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The Federal Open Market Committee begins a two-day meeting on interest rate policy. With traders
widely expecting the Fed not to take any action, investors will look for the central bank's view
on the economy to tease out its pace for raising interest rates in a world of soft demand and
low inflation. The Federal Reserve will likely downgrade its "dot plot" from four rate hikes to
the current market view of not more than two increases.
The U.S. Commerce Department is expected to report that retail sales fell 0.2 percent, reversing
January's 0.2 percent gain, according to a Reuters survey of economists. The expected decline
reflects cheaper gasoline, which has weighed on the value of receipts at service stations, and a
slight drop in automobile sales. But core retail sales, which exclude gasoline, autos, building
materials and food services, are expected to have increased 0.2 percent after rising 0.6 percent
in January. (0830/1230) The Commerce Department will also release data for business inventories
for January. (1000/1400) Separately, the Labor Department is expected to report that producer
prices dipped 0.2 percent in February after rising 0.1 percent in the prior month. (0830/1230)
Oracle Corp (NYSE:ORCL) is expected to report third-quarter revenue slightly below estimates, according to
Thomson Reuters StarMine data, hurt by a strong dollar and a continued drop in licensed software
sales. Oracle, like other established technology companies, has been moving its business to the
cloud-based model, essentially providing services remotely via data centers rather than selling
installed software.
Valeant Pharmaceuticals International Inc (NYSE:VRX), under scrutiny for its accounting and business
practices, releases fourth-quarter results after much delay related to the recent health issues
of CEO Mike Pearson (LON:PSON) and an internal committee's investigation of a specialty pharmacy it
previously used. The embattled drugmaker, which will also update its 2016 guidance, added a
representative from shareholder Pershing Square (NYSE:SQ) Capital Management to its board along with two
other new directors.
Plaintiffs suing General Motors Co (NYSE:GM) over a faulty ignition switch, which prompted a massive
recall in 2014, will ask the 2nd U.S. Circuit Court of Appeals in Manhattan to reverse a pair of
rulings last year that largely upheld the automaker's protection from liability over conduct
predating its 2009 bankruptcy.
Sony Corp hosts an event for PlayStation Virtual Reality during the Game Developers Conference
in San Francisco. It may announce a Virtual Reality headset for the PlayStation 4.
TerraForm Power Inc, a yieldco of SunEdison, is expected to post a loss in the fourth quarter,
compared with breakeven results a year earlier, as demand falls. Investors will look for
comments on the company's forecast and an update on Vivint Solar terminating a deal to be
acquired by SunEdison.
The Canadian Real Estate Association will report sales of existing homes in February. Sales had
rebounded in January from December as strong demand in Toronto and Vancouver offset declines in
Calgary and Edmonton.
Peru's economy likely grew 4.1 percent in January from a year earlier, a slower pace than in
December, as an ongoing surge in copper output offset weak construction activity. Economic
growth came in at 6.39 percent year-on-year in December, the fastest pace in two years.
(1200/1600) Meanwhile, Brazil's national unemployment rate, measured by statistics agency IBGE,
is due to be released. (0800/1200)
LIVECHAT: U.S. INFLATION WATCH with Lindsey Piegza of Stifel Nicolaus & Co
Lindsey Piegza, chief economist at Stifel Nicolaus & Co, will give a read on U.S. producer
price and retail data and take questions on currency, equity and credit markets. (1000/1400) To
join the Global Markets Forum, click here