What to Watch in the Week Ahead and on Tuesday, June 20

Mastek

16/06/2023 19:34

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ON TUESDAY

FedEx Corp is expected to post a fall in fourth-quarter revenue as the parcel delivery giant
grapples with declining demand on the back of high inflation and worries of a recession denting
consumer spend.

U.S. housing data for May is on the economic radar. The Commerce Department is expected to
report housing starts likely fell to 1.400 million units in May from 1.401 million units in the
month before. Separately, building permits likely rose to 1.425 million units last month from
1.417 million units in April.

U.S. Federal Reserve Bank of New York President John Williams and Federal Reserve Vice Chair for
Supervision Michael Barr are expected to participate in "Reflections on Culture: A Leadership
Conversation" before the 2023 Governance and Culture Reform Conference hosted by the Federal
Reserve Bank of New York, in New York. (1145/1545) Separately, Federal Reserve Bank of St. Louis
President James Bullard is scheduled to give "Optimal Macroeconomic Policies in a Heterogeneous
World" presentation before the Barcelona School of Economics Summer Forum, "Expectations in
Dynamic Macroeconomic Models" Academic Workshop, in Barcelona, Spain. (0630/1030)

The world's biggest producers of lithium for electric vehicle batteries are scheduled to hold
their largest three-day annual gathering at the Fastmarkets Lithium Supply & Battery Raw
Materials conference in Las Vegas, Nevada, with demand for the white metal spiking amid the EV
transition.
    
Top lithium producer Albemarle Corp is expected to host its sustainability day webcast to
provide details about where it stands in achieving its sustainability targets.  

Netflix Inc's co-Chief Executive Officer Ted Sarandos is scheduled to visit South Korea to meet
Prime Minister Han Duck-soo and other key officials. Sarandos will likely hold a news conference
in Seoul on Thursday. His trip to South Korea comes after announcing a $2.5 billion investment
during South Korean President Yoon Suk Yeol's state visit to the U.S. in April.

The U.S. Food and Drug Administration (FDA) is expected to give its decision on marketing
application for Argenx SE's new therapy for a neuromuscular disease called generalized
myasthenia gravis.

Mexico's statistics agency is scheduled to release the country's April retail sales data.


REST OF THE WEEK

Federal Reserve Chair Jerome Powell is scheduled to deliver semi-annual monetary policy
testimony to the U.S. House Financial Affairs Committee on Wednesday. Powell is also set to
testify before the U.S. Senate Banking Committee on Thursday. Separately, the Senate Banking
Committee, on Wednesday, is expected to hold hearing on the nominations of Adriana Kugler to the
Federal Reserve board of governors, Lisa Cook to a second term as Federal Reserve board
governor, and Philip Jefferson to Federal Reserve vice chair, in Washington.
    
Accenture Plc is expected to report a rise in third-quarter revenue on Thursday, as businesses
turned to the IT services company to help boost AI adoption. 
    
On the U.S. economic schedule, the Labor Department on Thursday is expected to report initial
claims for state unemployment benefits likely rose to a seasonally adjusted 260,000 for the week
ended June 17. U.S. business activity figures for June are scheduled for release on Friday. S&P
Global's flash services sector PMI likely fell to 54.0 in June from 54.9 in the month before.
Its flash manufacturing PMI likely dropped to 48.3 from 48.4 in May. On Thursday, the Commerce
Department is expected to report the current account deficit likely expanded to $216.9 billion
in the first quarter from a deficit of $206.8 billion in the fourth quarter of 2022. The
National Association of Realtors on Thursday is expected to show existing home sales likely fell
to 4.25 million units in May from 4.28 million units in the month before.

Federal Reserve Bank of Cleveland President Loretta Mester is likely to speak during welcome
social before the "Policy Summit 2023: Communities Thriving in a Changing Economy" conference
hosted by the Federal Reserve Bank of Cleveland, in Cleveland, Ohio, on Wednesday. Mester is
expected to speak on the economic and policy outlook before the same conference on Thursday and
will also giving closing remarks on Friday. Meanwhile, Federal Reserve Board Governor Michelle
Bowman is scheduled to give opening remarks before the conference on Thursday.

