Look ahead: central bank decisions; Tesla; GE & J&J earnings
The BoJ is set to decide on its rate, as well as deliver its quarterly outlook report. In the UK, public sector net borrowing will be released for December, while euro zone consumer confidence is forecast to rise in January.
(Partial Video Transcript)
BoJ rate decision due
Hi, I'm Angela Barnes. You're watching IGTV and welcome to your look ahead to Tuesday, 23 January 2024.
Let’s starts with Japan, where the Bank of Japan (BoJ) is set to decide on its rate, as well as deliver its quarterly outlook report. The key short-term interest rate is to remain at -0.1%, with 10-year bond yields target to stay at around 0%.
The BoJ seemingly has a bit more time to phase out its monetary stimulus, given the inflation data published last Friday. Market expectations are for short-term interest rates to come out of negative territory at the April meeting.
USD/JPY set to hover around 148
Assuming the BoJ springs no surprise, the USD/JPY pair should continue to hover around 148. Since the start of the year, the pair has gained traction and is currently down slightly on the day, by 0.07% and hovering around 148.
Let's remain in the Asia Pacific region, where in Australia, the NAB business confidence is expected to rise to -7 for the month of December. Remember that last month the index plunged to -9, its lowest level since November 2021. Well, -7 would mean that the index would remain in the negative for a third straight month.
Here in the UK we only expect public sector net borrowing for the month of December. Later in the day, euro zone consumer confidence is forecast to rise marginally to -14.7 in January, from -15 the previous month.
Over in the US, the market awaits Richmond Fed manufacturing index API crude oil inventories
Netflix's 2023 performance remarkable
Now on the corporate front, tomorrow will be a rather busy day on both sides of the Atlantic. First, here in the UK we are awaiting the Crest Nicholson full-year earnings report, and Associated British Foods and Premier Foods trading statements for their past quarter.
Over in the US, earnings publications are stepping up a gear. Netflix is one of the main features. The street expects earnings of $2.20 per share on revenue of $8.71 billion. Netflix's performance in the third quarter of 2023 was remarkable. The company achieved an impressive 8% growth in revenue, with a net addition of 8.76 million paid memberships.
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