What to Watch in the Day Ahead - Wednesday, Dec 2

Tue Dec 1, 2015 2:38pm 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) Markets will look for clues regarding the Fed's decision when Chair Janet Yellen speaks on the economic outlook before the Economic Club of Washington. (1225/1725) She also gives welcome remarks before the National College Fed Challenge Finals (0830/1330) Other top Fed officials, including the Federal Reserve Bank of Atlanta President Dennis Lockhart, will speak before the Broward Workshop (0810/1310), the Federal Reserve Board Governor Daniel Tarullo will give opening remarks before the Economic Growth and Regulatory Paperwork Reduction Act Outreach Meeting (0900/1400), Philadelphia Fed President Patrick Harker will give welcome remarks before "Bridging the Gap: Promising Approaches and Emerging Practices for Addressing Youth Unemployment" forum (1010/1510) and San Francisco Fed President John Williams will speak on the economic outlook before a meeting of Portland community leaders (1540/2040) Investors will keep an eye on data, including the ADP National Employment Report and revised figures for productivity and labor costs for clues regarding the health of the U.S. economy. Private employers are expected to have added 190,000 jobs in November. (0815/1315) Meanwhile, the nonfarm productivity likely grew at a faster pace than previously thought in the third quarter, keeping labor costs contained. However, the trend in productivity will likely remain very weak. Economists forecast productivity, which measures hourly output per worker, will be revised up at a 2.2 percent annual pace from the 1.6 percent rate the government reported in November. (0830/1330) 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. Cloud storage provider Box Inc is expected to report third-quarter revenue slightly above analysts' average estimates, according to Thomson Reuters StarMine, as more users sign up for its services. Investors will be looking out for Box's outlook to see if the company is able to maintain its growth momentum and gaining subscribers from rivals. Teen apparel retailer American Eagle Outfitters Inc is expected to report third-quarter profit and sales above analysts' estimates, according to Thomson Reuters StarMine. The earnings beat is expected to be driven by strong demand for its American Eagle and Aerie brands, coupled with fewer discounts. Investors will look for forecast for sales in the holiday quarter and commentary on promotions and trends. Another teen apparel retailer Aeropostale Inc is expected to report a loss for the 12th straight quarter. The company has been steadily narrowing its losses as it clamps down on discounts. When the company releases its third quarter results, investors will look for forecast and commentary for sales in the holiday quarter. The Bank of Canada is widely expected to hold interest rates at 0.50 percent when it makes its policy announcement. The central bank cut rates twice this year to offset the shock to the economy from a drop in oil prices, but it is anticipated to keep rates where they for some time as it lets the simulative effects of lower borrowing costs take hold. Royal Bank of Canada, the country's most valuable company, is expected to post a higher fourth-quarter profit, driven by strength in its domestic retail banking and U.S. investment banking businesses. Major fertilizer companies present at a Citi investor conference in New York amid slumping fertilizer prices and profits. Of interest will be CF Industries' comments on a U.S. legislation that could scuttle the benefits of tax inversions. The executive committee of scandal-ridden global soccer body FIFA meets in Zurich ahead of a February congress to elect a successor to suspended President Sepp Blatter. The committee is supposed to decide on what governance reforms to propose to the congress, but expectations for sweeping change are low. LIVECHAT: CHINA FOCUS with Sean Yokota, Head of Asia Strategy, SEB Sean joins us to discuss the yuan's inclusion in the IMF's SDR basket, and what to expect from the China economy and markets in 2016. To join the conversation click here bit.ly/1kTxdKD (Compiled by Sourav Bose in Bengaluru; Editing by Maju Samuel)