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Last week we were spot on to say the major news focus of the week would be a combination of health care, Judge Sotomayor’s nomination and a look at the wars in Iraq and Afghanistan.  In particular we were correct to add that Federal Reserve Chmn. Ben Bernanke’s testimony (and others on Capitol Hill) would drive the business pages.  We, of course, could not predict the events that would unfold in Cambridge, Massachusetts.  This week the business pages will be driven by two factors:  1) the litany of earnings out, offering a cross-section of the US economy; and 2) Congress’ desire to get something press release worthy done on health care and financial industry regulatory reform before the August 7th recess.  (FYI – we never saw the wrap piece last week on the costs of health care + regulatory reform + Iraq + Afghanistan.  We did see a few political pieces pondering whether Pres. Obama is trying to do to much too soon, but that wasn’t what we were hoping for – thus we suggest that piece is still a jump ball).

MBA readers HERE’S WHY YOU CARE:  The week starts off with a bang because you have Pres. Obama, Treasury Secy. Geithner, and Secy. of State Clinton all taking part in the “U.S.-China Strategic and Economic Dialogue” along with their Chinese counterparts (our MBA readers of course know the answer to why? – China owns much of the US’ debt).  Fed Chmn. Ben Bernanke won’t be put in a corner either having taped a town hall with PBS which will air Monday-Wednesday on the NewsHour with Jim Lehrer (according to the Washington Post’s Neil Irwin).  AND it gets better, Financial Services Cmte. Chmn. Rep. Barney Frank (D-MA) goes before the National Press Club on Monday to field questions (and WhyYouCare.com will be in attendance).  Post Monday, Pres. Obama returns to stumping on health care, while Congress returns to that as well plus financial regulatory reform.  Result?  The rush toward recess to see what will get done.  The pieces you need to look for are the ones that show the changes to the various congressional bills and why – that’s your clue as to not just what is in the legislation but why.

MBA wannabes HERE’S WHY YOU CARE:  If you think that all of this seems like a rush for Congress to create a Jackson Pollock like piece of legislation, then the piece you need to read but may have missed is the Washington Post’s Neil Irwin’s write from over the weekend.  He looks at how the various heads of the Fed, Treasury, FDIC, etc. testified before Congress on Friday but not from the same song sheet as to what they want Congress to do (and again, remember they are trying “to do” before August 7th).

Here’s The Weekly Crib Sheet…  We do caution that you check back for updates.

 

MONDAY 7/27

Earnings:  Invesco Ltd.; Verizon

Economic Reports:  New Homes Sales (for June).

Pres. Obama:  1) Attends opening session (w/ Treasury Secy. Timothy Geithner and Secy. of State Hillary Clinton) of the U.S.-China Strategic and Economic Dialogue.  Chinese Participants:  State Councilor Dai Bingguo and Vice Premier Wang Qisham.  From the Treasury’s press release:  “The Dialogue will focus on addressing the challenges and opportunities that both countries face on a wide range of bilateral, regional and global areas of immediate and long-term strategic and economic interests”; 2) Discusses the US’ bid to host 2018 and 2022 World Cups with FIFA Pres. Joseph Blatter; 3) Meets with WNBA champs at White House; and 4) holds White House reception for ambassadors.  

Secy. Geithner:  Takes part in the U.S.-China Strategic and Economic Dialogue.

Chmn. Bernanke:  NewsHour With Jim Lehrer airs portions of a town hall with Federal Reserve Chmn. Ben Bernanke.

National Press Club:  House Financial Services Cmte. Chmn. Rep. Barney Frank (D-MA) addresses the National Press Club.

 

TUESDAY 7/28

Earnings:  Viacom

Economic Reports:  Consumer Confidence (for July); S&P Case-Shiller Home Price Index (for May).

Pres. Obama:  Attends AARP’s town hall on health care in DC.

Secy. Geithner:  Speech at the U.S.-China Business Council and National Cmte. on U.S.-China Relations dinner.

Chmn. Bernanke:  NewsHour With Jim Lehrer airs portions of a town hall with Federal Reserve Chmn. Ben Bernanke.

