What to Watch in the Day Ahead - Wednesday, Sept 2
(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) The U.S. Labor Department releases revised data on nonfarm productivity and labor costs for the second quarter. (0830/1230) Productivity is expected to have risen by 2.8 percent on an annualized basis instead of a previously reported 1.3 percent pace. The unit labor cost, the price of labor per unit of output, is expected to have fallen at a revised 1.0 percent rate. Separately, the Commerce Department will release factory orders data for July. New orders for manufactured goods are expected to have increased 0.9 percent in July after rising 1.8 percent in June. (1000/1400) A separate report is expected to show private employers stepped up hiring in August, a sign of labor market strength that could give a cautious Federal Reserve the ammunition to raise interest rates this year. The ADP National Report is expected to show that private payrolls increased 201,000 in August after rising 185,000 in July. (0815/1215) Meanwhile, the Fed will issue its so-called Beige Book, a compendium of anecdotes on the health of the economy drawn from the central bank's sources across the nation. (1400/1800) Canadian department store chain Sears Canada Inc is expected to report a smaller quarterly loss for the second straight quarter, helped by improved demand in the back-to-school shopping season. The company has launched a couple of new programs, including one that allows customers to exchange children's clothing, once, for the next size up. Another program gives customers a warranty covering children's clothing and footwear items from wear and tear as long as a child continues to wear the size. When Sears Canada reports its results, investors will want to know about the company's hunt for a new CEO and its plans to boost sales while keeping costs low. Brazil will release data on its industrial output, which is expected to have slid further in July to a seasonally-adjusted 0.1 percent as the steepest recession in at least two decades curbed consumer demand and led to an inventory pile-up at many factories in the country. (0800/1200) It will also release its capital flows and foreign reserves data. (1130/1530) Separately, Brazilian central bank's monetary policy committee, known as Copom, is expected to keep its benchmark Selic rate on hold on the second day of its ongoing meeting, pausing one of the world's boldest tightening cycles to safeguard an economy sinking into a painful recession. A deepening fiscal crisis that threatens to strip Brazil of its investment-grade rating is pressuring the bank to keep lifting rates, but most economists see the bank ending the tightening cycle for now as inflation expectations have subsided. Tim McMillan, president of the Canadian Association of Petroleum Producers sits down for in-depth interview with Reuters about the future of Canadian oil and gas companies. LIVECHAT - FIXED INCOME STRATEGY with Richard McGuire, head of rates strategy, Rabobank With markets on a wild ride and the odds of a Federal Reserve rate hike later this month changing by the day, we chat with Richard McGuire, head of rates strategy at Rabobank, at 0500/0900 to see what it might all mean for yields on both sides of the Atlantic. To join the Global Markets Forum, click here bit.ly/1kTxdKD (Compiled by Nayyar Rasheed in Bengaluru; Editing by Kirti Pandey)
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