What to Watch in the Day Ahead - Friday, Aug. 21
(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) Agriculture equipment maker Deere & Co has been hurt by a strong dollar as well as weak demand for its farm and turf equipment, which make up about two-thirds of its annual revenue. Falling U.S. farm income and weak commodity prices have reduced spending on new equipment by farmers. In May, Deere forecast a fall in global sales for its farm equipment in 2015 and said it would close plants and cut jobs. When the company reports its third-quarter results, the investors will be looking for an update on the company's plans to shutter more factories to adjust to lower demand, as well as whether it is expected to take a hefty charge on a tractor recall announced earlier in August. Financial data firm Markit releases the preliminary U.S. Manufacturing Purchasing Managers' Index for August. The index is expected to rise to 54.0 from a final reading of 53.8 in July. (0945/1345) Canada's annual inflation rate is expected to have picked up to 1.4 percent in July, creeping up off the lower end of the Bank of Canada's target range. But core inflation, which strips out volatile items and is closely watched by the central bank, is expected to have increased at a stronger 2.4 percent. The Bank of Canada, which has cut interest rates twice this year to try to energize the economy, sees the core rate as being boosted by temporary factors. Separately, the Canadian retail sales are expected to have risen modestly in June, making for the second month of gains in a row. With the economy forecast to have been in recession in the first half of the year, analysts are looking for signs of activity at the end of the second quarter that could point to a pick up in the latter half of 2015. (0830/1230) Mexico's national statistics agency issues retail sales data for June. The sales are forecast to have increased by 0.3 percent in June from May. (0900/1300) Separately, Brazil's inflation rate likely eased in August to the middle of the month as the economy moved deeper into what is expected to be its worst recession in 25 years. Economists expect the consumer prices to have risen 0.43 percent in the month to mid-August, down from an increase of 0.59 percent in July to mid-July. (0800/1200) Also, the Argentinean government publishes the economic activity data for June. LIVECHAT: China Markets with Cumberland Advisors' Bill Witherell China watchers are offering up a variety of opinions and guesses as to what the devaluation of the yuan means for both emerging and developed markets. Bill Witherell, chief global economist and a senior consultant at the Organization for Economic Cooperation and Development, recently joined the Global Markets Forum to discuss the RMB becoming a global reserve currency. He returns to the Forum at (0900/1300) to chat about what the latest moves mean in the context of Beijing's longer-term currency ambitions. To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Hardik Vyas; Editing by Maju Samuel)
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