April 13, 2016 / 6:42 PM / 2 years ago

What to Watch in the Day Ahead - Thursday, April 14

(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) Wells Fargo & Co, the biggest U.S. mortgage lender and a major lender to the energy industry, is expected to report a lower first-quarter profit as it set aside more money for bad oil loans. Choppy capital markets are also expected to dent revenue from the company’s small investment banking business. When the bank will release its earnings, shares will be sensitive to comments on outlook for interest rates, energy loans and home sales for the year. Bank of America is expected to report a rise in first-quarter profit, helped by lower non-interest expenses. The bank’s fixed-income trading revenue, like those of its peers, has come under pressure largely due to new rules that discourage banks from taking unnecessary risks. Investors will be interested to know how the second quarter is shaping up.

U.S. consumer prices likely rose in March as gasoline prices rebounded, but underlying inflation could show some signs of slowing and back the Federal Reserve’s cautious approach to raising interest rates. According to a Reuters survey of economists, the consumer price index probably increased 0.2 percent last month after falling 0.2 percent in February. Excluding food and energy, the so-called core CPI is forecast rising 0.2 percent after increasing 0.3 percent in February. (0830/1230) Separately, the number of Americans filing for unemployment benefits probably increased 3,000 last week to a seasonally adjusted 270,000. (0830/1230)

BlackRock Inc, the world’s largest asset manager, is expected to report a fall in its first-quarter profit. Despite the company’s diverse group of clients and the popularity of its index-tracking exchange-traded funds, BlackRock has been whipsawed by global market volatility that has trimmed its assets under management. Delta Air Lines Inc is expected to report that its first-quarter operating profit margin more than doubled from a year ago. But investors will zero in on management’s guidance for the upcoming peak travel season, as attacks in Brussels and Paris potentially discourage U.S. vacationers from spending top dollar to visit Europe in the summer. They will also listen for Delta’s plans to ensure a stable leadership transition and for any tweaks to strategy as President Ed Bastian assumes the role of CEO on May 2. Shaw Communications Inc reports its results for the second quarter. Shaw Communications recently transformed into a pure-play communications company, buying Wind Mobile in late February and closing the sale of its media assets to sister company Corus Entertainment Inc this month. While those moves likely won’t be reflected in the Calgary-based company earnings in the three months to the end of February, investors will be looking for clues on how the rejig positions Shaw. Federal Reserve Board Governor Jerome Powell along with Treasury Counselor Antonio Weiss testify on “Examining Current Trends and Changes in Fixed-Income Markets” before the Senate Banking subcommittee on securities, insurance, and investments and the subcommittee on economic policy, in Washington. (1000/1400) Meanwhile, Federal Reserve Bank of Atlanta President Dennis Lockhart participates in moderated discussion, “Federal Reserve Perspective,” before the ENGAGE International Investment Education Symposium, in Chicago. (1000/1400) Canadian new home prices are expected to have risen by 0.1 percent in February, illustrating the ongoing strength of the country’s housing market. Investors will be watching for any signs pricing are cooling in Toronto and Vancouver, which have continued to climb even as oil-sensitive regions have slowed. A gauge of economic activity in Brazil in February likely dropped for the 12th straight month. The Brazilian central bank’s IBC-Br economic activity index is expected to have declined 0.56 percent in February from a fall of 0.61 percent in January. International Monetary Fund (IMF) Managing Director Christine Lagarde’s interview: “The Managing Director’s Interview on the Global Economy.” IMF also holds discussion on “Opportunity Africa: Reducing Risk and Mobilizing Financing on a New Scale”, “Emerging Markets at the Crossroads: Challenges and Opportunities” and “Fortifying the Global Financial Safety Net.”

World Bank Group President Jim Yong Kim participates in discussion on Paris climate agreement, "Turning the Paris Climate Agreement into Action". World Bank also holds discussion on "Innovative Financial Solutions for Today's Development Challenges", "Think Forests: Why Investing in Forests is the Next Big Thing" and "Early Childhood Development: A Smart Beginning for Economies on the Rise." People's Bank of China Deputy Governor Yi Gang joins Ben Bernanke to discuss China's economic situation, challenges for the global economy at Brookings. Program starts with panel including Brookings experts Eswar Prasad, David Dollar and former China's sovereign wealth fund president Gao Xiqing. Separately, Alfonso Prat Gay, former Wall Street analyst and newly installed finance minister of Argentina, holds a conversation before an audience at the Atlantic Council. LIVECHAT- CURRENCY CHART CORNER - Take a look at the FX charts with Reuters technical analyst Martin Miller A quick roundup of what the technical charts are telling us with analyst Martin Miller. (0600/1000) To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Sourav Bose in Bengaluru; Edited by Don Sebastian)

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