European Economics Preview: ECB Rate Decision Due

The interest rate decision from the European Central Bank is the major event due on Thursday.

The ECB is expected to signal interest rate cut soon as the economic outlook deteriorates further. The Governing Council of the ECB is set to retain its main refi rate at a record low zero percent and the deposit rate at -0.40 percent. The rate decision is due at 7.45 am ET.

At 8.30 am ET, ECB President Mario Draghi holds customary press conference.

At 2.00 am ET, Statistics Norway is scheduled to publish unemployment data. The jobless rate is forecast to rise slightly to 3.3 percent in May from 3.2 percent in April.

At 3.00 am ET, the National Institute of Economic Research publishes Sweden’s economic tendency survey data. The economic confidence indicator is seen at 97.5 in July versus 98.1 in June.

Half an hour later, Statistics Sweden is set to release unemployment data. The jobless rate is forecast to remain unchanged at 6.8 percent in June.

At 4.00 am ET, Germany’s Ifo business confidence survey results are due. The business climate index is seen at 97.2 in July versus 97.4 in June.

At 7.00 am ET, Turkey’s central bank announces its rate decision. Economists forecast the bank to cut its rate sharply to 21.5 percent from 24.00 percent.

On social media

POWER OF MUSIC: K-pop boy band BTS have been working with the United Nations Children’s Fund (Unicef) on a campaign against violence towards children and teenagers around the world.

Launched in November 2017, it encourages fans and supporters to post positive photos with the hashtag #BTSLoveMyself on social media.

BTS released a Love Myself global campaign video on YouTube on Tuesday, which has since racked up more than 8 million views.

Metlife posts mixed Q2, announces $2 billion share buyback

Shares of Metlife Inc. MET, -1.18% wavered between gains and losses in the extended session Wednesday after the insurer’s adjusted second-quarter profit fell short of expectations but sales were above forecasts. Metlife said it earned $1.7 billion, or $1.77 a share, in the quarter, compared with $845 million, or 83 cents a share, in the second quarter of 2018. Adjusted for one-time items, Metlife earned $1.3 billion, or $1.38 a share, compared with $1.3 billion, or $1.30 a share, a year ago. Revenue fell 17% to $17 billion. Analyts polled by FactSet had expected Metlife to report adjusted earnings of $1.40 a share on sales of $16.6 billion. In a separate press release, Metlife said its board OK’ed a new $2 billion share buyback. The shares ended the regular trading day down 1.2%.

Showing their love for SINGApore

1st photo: President Halimah Yacob taking a photograph with Mr Alvin Yapp, owner of private Peranakan house museum The Intan, as he holds the Singa figurine he designed.

2nd photo: President Halimah and her husband, Mr Mohamed Abdullah Alhabshee, designed a pair of Singa figurines, representing two different generations of Singaporeans. Their figurines are part of the Arts In The City: We Love SINGApore exhibition, which features 200 figurines of Singa the lion.

SEE HOME

Turkey accuses US of delaying set up of safe zone in Syria

In what seems to be a message to its NATO ally, there is an increase in US army patrols close to the border with Turkey.

Turkey’s defence minister says his country will set up a so-called “safe zone” in northern Syria, with or without the United States.

The NATO allies will resume talks soon in an effort to reach an agreement, but divisions between them run deep.

Turkey has said the US needs to end its support of the YPG militias, which Turkey considers an offshoot of the outlawed Kurdistan Workers’ Party, and control cities and towns in the border area.

Al Jazeera’s Zeina Khodr reports from Gaziantep.

Trump administration still open to Iran talks, does not see Zarif as key: official

WASHINGTON (Reuters) – The Trump administration is not closing the door to potential nuclear talks with Iran by sanctioning Iranian Foreign Minister Mohammad Javad Zarif, who it does not consider a significant decision maker, a U.S. official said on Wednesday.

Earlier, the United States imposed sanctions on Zarif for being the spokesman for Iran’s Supreme Leader around the world.

Occidental Petroleum Q2 revenue increases

Occidental Petroleum Corp. OXY, -2.12% said its profit rose in the second quarter as its revenue grew 9% from a year earlier, beating analysts’ expectations.

The Houston-based oil driller reported a profit of $635 million, or 84 cents a share, compared with $631 million, or 84 cents a share, a year ago.

The company reported adjusted earnings of 97 cents a share. Analysts polled by FactSet were expecting earnings of 96 cents a share, or 94 cents a share on an adjusted basis.

Revenue rose to $4.48 billion from $4.09 billion a year earlier. Analysts had expected $4.30 billion of revenue in the quarter.

Oil and gas pre-tax income for the quarter was $726 million, compared with $484 million for the prior quarter.

Occidental also said Wednesday that it entered into a joint venture with Ecopetrol SA EC, -0.72% to develop 97,000 acres of Occidental’s Midland Basin properties in the Permian Basin.

Ecopetrol will pay $750 million in cash at closing and $750 million of carried capital in exchange for a 49% interest in the new venture. Occidental will own a 51% interest and operate the joint venture.

Occidental said the joint venture allows it to accelerate its development plans in the Midland Basin.

Write to Patrick Thomas at [email protected]

Cheesecake Factory To Buy Fox Restaurant Concepts, North Italia – Quick Facts

The Cheesecake Factory Inc. (CAKE) has reached agreements to acquire Fox Restaurant Concepts and the remaining interest in North Italia. The combined company is anticipated to have nearly $3 billion in pro forma 2020 revenues. Excluding integration expenses, Cheesecake Factory expects the acquisitions to be approximately neutral to EPS in fiscal 2020 and accretive thereafter.

The Cheesecake Factory will acquire the remaining interest in the North Italia concept for approximately $130 million. This brings total consideration to $174 million, including $44 million previously invested in the North Italia concept. The concept has 20 locations.

The Cheesecake Factory will acquire Fox Restaurant Concepts for approximately $178 million, and $45 million due over the next four years, resulting in total consideration, of $267 million including the previous investment in Flower Child. FRC currently operates 45 restaurants.