Look ahead: China CPI; US PPI; UK GDP; US banks kick off earnings season
China’s CPI and US PPI on deck after hotter-than-expected US CPI data dampened US rate-cut hopes. In Britain, GDP, trade, and industrial production could prompt volatility for sterling.
Plus, JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup hand in their Q4 report cards.
(AI Video Summary)
More CPI data to come
In today's edition of "Look ahead", Angeline Ong gives us a preview of what to expect on Friday 12 January. She starts off by talking about the busy week that followed the release of the Consumer Price Index (CPI) data. On Friday, there will be more CPI data released, this time from China, as well as the Producer Price Index. Ong also mentions that the US dollar has been weakening against the yuan, which is partly due to the recent increase in US CPI making the dollar stronger.
Important UK figures to come
Moving on, Ong tells us that there will be some important economic figures released by the UK, including the GDP figure, monthly GDP, industrial production details, and trade balance data. She also highlights the significance of the US Producer Price Index after the higher than expected CPI number. Furthermore, she mentions that the Baker Hughes oil recount number is of importance because of the recent volatility in the oil market.
US big banks earnings reports
Ong then discusses upcoming trading statements from John Woods Group and Vistry. But the most anticipated earnings reports of the week are from the big banks in the US, such as JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. These reports are not only important for the banking industry, but also serve as indicators for other industries. Analysts predict lower profits for Q4 because banks are setting aside money for bad loans and paying more to depositors. One important thing to look out for is net interest income.
Lastly, Ong tells us that Citigroup is expected to report lower Q4 earnings because of charges and reserves of around $3.8 billion. Additionally, UnitedHealth is also expected to release their Q4 earnings.
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