(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) Goldman Sachs Group Inc has been reducing compensation costs to boost profit as its biggest fixed-income, currencies and commodities trading business has been hit by regulatory constraints. Underwriting revenue in the quarter is expected to stay strong as equity markets remain favorable for issuers. A writedown of loan to troubled Portuguese bank, Banco Espirito Santo, is expected to hurt Goldman’s fourth-quarter profit. Charles Schwab Corp, a discount broker now marketing itself as a full-service broker, is expected to report fourth-quarter results that could shed light on its success in giving advice to wealthier investors. A booming stock market should boost revenue as the value of client portfolios and a retail yen for trading accelerated at the end of 2014. But Schwab and its competitors are still suffering from low interest rates that depress the value they realize on the large amounts of cash clients keep at the firms. The U.S. Labor Department is expected to report that the consumer price index fell 0.4 percent in December after dropping 0.3 percent in November, according to analysts. (0830/1330) Core CPI is expected to rise by 0.1 percent, similar to November. (0830/1330) Also, the U.S. Federal Reserve is expected to report that industrial production was flat in December after rising 1.3 percent in November. (0915/1415) Manufacturing output is expected to rise 0.2 percent after advancing 1.1 percent in November. (0915/1415) The University of Michigan’s consumer sentiment index is seen rising to 94.1 in early January from 93.6 in December. (1000/1500) A slew of Federal Reserve Bank speakers are scheduled to deliver speeches. Minneapolis President Narayana Kocherlakota will speak on “Goal-Based Monetary Policy Report” before the Financial Planners Association of Minnesota. (0850/1350) Federal Reserve Bank of San Francisco President John Williams will give opening remarks before the Bay Area Council Economic Institute 8th Annual Forecast Conference. (1100/1600) Federal Reserve Bank of St. Louis President James Bullard will speak on the U.S. economy and monetary policy before the CFA Society of Chicago. (1310/1810) American Bankers Association’s Economic Advisory Committee, a group of chief economists from the nation’s largest banks, holds a press conference to discuss monetary policy predictions and its consensus economic forecast for 2015.
Sutherland Asset Management Corp, a real estate investment trust managed by Waterfall Asset Management, and insurance outsourcing company Patriot National Inc are set to make their debut on the New York Stock Exchange. Data for December will show whether unemployment increased in Mexico after remaining stable at 4.71 percent in November. (0900/1400)
Central Bank of Peru will decide if it should hold the benchmark interest rate at 3.50 percent for the fourth straight month as economic growth remains sluggish. (1900/2400) (Compiled by Astha Rawat in Bengaluru; Editing by Kirti Pandey)