What to Watch in the Week Ahead and on Monday, August 11

Reuters
Aug 09
What to Watch in the Week Ahead and on Monday, August 11

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ON MONDAYMexico is set to report industrial output figures for June.REST OF THE WEEKA slew of key U.S. economic data releases is scheduled for the coming week, offering fresh insights into inflation and consumer sentiment. The July consumer price index will be watched for signs of the impact of Trump's tariff deluge fuelling more price hikes. On Tuesday, the Labor Department's Bureau of Labor Statistics is expected to report that the consumer price index $(CPI.UK)$ likely rose 0.2% in July, after a 0.3% increase in June. Annually, CPI is expected to climb 2.8%, compared with a 2.7% gain in the prior month. Core CPI, which excludes volatile food and energy components, is expected to have increased 0.3% in July, after rising 0.2% in June. On an annual basis, core CPI is projected to rise 3.0%, following a 2.9% increase previously. Meanwhile, on Thursday, the producer price index $(PPI)$ for final demand is expected to have risen 0.2% in July, after being unchanged the previous month, with annual PPI likely advancing 2.5%, compared with 2.3% in June. Also on Thursday, initial claims for unemployment benefits are expected to come in at 225,000 for the week ending August 9, slightly down from 226,000 in the prior week.Earnings-wise, Deere is expected to post a drop in third-quarter profit and revenue when it reports results on Thursday. Investors will be looking for commentary on the tariff climate and any financial impacts from the levies, alongside demand sentiment for construction activity. Tapestry is expected to post a rise in quarterly revenue on Thursday, helped by robust demand for its Coach handbags. Investors will watch out for comments on consumer spending amid a broader weakness due to tariff and inflation fears.German maker of clogs Birkenstock, on Thursday, is expected to post a jump in quarterly revenue owing to strong demand from its loyal, high-income customers. Investors will watch for comments on tariff impact, price hikes, supply chain disruptions and demand landscape in North America and Europe.On Tuesday, Richmond Fed President Thomas Barkin is scheduled to speak before the Health Management Academy. On Wednesday, Barkin will address the Greenville Chamber of Commerce in South Carolina. Later in the day, Atlanta Fed President Raphael Bostic is set to speak on the economic outlook at an event in Red Bay, Alabama. Also on Wednesday, Chicago Fed President Austan Goolsbee will participate in a moderated Q&A session in Springfield, Illinois. On Thursday, Barkin will participate in a webinar conversation hosted by the National Association for Business Economics.In Canada, the central bank's summary of monetary policy deliberations from the last meeting will be released on Wednesday. On the economic front, the country's manufacturing sales and wholesale trade data for June is due on Friday.Latin America's economic calendar is packed with key data releases in the coming week. On Tuesday, Brazil's government statistics agency IBGE will release the IPCA inflation index for July, with annual inflation previously at 5.35%. On Wednesday, Brazil's retail sales data for June is due. Argentina's statistics agency INDEC is scheduled to publish July consumer price index $(CPI)$ figures on Wednesday. On Thursday, Peru's central bank is set to announce its benchmark interest rate, which stands at 4.5%.

(Compiled by Sameer Kulkarni; Editing by Alan Barona)

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