A handful of banking and investment firms will report their
first-quarter results next week, with many of the larger players
expected to report weaker results.
The U.S. government is scheduled to release a multiple housing
data reports for March, news investors will watching closely after
February's poor showing.
Earnings season kicks into high gear next week, with results due
from telecommunications giants AT&T Inc. (T) and Verizon
Communications Inc. (VZ) and railroad companies CSX Corp. (CSX) and
Union Pacific Corp. (UNP).
Weaker 1Q Results Broadly Expected By Financial Giants
First-quarter results are due next week from banking giants
Citigroup Inc. (C) and Wells Fargo & Co. (WFC), as well as from
the nation's largest investment banks--Goldman Sachs Group Inc.
(GS) and Morgan Stanley (MS). The sector is widely expected to
report weaker profit and revenue figures, according to analysts
polled by Thomson Reuters. The lone exception is Wells Fargo, which
is forecast to report a stronger bottom line.
Other notable financial companies reporting their latest results
next week include BB&T Corp. (BBT), KeyCorp (KEY), Regions
Financial Corp. (RF), State Street Corp. (STT) and U.S. Bancorp
(USB).
March Housing Starts, Building Permits Data Due
The U.S. government is expected to release housing data for
March, including housing starts and building permits. Home
construction in the U.S. took the steepest monthly plunge in nearly
27 years in February and new building permits set a record low. The
results were well below analysts' expectations.
Telecommunication, Transport Companies To Post 1Q Results
U.S. telecommunications giants AT&T and Verizon are likely
to post muted first quarter results next week, as the companies are
expected to see increased pricing pressure as the industry spends
more on sales and marketing to retain or acquire subscribers.
Within the transport sectors, results are due from CSX and Union
Pacific, which report on Tuesday and Wednesday, respectively.
Analysts see improved top- and bottom-line results from the pair,
building on a sharp jump in volumes last year when the industry
began to see a turnaround.
Meanwhile, recent results from newspaper publishers Gannett Co.
(GCI) and New York Times Co. (NYT) have indicated advertising
growth remains elusive for most publishers even as declines have
moderated from their crippling 2009 levels. The pain is expected to
continue in the first quarter--as analysts projected a decline in
profit and revenue for both companies.
Luxury Giant LVMH 1Q Sales Seen Rising On Higher Demand
French luxury goods company LVMH Moet Hennessy Louis Vuitton
(LVMUY, MC.FR) is expected to maintain strong growth seen last year
as luxury demand remains firm across all categories. Analysts
predict revenue will rise 11% in the first quarter, aided by fast
growth in Asia, except for Japan. Analysts will likely focus on any
comments related to disruptions to Japanese consumption, will
pricing of fashion and leather goods will also be in focus.
Status Conference On Viceroy Resort Planned In Court
The Wilmington, Del., bankruptcy court will hold a status
conference on Monday ahead of a May 3 hearing on a request to
appoint a trustee to take over operations of the luxury Viceroy
Anguilla Resort and Residences.
Meanwhile, objections to Washington Mutual Inc.'s
creditor-repayment plan are due Thursday ahead of a May 2 planned
confirmation hearing. The plan details how a $7 billion pool of
money will be distributed among the former bank holding company's
many creditors.
Nigeria To Hold Presidential Election Saturday
Nigeria is set to hold its presidential election on Saturday,
with the winner of the contest expected to be sworn in May 29.
President Goodluck Jonathan, a southern Christian, of the ruling
People's Democratic Party, is running for re-election. His main
challenger is Muhammadu Buhari, a former military ruler of the
Congress for Progressive Change.
Czech's Government Crisis Talks To Continue
Czech political leaders will continue holding talks next week to
keep the ruling government together, shaken by an alleged financial
scandal in the smallest of the three coalition parties, according
to the nation's Prime Minister Petr Necas. Necas added a confidence
vote in the lower house of parliament could be proposed by the
cabinet itself or linked to some of existing bills currently
debated by lawmakers.
Negotiations For Portugal Bailout To Begin Next Week
Negotiations between Portugal, the European Union and the
International Monetary Fund are expected to begin next week about
the terms of an estimated three-year EUR80 billion bailout package.
Talks with European authorities and the IMF over terms of the
package are expected to extend into mid-May.
Rio Tinto To Restart Construction At Diamond Mine
Rio Tinto Ltd. (RIO.AU) said it expects to restart construction
at its $1.6 billion Argyle underground diamond mine in Western
Australia next week, after work was halted by heavy rainfall. Rio
is aiming to extend the life of Argyle, which has been running
since 1985, until at least 2019 by gradually moving production from
the open pit to underground operations. The bad weather at Argyle,
located north of Perth, has also crimped diamond production.
Conferences
Among the significant conferences next week are the Hart Energy
Developing Unconventional Gas Conference & Exhibition Monday
through Wednesday in Fort Worth, Texas, the Linley Group, Inc.
Mobile Conference on Tuesday and Wednesday in San Jose, Calif.,
Biofuels Digest Advanced Biofuels Leadership Conference Tuesday
through Thursday in the District of Columbia, and the First
Affirmative Financial Network BaseCamp SRI Regional Mini-Conference
on Wednesday in Seattle.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
(Marie Beaudette, Mimosa Spencer and Dow Jones Newswires staff
contributed to this report.)
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