Senate Hearing: Senate Banking, Housing and Urban Affairs Cmte. on “Regulatory Modernization: Perspectives on Insurance.”

Sotomayor Nomination: Senate Judiciary Cmte. to vote on Sonia Sotomayor’s Supreme Court nomination.

Health Care Bill Mark Up:  House Energy and Commerce Cmte. marks up America’s Affordable Health Choices Act of 2009 (HR 3200).

House Mark Up: House Financial Services Cmte. marks up draft bill on overhauling financial industry regulations (7/28-30).

Joint Hearing:  Joint Economic Cmte. foreclosure trends and prevention.

Regulating Derivatives:  Commodity Futures Trading Commission holds a three day (7/28-29, 8/5) public hearing looking at position limits (including those for energy markets), plus hedge exemptions, derivative clearing houses, and issues involving price discovery contracts.

 

WEDNESDAY 7/29

Earnings:  Aetna Inc.; Aflac Incorporated; Banco Santander S.A.; Coca-Cola Enterprises Inc.; ConocoPhillips; Daimler AG; General Dynamics; Hartford Financial Services; Moody’s Corporation; Time Warner Cable, Inc.; Time Warner Inc.; Visa Inc.

Economic Report:  Durable Goods Orders (for June); Federal Reserve’s Beige Book; Mortgage Bankers Assoc’s weekly mortgage application data.

Pres. Obama:  Health care events in both Raleigh, NC, and Bristol, VA.

Senate Hearing:  Senate Banking, Housing and Urban Affairs Cmte’s Securities, Insurance, and Investment Subcmte. on shareholder protection and corporate governance.

Chmn. Bernanke:  NewsHour With Jim Lehrer airs portions of a town hall with Federal Reserve Chmn. Ben Bernanke.

House Mark Up: House Financial Services Cmte. marks up draft bill on overhauling financial industry regulations (7/28-30).

House Hearing:  House Financial Services Cmte’s Housing and Community Opportunity Subcmte. on public housing’s future.

Regulating Derivatives:  Commodity Futures Trading Commission holds a three day (7/28-29, 8/5) public hearing looking at position limits (including those for energy markets), plus hedge exemptions, derivative clearing houses, and issues involving price discovery contracts.

National Press Club:  Senate Foreign Relations Cmte. Chmn. John Kerry (D-MA) addresses the Press Club.

 

THURSDAY 7/30

Earnings: Alcatel-Lucent; Cablevision Systems Corp.; CIGNA; Colgate-Palmolive; Dow Chemical Company; ExxonMobil Corporation; Genworth Financial, Inc.; Kellogg Co.; MasterCard Incorporated; MetLife, Inc.; Motorola Inc.; Sony Corporation; Walt Disney; Wynn Resorts.

Economic Reports:  Initial Unemployment Claims (for 7/25).

Pres. Obama:  White House meeting with Philippine Pres. Gloria Macapagal-Arroyo.

House Floor:  Slated to take up the Corporate and Financial Institution Compensation Fairness Act of 2009 (HR 3269).

House Mark Up:  House Financial Services Cmte. marks up draft bill on overhauling financial industry regulations (7/28-30).

FDIC Advisory Cmte. Meeting:  FDIC’s Advisory Cmte. on Economic Inclusion looks at “prized-linked savings” and out reach to low/moderate income consumers.

 

FRIDAY 7/31

Earnings: Belo; British Airways; Chevron.

Economic Report:  GDP (Second Quarter).

Pres. Obama:  TBD.

 

LOOK AHEAD:

Aug. 3: Construction Spending report.

Aug. 4:  Nat’l Assoc. of Realtor Pending Home Sales and House Forecast.

Aug. 5:  Regulating Derivatives:  Commodity Futures Trading Commission holds a three day (7/28-29, 8/5) public hearing looking at position limits (including those for energy markets), plus hedge exemptions, derivative clearing houses, and issues involving price discovery contracts.

Aug. 7: Looming recess date for Congress.

Aug. 11-12: Federal Open Market Cmte. meets.