What to Watch in the Day Ahead - Thursday, Oct. 9

Wed Oct 8, 2014 2:52pm 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) PepsiCo is scheduled to report its third-quarter earnings. The company is under pressure from activist investor Nelson Peltz to split its snacks and beverages businesses.

The U.S. Labor Department will release data on weekly jobless claims, which analysts expect to have risen to 294,000 from 287,000 the prior week (0830/1230). The Commerce Department issues data on wholesale inventories for August, which likely inched up 0.3 percent (1000/1400).

European Central Bank President Mario Draghi delivers remarks on the latest developments in Europe and global central banking and participates in a moderated discussion with Federal Reserve Vice Chairman Stanley Fischer, at the Brookings Institution in Washington (1200/1600). Shortly after, Federal Reserve Governor Daniel Tarullo will give a speech on regulatory reform to the Bretton Woods Committee in Washington (1310/1710). Federal Reserve Bank of St. Louis President James Bullard gives welcome remarks before the 39th Annual Federal Reserve Bank of St. Louis Fall Conference in St. Louis. This will be followed by a media question and answer session (1045/1445). Separately, Federal Reserve Bank of San Francisco President John Williams speaks on the economic outlook before a Las Vegas business and community leaders luncheon (1540/1940). Separately, Federal Reserve Bank of Richmond President Jeffrey Lacker speaks on "Prospects for Growth and Labor Markets" before an event in Asheville (1315/1715). Meanwhile, Bank of Japan Governor Haruhiko Kuroda speaks before the Economic Club of New York. He will be introduced by New York Federal Reserve Bank President William Dudley.

GT Advanced Technologies' first-day bankruptcy hearing is expected to shed light on how the company's relationship with Apple, with which it had lined up vendor financing, deteriorated to the point where it had to file for bankruptcy. Analysts also hope to gain insights into the company's game plan going forward. GT Advanced shares have bounced back substantially in the past days, suggesting that some investors are hoping there's value in the company's equity going forward.

Closing arguments are scheduled in a lawsuit by the U.S. government and 17 states accusing American Express of stifling competition from credit card providers that charge lower processing fees. The trial is before U.S. District Judge Nicholas Garaufis of Brooklyn.

Finance ministers and central bankers from the Group of 20 nations meet in Washington ahead of the fall meetings of the International Monetary Fund and the World Bank.

An industry advisory committee chaired by the Commodity Futures Trading Commission will talk about the agency's jurisdiction in derivative contracts referencing bitcoin. Recently, the agency approved its first bitcoin swap for the Tera Exchange trading platform. The second issue on the agenda is non-deliverable forwards. This is the next type of swap that the CFTC is looking to designate for clearing, which would subject the market to much tighter rules. The meeting will be chaired by Mark Wetjen, the CFTC commissioner who heads the Global Markets Advisory Committee.

HubSpot Inc is expected to make its trading debut. The marketing software provider's initial public offering is expected to be priced at $19-$21 per share, valuing the company at $637 million at the top end of the range. HubSpot's offering of 5 million shares is expected to raise up to $105 million. Sequoia Capital, Charles River Ventures and General Catalyst Partners are among HubSpot's stockholders. HubSpot helps businesses personalize interactions with customers, who are increasingly averse to traditional marketing tactics such as cold calls, unsolicited emails and disruptive advertisements. The company's shares will trade under the symbol "HUBS" on the New York Stock Exchange.

MOL Global Inc's initial public offering is expected to be priced at $12.50-$14.50 per share, valuing the Malaysian online payment company at $978.8 million at the top end of the range. The IPO of 19.5 million American depositary shares is expected to raise up to $282.2 million. The company, majority owned by Malaysian billionaire Vincent Tan, is expanding in Southeast Asia and plans to tap the Malaysian government's push to drive e-payments in preparation for a new consumption tax that kicks in next year.   Continued...