What to Watch in the Day Ahead - Thursday, Sept. 11

Wed Sep 10, 2014 2:49pm EDT
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(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT.) Weekly jobless claims data from the U.S. Labor Department will be watched for confirmation that the sharp slowdown in job growth in August was an aberration (0830/1230). The Treasury Department issues a monthly budget report for August (1400/1800). Food costs will be in focus when Kroger, the biggest U.S. supermarket operator, reports first-quarter results. The company has been outperforming rivals and giving Wal-Mart Stores, which sells more groceries than any other retailer, a run for its money. Lululemon is expected to report higher revenue, but lower profit for the second quarter, as it continues to recover from crippling supply chain and image issues that resulted from a high-profile recall of overly sheer yoga pants. Analysts mostly remain cautious about the company, but many expect that investments in process, supply chain and inventory improvements will benefit growth over the long term. They will be keen to hear what Lululemon will say about the current quarter so far and whether it will update its forecast for the second half of the year. Statistics Canada releases the new housing price index for July. New housing prices in Canada rose 0.2 percent in June from May. Analysts expect the July index to remain unchanged at 0.2 percent month on month (0830/1230). Brazil's central bank releases the minutes from its last meeting in which it signaled plans to hold interest rates steady for some time. In the minutes, policymakers are expected to explain the bank's strategy more clearly, but keep signaling that rates are going to remain steady at least for the rest of 2014. The bank is also expected to express concern about the contraction of the economy in the first half of the year, but also warn that inflation remains a problem. Separately, Brazil's statistics agency IBGE releases its report on July retail sales. Retail sales have disappointed as the economy slipped into recession in the first half of the year. Sales might have recovered slightly in July though, as the end of the soccer World Cup reduced the number of holidays (0800/1200). Chile's central bank meets to set the interest rate. It has cut the rate 150 basis points since October to 3.5 percent and continues its easing bias as the slowdown continues apace. Also, data from Mexico will reveal how industrial production fared in July, after unexpectedly shrinking in June in its first contraction since December (1800/2200). Organized in collaboration with the Italian presidency of the EU and ahead of an informal Eurogroup/Ecofin meeting in Milan, the EUROFI Banking Conference brings together a host of top bankers, EU officials, ECB policymakers. Confirmed speakers on the second day of the conference include Italian Economy Minister Pier Carlo Padoan, ECB's Lautenschlaeger and Coeure, Bundesbank's Dombret, EU Commission's Mario Nava (head of banking division under Barnier), Crédit Agricole's Chifflet, HSBC's Flint, ING's Timmermans, Goldman Sachs' Doyon, Italy's Treasury Director General La Via, EBA's head Enria and ESMA's Maijoor. ECB's Mario Draghi gives the keynote speech at a gala dinner. (All analysts' estimates are according to Thomson Reuters I/B/E/S/) (Compiled by Ayesha Sruti Ahmed in Bangalore; Editing by Savio D'Souza)