What to Watch in the Day Ahead - Friday, Aug. 7
(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) U.S. employers likely maintained a solid pace of hiring in July and wage growth probably picked up after stalling the prior month, signs of progress in the labor market that could open the door wider to a September interest rate hike. A Reuters survey of economists forecast nonfarm payrolls rising 223,000, matching June's gain. (0830/1230) Economists also expect the unemployment rate steadied at 5.3 percent in July. (0830/1230) Separately, the U.S. consumer credit is forecast to have risen to $17.00 billion in June from $16.09 billion in May. (1500/1900) Warren Buffett's Berkshire Hathaway Inc releases second-quarter results, which is expected to be quiet for operating businesses, reflecting how a growing economy may aid results in many consumer-oriented units, a lack of major catastrophes to dampen results in insurance operations, and an expected modest change in book value per share, Buffett's preferred measure of growth. Investors may look for whether the BNSF railroad can build on its first-quarter rebound from service problems a year earlier, and the extent to which Berkshire may retreat from some insurance and reinsurance underwriting as risk premiums narrow. Hershey Co, the maker of Hershey's Kisses and Reese's Peanut Butter Cups, reports second-quarter results. The company cuts its full-year revenue forecast for the third time in June, hurt by weak sales in China, and also announced job cuts. Hershey has been aiming to grow outside the United States, where sales have faltered as consumers move to healthier snacks. But slowing economic growth in China, which Hershey wants to make its No.2 market, has been a stumbling block. Investors will be looking for updates on market conditions in China, Hershey's reassessment of its Shanghai Golden Monkey Food acquisition and plans for further acquisitions. Cable TV company Cablevision Systems Corp is expected to post second-quarter profit below Wall Street's expectations. The company is expected to post another quarter of video subscriber losses, as telecom companies continue to eat into its subscriber base with competitively priced internet and satellite TV packages. Cablevision has announced lower-priced offerings aimed at "cord-cutters" and investors will look for commentary on the performance of these offerings. Statistics Canada issues building permits data for June. Economists expect the value of permits to have rebounded 5 percent after tumbling 14.5 percent in May. (0830/1230) Separately, the economy is expected to have added 5,000 jobs last month after shedding 6,400 jobs in June, while the unemployment rate is forecast to have steadied at 6.8 percent. (0830/1230) Also, the seasonally adjusted Ivey Purchasing Managers index for purchasing activity is expected to have slipped to 52.0 in July from 55.9 in June. Telus Corp, one of Canada's biggest telecom companies, is expected to show in its second-quarter report that it maintained industry-leading retention of customers. Meanwhile, investors will look for any sign that the exploding use of mobile data has plateaued. Canadian's Magna International Inc reports second-quarter results. While the company is best known for supplying automakers with parts from its more than 300 manufacturing facilities, Magna is also a contract manufacturer, and could benefit if major tech companies like Apple and Google decide to develop their own vehicles. Analysts expect earnings of $1.17 a share on revenue of $8.07 billion, according to Thomson Reuters I/B/E/S. Brazil's annual inflation rate is likely to have increased to 9.52 percent in July, the highest in nearly 12 years, increasing pressure on President Dilma Rousseff and the central bank as policymakers struggle to curb price rises with double-digit interest rates. (0800/1200) Separately, economists expect Mexico's 12-month inflation figure through July further edged down to 2.75 percent from a record-low of 2.87 percent in June. (0900/1300) Also, Chile's inflation is expected to have eased to 0.4 percent in July from 0.5 percent in the previous month. LIVECHAT - The weekahead with Reuters markets editor Mike Dolan Join Mike Dolan as he goes through the key macroeconomic and political themes for the coming week at 0600 ET/1000 GMT. To join the Global Markets Forum, click here bit.ly/1kTxdKD (All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise) (Compiled by Hardik Vyas in Bengaluru; Editing by Savio D'Souza)
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