What to Watch in the Week Ahead and on Monday, Dec 7

Fri Dec 4, 2015 2:59pm 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) WEEK AHEAD Investors will keep an eye for next week's retail sales numbers, producer price index, wholesale inventories and University of Michigan's data on consumers sentiment. Data on Friday is expected to show that U.S. retail sales rose 0.3 percent last month, a bit higher than its October reading. On the same day, the preliminary number for December consumer sentiment is expected to show an increase to 92.0 from 91.3 in November and producer inflation is likely to have dropped 1.4 percent in November on an annual basis. On Wednesday, the Commerce Department is expected to show a 0.1 percent gain in wholesale inventories. Warehouse club operator Costco Wholesale Corp is likely to report sales below analysts' average estimate for the first quarter on Tuesday, according to Thomson Reuters StarMine. While November sales were helped by a rebound in store traffic and demand for discretionary items such as consumer electronics and beauty products, October sales were slow. Investors will be looking for comments on government agency investigations into the spread of a particular strain of E. coli last month, allegedly from the rotisserie chicken salad sold by the company. On Thursday, Photoshop maker Adobe Systems Inc is expected to report fourth-quarter revenue and profit in line with estimates after it lowered its revenue and profit guidance for 2016 in October. The company said it expects to take a hit from a strong dollar and as its "last material businesses are transitioning to ratable revenue." Analysts are looking for further comments on the transition and guidance. Yogawear retailer Lululemon Athletica Inc is expected to report a slightly lower profit for the third quarter on Wednesday, as bloated inventories continued to dent margins at the Canadian company. Investors will mainly look for comments on whether the company's inventory pile up would continue to hurt margins throughout 2016. Lululemon, which has been facing competition in the activewear market from Nike and Under Armour, is also being touted as an attractive takeover target. Discount retailer Dollarama Inc is expected to post higher third-quarter profit on Wednesday, helped by lower costs and a rise in sales of high-priced items. Investors will like to know the company's strategies to fend off competition and if it plans on expanding its store footprint. Ski-Doo snowmobiles and Sea-Doo watercraft maker BRP Inc is expected to report a lower third-quarter profit on Friday, hurt by rising expenses. Investors will want to know more about the company's cost-cutting measures, capital budget and future of demand. On Tuesday, the U.S. Food and Drug Administration is set to decide on the approval of Alexion Pharmaceuticals Inc's rare metabolic disorder drug, Kanuma, to treat an ultra rare and potentially fatal disease. The drug, which is already approved in Europe, is intended to treat patients with lysosomal acid lipase deficiency (LAL-D). On Tuesday, the Bank of Canada Governor Stephen Poloz will give a speech on "The Evolution of Unconventional Monetary Policy" at the Empire Club of Canada in Toronto, six days after the Bank of Canada held interest rates steady in its last rate decision of the year. The Bank of Canada Governor Stephen Poloz will give a press conference following his speech. Deutsche Bank CEO John Cryan and Wells Fargo CEO John Stumpf are among the executives speaking at the annual Goldman Sachs financial services conference for institutional investors. The two-day conference, starting Tuesday, traditionally includes updates to year-end profit expectations and takes place as many executives are wrapping up their annual budgets and employee bonus schedules. Others scheduled to speak include the chief financial officer of JPMorgan Chase & Co and executives from BlackRock, KeyCorp, State Street Corp, Discover Financial Services, SunTrust Banks and Ally Financial. Presentations will be webcast. More than a dozen top CEOs will attend the two-day New York Times "Energy for Tomorrow" conference, including: Paul Polman, Unilever; Jean-Pascal Tricoire, Schneider; Ulrich Spiesshofer, ABB; Peter Agnefjäll, IKEA; Peter Terium, RWE; Patrick Pouyanne, Total; Sultan Al Jaber, CEO of Mubadala Energy and chairman, Masdar; Bob Dudley, BP; Yngve Slyngstad, CEO Norges Bank Investment Management; José Manuel Entrecanales, chairman, Acciona; Hans Vestberg, Ericsson; Lyndon Rive, CEO SolarCity; Peder Holk Nielsen, Novozymes; Anders Runevad, Vestas; Tom Werner, SunPower; Eldar Saetre, Statoil; Carlos Ghosn, Renault-Nissan. The conference will start on Tuesday in Paris. Data on Wednesday is expected to show that Brazil's annual inflation rate probably topped 10 percent in November, the highest in nearly 12 years. High inflation has fueled popular discontent against President Dilma Rousseff and could prompt the central bank to jack up interest rates from an already high 14.25 percent, worsening the country's deep recession. ON MONDAY, DEC 7 The U.S. Federal Reserve is scheduled to report the outstanding credit extended to American consumers. The figure for October is expected to have decreased to $20.0 billion. (1500/2000) The Federal Reserve Bank of St. Louis's president, James Bullard, speaks on the economy and monetary policy before the 20th Annual Indiana Economic Outlook Luncheon hosted by the Center for Business and Economic Research (CBER), Ball State University. (1230/1730) Chile's statistics agency gives inflation numbers for November. It has become a key concern for the central bank and will be a major factor in central bank's decision the following week to raise rates again or not. The inflation is expected to have advanced 0.1 percent in November, compared to an increase of 0.4 percent in October. LIVECHAT - FX WEEK AHEAD with Reuters FX analyst Jeremy Boulton Join Reuters FX analyst Jeremy Boulton for a look at the week's top topics and implications for the FX market. (0600/1100) To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Sourav Bose in Bengaluru)