the week ahead: Few Big Names Expected at Saudi Conference, and Data on U.S. Economy

TECHNOLOGY

Google’s parent company and Twitter report earnings.

Google’s parent company, Alphabet, is scheduled to report third-quarter earnings on Thursday. In the previous quarter, Alphabet swallowed a $5.1 billion fine from the European Union for abusing its market dominance in smartphone software. In response to Europe’s antitrust ruling, the company said last week that it would start charging handset manufacturers to install popular Google applications for phones running Android in the European Union. Google will probably face questions on how those plans may affect future results. Separately, Twitter is also set to report earnings on Thursday, with investors focused on whether there will be a continued decline in monthly users.

— Daisuke Wakabayashi

ECONOMY

Economic growth probably slowed over the summer.

The United States economy surged in the spring, growing at a 4.2 percent rate in the second quarter, the best mark since 2014. Don’t expect a repeat performance when the Commerce Department releases third-quarter figures on Friday: Economists surveyed by FactSet expect the report to show a more modest 3.3 percent growth rate. Still, the economy looks to be on track for its best full-year performance in well over a decade. Many economists expect growth to cool later this year and early next, as the effects of tax cuts and increased government spending fade. But that slowdown, if it happens, won’t be evident until after November’s midterm elections, where Republicans are counting on the economy to help them hold off a “blue wave” of Democratic victories.

— Ben Casselman

ECONOMY

S.P. to update its rating on Italy’s debt.

Italy’s ability to borrow money could suffer another blow when Standard Poor’s updates its rating of the country’s debt on Friday. The decision, expected after markets close, will come a week after Moody’s downgraded Italian government bonds to one notch above junk status, citing the populist government’s deficit spending plan. The market interest rates on Italian debt rose to four-year highs after Moody’s decision, and could rise further if S.P. also issues a downgrade.

— Jack Ewing

Article source: https://www.nytimes.com/2018/10/21/business/few-big-names-expected-at-saudi-conference-and-data-on-us-economy.html?partner=rss&emc=rss