What to Watch in the Day Ahead - Wednesday, April 15
(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) Bank of America Corp reports first-quarter results. Analysts are expecting the second-biggest U.S. bank to report a clean quarter, with no material surprises in terms of litigation or repositioning charges. Since 2010, the bank has agreed to pay at least $70 billion to resolve disputes linked to home loans, mortgage bonds and other problems stemming from before and during the 2008 crisis. Investors will be looking for any updates on the company's fee income growth and its ability to offset the coming inflection in loan loss provisioning. Video streaming pioneer Netflix Inc is expected to report first-quarter profit above Wall Street's average estimate, according to Thomson Reuters StarMine data. The company has been benefiting from an expansion into international markets such as Europe, as growth in the United States slows. Netflix is also expected to report strong subscriber addition numbers, according to some analysts, helped by the recent release of the third season of its Emmy-winning original series 'House of Cards'. Data storage products maker SanDisk Corp is expected to report a first-quarter profit below estimates, according to Thomson Reuters StarMine data. The company's stock lost about 40 percent since touching a record high in July, making it a potential takeover target, analysts have said. SanDisk has reported a string of issues, including unplanned maintenance at its chip foundry, weak sales of enterprise products and lean inventory levels of NAND memory chips, leading it to cut its first-quarter revenue guidance. Analysts will be looking for guidance, potential strategic alternatives. Federal Reserve data is expected to show a slowdown in industrial production and manufacturing output holding steady in March after three straight months of declines, as firms contend with the effects of the drawn-out winter weather conditions, a strengthening dollar and falling crude oil prices. Industrial production is forecast to have decreased 0.3 percent, while manufacturing output is expected to have advanced by 0.1 percent from the prior month. (0915/1315) 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. Investors will look to see if the central bank's business contacts are reporting a pickup in activity after a winter lull and whether their confidence in the strength of the economy going forward remains unsheltered. Also the data from Empire State Survey, which gauges manufacturing activity in New York area, is expected to show a rise in April. (0830/1230) Delta Air Lines Inc, one of the most profitable U.S. carriers, reports first-quarter earnings. Delta has said its unit revenue dropped in the first quarter as a stronger U.S. dollar hurt international demand and domestic bookings fell short of its expectations. The Atlanta-based carrier is expected to provide guidance for the second quarter that could suggest whether more foreign exchange headwinds are to come. Federal Reserve Bank of St. Louis President James Bullard speaks on the U.S. economy and monetary policy before the Levy Economics Institute of Bard College 24th Annual Hyman P. Minsky Conference on the State of the U.S. and World Economies. (0900/1300) Other speakers include Federal Deposit Insurance Corp Vice Chair Thomas Hoenig, PIMCO former chief economist Paul McCulley and U.S. Senator Elizabeth Warren. Separately, Federal Reserve Vice Chair Stanley Fischer moderates "Session 2: Macro-Prudential Tools: Gathering Evidence" panel before a seminar during the IMF/World Bank meetings. (1040/1440) Also, Federal Reserve Bank of Richmond President Jeffrey Lacker speaks on "Investing in People for Long-Term Prosperity" before a group of business and community leaders. (1930/2330) An independent committee to the U.S. Food and Drug Administration is expected to make a recommendation on The Medicines Co's once-rejected intravenous blood clot preventer, Cangrelor. The drug, which won European marketing approval in March, will be reviewed by the FDA for the second time, after the company was asked to reanalyze its trial data. The panel takes into account the staff review released on Monday, which supported the drug's approval this time round. The FDA is not obligated to follow the panel's recommendations, but typically does so. The Bank of Canada is expected to hold interest rates steady at 0.75 percent after making waves with a shock rate cut in January. The focus will be on the update to its Monetary Policy report, with the bank expected to lower its forecast for first-quarter economic growth from the 1.5 percent it had predicted in January. Governor Stephen Poloz has since said the first three months of the year will look "atrocious" due to the shock of the lower price of oil, a major export for Canada. (1000/1400) Poloz holds a news conference following the release of the central bank's monetary policy report. (1115/1515) Statistics Canada releases February manufacturing sales data. Analysts forecast factory sales to have increased 0.4 percent, after tumbling more than expected in January. (0830/1230) LIVE CHAT - TAKING STOCK: What is fueling the rally in global equities and how long can it last with Cathay Conning's Mark Konyn Mark Konyn, CEO at Cathay Conning Asset Management, will join from Hong Kong to talk about the recent rally in global equities; increasing foreign interest in Hong Kong and Japan; what to expect from the Fed and how that will impact fund flows and this rally. (0000/0400) To join the Global Markets Forum, click here bit.ly/1kTxdKD Peru's statistics agency reports growth data for February. The economy expanded 1.7 percent year-on-year in January on stronger mining activity, up from the 1 percent expansion in the fourth quarter but still below expectations. European Central Bank rate and monetary policy decisions are due for release. ECB President Mario Draghi will hold a press conference after the scheduled Governing Council meeting. The ECB was "about right" in claiming its trillion-euro quantitative easing program was having a positive impact before it had even begun, according to three-quarters of economists polled by Reuters. (Compiled by Sourav Bose in Bengaluru; Editing by Savio D'Souza)
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