European Economics Preview: Germany Unemployment Data Due
U.S. Consumer Sentiment Drops Less Than Initially Estimated In November
Consumer sentiment in the U.S. deteriorated less than initially estimated in the month of November, according to revised data released by the University of Michigan on Wednesday.
The report showed the consumer sentiment index for November was upwardly revised to 56.8 from the preliminary reading of 54.7. Economists had expected a more modest upward revision to 55.0.
Despite the bigger than expected upward revision, the consumer sentiment index was still well below the final October reading of 59.9.
“Consumer sentiment fell 5% below October, offsetting about one-third of the gains posted since the historic low in June,” said Surveys of Consumers Director Joanne Hsu.
She added, “Along with the ongoing impact of inflation, consumer attitudes have also been weighed down by rising borrowing costs, declining asset values, and weakening labor market expectations.”
The University of Michigan said the current economic conditions index slumped to 58.8 in November from 65.6 in October, while the index of consumer expectations edged down to 55.6 from 56.2.
Meanwhile, the report showed one-year inflation expectations dipped to 4.9 percent in November from 5.0 percent in October, but five-year inflation expectations inched up to 3.0 percent from 2.9 percent.
“Uncertainty over these expectations remained at an elevated level, indicating that the general stability of these expectations may not necessarily endure,” said Hsu.
Workday Up 11% As Q3 Earnings Beat Street Estimates
Shares of tech company Workday, Inc. (WDAY) are rising 11 percent on Wednesday’s trading after the company’s adjusted earnings came in above the Street estimates.
The company posted net loss of $74.72 million or $0.29 per share in the third quarter, compared to net income of $43.41 million or $0.17 per share in the same period last year.
Excluding items, Workday reported earnings of $257.90 million or $0.99 per share for the period. On average, 30 analysts expected the company to post earnings per share of $0.84 in the quarter.
Currently at $158.94, the stock has traded between $128.72 and $285.58 during the past 52 weeks.
US To Co-host Second Summit For Democracy in March
The United States will co-host the second Summit for Democracy during March 29-30, 2023, with Costa Rica, the Netherlands, South Korea, and Zambia. This diverse group of co-hosts underscores the universal desire for accountable, transparent, and rights-respecting governance.
Building on the first Summit for Democracy held in December 2021, this gathering will demonstrate how democracies deliver for their citizens and are best equipped to address the world’s most pressing challenges.
At this second Summit, world leaders will showcase progress made on their commitments to build more resilient democracies; announce new commitments and initiatives to build on that momentum; reaffirm the central role of democratic institutions in delivering prosperity and safeguarding liberty; and underscore the effectiveness of collective action in tackling the most pressing challenges of our time.
The second Summit for Democracy will assemble world leaders in a virtual, plenary format, followed by hybrid gatherings in various countries with representatives from government, civil society, and the private sector. “Together, we will showcase progress made by Summit partners on commitments during the Year of Action, and will reaffirm the vitality of the democratic model and collective action to meet the unprecedented challenges of our time,” the leaders of the host countries said in a joint statement.
S&P Global In Talks To Sell Engineering Solutions Arm; Stock Up In Pre-market
S&P Global Inc. (SPGI) on Wednesday announcced its plans to sell the Engineering Solutions business following the merger of S&P Global and IHS Markit earlier this year. Talks are afoot with many prospective buyers, the company said in a statement.
Douglas L. Peterson, CEO of S&P Global, said: “The divestiture will allow us to continue to manage the company with discipline, execute our growth strategy, and is an important step in our evolution.”
The engineering solutions business serves over 6,000 global customers and 650,000 users to optimize workflows and end-user experiences.
SPGI is trading up by 1.10 percent at $350.95 per share in pre-market on the New York Stock Exchange.
European Economics Preview: Germany Unemployment Data Due
Unemployment from Germany and flash inflation from the euro area are the top economic news due on Wednesday, headlining a busy day for the European economic news.
At 2.00 am ET, Destatis publishes Germany’s unemployment figures for October.
At 2.45 am ET, France’s statistical office INSEE is scheduled to release flash consumer prices, detailed quarterly national accounts and industrial producer prices. Consumer price inflation is expected to remain unchanged at 6.2 percent in November. Economists forecast the statistical office to confirm 0.2 percent sequential economic growth for the third quarter.
At 3.00 am ET, retail sales from Spain, the KOF leading index from Switzerland and producer prices from Hungary are due. The Swiss KOF leading index is seen at 91.3 versus 90.9 a month ago.
At 3.55 am ET, the Federal Labor Agency publishes Germany unemployment data for November. The jobless rate is seen unchanged at 5.5 percent.
At 4.00 am ET, Italy’s Istat is slated to issue revised quarterly national accounts for the third quarter. The initial estimates showed a quarterly economic growth of 0.5 percent after rising 1.1 percent in the second quarter.
At 5.00 am ET, Eurostat publishes euro area flash inflation data for November. Inflation is expected to ease to 10.4 percent from 10.6 percent in October.
In the meantime, preliminary inflation figures are due from Italy. Economists forecast consumer prices to climb 11.3 percent on year in November, but slower than the 11.8 percent rise in October.