What to Watch in the Day Ahead - Thursday, Dec 3

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Federal Reserve Chair Janet Yellen will appear before the
congressional Joint Economic Committee and could give
indications of how close the central bank is to raising interest
rates. (1000/1500) Separately, the Federal Reserve Bank of
Cleveland President Loretta Mester and Treasury Office of
Financial Research Director Richard Berner will give welcome
remarks before the "Financial Stability: Policy Analysis and
Data Needs" conference sponsored by the Federal Reserve Bank of
Cleveland and the Treasury Dept. Office of Financial Research,
in Washington. (0840/1340) Meanwhile, the Federal Reserve Vice
Chair Stanley Fischer, who will speak on "Financial Stability
and Shadow Banks", will be introduced by Mester. (1310/1810)

Medtronic (N:MDT) Plc, the largest standalone medical device maker in
the United States, will report a better-than-expected
second-quarter profit as the company reaps the benefits of
buying Covidien and demand for its products rise in China.
Analysts will also be looking for comments to see if patients,
who had put off optional procedures during the recent financial
crisis, opt to have their surgeries regaining confidence from an
improving economy and healthcare insurance coverage provided by
Obamacare.

The European Central Bank (ECB) is almost certain to ease policy
but what measures it will take is up in the air. The Governing
Council is expected to debate a wide range of options, from a
fairly uncontroversial deposit rate cut to a highly unorthodox
scheme to buy up bundled non-performing loans. Markets expect
the bank to settle on a 10 basis point rate cut, a slight
increase in monthly asset buys and a modest extension of the
quantitative easing programme. However, given the wide range of
options on the table and the ECB's practice of overdelivering, a
surprise is highly likely. With the ECB's rate decision, there
is a chance the Swedish National Bank will also be called into
action - it has said it can act between meetings if necessary to
safeguard inflation. The question for the Riksbank is how it
will affect the crown. A sharp reaction would almost certainly
force the Riksbank into a tit-for-tat easing. Furthermore,
Deputy Governor Skingsley hinted the Riksbank wanted time to
assess the ECB's action and its own actions before taking
further steps.

New applications for U.S. unemployment benefits likely rose last
week, but remaining near 43-year lows as the labor market
continues to tighten. According to a Reuters survey of
economists, initial claims for jobless benefits probably rose to
268,000 from 260,000. Claims are close to levels last seen in
1973 and probably do not have much room for further declines.
(0830/1330) Meanwhile, the Institute for Supply Management's
non-manufacturing index is likely to have dropped to 58.0 last
month from 59.1 in October. (1000/1500) Separately, the new
orders for factory goods are expected to have increased 1.4
percent after it fell for a second straight month in September.
New orders for manufactured goods declined 1.0 percent after a
downwardly revised 2.1 percent drop in August. (1000/1500)

Supermarket operator Kroger (N:KR) Co releases its results for the
third quarter. The company, which is not working promoting and
cutting prices as much as rivals, is likely to have benefited
from the higher beef and chicken margins.

Discount retailer Dollar General Corp's same-store sales are
likely to come in below analysts' average estimate for the third
quarter, hurt by clearance activity at Family Dollar (N:FDO), which was
acquired by Dollar Tree (O:DLTR) this year. However, the company's
expanded assortment of health and beauty products and sales of
popular licensed items such as Star Wars toys is expected to
have boosted sales.

Sears Holdings Corp will report earnings for its fiscal third
quarter. The struggling department store is expected to post a
loss of $2.84 per share, according to Thomson Reuters I/B/E/S.

Department store Sears Canada Inc is expected to post a rise in
third-quarter same-store-sales, which have been falling for two
years. Investors will be interested to know how the struggling
store operator plans on increasing profit from operations,
besides selling assets and units. Investors are also interested
in how and when the company plans to settle all the pending
lawsuits against it.

Chipmaker Marvell Technology Group Ltd is expected to report
third-quarter results below analysts' average estimates,
according to Thomson Reuters StarMine, hurt by weak demand for
its chips used in PCs and third-generation mobile phones.
Investors would look for any comment about the health of its
PC-chip business and whether the company needs to trim its
workforce further.

Bookstore chain Barnes & Noble (N:BKS) Inc is expected to report a
second-quarter profit below analysts' estimates, according to
Thomson Reuters StarMine. Barnes & Noble is improving store
merchandise, featuring popular books and movies and is
integrating its online and retail platforms to reverse falling
sales. Investors will look for updates to the forecast,
information on trends and store traffic, and comments from its
new CEO.

At a meeting in Amsterdam, Fiat Chrysler (N:FCAU) shareholders will vote
on the spin-off of Ferrari (N:RACE) and the distribution of FCA's
remaining stake in the luxury unit among the parent's investors.
The vote will formalize the separation of the unit, due to
happen at the start of 2016, and establish Fiat's founding
Agnelli family as Ferrari's top shareholder. The separation will
also boost Fiat Chrysler's coffers as it seeks to reduce its
heavy debt pile before attempting again to merge with bigger
U.S. rival GM. Both FCA CEO Sergio Marchionne and Chairman John
Elkann will be in attendance, so investors will seek fresh
comments on merger plans, China weakness, and product delays.

MPLX LP, MarkWest Energy Partners LP and Marathon Petroleum Corp (N:MPC)
management will discuss MarkWest's sale to MPLX at an analyst
and investor meeting. About 80 percent of MarkWest unitholders
voted in favor of the cash-and-stock deal, which values the
company at $10.38 billion.

Toronto Dominion Bank and Canadian Imperial Bank of Commerce are
seen posting higher fourth-quarter profits as investors look for
signs of strength in their domestic retail businesses and any
potential rise in energy-sector bad loans.

Canada Mortgage and Housing Corp releases data on the number of
vacant completed condominiums in Canada, a measure of
overbuilding or oversupply in the nation's uneven housing
market. Condo vacancies have been at or near a record high in
2015 and the absorption rate has been falling, suggesting the
number of vacancies could increase.

Enbridge Inc releases its 2016 guidance. Enbridge has been
successful in expanding its Mainline system, which ships the
bulk of Canadian crude exports to the United States, largely
slipping beneath the radar of environmental groups opposed to
new pipeline projects. However, the company is still awaiting a
presidential permit for its cross-border Alberta Clipper
expansion and its stalled Northern Gateway pipeline to Canada's
Pacific Coast is facing multiple hurdles including the new
Liberal government in Ottawa, which has pledged a moratorium on
tankers on British Columbia's northern coast.

Brazilian industrial output likely continued to drop in October
but probably at a slightly slower pace than in the previous
month. Industrial production likely fell 10.4 percent from
October 2014, compared to a decline of 10.9 percent in
September. Separately, Mexican gross fixed investment, the
measure of spending on machinery, equipment and new
construction, is expected to have increased 5.2 percent in
September on an annual basis. It was up 2.9 percent from the
same month a year earlier.

LIVECHAT - COMMODITY FOCUS: Hans Van Cleef, commodities analyst,
ABN AMRO (AS:ABNd)
Join Hans Van Cleef, commodities analyst at ABN AMRO, for a look
at the prospects for commodities markets as the price of metals
slides and oil flirts with new lows. Is there any respite in
sight? To join the Global Markets Forum, click here