What to Watch in the Day Ahead - Thursday, Aug. 6
(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) Allergan Plc, formerly Actavis Plc, will report second-quarter results for the first time as a combined company. The drugmaker is selling its generic business to Israel's Teva Pharmaceutical Industries for $40.5 billion. Generics lost its postion as the top contributor to the company's revenue to branded drugs in the first quarter. The sale to Teva will help Allergan, which gets higher margins on branded products, get its debt back to historic levels and pursue other targets. Investors and analysts will be looking for comments on what Allergan will be focusing next. The number of Americans filing new applications for unemployment benefits is expected to have increased by 6,000 to 273,000. Investors are keeping a close eye on jobs data to gauge strength of the economy. The Fed has said it needs to see a sustained recovery before it raises rates for the first time in nearly a decade. (0830/1230) Separately, the global outplacement consultancy Challenger, Gray & Christmas releases its employment report for July. (0730/1130) Generic drugmaker Mylan NV is likely to report a lower-than-expected profit for the second quarter but the focus will be on its pursuit of smaller rival Perrigo Co. Perrigo made a fresh case for rejecting the $34 billion offer, adding the recent plunge in Mylan's share price reinforces the company's intention to remain independent. Teva Pharmaceutical dropped its hostile pursuit of Mylan when it agreed to buy Allergan's generic drugs business. Power company Duke Energy Corp is expected to report a lower profit, hurt by rising costs and weakness in its international business. The company, which is shifting its focus to regulated power markets from volatile wholesale markets, said in May it had cut about 15 percent of its workforce. Investors will want to know more about Duke's cost-cutting measures and plans for its international operations when the company reports second-quarter results. Viacom is expected to report a fall in third-quarter revenue, hurt by a decline in domestic advertising revenue due to weak ratings for its popular shows. Viacom has been struggling to turn around advertising declines in the United States, as people ditch their pricey cable subscriptions in favor of streaming video content on their mobile devices. Brazil's state-led oil company, Petroleo Brasileiro Petrobras SA, releases second-quarter financial results. Sources said the company had failed to present its board with a promised plan to bring domestic fuel prices in line with world levels. The lack of a policy threatens the company's already-fragile finances and could delay efforts to sell refineries and other assets. BCE Inc, Canada's largest telecoms company, is expected to have made further market share gains on wireless leader Rogers Communications in the second quarter, and industry-leading price increases should also have boosted profit. Investors are eager to hear an update on the impact of a so-called 'double cohort' in which a greater than normal number of customers' phone contracts expire. Brewer Molson Coors Brewing Co and its U.S. joint venture with SABMiller, MillerCoors LLC, are expected to announce second-quarter results. Molson Coors is grappling with a strong dollar reducing the value of its sales, which are already hurt by weak demand as consumers increasingly prefer craft beers and wine. The company has been spending heavily to boost falling sales of its biggest brands - Miller Lite and Coors Light. Investors will be looking for updates on the dollar impact and whether the increased marketing is helping revive demand. Graphics-chip maker Nvidia Corp is expected to report second-quarter profit below the average analyst estimate. The company, whose graphic chips are used in gaming consoles and workstations, had forecast lower-than-expected second-quarter revenue in May, weighed down by lower demand due to a fall in PC sales and a strong dollar. Investors will watch out for third-quarter forecast. Michael Kors Holdings Ltd, once the hottest handbag maker and a favorite among investors, is expected to post a steady drop in sales in the first quarter as brand fatigue sets in. Investors will look out for any comments on business strategies and forecast. AMC Networks Inc is expected to report a better-than-expected profit in the second quarter, helped by better cost management. AMC's costs were rising as the channel invested in original programming to make shows that would match up to its now concluded hits "Breaking Bad" and "Mad Men". AMC is also expected to report higher ad revenue, helped mainly by the series finale of "Mad Men" in the quarter. SunEdison Inc, the second-largest U.S. solar panel installer, is expected to report a bigger second-quarter loss, hurt by a drop in panel prices. SunEdison earlier this month said it would buy BlackStone-controlled Vivint Solar Inc in a $2.2 billion deal to expand its footprint in the residential solar market. The company has been highly acquisitive this year, buying wind power plants to enter the U.S. power market. Investors will want to know if the company has more deals up its sleeve. Newspaper publisher New York Times Co is expected to report second-quarter results slightly below Street consensus. New York Times, like its peers, has been under immense pressure to find new avenues of growth as print advertising revenue shrinks and spending moves toward digital ads. Print ads still accounts for more than two-thirds of the the company's advertising revenue. Investors will look to see how cost cuts and digital offerings can help defend profits in the near term. "Farmville" maker Zynga Inc is expected to report second-quarter revenue slightly above analysts' average estimate as modest bookings from new releases "Empires & Allies" and "FarmVille: Harvest Swap" offset declines for catalog titles. The company said in May it would cut about 18 percent of its workforce to save about $100 million on an annualized pre-tax basis. Zynga is expected to launch 6-8 games in 2015 and investors will be looking for any color on those. Printer maker 3D Systems Corp is expected to report a second-quarter profit below the average analyst estimate. Analysts expect weakness in the industry as users digest investments and lower demand ahead of new innovations. The FCC is expected to reject T-Mobile's petition and vociferous lobbying campaign for stricter limitations to AT&T's and Verizon's participation in next year's auction of low-frequency airwaves, highly prized for their strength and reach. The FCC is expected to say that the existing restrictions are sufficient to ensure that smaller carriers are given a chance to outbid AT&T and Verizon, which already dominate those low frequencies. FCC Chairman Tom Wheeler will hold a press conference. U.S. East Coast's biggest refinery, Philadelphia Energy Solutions Inc, and its investors, including affiliates of private equity firm Carlyle Group LP, expect to sell stock valued at $227-$272 million in an initial public offering. In 2012, Carlyle led a rescue of the 335,000-barrel-a-day plant that is making money once more largely thanks to a newly constructed rail terminal, which receives six miles of oil-laden rail cars daily from North Dakota's Bakken oil fields. The initial public offering of budget fitness chain Planet Fitness Inc is expected to raise about $216 million, valuing the company at up to $1.58 billion. The company is majority owned by buyout firm TSG Consumer Partners and has more than 950 fitness centers in the United States, most of which are franchised. Planet Fitness, which is known for its "judgment free zone" fitness centers and low prices, has more than 7 million members. Planet Fitness's revenue rose 33 percent to $279.8 million in 2014, while net income jumped 45 percent to $37.3 million. Canadian fertilizer maker Agrium Inc and U.S. nitrogen producer CF Industries Holdings Inc hold conference calls with analysts a day after their second-quarter results. Of interest is an update on Agrium's expanding potash and nitrogen production and how the North American potash market may change if Canpotex trading partner Potash Corp buys Germany's K+S. Analysts will also be interested in details of CF Industries' interest in buying Dutch rival OCI. The national statistics institute releases Mexico's consumer confidence index for July. The index rose to a seven-month high in June. (0900/1300) Separately, the national automakers' association reports Brazil's auto sales data for July. LIVECHAT - Bank of England preview with Andrew Goodwin, lead UK economist, Oxford Economics Join Andrew Goodwin, lead UK economist at Oxford Economics, for a preview of Bank of England's policy meeting which promises to deliver a raft of information, including the meeting minutes and the inflation report, along with the actual rate decision. Andrew will be giving tips on how to decipher all this, as well as sharing his outlook on the UK economy at (0500 ET/0900 GMT). To join the Global Markets Forum, click here bit.ly/1kTxdKD (All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise) (Compiled by Hardik Vyas in Bengaluru; Editing by Sriraj Kalluvila)
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