – Implications for Monetary Policy" before virtual Transatlantic
Economic Policy Responses to the Pandemic and the Road to Recovery event. Federal Reserve Vice
Chair Richard Clarida, on Friday, is expected to speak on "Perspectives on Global Monetary
Policy Coordination, Cooperation, and Correlation" before virtual Federal Reserve Bank of San
Francisco Asia Economic Policy Conference.
On Thursday, U.S. President Joe Biden is expected to host Canadian Prime Minister Justin Trudeau
and President Andrés Manuel López Obrador of Mexico at the White House. This meeting is the
first North American Leaders' Summit since 2016, the White House says, and focuses on COVID-19,
competitiveness, migration and growth.
The World Trade Organization is set to issue its annual World Trade Report on Tuesday. This
year, the report will be centered on resilience of global trade in the face of the COVID-19
pandemic and more intense natural and man-made disasters.
The World Health Organization's Strategic Advisory Group of Experts on immunisation is expected
hold a closed-door meeting to review the need for COVID-19 booster shots on Thursday.
U.S. President Joe Biden is scheduled to visit General Motors Co's Detroit-Hamtramck electric
vehicle assembly plant on Wednesday.
On Wednesday, the latest IIF Global Debt Monitor "Confronting Climate Change and Policy
Normalization" is expected to discuss the role of global debt markets in the transition to a
low-carbon future and the implications of global policy normalization in a high-debt environment
amid inflationary pressures and supply chain disruptions.
On Tuesday, Aetna Inc is expected to ask the U.S. Court of Appeals for the 3rd Circuit to seal
information the healthcare company's reimbursement rates, negotiating strategies and contracts
that was submitted as part of the Federal Trade Commissions suit challenging Thomas Jefferson
University and Albert Einstein Healthcare Network's hospital merger. Aetna says the now public
information could violate antitrust laws if it's shared between competitors.
A bankruptcy judge is expected to hear arguments on Tuesday over whether to hold the founder of
New York real estate law firm Kossoff PLLC in civil contempt and incarcerate him if he continues
defying court orders to cooperate.
Boeing Co's Managing Director of Regional Marketing Dave Schulte is expected to hold a briefing
on outlook for the Oceania region on Tuesday.
U.S. oil refiner Citgo Petroleum Corp, on Wednesday, is expected to report results for the
quarter ended Sept. 30 that reflect improving motor fuel demand and higher utilization at its
three refineries. It swung to a slim, second-quarter profit on stronger fuel exports and a big
contribution from its Lemont Ill refinery that processes cheap Canadian crude.
The Federal Energy Regulatory Commission is set to hold its monthly virtual open meeting on
Thursday. Items the commission will consider include whether it should stay its certification of
the Jordan Cove LNG given an April decision by its developer Pembina Pipeline Corp to pause the
project.
S&P on Thursday is scheduled to host a conference discussing the future of lending, ESG risks
and the impact of new technology on lending. Bill Ackman is expected to speak at the conference.
On Thursday, North Carolina regulators are expected to hold a public hearing as part of the
review process for Piedmont Lithium Inc's state mining permit application.
Los Angeles Auto Show confirms a strong return to LA Convention Center in November 2021 on
Wednesday, with its press and trade days (AutoMobility LA) taking place Nov. 17-18, and its
doors opening to consumers Nov. 19-28.
Lawrence Schembri, deputy governor of the Bank of Canada on Tuesday, is scheduled to give a
speech on labor market uncertainties and monetary policy to the Canadian Association for
Business Economics.
Canada's inflation figures for October are scheduled for release on Wednesday. Annual inflation
is likley to have increased 4.6% compared with a 4.4% rise in September to reach its fastest
clip since February 2003. Statistics Canada is expected to release retail sales data for
September on Friday. Canadian retail sales is expected to have dropped to 1.7% after a 2.1% rise
in August. Housing starts data for October is due on Tuesday. It is likely to have risen to
257,500 from 251,200 in the earlier month.
(Compiled by Nidhi C Sai in Bengaluru; Editing by Devika Syamnath)
((Nidhi.CSai@thomsonreuters.com;))