A preview of likely market-moving events in europe --- Paul (slow)
A preview of the market action in the Pacific rim --- Gene (slow)
>> for a preview of likely market -moving events in europe, let’s bring in paul george from london.
>> time to look at what’s on the schedule in europe this coming week.% we’ll have a look at what to watch in economic news in a moment. first, the corporate agenda. british airways, lufthansa and hong kong carrier cathay pacific are a few airlines out with results. we expect traffic numbers from iberia, swiss information and b.a.a. as oil futures hit record highs, investors will watch to see how these companies are positioned to cope. the international air transport association has warned that high fuel costs could cost the industry $6 billion this year. u.b.s. is among seven of the largest european banks and insurers reporting. it will probably say that rising fees from private banking offset a poor performance in its investment banking business. that would ecowe i.n.g.’s second quarter. insurers aeon and royal and sun alliance also report this coming week. our final earnings preview is of deutsche telekom which may say second-quarter profit jumped 61% up to $411 million euros on thursday thanks to higher gains from its wireless unit, t-mobile. in economics, after a very disappointing u.s. jobs numbers, non-farm payrolls last friday, and with soaring oil prices, investors everywhere will wonder what the u.s. federal reserve will do about rates. it is expected to raise them by a quarter point to 1.5% and that would be the second hike in three months. rising oil prices could also have boosted inflation in europe’s biggest economy. germany may show consumer prices rose in july. unlike bank of england, the european central bank kept interest rates at a six-decade low at 2% last week but has warned it will raise credit costs if oil prices lead to more lasting inflation. some of the highlights for the coming week in europe.
>> that was paul george. for a preview of the market action in the pacific rim, we bring in gene otani in tokyo.
>> in the new week here in the asia-pacific region, japan’s economy probably expanded for the ninth quarter ending in june. rising exports and capital spending may have helped the economy keep its place as the fastest yog in the g-7 nation. economists surveyed by bloomberg% expect g.d.p. to have risen 1% in the previous quarter. singapore’s economy may be benefitting from surging overseas demand for computer chips and pharmaceuticals. economists surveyed by bloomberg say second-quarter knnd probably grew at an g.d.p. probably grew at an annualized forecast. china’s industrial production growth probably slowed in june for a fifth month. the government has been clamping down on investment by state-owned companies to reduce power cuts and cool inflation. slowing output growth may reduce pressure on the central bank to raise interest rates. those figures expected out monday or tuesday. china’s export both may be slowing as demand cools in the u.s. and japan. a slowdown in exports may prompt companies to rein in expansion. that report also expected on monday or tuesday. and we have some key earnings out this week. hong kong’s cathay pacific airways announcing first-half results on wednesday. we’ll also get results from lanovo group, p.c. maker in china. and telstra reports on wednesday and may say net income rose over 20%.
>> warren buffett’s berkshire hathaway says second-quarter profit fell 42%. the company cites a decline in earnings from investments. net income, $830 per share, below the average analyst estimate. warren buffett says he’s accumulating cash to make acquisitions, crimping investment income. the company reported fewer investment gains in the period from a year ago when it earned $900 million from selling u.s. treasuries and securities. buffett has never sold a share of the 41 billion dollars of berkshire stock that has made him the world’s second richest man. the shares have gained 19% over the past year, outpacing the rise in the s&p 500. democratic presidential nominee john kerry proposing a $40 billion 10-year effort to spur the development of alternative fuels and technologies. he says he would use $20 billion from oil and gas royalties to offer incentives to automakers. the kerry campaign says dependence on oil from the middle east is a national security issue, a middle class squeeze issue and a jobs issue. walt disney’s abc network hangs on to the rose bowl. that coming up on “money & sports.”
