What to Watch in the Day Ahead - Wednesday, Jan. 14

Tue Jan 13, 2015 2:43pm EST
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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) JPMorgan Chase & Co reports fourth-quarter revenue. The company could give a new indication of how much more it may have to pay to resolve government probes of its conduct. The bank, the biggest in the United States by assets, tried to put the bulk of those liabilities behind it in 2013 when it agreed to pay more than $20 billion in settlements. But additional allegations of misconduct in foreign exchange trading and other operations have pointed toward additional liabilities in the past year and left open the question of how much more it will cost the bank to clean up its affairs. The U.S. Commerce Department is expected to report that retail sales were flat in December as lower gasoline prices weighed on receipts at service stations. Core retail sales, which exclude gasoline and three other categories, are expected to rise 0.4 percent after increasing 0.6 percent in November (0830/1330). According to analysts, Business Inventories for November are expected to remain unchanged at 0.2 percent (1000/1500). Separately, Labor Department issues Import and Export Prices for December. Analysts expect the import prices to extend the fall to straight sixth month at -2.9 percent (0830/1330). Wells Fargo reports fourth-quarter earnings. The fourth largest U.S. bank will reveal how its loan portfolio has been affected by lower oil prices. Chief Executive John Stumpf and finance chief John Shrewsberry will host a conference call with analysts following the release. As part of the revenue report, the bank will release figures on how effectively its plans to sell lucrative brokerage and money management services to wealthy bank clients are progressing. Federal Reserve Bank of Philadelphia President Charles Plosser speaks on the economic outlook before the Greater Philadelphia Chamber of Commerce Economic Outlook event (0900/1400). Separately, The Federal Reserve issues its so-called Beige Book, a compendium of anecdotes on the health of the economy drawn from the central bank's sources across the nation. Meanwhile, Federal Reserve Bank of Kansas City issues Labor Market Conditions Indicators for December. The (LCMI) is composed of two monthly measures of labor market conditions based on 24 variables. One indicator measures the level of activity in labor markets and the other indicator measures momentum in labor markets. Shaw Communications reports first-quarter results. The Calgary-based company likely lost more cable subscribers in the quarter but should be able to deliver solid earnings and revenue growth in a maturing market as it focuses on improved product offerings. The cable and internet company has managed to avoid a price war with its main rival, Telus, and is looking to sell wireless airwaves after choosing not to build a mobile network. It recently launched a joint venture online streaming product, shomi, with Rogers Communications to defend its territory against cheaper streaming alternatives. Canada's Teranet-National Bank Composite House Price Index for December will be released. The index, which measures price changes for repeat sales of single family homes, had showed prices falling 0.3 percent in November from October. Canadian finance minister Joe Oliver will meet reporters ahead of consultations on his annual federal budget. Among the questions facing the government now are what effect the fall in oil prices will have on the economy and budget, what if anything needs to be done about it, and how to spend any budget surplus that might remain after the effects of cheaper oil. Brazil's retail sales growth for November is expected to have lost steam in comparison to last year as consumer confidence plunged to the lowest in nearly six years. Compared with November 2013, sales volumes probably dipped 0.35 percent, a far cry from the 7-percent growth rate seen a year ago, according to a Reuters poll (0600/1100). Mexico's National Statistics Institute will release gross fixed investment data for October. The monthly indicator contracted in September after 7 months of expansion (0900/1400). (Compiled By Astha Rawat in Bengaluru; Edited by Maju Samuel)