Eurostat has quickly corrected its January estimate for the annual core inflation in the euro area to 0.6% from 0.5%, which still leaves the gauge at its lowest level since 1997.
Chevron Corp. is scheduled to report 4th-quarter earnings before the market open today and this time around investors will be more interested to hear about Chevron’s plans to counter oil’s slump. Analyst will watch out for any news about capital spending cuts as well as any updates on current projects.
Russia lowered interest rates today in a surprise move intended to avoid a deeper economic slump into recession. The Bank of Russia said it was cutting its key lending rate to 15% from 17%, rather focusing on economic slowdown than fighting inflation or supporting the ruble. The surprise move was taken as a very bad news by Russian businesses. The USD/RUB pair rose 3.4% to 71.70 after the central bank’s announcement.
Consumer prices in the euro area retreated more sharply in January, reinforcing the risk of a drop toward deflation that the European Central Bank (ECB) hopes to prevent through its latest plan of sovereign bond-buys. The consumer prices in the euro bloc were 0.6% lower than in January 2014, after a 0.2% fall on an annual basis in December. The decline in prices was the largest since July 2009. The slump in prices is unlikely to have an immediate effect on the European Central Bank's policies, say analysts. Still, the longer consumer prices keep falling, the more pressure the central bank will eventually feel to prolong its new stimulus program.
December Unemployment Rate is 11.4%, it was expected to be 11.5% versus 11.5% previously.
The change in the annual Core Harmonized Index of Consumer Prices was 0.6% in January, according to a flash estimate. It was expected to be 0.7% following the final estimate for the previous month of 0.7%.
January Flash HICP (Harmonized Index of Consumer Prices) is -0.6% on a yearly base, it was expected to be -0.5% versus -0.2% previously.
German steelmaker ThyssenKrupp AG's Chief Executive Heinrich Hiesinger today confirmed his fiscal-year outlook despite uncertainty over the global economic development. "The first quarter has been encouraging," and efficiency improvements are effective, Hiesinger said at ThyssenKrupp's annual general meeting. Nevertheless, the CEO once again warned shareholders of balance-sheet difficulties amid cash-flow worries.
Italy’s jobless rate surprisingly fell in December from a record high, amid signs of an economic recovery that will aid Prime Minister Matteo Renzi’s reform plans. The unemployment rate tumbled to 12.9% from a revised 13.3% in November, statistics institute Istat reported today, while analyst expected a surge to 13.5%.
Spain’s economy expanded at its fastest rate in 7 years in the 4th quarter, despite the threat of deflation as lower consumer prices helped support domestic demand. The nation’s gross domestic product (GDP) climbed 0.7% from the previous quarter, and 2% from the same quarter a year earlier, preliminary data showed today. Those readings beat the Bank of Spain estimate of 0.6% expansion for the quarter and 1.9% on the year. The government expects the economy to grow 2% in 2015. A separate report showed consumer prices on an EU-harmonized basis slumped 1.5% in January from a year earlier, the sharpest decline since 1997.
The foreign ministers from the European Union (EU) have agreed to extend existing sanctions against Russia until September. At an extraordinary meeting in Brussels yesterday, they also agreed to discuss the addition of new names to the list of individuals targeted for EU asset freeze and travel bans. However, they did not agree on imposing new economic sanctions against Moscow. There was uncertainty over the position of the new Greek government, which is a Russian ally that wants to avoid a falling-out between the Brussels and Kremlin.
December Retail Sales are 2.6% on a yearly base, the indicator was 2.7% previously.
December Retail Sales are 0.2% on a monthly base, the indicator was 0.2% previously.
Russia, hit by economic crisis and Western sanctions, is scaling down the budget for the World Cup 2018, the country’s Sports Minister said yesterday. As the country prepares to host the world football championship in 2018 the economy is heading toward recession, and Russia is suffering from massive capital flight amid geopolitical turmoil fuelled by the crisis in Ukraine. Still, the Russian Sports Minister said their plans regarding stadiums and transport infrastructure won’t be hit by cuts.
The US economy most likely expanded at a healthy pace in the 4th quarter as lower gasoline prices buoyed consumer spending, despite a darkening global economic outlook. Those estimates led economist to forecast an annual growth pace of 3% in US gross domestic product (GDP) in the period. While such an expansion would be a step down from the third quarter's 5% growth rate, it would be the 5th quarter out of the last six that the American economy has grown at or above a 3% pace.
