NEW YORK, April 24 (Reuters) - Following is the view from editors in the Americas on the top stories for the week ahead:
For Reuters Insider's analysis of what you need to know next week, please click on: http://link.reuters.com/nyd29r
HIGHLIGHTS:
* Dollar seen staying low, Wall Street watching earnings
* Bernanke to hold first post-FOMC meeting news conference
* Big earnings week includes Caterpillar, Exxon Mobil
* Berkhsire Hathaway meeting follows Sokol departure
DOLLAR GLOOM, BUT WALL STREET CHEER?
After an unimpressive start, earnings gave investors something to cheer recently. Maintaining this in the coming week is Wall Street's biggest challenge. Gloom surrounds the U.S. dollar and won't go away soon. The Fed won't signal higher rates after its policy meeting -- the only thing Washington can do quickly for the greenback -- and the budget mess will weigh on the currency as the debt-limit drama continues. The buoyant bond market will focus on whether the Fed will reinvest maturing Treasuries. The market also faces a key test with the first bond auctions since Standard & Poor's dropped the U.S. credit rating outlook to negative.
FED MEETS, BERNANKE MEETS THE PRESS
The Federal Reserve's next policy meeting on Tuesday and Wednesday will be accompanied by the usual statement and economic forecasts -- plus the first ever post-meeting news conference by Chairman Ben Bernanke. The Fed looks certain to stick to its plan to complete its $600 billion bond-buying program in June, and is unlikely to rush to raise interest rates given an uncertain economic outlook. Many analysts believe the U.S. central bank will hold the size of its balance sheet steady by reinvesting maturing assets after June to avoid a passive tightening of policy, an issue that will likely be discussed at the April 26-27 meeting. A backdrop of softer-than-expected first-quarter economic data, weak housing markets and possible government austerity measures to tackle the budget deficit all make it more likely the Fed will keep its support for the recovery in place for some time. We've run out a Preview and a sidebar on Bernanke's communications strategy. Look for an overnight story ahead of the start of the meeting.
TOP EARNINGS WEEK
It's another heavy week of quarterly corporate earnings following strong results from the likes of Apple and Intel, which buoyed the stock market. This is the week to watch if you want to know what consumers are buying and what they are eating and drinking as Coca-Colaa, PepsiCo, Procter & Gamble, Starbucks, and Amazon report. Industrial giants like Caterpillar and 3M also report, as do top brands, including Ford and UPS. Also reporting are energy leaders Exxon Mobil , Chevron and ConocoPhillips, as well as tech and media companies, including Microsoft, Viacom , Discovery and Netflix, and top health names such as Merck and Bristol-Myers.
U.S. GDP TO CONFIRM SLOWDOWN?
Data is seen confirming a sharp first-quarter slowdown in U.S. economic activity, held back by bad weather and high energy prices. The advance estimate on Q1 gross domestic product on Thursday will likely show the economy grew at an annualized 2.0 percent rate, according to a Reuters survey, after a 3.1 percent rate in the fourth quarter. The report is also expected to show a spike in inflation. The question for the Federal Reserve is whether the first-quarter slowdown was caused by temporary or seasonal factors. The housing market's struggle to recover will be underscored by Tuesday's data, expected to show home prices in 20 metropolitan areas tracked by S&P and Case-Shiller sank further in February. We have an Analysis out on revisions to GDP growth forecasts, and will preview the data shortly before it hits.
U.S. DEBT DEBATE
The Obama administration and lawmakers of both parties are maneuvering behind the scenes to figure out how to address the expanding U.S. debt. Congress likely will have to act by July in order to ensure that the United States doesn't default on its $14 trillion in accumulated debt. Republicans hope to use the debt limit debate as a vehicle to win bigger spending cuts and satisfy conservative Tea Party activists who helped hand them control of the House of Representatives last year. The so-called 'Gang of Six' -- three Republicans and three Democrats in the Senate -- have been quietly meeting over the past months in an effort to forge a deficit-reduction plan that could win support in both parties. The U.S. Congress remains on recess for the week.
