What to Watch in the Day Ahead - Friday, May 8
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U.S. job growth probably bounced back sharply last month after braking to a 15-month low in March. The expected 224,000 gain in non-farm payrolls in April after the meager 126,000 increase in the prior month would fit in with other signs that the economy is picking up after a winter swoon, but won't be strong enough to dispel disappointment over the pace of growth. Still, a drop in the jobless rate to 5.4 percent from 5.5 percent, as analysts expect, could lead financial markets to bring forward bets on when the Federal Reserve will raise interest rates. Investors will also eye the earnings figures in the report closely to see if they corroborate other recent data that has hinted at an acceleration in wage gains. The Labor Department will release its April employment report at 0830 ET (1230 GMT).
Federal Reserve Bank of New York President William Dudley speaks before the 17th Annual Bronx Bankers Breakfast in New York. (0945/1345)
Tempur Sealy International Inc, the world's largest bedding provider, hosts its annual shareholder meeting. The company is facing severe pressure from H Partners, which has urged shareholders to vote against all of Tempur's nominated board members, including CEO Mark Sarvary. H Partners, which owns 10 percent of the company, has accused the board of poor management, particularly after the Sealy acquisition, which Tempur Sealy's executives have denied. At least four other proxy firms, including ISS and Glass Lewis, have also recommended that shareholders vote against the three board members.
Chicken-and-biscuits restaurant chain Bojangles' initial public offering is expected to raise about $106 million, valuing the company at up to $610 million. Bojangles', which records most of its sales before 11 in the morning, has a menu centered on chicken and biscuits, which has remained largely unchanged since the company was founded in Charlotte, North Carolina in 1977. The company's listing follows successful debuts by fast casual chains such as Shake Shack, Zoe's and El Pollo Loco.
Statistics Canada releases employment data for April. The Canadian economy is expected to have shed 5,000 jobs in April, with the unemployment rate forecast to have risen to 6.9 percent. Canada is grappling with the cheaper price of oil, a major export, and economists will be watching to see how the natural resources sector is holding up. The Bank of Canada forecasts the impact from lower oil to be more front loaded to the beginning of the year, with the economy picking up after that. (0830/1230)
Brazil's statistics agency IBGE will publish its April inflation report at 0800 ET (1200 GMT). Economists expect Brazil's monthly rate to ease below 1 percent for the first time this year as the impact of a string of increases in government-regulated prices start to fade. However, the annual inflation rate will probably remain above 8 percent, far above the official target of 4.5 percent. Separately, Chile's central bank releases inflation data. After consistently surprising to the upside over the last year, there are tentative signs inflation may be starting to cool, but it is still above the central bank's tolerance range. (0800/1200)
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(Compiled by Ayesha Sruti Ahmed in Bengaluru; Editing by Simon Jennings)
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