A procedural vote is planned for Monday on legislation
introduced by Senate Democrats to extend individual tax cuts for
two years and extend jobless benefits for one year, at a cost of
about $858 billion.
Government data for retail sales and housing starts and building
permits are expected to show growth in November, as the U.S.
economy continues to slowly recover from a bruising recession.
Meanwhile, quarterly earnings reports are expected from
consumer-electronics retailer Best Buy Co. (BBY), package-shipping
giant FedEx Corp. (FDX) and business-software giant Oracle Corp.
(ORCL).
Senate To Vote On $858 Bln Tax-Cut-Extension Bill
Senate Majority Leader Harry Reid has set a procedural vote
Monday on the tax-cut deal struck by President Barack Obama and
congressional Republicans, and the bill could clear the Senate as
early as Tuesday, according to Senate aides. The bill would then
need to be approved by the House, where Democrats have urged their
leaders to block action on it unless changes are made to remove tax
benefits for the wealthy.
Retail Sales, Housing Data For November Due
The Department of Commerce's retail-sales report for November is
expected to show growth of 0.8%, and 0.6% excluding motor vehicles
and parts, according to Briefing.com. The results come after strong
October growth, as consumers become more confident about the
economic climate, although high unemployment remains a concern.
Housing starts and building permits data for November are due
out Thursday, with both metrics expected to report an increase from
October's disappointing showing. Still, housing starts are at
extremely low levels and the outlook is still murky amid high
levels of unsold new homes.
Meanwhile, the Consumer Price Index, a measure of the price
level of a fixed market basket of goods and services purchased by
consumers, is again projected to inch up in November, in what would
be the fifth consecutive monthly increase.
RIM, FedEx Among Those Reporting Quarterly Results
Best Buy, FedEx, General Mills Inc. (GIS) and Research in Motion
Ltd. (RIMM, RIM.T) are among the companies set to report their
latest quarterly results next week. All four companies are expected
to report revenue and profit growth from a year ago, according to
analysts polled by Thomson Reuters.
Wall Street expects BlackBerry maker RIM, which is set to report
Thursday, to post the most impressive growth. The company issued
strong guidance for the fiscal third quarter in November, on top of
stout second-quarter results, easing fears the company is buckling
under intense competition from Apple Inc.'s (AAPL) iPhone and
smartphones that run on Google Inc.'s (GOOG) Android operating
system.
Oracle Expected To Report Strong 2Q Results
Oracle will announce its fiscal second-quarter results Thursday,
in the first financial results since the business-software company
won a record judgment against SAP AG (SAP). In November, a federal
jury said Oracle's archrival must pay Oracle $1.3 billion in
damages for copyright infringement. Meanwhile, Oracle's
latest-quarter performance will likely to have been boosted by
continued strength in software and an updated line of hardware
products from its January acquisition of Sun Microsystems.
Ireland Parliament To Vote On Bailout Package
The Irish opposition party Fine Gael said it will discuss its
position on the country's EUR67.5 billion aid package at a meeting
of senior party figures next week. Ireland's parliament will vote
on it Wednesday, Prime Minister Brian Cowen said Thursday. He said
the package negotiated by the International Monetary Fund and the
European Union is in the nation's best interest.
Australian Government To Announce Banking Reform Package
Australian Treasurer Wayne Swan is expected to release Sunday a
banking-reform package aimed at boosting competition. Banking
competition has been a hot-button issue in Australia in the last
month after the country's four largest banks each raised home
lending rates beyond a one-quarter-point increase by the central
bank. The lending increases threaten to have a broad economic
impact, with consumer spending making up roughly two-thirds of
Australia's economy.
European Council Leader Expects Deal On EU Treaty Change
Herman Van Rompuy, president of the European Council, Thursday
called for European governments to agree to a limited change to the
European Union treaty next week that will allow the creation of a
permanent mechanism to bail out troubled EU economies. He said he
believed European leaders would do "whatever it takes" to ensure
the financial stability of the euro region.
Harrisburg Council Set To Vote On 2011 Budget
The council of cash-strapped Harrisburg, the capital of
Pennsylvania, is expected to vote on the city's $57 million 2011
budget next week. Mayor Linda Thompson last month presented a
budget that kept property taxes flat and is lower than the $65
million spending plan enacted for this year. Harrisburg earlier
this week disclosed officials mistakenly failed to fully budget its
general obligation debt for 2011 and currently don't have enough to
make the next payments due in March.
Italian Prime Minister Faces Confidence Vote In Parliament
Following the Italian Parliament's approval of EUR25 billion in
budget cuts the next two years, the government of Prime Minister
Silvio Berlusconi faces a confidence vote in Parliament Tuesday
that could bring down his government and pave the way for early
elections in the spring. This week's approval of Italy's two-year
spending budget comes at a pivotal moment, placing Italy's fiscal
house in order as lawmakers brace for political turbulence in the
weeks ahead.
Russia, China To Launch Yuan-Ruble Pair Next Week
Preliminary trade for the yuan-ruble pair will begin on Moscow's
Micex exchange next week, while China is looking to use rubles to
pay for Russian timber, seafood and coal as the two countries seek
to strengthen currency ties while sidestepping the dollar. The
Micex will trade CNY3 million ($451,000) daily starting Dec. 15,
officials at the country's largest market by volume said at a
Moscow conference. Both Russia and China have in the last several
years called for countries to lessen their reliance on the U.S.
dollar.
Conferences
Among the significant conferences next week are the Imperial
Capital LLC The Security Investor Conference in the District of
Columbia on Monday and Tuesday; the Bank of America Merrill Lynch
Global Industries Conference in New York Tuesday through Thursday;
the Deutsche Bank Securities Inc. BioFEST Conference in Boston on
Tuesday and Wednesday; the Raymond James IT Supply Chain Conference
in New York Tuesday; the Roth Capital Partners Infant, Juvenile and
Toy Conference in New York Tuesday; and the First Midwest
Securities Inc. Small Cap Ideas Conference in New York
Thursday.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
--Jeanette Borzo and Dow Jones Newswires staff contributed to
this article.
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