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
For Reuters Insider's analysis of what you need to know next week, please click on: http://link.reuters.com/nyd29r
HIGHLIGHTS:
* Dollar seen staying low, Wall Street watching earnings
* Bernanke to hold first post-FOMC meeting news conference
* Big earnings week includes Caterpillar, Exxon Mobil
* Berkhsire Hathaway meeting follows Sokol departure
DOLLAR GLOOM, BUT WALL STREET CHEER?
After an unimpressive start, earnings gave investors something to cheer recently. Maintaining this in the coming week is Wall Street's biggest challenge. Gloom surrounds the U.S. dollar and won't go away soon. The Fed won't signal higher rates after its policy meeting -- the only thing Washington can do quickly for the greenback -- and the budget mess will weigh on the currency as the debt-limit drama continues. The buoyant bond market will focus on whether the Fed will reinvest maturing Treasuries. The market also faces a key test with the first bond auctions since Standard & Poor's dropped the U.S. credit rating outlook to negative.
FED MEETS, BERNANKE MEETS THE PRESS
The Federal Reserve's next policy meeting on Tuesday and Wednesday will be accompanied by the usual statement and economic forecasts -- plus the first ever post-meeting news conference by Chairman Ben Bernanke. The Fed looks certain to stick to its plan to complete its $600 billion bond-buying program in June, and is unlikely to rush to raise interest rates given an uncertain economic outlook. Many analysts believe the U.S. central bank will hold the size of its balance sheet steady by reinvesting maturing assets after June to avoid a passive tightening of policy, an issue that will likely be discussed at the April 26-27 meeting. A backdrop of softer-than-expected first-quarter economic data, weak housing markets and possible government austerity measures to tackle the budget deficit all make it more likely the Fed will keep its support for the recovery in place for some time. We've run out a Preview and a sidebar on Bernanke's communications strategy. Look for an overnight story ahead of the start of the meeting.
TOP EARNINGS WEEK
It's another heavy week of quarterly corporate earnings following strong results from the likes of Apple and Intel, which buoyed the stock market. This is the week to watch if you want to know what consumers are buying and what they are eating and drinking as Coca-Colaa, PepsiCo, Procter & Gamble, Starbucks, and Amazon report. Industrial giants like Caterpillar and 3M also report, as do top brands, including Ford and UPS. Also reporting are energy leaders Exxon Mobil , Chevron and ConocoPhillips, as well as tech and media companies, including Microsoft, Viacom , Discovery and Netflix, and top health names such as Merck and Bristol-Myers.
U.S. GDP TO CONFIRM SLOWDOWN?
Data is seen confirming a sharp first-quarter slowdown in U.S. economic activity, held back by bad weather and high energy prices. The advance estimate on Q1 gross domestic product on Thursday will likely show the economy grew at an annualized 2.0 percent rate, according to a Reuters survey, after a 3.1 percent rate in the fourth quarter. The report is also expected to show a spike in inflation. The question for the Federal Reserve is whether the first-quarter slowdown was caused by temporary or seasonal factors. The housing market's struggle to recover will be underscored by Tuesday's data, expected to show home prices in 20 metropolitan areas tracked by S&P and Case-Shiller sank further in February. We have an Analysis out on revisions to GDP growth forecasts, and will preview the data shortly before it hits.
U.S. DEBT DEBATE
The Obama administration and lawmakers of both parties are maneuvering behind the scenes to figure out how to address the expanding U.S. debt. Congress likely will have to act by July in order to ensure that the United States doesn't default on its $14 trillion in accumulated debt. Republicans hope to use the debt limit debate as a vehicle to win bigger spending cuts and satisfy conservative Tea Party activists who helped hand them control of the House of Representatives last year. The so-called 'Gang of Six' -- three Republicans and three Democrats in the Senate -- have been quietly meeting over the past months in an effort to forge a deficit-reduction plan that could win support in both parties. The U.S. Congress remains on recess for the week.
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.