What to Watch in the Week Ahead and on Monday, September 18
15/09/2023 19:30
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ON MONDAY:
The National Association of Home Builders/Wells Fargo Housing Market index likely remained
unchanged in September, from the August reading of 50.
Saudi Arabia's Energy Minister Abdulaziz bin Salman Al Saud is scheduled to speak about "energy
transition" at the World Petroleum Congress in Calgary, Canada. He is scheduled to be followed
by the CEOs of Exxon Mobil Corp and Saudi Aramco.
Adobe Inc will defend itself at trial from allegations that it infringes patents owned by a
small Massachusetts-based tech company ViaTech. The last day of trial is set for Monday,
September 25.
The Canadian Mortgage and Housing Corporation is expected to report the seasonally adjusted
annualized rate of housing. Separately, Statistics Canada is set to report the country’s
producer prices.
REST OF THE WEEK:
In a big week for central banks, the Federal Reserve and the Bank of Japan (BoJ) are both
scheduled to meet to set up their respective monetary policies. On Wednesday, The Federal Open
Market Committee (FOMC) is likely to keep its benchmark overnight interest rate unchanged at
5.25%-5.50% range. Markets will also take their cue from Fed Chair Jerome Powell’s speech after
the decision. The Bank of Japan is set to keep monetary settings unchanged at the two-day
meeting concluding on Friday after having modified its bond yield control policy in July to
allow long-term interest rates to rise more reflecting higher inflation. Investors will focus on
BOJ Governor Ueda's post-meeting briefing for clues on how soon the central bank could phase out
its massive stimulus.
From the U.S. econ tap, business activity figures are due on Friday, with the September reading
for S&P Global manufacturing flash PMI likely to come in at 47.8, slightly down from 47.9 in
August. The services PMI flash likely fell to 50.3 this month from 50.5 last month. The
Composite PMI index reading, which tracks manufacturing and service sectors, is also expected.
The U.S. Commerce Department on Tuesday is expected to report that overall housing starts fell
to a rate of 1.440 million units in August, from 1.452 million units in July. Overall building
permits likely rose to 1.445 million units last month from 1.443 million units in July. A report
from the National Association of Realtors on Thursday is expected to show existing home sales
likely rose to a seasonally adjusted annual rate of 4.10 million units in August from 4.07
million units in July. Coming on the same day, the Philadelphia Fed's business conditions index
reading likely dipped to -0.7 this month from 12 in August. In a separate report, the labor
department is set to report that initial claims for state unemployment benefits rose 5,000 to a
seasonally adjusted 225,000 for the week ended Sept 16. Also on the same day, the Commerce
Department is set to report that the current account gap widened to $221.3 billion in the second
quarter of 2023 from $219.3 billion in the first quarter.
FedEx Corp is expected to report a higher first-quarter profit on Wednesday as the company
benefited from cost cuts offsetting softening e-commerce volumes.
On Tuesday, Alphabet Inc’s Google will likely make a last ditch effort to overturn a 2.42 bln
euro EU antitrust fine imposed for using its own price comparison shopping service to gain an
unfair advantage over smaller European rivals. The fine is one of three penalties levied on the
company over its anti-competitive practices. The Luxembourg-based EU Court of Justice will rule
in the coming months.
On Friday, Federal Reserve Board Governor Lisa Cook is slated to give a keynote speech before
the National Bureau of Economic Research at the Economics of Artificial Intelligence Conference,
Fall 2023, 0850/1250.
On Thursday, Darden Restaurants Inc is likely to post a rise in first-quarter revenue benefiting
from steady demand at its restaurant chains that offset an impact from higher costs. Investors
will eye comments on demand and traffic trends, impact from inflation, margin recovery, and any
update on forecast that the company provides.
Cryptocurrency exchange Binance and its CEO Changpeng Zhao are expected to file a motion on
Thursday, asking a federal court in Washington, D.C., to dismiss the U.S. Securities and
Exchange Commission's case accusing them of operating an unlicensed securities exchange and
misleading investors.
General Mills Inc, on Wednesday, is expected to post a rise in first-quarter revenue helped by
higher prices for its products such as ready-to-eat cereals, snacks and meal kits. Investors
will look for comments on demand trends, impact on volumes, trends in North America, pet
segment, further price increases and any forecast that the company provides.
The 2nd U.S. Circuit Court of Appeals is set to hear arguments on Tuesday on Sam Bankman-Fried's
bid to get out of jail ahead of his Oct. 3 fraud trial on the charges of stealing billions of
dollars from customers of his FTX cryptocurrency exchange.
On Tuesday, The U.S FDA is set to decide on ARS Pharmaceutical Inc's nasal spray Neffy for
allergic reactions. A potential approval would make it the first non-injectable treatment for
severe allergies.
The U.S. Securities and Exchange Commission, on Wednesday, is scheduled to vote on whether to
adopt proposed changes to a rule on investment company names that could mislead investors about
companies' investments and risks.
On the Canadian economic schedule, the August annual inflation rate is due on Tuesday and is
likely to rise 3.8%, after jumping 3.3% in the month before. Separately, Statistics Canada is
expected to release the country's July retail sales data on Friday, which likely rose 0.4% from
0.1% in June.
In Latin American, Brazil's central bank is expected to cut its benchmark Selic interest rate on
Wednesday to 12.75% from the previous 13.25%. Separately, the country’s IBC-BR economic activity
index, a key indicator of gross domestic product (GDP) is expected to be released on Tuesday. On
the same day, Argentina's statistics agency is expected to report the country's economy likely
shrank by 4.80% in the second quarter, after expanding by 1.30% in the previous quarter. The
country’s August trade balance data is also due on Thursday. Mexico's headline inflation numbers
are expected on Friday.
(Compiled by Jerin Tom Joshy in Bengaluru; Editing by Tasim Zahid)
((Jerin.Joshy@thomsonreuters.com;))