What to Watch in The Day Ahead; Friday, July 11
(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 is scheduled to report second-quarter results. The largest U.S. mortgage lender's streak of 16 straight quarters of earnings-per-share growth seems about to end. Analysts are expecting the San Francisco bank to report a 5 percent fall in both EPS and profit as efforts to replace diminished fee income from the end of the mortgage refinancing boom have yet to hit the bottom line. Wells Fargo's new home loans in the second quarter are expected to rise from the first quarter, but executives have said the increase would be less than previously thought, given a weak spring selling season. Treasury Department is scheduled to release monthly budget report for June. Analysts expect a surplus of $80 billion in the month. (1400/1800) Infosys is expected to post a 12.6 percent growth in first-quarter net profit, helped by a surge in outsourcing services demand by its overseas clients but the profit margins is likely to be squeezed by higher wage costs and a stronger rupee during the quarter. The company has been struggling with its own set of problems, ranging from upset employees to shaky management - something it sought to set right by naming a new CEO and announcing wage hikes and promotions. Infosys posted its worst annualized attrition rate in the last quarter, and we will focus on the staff exit trends in the June quarter and look for signs and comments on possible tapering of the attrition rate in the near-term. Also in focus would be Infosys efforts to revive is sales efforts, which was worst hit by the staff exodus in the past few quarters. Federal Reserve Bank of Philadelphia President Charles Plosser moderates a panel on entrepreneurial issues at the Global Interdependence Center's Sixth Annual Rocky Mountain Economic Summit. (1115/1515) Separately, Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart are also expected to speak at the same summit on a panel entitled "Federal Reserve Policy: Success and Failures." (1500/1900) Statistics Canada is scheduled to release jobs figures for June. The market expects the country to have added 20,000 jobs in the month, with the unemployment rate staying at 7.0 percent. In May, Canada added a net 25,800 new jobs, but all of them were part-time, with full-time employment falling by 29,100. (0830/1230) (Compiled by Sourav Bose in Bangalore; Editing by Joyjeet Das)
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