What to Watch in the Day Ahead - Wednesday, Sept 9
(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) Apple Inc is expected to announce new iPhones, an Apple TV box and possibly new iPads at an event at the Bill Graham Civic Auditorium in San Francisco. Specifically, the company is expected to announce iPhone 6S and 6S Plus, the same size as the 6 and 6 Plus but with software and some internal hardware improvements. Apple is expected to announce an upgrade to the Apple TV, but not a new bundled cable TV package, which most experts say won't be launched until the next year. The company may also announce an updated iPad mini and a new iPad Pro, aimed at the enterprise market. The U.S. Labor Department will release job openings and labor turnover data. Job openings, a measure of labor demand, are likely to have risen to 5.288 million in July from 5.249 million in the prior month. (1000/1400) Separately, the Mortgage Bankers Association will release its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand. (0700/1100) Security software maker Palo Alto Networks Inc is expected to report fourth-quarter earnings slightly above analysts' expectations. The seller of firewalls, which prevent data breaches and block malware and viruses, has been benefiting from strong demand from corporate clients looking to guard their data and networks from sophisticated cyber attacks. A U.S. appeals court in New York will hear Microsoft Corp's challenge to a search warrant requiring it to turn over to the U.S. government a customer's emails and account information stored on a server in Ireland. Microsoft, along with privacy advocates and other technology companies, has argued that the warrant improperly extends the authority of federal prosecutors to seize private information held abroad. A federal judge, however, ruled in 2014 that the warrant was legitimate because U.S.-based Microsoft controls the server. The case appears to be the first in which a U.S. company has challenged a search warrant seeking data held in a foreign country. Companies such as Verizon Communications Inc and Cisco Systems Inc have warned that their business could be harmed if users fear their private data is subject to seizure by U.S. investigators regardless of where they live. The hearing is at the 2nd U.S. Circuit Court of Appeals at 40 Foley Square in Manhattan. Bookstore chain Barnes & Noble Inc is expected to report a first-quarter profit above the average analyst estimate. Barnes & Noble is improving store merchandise, featuring popular books and movies, and integrating its online and retail platforms to reverse falling sales. Some of the company's efforts, such as overhauling its toys and gifts division, have been paying off. Barnes & Noble spun off its profitable college books business last month to focus on its retail bookstores and it hired a new CEO for the bookstore arm. Investors will look for updates to the forecast, information on trends and store traffic and comments from the new CEO. Cloud storage provider Box Inc will report its second-quarter results after the markets close. Last quarter, the company raised its full-year revenue forecast as more customers signed up for its content-sharing platform. Box's main competitors include privately held Dropbox, Microsoft's OneDrive, Citrix Systems' ShareFile and Google's Drive. Investors and analysts will watch how many deals Box managed to close in the quarter and how its plan to reach cashflow breakeven by the end of the next fiscal year is panning out. The Bank of Canada is expected to hold interest rates at 0.5 percent as it waits for signs the economic pick-up expected in the second half of the year is unfolding. The central bank has cut rates twice this year to boost an economy hit by the slump in oil prices. Despite a confirmation that the economy was in a mild recession in the first half of 2015, signs of growth at the end of the second quarter as well as recent strong export figures are expected to stay the bank's hand. (1000/1400) Separately, the value of Canadian building permits is expected to have fallen by 5 percent in July after jumping 14.8 percent in June. (0830/1230) Mexico will release its annual inflation data for August. Inflation is likely to have eased to 2.62 percent in the 12 months to August from 2.74 percent seen in July, data from the national statistics institute is expected to show. (0900/1300) Also, Brazil will announce its weekly capital flows and foreign reserves data. The Bank of England will host a briefing on the behalf of the Markets Committee at the Bank for International Settlements (BIS) on efforts to strengthen the code of conduct standards and principles in foreign exchange markets. The briefing will be on the record and consist of opening remarks and a question and answer session. Reserve Bank of Australia's Guy Debelle, Federal Reserve Bank of New York's Simon Potter, Bank of England's Chris Salmon and CLS Chief Executive David Puth will be on the panel. LIVECHAT: TRACKING FOREX with Track.com's Robert Savage As the Fed grinds toward its September meeting, forex traders are gauging the next best bets for the other side of a rate-supported dollar trade. Track.com CEO Robert Savage returns to the Global Markets Forum at 1000/1400 to discuss prospects for major currencies as the U.S. prepares for lift-off. To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Nayyar Rasheed in Bengaluru; Editing by Kirti Pandey)
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