(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) WEEK AHEAD The data calendar pickups with auto sales, trade and employment data expected to confirm the economy ended 2014 on solid footing. On Tuesday, the Institute for Supply Management is likely to report that its nonmanufacturing index dipped to 58.5 in December from a reading of 59.3 in November (1000/1500). Data on Wednesday from payrolls processor ADP is expected to show private payrolls increased 226,000 in December after rising 208,000 in November (0815/1315). The Commerce Department is likely to report the trade deficit narrowed to $42.0 billion in November from $43.4 billion in October(0830/1330). On Friday, the Labor Department is expected to report that nonfarm payrolls increased 245,000 in December after surging 321,000 in November(0830/1330). The unemployment rate is forecast slipping to 5.7 percent from 5.8 percent in November (0830/1330). Canadian House Starts data is expected on Thursday. Canada’s housing market has seen robust growth in the years since the global financial crisis but policymakers still foresee a soft landing for the sector (0815/1315). Canada’s unemployment report for December, expected on Friday, will be the most closely watched indicator of the week after the country’s economy shed 10,700 jobs in November (0830/1330).
The OECD’s Angel Gurria is on a two-day visit to Mexico from Wednesday to meet with energy and finance ministers. On Thursday, December inflation figures will be released, after annual consumer prices cooled in November to 4.17 percent but remained above the central bank’s 4 percent tolerance ceiling (0900/1400). On Friday, consumer confidence data for December will be released after the indicator jumped to a more than 1 year high in November(0900/1400). Meanwhile, industrial production data will show how the sector fared in November, after rising in October at its fastest pace in six months(0900/1400). Brazil’s statistics agency releases data on industrial output growth during November 2013 on Friday (0600/1100). Manufacturers have consistently been the weakest link in Brazil’s economy as they struggle with competition from abroad, high tax and labor costs, and poor infrastructure. On Wednesday, Federal Reserve Bank of Chicago President Charles Evans participates in conversation, “Role and Impact of Monetary Policy in an Uncertain Economy” with Lars Peter Hansen of the University of Chicago (1730/2330). Federal Open Market Committee will release the minutes from its December policy meeting (1300/1800). On Friday, Federal Reserve Bank of Richmond President Jeffrey Lacker discusses the economic outlook at the joint Virginia Bankers Association and Virginia Chamber of Commerce (1320/1820). Bank of England holds two-day Monetary Policy Committee meeting on Wednesday and is expected to announce interest rate decision on Thursday. On Wednesday, Eli Lilly plans to present its 2015 earnings guidance, weeks before the U.S. drugmaker announces fourth-quarter and full-year 2014 results. The company’s earnings have been battered in the past three years by competition from generic medicines, Wall Street expects Lilly’s earnings to grow by more than 15 percent next year, when no new major generic threats loom, and new medicines for cancer, diabetes and other conditions are expected to bolster results. A status conference in the consolidated litigation against General Motors over its ignition switch defect that forced millions of recalls and was linked to several deaths is scheduled on Friday. The plaintiffs include consumers who claim the value of their vehicle declined as a result, as well as families of drivers injured or killed in accidents they say were caused by the defect. Canada’s Valeant Pharmaceuticals offers 2015 guidance on Thursday following its failed hostile attempt in late 2014 to buy Botox maker Allergan. Of particular interest will be whether Valeant backs off its bold goal of becoming a top five pharma company by the end of 2016, a target that would require it to roughly triple its $46 billion market cap. Some observers expect Valeant to back off its dealmaking for the near term and focus on improving operations and slashing debt. Monday, Jan. 5 Reports from automobile manufacturers are expected to show auto sales slowed a bit to an annualized 16.90 million unit pace in December after surging to a 17.20 million rate in November. Staff at the U.S. Food and Drug Administration are expected to review Novartis’ application to market a copycat version of Amgen’s biotech medicine Neupogen in patients with low white blood cell counts. The Swiss drugmaker’s generics arm, Sandoz, already sells a so-called biosimilar version of the drug in over 40 other countries, but the United States has been slower than other markets to establish a regulatory framework for biosimilars. The review should provide insight into this framework as the agency breaks new ground, affecting not just Novartis but the scores of drugmakers vying for a piece of the emerging, lucrative market. (Compiled By Astha Rawat in Bengaluru; Editing by Joyjeet Das)