Biogen Idec Inc. reported yesterday that its 4th-quarter profit nearly doubled, as its portfolio of multiple sclerosis treatments led to a 34% surge in revenue. Shares of Biogen jumped 7.4% in after-hours trading as the company's earnings in the 4th quarter and its projection for this year beat analysts’ estimates.
Japan's inflation rate slowed further in December to its lowest level in a year and half, dragged down by falling global oil prices, official data showed today. But on a more positive note, the country's jobless rate fell to its lowest level more than 15 years, signalling that the labour market has strengthened. A separate report revealed also the Japanese industrial production advanced 1.0% in December from the prior month, signalling that the economy may be recovering slowly from a drop triggered by a sales tax increase in April last year.
German retail sales advanced less than anticipated in December, but the annual reading suggests that consumption continued to support the nation’s economic growth in the final quarter of 2014. Retail sales in December climbed 0.2% in adjusted terms compared with November. Economists predicted a rise of 0.3%. On a yearly basis, however, retail sales rose 4.0% – the highest growth since June 2013 – although the German statistics agency noted there was one more shopping day in December 2014 than in the same month of 2013.
January Flash HICP (Harmonized Index of Consumer Prices) is -1.5% on a yearly base, it was expected to be -1.5% versus -1.1% previously.
The change in the annual Consumer Price Index was -1.4% in January, according to a flash estimate. It was expected to be -1.2% following the final estimate for the previous month of -1.0%.
First estimate of Gross Domestic Product (GDP) for the fourth quarter is 2.0% on a yearly base, it was expected to be 1.9% versus 1.6% previously.
First estimate of Gross Domestic Product (GDP) for the fourth quarter is 0.7% on a quarterly base, it was expected to be 0.5% versus 0.5% previously.
Google Inc.'s revenue rose 15% in the 4th quarter but missed targets on declining prices of online advertisements and stronger US dollar. Shares of Google, however, bounced back 1.4% to $517.88 in extended trading after an initial slip on the news. Consolidated revenue in the three months ended 31 December totalled $18.10 billion, compared to $15.71 billion in the year-ago period, while analysts were looking for revenue of $18.46 billon.
December Consumer Spending is 0.5% on a yearly base, it was expected to be -0.5% versus -1.1% previously.
December Consumer Spending is 1.5% on a monthly base, it was expected 0.5% versus 0.4% previously.
Amazon.com Inc. reported stronger than expected earnings yesterday as sales in North America surged during the holiday quarter. The news sent the company’s shares up 12.2% in extended trading. The e-commerce giant, which gets about 1/3 of its revenue from October to December, reported earnings of 45 cents a share, topping the average analyst prediction for 17 cents. Revenue rose 15% to $29.3 billion in the quarter, slightly below the analyst estimate of $30 billion, but due to an unfavourable impact from year-over-year changes in foreign exchange rates.
• Today, at 9:00 GMT, the Norwegian Retail Sales will be published. The median forecast is for a rise of 0.3% in December from the previous month when they recorded a 0.2% growth. The retail sales are an important indicator of the economic development and better-than-expected results would support the Norwegian krone.
• The preliminary inflation data for the euro area will be released at 10:00 GMT. Analysts expect a 0.5% drop in the region's consumer price index on a yearly basis in January. Consumer prices remain far below the target of the European Central Bank (ECB) for inflation close to, but below 2%. The eurozone remains under the threat of deflation.
• At 13:30 GMT, the Canadian Gross Domestic Product (GDP) will be announced. The Canadian economy is expected to remain at the same level in November. Previous month the GDP rose 0.3%. Usually the Canadian dollar is very volatile during this event.
• At 13:30 GMT, the US Advance GDP data will be released. The gross domestic product (GDP) measures US output and represents the value of all goods and services produced in the economy. The indicator is expected to show an annual level of 3.0% during the fourth quarter from the previous one when it rose 5.0%. Better data would support the US dollar.
• The final US Consumer Confidence Index released by the University of Michigan will be announced at 15:00 GMT. Economists expect the indicator to remain unrevised at the end of January from the preliminary 98.2 points.
• The US companies Chevron Corp. and MasterCard Inc. are scheduled to release their financial results before the opening bell today.
December Retail Sales are 4.0% on a yearly base, it was expected to be 3.6% versus -0.8% previously.
December Retail Sales are 0.2% on a monthly base, it was expected to be 0.3% versus 1.0% previously.