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Goldman Sachs (N:GS) is expected to report a decline in fourth-quarter profit, as weak debt
underwriting and trading revenue fail to make up for stellar M&A activity. Goldman Sachs said
last week it would pay over $5 billion to settle claims it misled mortgage bond investors during
the financial crisis, a move that will cut the firm's fourth-quarter earnings by about $1.5
billion. The hit comes after the bank took a $1.45 billion provision in the second quarter in
anticipation of a deal. Apart from that, fixed income, currency and commodities trading are
expected to take a hit as investors were on the edge during the quarter over worries about
China's growth, plunging oil prices and when the U.S. Fed would raise interest rates.
U.S. consumer prices were likely unchanged in December while core Consumer Price Index, which
excludes food and energy, probably gained 0.2 percent last month. (0830/1330) Separately, U.S.
Commerce Department will release housing starts and building permits data for December.
Groundbreaking is expected to have increased to a seasonally adjusted annual pace of 1.20
million-units, while permits likely fell to a 1.20 million-unit pace from 1.282 million-unit
pace in the prior month.(0830/1330)
Xilinx Inc (O:XLNX) is expected to report third-quarter revenue slightly above analysts' average
estimate. Xilinx is now one of the few programmable chipmakers left following Intel's
acquisition of Altera (O:ALTR). Investors will look for updates on sales to the high-growth automotive
markets and to data center customers.
Migrant crisis, economic fears, particularly for Chinese growth, and increasingly frequent
extreme weather events are among key concerns set to dominate World Economic Forum 2016 Annual
Meeting, beginning in Davos. The summit will bring together players from geopolitical hot spots
such as the foreign ministers of arch-rivals Iran and Saudi Arabia, as well as the biggest ever
U.S. delegation, including Vice President Joe Biden.
The Bank of Canada will make its eagerly anticipated decision on whether to cut interest rates
to counter the continued slide in the price of oil and the rippling economic effect this has had
beyond the resource sector. It is in a similar position to last January, when it surprised
markets by cutting rates for the same reasons. However, the markets are much more prepared for
the possibility this time, with an increasing consensus that the central bank will or should
make a cut. (1000/1500) Accompanying the decision will be the quarterly Monetary Policy Report,
giving the bank's considered view of the economic outlook. Following the release, Governor
Stephen Poloz and Senior Deputy Governor Carolyn Wilkins will hold a news conference.
(1115/1615)
Value of Canada's wholesale trade for November is estimated to have increased 0.5 percent
compared to prior month's unexpected 0.6 percent decline. (0830/1330) Meanwhile, Canadian
manufacturing sales likely rose 0.5 percent in November after dropping 1.1 percent in October.
(0830/1330)
DAVOS LIVECHAT-GLOBAL BUSINESS CHALLENGES with John Veihmeyer, Global Chairman, KPMG
John Veihmeyer, Global Chairman at professional services company KPMG, joins us live from the
World Economic Forum in Davos to discuss the issues facing businesses, both in the developed
world and the emerging markets. (0600/1100) To join the Global Markets Forum, click here