What to Watch in the Day Ahead - Friday, Aug. 21

Thu Aug 20, 2015 2:31pm 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)
    
Agriculture equipment maker Deere & Co has been hurt by a strong dollar as well as weak demand
for its farm and turf equipment, which make up about two-thirds of its annual revenue. Falling
U.S. farm income and weak commodity prices have reduced spending on new equipment by farmers. In
May, Deere forecast a fall in global sales for its farm equipment in 2015 and said it would
close plants and cut jobs. When the company reports its third-quarter results, the investors
will be looking for an update on the company's plans to shutter more factories to adjust to
lower demand, as well as whether it is expected to take a hefty charge on a tractor recall
announced earlier in August.
    
Financial data firm Markit releases the preliminary U.S. Manufacturing Purchasing Managers'
Index for August. The index is expected to rise to 54.0 from a final reading of 53.8 in July.
(0945/1345)
    
Canada's annual inflation rate is expected to have picked up to 1.4 percent in July, creeping up
off the lower end of the Bank of Canada's target range. But core inflation, which strips out
volatile items and is closely watched by the central bank, is expected to have increased at a
stronger 2.4 percent. The Bank of Canada, which has cut interest rates twice this year to try to
energize the economy, sees the core rate as being boosted by temporary factors. Separately, the
Canadian retail sales are expected to have risen modestly in June, making for the second month
of gains in a row. With the economy forecast to have been in recession in the first half of the
year, analysts are looking for signs of activity at the end of the second quarter that could
point to a pick up in the latter half of 2015. (0830/1230)
    
Mexico's national statistics agency issues retail sales data for June. The sales are forecast to
have increased by 0.3 percent in June from May. (0900/1300) Separately, Brazil's inflation rate
likely eased in August to the middle of the month as the economy moved deeper into what is
expected to be its worst recession in 25 years. Economists expect the consumer prices to have
risen 0.43 percent in the month to mid-August, down from an increase of 0.59 percent in July to
mid-July. (0800/1200) Also, the Argentinean government publishes the economic activity data for
June.
    
LIVECHAT: China Markets with Cumberland Advisors' Bill Witherell
China watchers are offering up a variety of opinions and guesses as to what the devaluation of
the yuan means for both emerging and developed markets. Bill Witherell, chief global economist
and a senior consultant at the Organization for Economic Cooperation and Development, recently
joined the Global Markets Forum to discuss the RMB becoming a global reserve currency. He
returns to the Forum at (0900/1300) to chat about what the latest moves mean in the context of
Beijing's longer-term currency ambitions. To join the Global Markets Forum, click here bit.ly/1kTxdKD

 (Compiled by Hardik Vyas; Editing by Maju Samuel)