What to Watch in the Day Ahead - Wednesday, Mar. 4

Tue Mar 3, 2015 2:35pm 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)

ADP issues the National Employment Report for February. Economists surveyed by Reuters forecast
a gain of 220,000 jobs. (0815/1315) Separately, the Institute for Supply Management releases its
non-manufacturing index for February. Analysts expect a reading of 56.5, according to a Reuters
poll. (1000/1500) Also, financial data firm Markit releases the final reading of its Purchasing
Managers Index for the service sector for February. (0945/1445)
    
Chicago Fed President Charles Evans, one of the Federal Reserve's most dovish policymakers,
gives his views on the economy in Lake Forest, ahead of a key Fed policy-setting meeting in
mid-March. (0900 /1400 GMT) Later, Federal Reserve Bank of Kansas City President Esther George
speaks on the U.S. economy at an event hosted by Central Exchange. (1300/1800) Separately,
Federal Reserve Bank of Dallas President Richard Fisher speaks on "Reflections on 10 Years at
the Fed & Farewell, El Paso" before a community forum hosted by the Federal Reserve Bank of
Dallas. (1900/0000) 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. (1400/1900)
    
Struggling teen apparel retailer Abercrombie & Fitch Co is expected to miss fourth-quarter
revenue estimates, according to Thomson Reuters StarMine data. The strong dollar, low demand for
Abercrombie & Fitch clothes and margin declines from heavy discounting during the holiday
shopping season are expected to have hurt profits. Abercrombie has been trying to revive sales
by improving its merchandise and speeding up the supply chain to respond to fashion trends
quicker, but consumers' preference for cheaper fast-fashion brands is hindering the efforts.
Investors will look for the company's 2015 forecast, progress on efforts to find a new CEO and
business strategy going forward.
    
The world's No. 3 commercial planemaker, Embraer SA, is likely to post a weaker fourth-quarter
profit than a year earlier due to a currency swing and slipping commercial jet deliveries, but
attention should quickly shift to the company's 2015 outlook. Investors will want to know about
cash flow estimates after the Brazilian government held back payment on military programs,
pushing the company into net cash burn last year.
    
Trina Solar Ltd is expected to report a higher fourth-quarter profit as demand improved in
China. Smaller peer ReneSola Ltd is expected to report a loss compared with a year-ago profit,
hurt by soft demand from its biggest market, Europe. The companies, faced with U.S. import
tariffs, have also been expanding in newer markets and strengthening their utility businesses.
Investors will want to know how they will be affected by slowing growth in Japan and if they
will spin off some of their power plants into yield cos.
    
Canadian fuel-cell maker Hydrogenics Corp reports fourth-quarter results. The company said in
July that it expected to post its first-ever profit on an adjusted basis in 2014, indicating a
rise in demand for its fuel cells used in power backup. Hydrogenics, which provides hydrogen
generation, energy storage and fuel cell power modules, counts CommScope and E.ON among its
customers. Investors will be interested in the company's order backlog, often seen as an
indicator of future sales, as well as comments on new orders.
    
Facebook Chief Executive Mark Zuckerberg will interact with the public and answer questions
through a webcast, in the latest of his series of "town hall" events.
    
The Bank of Canada will announce its interest rate decision and give its analysis of the
economy. The central bank is expected to follow January's surprise rate cut by holding rates at
0.75 percent. Analysts believe recent comments from Governor Stephen Poloz suggest the bank will
wait to see how the recent oil price slump plays out in the economy. Still, the Bank of Canada
is expected to cut rates once more by the second half of the year, according to a Reuters poll.
(1000/1500)
    
Brazil's central bank announces its interest rate decision. Analysts expect the bank to raise
rates by 50 bps to 12.75 percent, maintaining the aggressive pace of monetary policy to ease
inflation that is at a 12-year high. The rate hike could help ease some inflationary pressures,
but also threatens to further drag the economy into recession this year. Separately, Brazil's
statistics agency releases data on industrial output growth during January. Manufacturers have
consistently been the weakest link in Brazil's economy as they struggle with competition from
abroad, high tax and labor costs, and poor infrastructure. (0700/1200)

 (Compiled By Astha Rawat in Bengaluru; Editing by Simon Jennings)