A relatively quiet week for major events, but one which will be of interest is the update from American carmaker General Motors which will report third-quarter results this week.
The report will be the first since it emerged from bankruptcy in July with about $US50 billion in federal aid and the US government as the major shareholder.
Believe it or not the improvement in the US car industry has got some boosters on Wall Street talking about a partial float of the new look GM next year.
That’s their bonuses talking, not rational thought at work
GM’s update is due to happen tonight, our time, in Detroit.
The updated figures are likely to be short on performance, but long on hope.
But it is at least a small step to see GM (Chrysler might report as well in the next week or so, according to some US reports) at least able to report something other than that it remains in bankruptcy with the business collapsing.
GM will get some benefit from the rise in car sales in the September quarter from the cash for clunkers scheme.
That seems to have helped push car sales higher (although it’s sales of small, relatively less profitable cars that are rising) in October, which should show up in the October retail sales figures also due out tonight.
Home Depot Inc and its smaller rival, Lowes Cos. (Woolworth’s partner in Australia), are due to issue quarterly reports this week as well.
Lowes reports tonight, and Home Depot tomorrow night, our time.
Computer giant, Dell, and retailers Target Corp, Sears Holdings and Gap Inc are also due to report later in the week.
Results from retailers this week gave an unclear outlook heading into the industry’s crucial holiday selling season.
Wal-Mart was equivocal about its outlook for the end of year festive season, Macy’s was a bit more encouraging.
Data for US industrial production, housing starts, producer and consumer price inflation, a survey of home builders, and a couple of business surveys are also out in the US in the coming week.
US producer prices are expected to be up for October, after falling in September, while consumer price inflation is expected to show a modest rise of around 0.2% for the month. Neither will worry markets.
October new housing starts will be released Wednesday night: they are tipped to show a small rise after September’s surprise fall.
October industrial production and business stocks will be out as well, with news about manufacturing in New York and Philadelphia from local Federal Reserve Boards as well.
Fed Chairman Ben Bernanke is due to speak in New York tonight.
After the appearance of five Fed board members last week who argued the economy is weak and will remain that way for another year, Bernanke’s speech is seen as more in a period of Fed jawboning of markets.
His comments on the economy, the dollar, and the outlook will influence the path of the dollar into the end of the year.
A number of other appearances by Fed officials will happen this week with Vice Chairman Donald Kohn also speaking tonight; Richmond Fed President Jeffrey Lacker tomorrow night, St. Louis Fed President James Bullard Wednesday, Philadelphia Fed President Charles Plosser also on Wednesday in Singapore, and Dallas Fed President Richard Fisher speaks Thursday in Washington.
It will be Mr Fisher’s second speech in a week.
Bank of America executives are back before a congressional committee probing Bank of America’s takeover of Merrill Lynch and the US Senate Banking Committee is due to start formal consideration of legislation to overhaul the financial industry’s regulatory structure this week.
President Barack Obama continues his trip to Asia, attending the Asia-Pacific Economic Cooperation forum and the Association of Southeast Asian Nations meeting in Singapore at the weekend, before traveling to China and South Korea in the next couple of days.
In Australia, ABS wages data is likely to be subdued and the minutes from the RBA’s last rate setting meeting are likely to confirm expectations for additional gradual interest rate increases.
The minutes though will largely confirm what the RBA said in its quarterly Monetary Policy Statement 10 days ago.
Incitec Pivot reports its final profit today. Rio Tinto’s partial sale of a US coal group happens this week.
The AGM season continues with meetings from OneSteel, Centro Retail, Beaconsfield Gold, Allstate, Centro Properties, Thomas and Coffey, Gale Pacific, CBH Resources, BHP Billiton, Mount Gibson Iron, Resmed, Murchison Metals, Cabcharge, Macarthur Coal, Emeco, Servcorp, Mirvac, Goodman Fielder, Sonic Healthcare, Gazal Corporation. AWE, Brambles, Fortescue Metals Group, Bravura, Spotless, National Hire and Clive Peters,
Japanese September quarter GDP data will also be released and the Bank of Japan is expected to leave interest rates near zero.
