MNI Global Morning Briefing

     LONDON (MNI) - Wednesday starts off strong with the Euro Area fuelling the

schedule. It does however run out later on in the day with the US trying its

best to keep the momentum going later in the day.

     Starting at 0600GMT, Germany will release their final HICP data.

Previously, y/y growth was at 1.4%.

     Italy are next with industrial orders at 0800GMT. Previously, y/y growth

was 3.4% and m/m growth was weak at -0.6%.

     It is an uneventful rest of the week for the UK but there is still one

event which may be worth mentioning. The BOE Agents' Business Survey will be

released at 0830GMT. In the last MPC meeting, Governor Carney pointed to their

use of households and business surveys in making interest rate decisions and as

a result business optimism may be worth considering in this latest piece.

     Back to Italy with their final HICP data at 0900GMT. Previous y/y growth

stood at 0.6%.

     Now, all the HICP data from the Euro member countries has been reported,

the Euro Area final HICP inflation rate is also at 0900GMT. Prior y/y inflation

of 1.2% is not expected to change by MNI analyst forecasts.

     Congested Data at 1230GMT

     Moving to the afternoon and ECB President Mario Draghi speaks in Frankfurt

at 1200GMT. This is followed up by Executive Board member Benoit Coeure at

1230GMT.

     Also at 1230GMT and kicking off the day for the US, Atlanta Federal Reserve

Bank President Raphael Bostic speaking in Georgia.

     The seasonally adjusted pace of housing starts (1230GMT) is expected to

hold roughly steady at a 1.318 million annual rate in April after a strong March

gain, as the weather was less favourable than normal in some parts of the

country. The NAHB index slipped to 69 in April from 70 in March, a fourth

straight decline, so there is some downside risk. Still, as prices rise and

inventories remain tight, builders will likely find it advantageous to boost

output. The pace of building permits is expected to slow to a 1.350 million pace

from the revised 1.379 million rate in March.

     The final of the 1230GMT data is Canada's monthly survey of manufacturing.

Manufacturing sales previously grew at 1.9% but are anticipated by analysts to

decline to 1.2%.

     Industrial production (1315GMT) is expected to rise 0.6% in April following

solid gains in the previous two months. Factory payrolls rose by 24,000 in April

and the factory workweek rose to 41.1 hours. However, the ISM production index

fell to 57.2 in the current month from 61.0 in the previous month. Utilities

production is expected to continue its upward trend in the month after a rebound

in the previous month, as weather was a bit cooler than normal, supporting heat

use at a time when most of the country has normally shut it off. Mining

production is forecast to rise further after gains in February and March.

Capacity utilization is forecast to rise to 78.4% from 78.0% in March.

     The late afternoon and evening is speeches orientated. Starting at 1430GMT,

ECB Executive Board member and MNI connect speaker on Monday, Peter Praet,

speaking in Frankfurt.

     Moving to 1600GMT, BOC Deputy Governor Lawrence Schembri speakS at the CFA

Society Ottawa, Canada.

     Late in the evening at 2230GMT is St. Louis Federal Reserve Bank President

James Bullard speaking in St. Louis, Missouri.

     Closing out the calendar as usual is Japan and Australia. At 2350GMT is

machinery orders in Japan which are expected to show a strong m/m decline in

growth. Previously, machinery orders grew at 2.1% m/m, however, analyst have

pencilled in a decline of 2%. The Melbourne Institute Inflation Expectations

survey and monthly labour force survey is next and concludes the calendar at

0100GMT and 0130GMT respectively. Previous inflation expectation trim mean was

at 3.6%. The unemployment rate in Australia is expected by analysts to remain

fixed at 5.5%, but employed persons m/m growth is expected to see sharp growth

after a prior 4.9 unit value expected to move up to 20.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com