Good morning, we’ll start our news today from Japan, industrial production final reading recorded 0.7% in May compared with a previous reading of 0.5%. On the yearly record, industrial production logged 1.0% following an incline by 0.8%. As for capacity utilization, it came in at -0.7% in May from a drop by 2.2% in April. Asian markets this week will be waiting a set of important economic data, such as the GDP data for China during the second quarter, amid the indicators which is showing a slight improvement in the second’s global economies. As the seasonally adjusted GDP for the second quarter, is expected to be released this week, noting that the previous reading recorded growth of 1.4%, along with the issuance of the annual reading during the second quarter, noting that the previous reading recorded a growth of 7.4%. On the other hand, we should point out that after the return of most economic rates to rise again, the government led by its president Lee Kikyanj expressed confidence in the ability of Chinas economy to achieve the growth target at 7.5%, which gave some confidence in Chinas economy again. Finally, we note that the annual consumer prices in June rose less than expected, which is expected as the growth of Chinas economy is not at its best and non-compressor as usual on inflation so far. In Europe, This week, the focus in the euro area will be on German investor confidence for July as well as the final reading of June’s CPI. Germany, the euro area’s biggest economy, will face a confidence test as it releases its ZEW survey for July. The current situation probably retreated in July to 67.1 from 67.7 in June, while the expectations gauge may have dropped to 29.0 from a prior of 29.8, according to median forecasts. Confidence has been affected by the unstable political conditions in Ukraine on the one hand and the low inflation in the euro area on the other. A report due this week may confirm that euro area’s inflation remained unrevised at 0.5 % the previous month. The ECB announced some measures including “further reductions in the key ECB interest rates, targeted longer-term refinancing operations, preparatory work related to outright purchases of asset-backed securities and a prolongation of fixed rate, full allotment tender procedures,” ECB bulletin for June said. In the U.K., the main attention will be on CPI and unemployment data amid worries that recovery in Britain may slow down on the pound’s appreciation. CPI for the year ended June probably rose to 1.6 % from the preceding of 1.5 %. ILO unemployment rate for the three months through May will record a drop to 6.5 % from 6.6 %, whereas jobless claims probably slipped 27,000 in June from 27,400 fall in May. Data release last week raised concerns as it showed a drop in manufacturing production and widening trade deficit in the month of May. Last week, the BOE kept its monetary stance by holding both interest rate at 0.50 % and the amount of asset purchases at 375 billion pounds. BOE Governor Mark Carney has mentioned that the economy is still facing some challenges as he sees household debt high and expects exports to weaken due to the shaky situation in the euro area and the sterling’s appreciation. BOE Governor Mark Carney has mentioned the bank is unlikely to raise interest rates to normal levels, much above 2.5% over the course of the central bank`s forecast period, which ends in early 2017. In the United States, this week holds more economic data to come after a scarce week of data and economic events, but this week the inflation indices will be back to the agenda along with industrial sector and houses data, while the Fed will issue the Beige Book, which reflects the economic situation in twelve American counties, and do not forget the disclosure season with the second quarter of the current year 2014, which actually began during last week. On Monday, the absence of data and economic events in the American arena, but Citigroup Inc. will release its financial statements for the second quarter of the current year of 2014, and is expected to achieve profit of $ 1.058 per share. Tuesday, the U.S. economy will issue the retail sales during the month of June, and the reading is expected to show a rise by 0.6% compared with the previous month, which showed an increase of 0.3%, while retail sales excluding transportation are expected to show a rise of 0.6% compared with the previous 0.1%. The retail sales excluding transportation and food, is expected to rise of 0.6% compared with the previous monthly recorded a zero reading at 0.0%. Also JPMorgan Chase & Co will release its financial results, which is expected to achieve a profit of $ 1.306 per share, while Goldman Sachs Group Inc. will release its financial statements with the unexpected earnings of $ 3,092, while Yahoo! Inc. is expected to achieve 0.38 dollars per share. Wednesday, producer prices reading will be released, projections indicate rising producer prices on monthly level in June by 0.2% after it had recorded a decline in the previous reading of 0.2%, while the annual level during the same month is expected to record a decline in the reading to 1.9% compared with the previous monthly, which reached 2.0%. The producer prices excluding fuels and food during the same month, is expected to rise by 0.2% on a monthly level when compared with the previous decline of 0.1%, and while the annual level is expected to record a decline of 1.7% compared with the previous month at 2.0%. The U.S. economy will also issue the industrial production reading over the past month in June, which is expected to record an increase of 0.3% compared with the previous month at 0.6%. The Federal will release Beige Book, which gives an overview of the economic conditions in twelve U.S. Districts. Thursday, the U.S. Department of Labor will issue jobless claims during the week ending July 12th, and the frequency of submission of applications is expected to increase by 6 thousand to reach up to 310 thousand applications. Housing starts rose by 1.9% in June reaching to 1020 house, compared with the previous month, which dropped by 6.5% and reached 1001 thousand house, while building permits are expected to rise by 4.0% to reach 1045 permits. Google Inc. is one of the major companies that will release financial data on Thursday, and is expected to make a profit rate of $ 6.255 per share. Friday, the only news is the consumer confidence levels during the current month, according to University of Michigan index, which is expected to rise to 83.0, compared with the final last month at 82.5. Finally, Honeywell International Inc. of the most important companies that will disclose the financial results of its operations and is expected to make a profit of $ 1.356 per share.
Posted on: Mon, 14 Jul 2014 10:02:01 +0000
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