What to Watch in the Day Ahead - Tuesday, January 13

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On the U.S. economic front, the Department of Labor is set to release the December Consumer Price Index, with headline inflation expected to rise 0.3% month-on-month, mirroring November's gain, while the annual rate is seen holding steady at 2.7%. Core CPI is forecast to increase 0.3% on the month, accelerating from a 0.2% rise previously, with the year-on-year measure edging up to 2.7% from 2.6%. Also, the Census Bureau's New Home Sales report for October is expected to show a total of 720,000 units, compared with the sale of 800,000 units in September. Separately, the Treasury Department is set to release the Federal Budget figures, which is likely to show the budget deficit narrowed to $150 billion in December, from $173 billion in November.

JPMorgan Chase is expected to kick off the fourth-quarter earnings season for U.S. banks, with analysts forecasting higher profit on a rebound in dealmaking and strong trading results. Investors will be focused on Chief Executive Jamie Dimon's assessment of the health of the U.S. economy and his outlook for investment banking, initial public offerings and consumer spending in 2026.

Delta Air Lines is expected to report lower fourth-quarter profit, weighed down by weather disruptions and the impact of the recent government shutdown. Investors, however, are likely to focus on the airline's outlook for 2026, as analysts point to a resilient U.S. economy and a tight supply of airline seats as supportive factors for the industry.

Pharmaceutical executives, bankers and investors from around the world convene in San Francisco for JPMorgan's annual healthcare conference. At the conference, Reuters interviews Raymond Stevens, CEO of U.S.-based biotech firm Structure Therapeutics. The company is developing an oral obesity pill that has shown promising results in a mid-stage trial, as drugmakers race to bring new offerings to market in the lucrative and competitive weight-loss drug space. Also on the tap is a Reuters interview with Teresa Graham, pharmaceutical division head at Swiss firm Roche, at the conference. Roche has several highly anticipated upcoming late-stage trial readouts expected in 2026 and is also beginning a late-stage trial of its experimental obesity drug amid a major push to break into the fast-growing weight-loss drug market.

Consumer and retail companies and their M&A bankers, lawyers and private equity investors flock to Orlando, Florida for the annual ICR Conference.

St. Louis Fed President Alberto Musalem is set to virtually participate in a moderated discussion on the U.S. economy and monetary policy before an MNI webinar. (1000/1500)

Federal Reserve Bank of Richmond President Tom Barkin is scheduled to speak at the CFA Society Washington DC. (1600/2100)

On the Canadian economic front, Statistics Canada is set to release data for November building permits, which likely fell 5.5%, following a 14.9% gain in October.

In Latin America, Brazil's IBGE is scheduled to report November service sector data, with growth forecast to have risen 0.2%, following a 0.3% increase in the prior month. On an annual basis, it is projected to rise 3%, following a gain of 2.2% in the month before. Separately, Argentina's December consumer price index $(CPI)$ is set for release and is expected to rise 2.5%, mirroring November's gain. On an annual basis, CPI is likely to increase 31%, slightly easing from November's 31.4%.

(Compiled by Shreya Sabharwal in Bengaluru; Edited by Vijay Kishore)