Daily Agenda: The Week Ahead, January 25 – 30, 2016
U.N. holds Summit on Climate Risk; Japanese GDP; Bank of Korea statements focus for currency markets; Ferrari and Nasdaq report earnings.
A rebound in oil and equity markets on Friday led some bullish pundits to suggest that for some asset classes a bottom may be in sight. Whether or not the pain is over is a matter for debate, however, as more companies report results from the volatile fourth quarter of 2015. In the week ahead, Italian automaker Ferrari will report results for the first time as a standalone company. Also on the earnings docket is Nasdaq, which reports this coming Thursday.
Monday, January 25: The first months that Ferrari has traded as a standalone company have not been auspicious. After losing more than 20 percent in market capitalization year-to-date, the macro headwinds that have been facing the luxury carmarker’s key emerging markets consumer segment have also weighed heavily on financials. One Ferrari number is looking to surpass forecasts, though. On February 5 a 1957 Ferrari 335 Sport Scaglietti will go to auction in Paris with expectations that it will reap more than $34 million and has an outside chance of beating the the all-time record car auction price in excess of $38 million — also a vintage Ferrari.
Tuesday, January 26: Investors will be parsing the statement from the Bank of Korea accompanying the GDP release for any sign from policymakers of how slowing demand from China will impact growth in 2016. In a report issued this past week, Moody’s Investors Services predicted that South Korea is particularly susceptible to collateral damage from the world’s second-largest economy, given that the nation accounts for more than a quarter of all Korean exports. Renewed threats from North Korea are also rattling markets in Seoul.
Wednesday, January 27: The biannual Investor Summit on Climate Risk, hosted by the United Nations at its headquarters in New York, will commence with speeches by Secretary General Ban Ki-moon and former New York mayor and financial media magnate Michael Bloomberg. The goal of this year’s meeting is advancing to $1 trillion in annual clean energy investments, dubbed the “Clean Trillion” by the U.N.
Thursday, January 28: Nasdaq announces quarterly earnings. With the extremely rocky start for stock markets in 2016, the pipeline for IPOs might be backed up for some time, meaning possible contraction in exchanges’ bottom line.
Friday, January 29: Japan’s Ministry of Economy, Trade and Industry releases December industrial production data in advance of the Bank of Japan’s monetary policy statement. While Japan continues to face an uphill struggle to defeat deflation and restore growth a new complication arose last week when Akira Amari, Japan’s economy minister, was accused of political graft.
Saturday, January 30: The Quebec Winter Carnival, or Carnaval de Québec, offers a cold-weather interpretation of Carnival celebrations with elaborate snow and ice sculptures, winter sports, including dog sled races and — of course, Caribou — a heated blend of red wine, whiskey and maple syrup that keeps revelers warm in the frigid temperatures. Be sure to wear at least one red clothing item if you are thinking of being one of the more than 1 million party goers in attendance in Quebec City.