Federal Reserve Bank of Chicago President Austan Goolsbee is expected to participate in
moderated question-and-answer session before the Wall Street Journal Global Food Forum, in
Chicago, on Wednesday. Federal Reserve Bank of Richmond President Thomas Barkin is set to speak
on economy before the Risk Management Association RVA Chapter, in Richmond, Virginia, on
Thursday. Separately, Federal Reserve Bank of Atlanta President Raphael Bostic is likely to
participate in a conversation on relevant topics to the finance community and business before
the University of Georgia Terry College of Business CFO Roundtable, in Atlanta, Georgia, on
Thursday.

Federal Reserve Board Governor Christopher Waller is scheduled to give opening remarks before
the Central Bank of Ireland and International Journal of Central Banking Research Conference, in
Dublin, Ireland, on Thursday. Separately, Federal Reserve Bank of St. Louis President James
Bullard is expected to give "Optimal Macroeconomic Policies in a Heterogeneous World"
presentation before the conference in Dublin, on Friday.

JPMorgan is set to hold its two-day annual energy, power and renewables conference starting
Wednesday, with presentations by oilfield service firms, energy pipeline operators, oil
refiners, oil producers and shale oil and gas producers.

Federal Deposit Insurance Corporation Chairman Martin Gruenberg is scheduled to deliver remarks
on strengthening bank capital requirements after several high-profile bank failures on Thursday.

Indian Prime Minister Narendra Modi is scheduled to meet the CEOs of top American companies
including FedEx Corp, MasterCard Inc and Adobe Inc during his trip to the United States for an
official state visit. The CEO reception with more than 1,200 participants, including business
leaders from U.S. and Indian companies such as Tech Mahindra and Mastek, will be held on Friday
at Washington's John F. Kennedy Center for the Performing Arts. 

After delaying the target action date from May 29, the U.S. FDA is expected to give its decision
on Thursday for Sarepta Therapeutics Inc's gene therapy for Duchenne muscular dystrophy. The
therapy has a 8-6 backing from the advisory panel. FDA will also decide by Thursday on the use
of Intercept Pharmaceuticals Inc's oral tablets for the treatment of a type of fatty liver
disease known as non-alcoholic steatohepatitis (NASH).

Darden Restaurants Inc is expected to post a rise in fourth-quarter revenue on Thursday, helped
by steady consumer demand for its brands such as Olive Garden and LongHorn Steakhouse despite
increased menu prices. Investors will be looking for impact of commodity and labor costs on
margins as well as indications of further rise in prices and possible shift in consumer dining
patterns.

The Bank of Canada is scheduled to release its monetary policy deliberations held before its
June 7 interest rate decision on Wednesday.

Statistics Canada on Wednesday is expected to report retail sales likely rose 0.2% in April,
after falling 1.4% in the month before. Canada's budget balance data for April is due on Friday.

Brazil's central bank on Wednesday is anticipated to maintain interest rates steady at a seventh
policy meeting, but signal better conditions for initiating a monetary easing cycle ahead amid
cooling consumer prices and improved inflation expectations. 

Mexico's central bank is expected to announce its monetary policy decision on Thursday. The Bank
of Mexico last month maintained its benchmark interest rate at 11.25%, halting a cycle of rate
hikes that began in June 2021. Mexico's inflation data for the first half of June is also
scheduled for release on Thursday.

On Thursday, Argentina's statistics agency is expected to report the country's economy likely
grew 1.5% in the first quarter, after it expanded 1.9% in the fourth quarter of last year. The
country's statistics office, on Wednesday, is expected to post a trade surplus of $100 million
in May, after a deficit of $126 million in April. Argentina's unemployment rate figures for the
first quarter are due on Thursday and retail sales data for April is scheduled for release on
Friday.

(U.S. markets are closed on Monday, June 19, for Juneteenth National Independence Day)


 (Compiled by Nidhi C Sai in Bengaluru; Edited by Shilpi Majumdar)
 ((Nidhi.CSai@thomsonreuters.com;))