What to Watch in the Day Ahead - Wednesday, Oct. 1
(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) Data from the Institute for Supply Management's report on the service sector is expected to show that the national manufacturing index dipped to 58.5 in September from 59 in August (1000/1400). The U.S. auto industry is scheduled to report September auto sales and they are expected to have hit an annual sales pace of about 17 million vehicles for the second month in a row. Sales are expected to rise in the range of 9 percent to 11 percent in September as the industry continues to show strength. However, some analysts are concerned that generous consumer deals, including low lease rates and zero-percent financing, are stealing demand for the future (0000/0400). Payroll processor ADP will give a snapshot of the U.S. jobs market in September, which is expected to show that private employers added 210,000 to their payrolls, up from 204,000 in August (0815/1215). The Commerce Department issues construction spending data, which is likely to show a 0.5 percent increase in August (1000/1400). Meanwhile, the weekly Mortgage Market Index is due (0700/1100). All eyes are on Oracle Corp's Larry Ellison, after the billionaire surprised Wall Street this month by announcing he was stepping back from the software company he founded four decades ago. Ellison remains executive chairman and chief technology officer and, as usual, will give a keynote at Oracle's annual OpenWorld customer conference. General Motors will host it annual investor day at its test track outside Detroit, where CEO Mary Barra and other executives will investors on their outlook for the company. Chairwoman of the Securities and Exchange Commission, Mary Jo White, will participate on a panel with international securities regulators at the International Organization of Securities Commission's (IOSCO) 39th annual conference. The panel will focus on enforcement as a critical driver to regain investor confidence and keep market stability and growth. Sprint's CFO, Joe Euteneuer, is scheduled to speak at the Deutsche Bank 22nd Annual Leveraged Financial Conference. The third-largest wireless company has been reeling from a collapsed bid for T-Mobile. Under new CEO Marcelo Claure, the company has engaged in a series of aggressive price discounts aimed at recovering subscribers lost during a network overhaul that caused gaps in service. Vivint Solar's initial public offering is expected to be priced at $16-$18 per share, valuing the Blackstone Group LP-controlled residential solar panel installer at $1.9 billion at the top end of the range. Vivint is offering all the 20.6 million shares in the IPO and, at the expected pricing, would raise up to $370.8 million. Vivint competes with SolarCity Corp, which is backed by Tesla Motors founder Elon Musk. Vivint installs panels at no cost to the homeowner, charging for the electricity used at a rate that is about 20 to 30 percent lower than the rate charged by the local utility. The contracts last for 20 years, and the rate goes up slightly each year. Blackstone's stake in Vivint will fall to 75.3 percent from 97 percent after the offering, if the underwriters buy additional shares. RBC announces data on the Canadian Manufacturing Purchasing Managers' index. The index, a measure of manufacturing business conditions, rose to a seasonally adjusted 54.8 in August (0930/1330). Canadian Pacific Railway's chief executive, Hunter Harrison, speaks to investors in New York. With his push to make the railway more efficient well ahead of schedule, Harrison will roll out new performance targets for 2018. He is expected to discuss revenue growth and may touch on the company's capital spending needs. With shares trading at all-time highs, investors will be looking to gauge how much higher the stock can go. HSBC Purchasing Managers' Index for Brazil's manufacturing sector for September is due. High labor costs, poor infrastructure and a hefty tax burden still weigh heavily on Brazil's manufacturers, whose lackluster performance has weighed on economic growth (0900/1300). Separately, Brazilian trade balance data is expected to show a $650 million decline (1400/1800). Mexico's monthly survey of economists is closely watched for growth and inflation expectations. The tally of monthly remittances sent from Mexicans abroad will also be released on the same date. Separately, HSBC manufacturing PMI data will show if factory sentiment continued to rise in September, after touching a seven-month high the prior month on growth in output and employment (1030/1430). Peru's INEI is likely to release monthly inflation data for September, which is expected to have increased 0.15 percent (0100/0500). Markit's final release of the manufacturing PMI, covering thousands of factories across the euro zone is due. The index is likely to remain flat in September from a month prior (0400/0800). (Compiled By Nandi Kaul in Bangalore; Editing by Simon Jennings)
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