CORRECTED-What to Watch in the Day Ahead - Thursday, July 2
(Corrects company name in paragraph 3 to Alstom from Custom) The monthly U.S. employment report is expected to show a respectable 230,000 jobs were added to non-farm payrolls in June with the unemployment rate declining to 5.4 percent from 5.5 percent. That would probably keep economists converging on September as the likely interest rate lift-off date for the Federal Reserve. (0830/1230) Also, the number of Americans filing new claims for unemployment benefits is expected to have dropped a bit by 1,000 to a seasonally adjusted 270,000. (0830/1230) Separately, the new orders for manufactured goods are also expected to have slipped 0.5 percent in May. It unexpectedly fell 0.4 percent in April after a slightly upwardly revised 2.2 percent increase in March. (1000/1400) Fiat Chrysler Automobiles NV's ability to recall and fix more than 11 million potentially defective vehicles comes under scrutiny at a rare public hearing at the National Highway Traffic Safety Administration, the U.S. auto safety watchdog that could fine the automaker more than $750 million and order the company to buy back or replace defective vehicles, if evidence shows it failed in its obligations under 22 separate recalls. The proceedings, part of an effort by the Obama administration to beef up enforcement after deadly missteps involving GM ignition switches and Takata air bags, is expected to feature testimony from auto industry representatives, safety advocates, regulators and members of the public. European Commission (EU) holds closed-door hearing on General Electric's 12.4 billion euro bid for Alstom's power energy unit. General Electric will seek to sway EU and national competition regulators to take a more lenient view of its biggest ever takeover and be more open to softer concessions. It could be a tough sell for GE to overcome the concerns in the EU antitrust charge sheet but they already have the support of the French government which needs the deal to safeguard jobs in France. LIVECHAT: PAYROLLS PREVIEW: Michael Hewson, market strategist, CMC Markets Michael Hewson, CMC Markets market strategist will be with us to go through what to expect from June's U.S. non-farm payrolls report and how a beat or a miss will affect market expectations for the timing of the first rate hike from the Federal Reserve in nearly a decade. (0500/0900) To join the Global Markets Forum, click here bit.ly/1kTxdKD The RBC Canadian Manufacturing Purchasing Managers' index, a measure of manufacturing business conditions, is due to be released for the month of June. Business conditions in the manufacturing sector edged up to a seasonally adjusted 49.8 in May from 49.0 in April. (0930/1330) Industrial output in Brazil probably fell in May at the quickest annual pace in nearly six years, a Reuters poll showed, adding to signs of a painful recession in Latin America's largest economy. Output from Brazilian factories and mines was seen shrinking by 10.2 percent from May 2014, the steepest drop since June 2009, according to the median forecast of 21 economists. Industrial output fell 7.6 percent in April versus a year earlier. (0800/1200) (Compiled by Hardik Vyas; Editing by Joyjeet Das)
© Thomson Reuters 2016 All rights reserved.