November 18, 2014 / 7:33 PM / 4 years ago

What to Watch in the Day Ahead - Wednesday, Nov. 19

(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)
The Federal Reserve releases minutes from its most recent policy meeting that could yield clues
on how officials are squaring a run of weak inflation readings with an improving labor market,
and the state of debate around when and how to start the Fed's first rate hike cycle in a decade

Target Corp releases third-quarter earnings before the bell. The company is expected to post a
slight fall in profit for the three months to Nov. 2 compared with a year earlier.

U.S. housing starts and permits likely rose slightly in October as housing recovery continues at
a slow pace. The U.S. Department of Commerce is expected to report that new housing starts
increased to a 1,025,000-unit rate in October from 1,017,000 units in September. New building
permits issued likely climbed to 1,040,000 last month (0830/1330). Separately, the Mortgage
Bankers Association releases its seasonally adjusted index of mortgage application activity,
which declined 0.9 percent in the week ended Nov. 7 (0700/1200).

Staples Inc, the largest office supply retailer, is expected to report a third-quarter profit
below analysts' estimates, according to Thomson Reuters StarMine. The company was likely hurt by
lower sales of computers and core office products in North America amid stiff competition from
online and mass retailers. Staples' heavy promotional activities weighed on margins. The company
said in March it would shut 140 stores. Investors would want to know of more store closures and
any forecast ahead of the holiday quarter.

Home improvement retailer Lowe's Cos Inc is expected to report better-than-expected
third-quarter profit and sales, according to StarMine. The company said in August it expects
sales to be driven in the second half of the year by higher consumer spending on renovations and
on products such as electronic appliances. 

Business software maker Inc is expected to report third-quarter results above 
analysts' estimate, according to StarMine. The company has been benefiting from higher sales of
its web-based marketing software, and had raised its full-year profit and revenue forecast in
August. Spending on enterprise resource management and customer relationship management has been
strong and analysts expect that to grow rapidly in the near term. Investors will be looking for
comments on its investment plans in healthcare, a market the company is looking to expand in.

Keurig Green Mountain Inc, the maker of the K-cup single serve pod, is expected to report its
fiscal fourth-quarter results after the bell. The company has tried to expand beyond its core
business as it grapples with more competition in single-serve coffee packets.

The Clearing House will host Annual Conference Payment System Risk Symposium. Over a dozen
in-depth panel discussions, featuring senior leaders from commercial banks, regulatory agencies,
the regulatory bar, academia, and technology companies will explore a diverse range of topics,
including financial system resiliency, cybersecurity, risk management, the relation between
regulation and economic growth, bank supervision, emerging payments technologies. The conference
will feature keynote addresses from the Federal Reserve Board Governor Daniel Tarullo,
Comptroller of the Currency Thomas Curry, Consumer Financial Protection Bureau Director Richard
Cordray, Deutsche Bank Co-CEO Anshu Jain and Honor H. Rodgin Cohen. Federal Reserve Bank of New
York First Vice President Christine Cumming also speaks before the conference. 

Shares of real estate company Paramount Group Inc are expected to start trading on the New York
Stock Exchange. The company's IPO would be the second-largest initial public offering by a real
estate company in the United States after Hilton Worldwide Holdings Inc's IPO last year. The
offering is expected to raise up to $2.5 billion, valuing the company at about $4.6 billion at
the top end of the $16-$19 per share range. Paramount plans to become a real estate investment
trust (REIT) after the offering. 

Canadian Finance Minister Joe Oliver will testify on budget legislation at the House finance
committee, the Senate banking committee and the Senate finance committee (1645/2145).

TransCanada Corp, Canada's second-largest pipeline operator, will hold its annual Investor Day
event. A key focus for investors will be an update on the long-delayed Keystone XL pipeline
project. Efforts to build the cross-border pipeline were buoyed last week after the
Republican-led House of Representatives passed a bill to approve the project but it now faces a
tough U.S. Senate battle and potential veto from President Obama. The company is also under
pressure from analysts and activist investors to overhaul its operations, including a potential
split of its pipeline and power generation businesses. 

Brazil's government releases mid-November inflation rate, which will probably reflect a recent
fuel price increase. Inflation has climbed despite stagnant economic growth, prompting the
central bank to raise interest rates to their highest in nearly three years. Separately, the
government also releases official unemployment numbers for October. Country's unemployment rate
has remained near record lows as an increasing number of teenagers and young adults opted out of
the labor force to dedicate more time to training. However, economists said it may start to
climb higher in coming months (0600/1000).

Mexico's central bank is set to adjust its growth forecast for 2014 after weaker-than-expected
data in the third quarter. The central bank last estimated the economy will grow between 2.0
percent and 2.8 percent and economists are projecting a 2.3 percent annual expansion in Latin
America's No. 2 economy. Policymakers will also update their inflation forecasts in their
quarterly report after a recent spike in inflation above the central bank's 4 percent limit. The
central bank last projected that annual inflation will fall close to 3 percent by the middle of
next year.
Bank of England releases the minutes of the Monetary Policy Committee meeting held on 5 and 6
November 2014. Minutes will show how the nine-member committee voted earlier this month, when
the Bank kept rates at 0.5 percent, their level since the depths of the financial crisis. 
The Bank of Japan is widely expected to keep monetary policy steady at the end of its two-day
meeting, after having expanded stimulus last month. Focus on whether the weak GDP data will
trigger a downgrade in the BOJ's economic assessment and how it will affect its long-term GDP
forecasts, which will be reviewed again in January next year. Also looking out for what BOJ
Governor Haruhiko Kuroda has to say about Abe's expected decision to delay a second sales tax
hike, as the governor has been a vocal advocate of raising sales tax.

 (Compiled by Sourav Bose in Bangalore)
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