(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) Dow component General Electric Co reports second-quarter earnings, with Wall Street eyeing updates on the U.S. conglomerate’s desired portfolio moves as it seeks to become a more focused industrial company. Regulators in Europe are pushing back against GE’s proposed purchase of Alstom’s power business, while U.S. authorities are seeking to block GE’s sale of its appliances business. GE is also expected to give an update on its massive pullback from its GE Capital finance business. Also of interest will be GE’s view of broad economic issues, including the state of oil and gas markets and growth in China.
The U.S. Labor Department issues Consumer Price Index for June. The index is expected to have risen 0.3 percent, at a slower rate compared to May’s 0.4 percent increase. (0830/1230) Separately, the Commerce Department releases June data for building permits and housing starts. Economists expect building permits to have declined to 1.150 million units, compared to 1.250 million units in May, while groundbreaking is likely to have increased to 1.110 million units from 1.036 million units in the prior month. (0830/1230) In another report, the University of Michigan’s preliminary July reading on the overall index on consumer sentiment is expected to remain unchanged at 96.1. (1000/1400)
German lawmakers vote to give Berlin the green light to start negotiations on a third multi-billion euro bailout program for Greece, with a large majority expected to vote in favor. German Finance Minister Wolfgang Schaeuble questioned whether Greece will ever get a third bailout program, a day after the Greek parliament passed a package of stringent measures required to open negotiations on financial aid.
Federal Reserve Vice Chair Stanley Fischer participates in “The Federal Reserve: a Conversation with Vice Chair Stanley Fischer” before the U.S. Chamber of Commerce, in Washington. He is likely to elaborate on the path to the Fed’s first rate hike, seen in September or December. (1000/1400)
Honeywell International Inc, a major manufacturer of aircraft electronics and climate control systems, is expected to miss analysts’ expectations when it reports second-quarter results, according to Thomson Reuters StarMine. Honeywell said in April it expected a stronger dollar to lower revenue by 4-6 percent in the quarter ended June. Investors will be looking for updated comments on how Honeywell expects the dollar to affect business in the full year.
Transportation holding company Kansas City Southern reports second-quarter results. After a disastrous quarter for coal freight volumes across the sector, analysts will be watching how the Kansas City-based railroad has managed costs and pricing in a weak freight environment.
Canada’s inflation rate is forecast to have edged up to a 1 percent annual rate in June, keeping it at the low end of the Bank of Canada’s target range. Core inflation, which strips out volatile items and is closely watched by the central bank, is expected to remain steady at a somewhat firmer 2.2 percent. (0830/1230) (Compiled by Nivedita Balu; Edited by Maju Samuel)