US: Trump’s speech in focus - TDS

Ahead of a slew of economic data, President Trump gives a keynote address at Davos beginning around 8:00 EST where an America First, protectionist agenda is expected to resonate, according to analysts at TDS.

Key Quotes

“Markets will be attentive to any discussion on tariffs, China policy or NAFTA. At 8:30 EST, we expect the advance estimate of Q4 real GDP to clock in at a 2.9% (consensus: 3.0%) rate, reflecting a robust advance in consumer spending and solid growth in business investment. One wildcard is net exports, which we expect to be a significant drag, but we expect markets to take a hawkish signal from strong domestic demand components.”

“Alongside is durable goods orders, which we expect to rise 0.7% (market: 0.8%) with stronger advances in the ex-transportation (TD: 1.0%, market: 0.6%) and core capex (TD: 0.8%, market: 0.6%) components. Advance trade data is also due, with a narrower deficit of $68.9bn expected.”