Thursday continues a busy earnings week, while data streams out of Asia, Europe and the Americas. As always, the second-to-last day of the work week means new jobs data out of the Department of Labor in the U.S. Add to that reports from KKR, PepsiCo, and Philip Morris International, and the Street may not have as much reason to stay quiet.

Here’s what you need to know.

• Japan starts the day off early with machine orders at 6:50 p.m. EST on Wednesday evening. Orders are seen contracting by 5.0 percent in December from a November reading.
• Chinese CPI and PPI will be announced at 10:30 p.m. EST. Year-on-year, the index measuring producer prices is seen advancing 0.8 percent, while consumer prices jump 4.0 percent in January. 
• At midnight EST, Japanese consumer confidence is set for release. The measure is expected to decline to 38.5 from 38.9. A reading below 50 indicates pessimism. 
• Switzerland’s State Secretariat for Economic Affairs will release its Consumer Climate Index at 1:45 a.m. EST on Thursday. Economists polled by Bloomberg forecast the index will advance to -22, from -24 in December. A reading above zero indicates optimism. 
• Industrial production in the U.K. is seen expanding by 0.2 percent in December. The measure will be released at 4:30 a.m. EST, along with a series of other data points from the island nation. Manufacturing production is also seen advancing 0.2 percent during the period.
• At 7:00 a.m. EST the Bank of England will announce if it is expanding its asset purchase program, as well as key rates. Economists polled by Bloomberg do not believe the central bank will adjust rates from the current 0.5 percent level, but that it will increase the asset program to £325 billion from £275 billion.
• The European Central Bank will announce any rate policy changes at 7:45 a.m. EST, although economists do not believe the bank will make any adjustments from the 1.0 percent level it currently stands at. 
• U.S. economic announcements kick off at 8:30 a.m. EST with initial jobless claims. Claims are seen ticking up by 3,000 to 370,000. Canadian new home prices will be announced at the same time, with prices forecast to increase 0.2 percent month-on-month in December.
• Closing out the day are early data releases in New Zealand, which could impact after-hours trading in the U.S. At 4:45 p.m. EST, New Zealand card sales will be released. Retail sales are expected to increase 0.5 percent in January from December. 

U.S. corporates reporting quarterly results on Thursday include names like KKR, PepsiCo, and Philip Morris International. Below, a roundup of tomorrow’s big announcers.

Bunge (BG): $1.55
Hercules Offshore (HERO): -$0.19
Teradata (TDC): $0.62
KKR & Co (KKR): $0.75
Coca-Cola Enterprises (CCE): $0.36
Sirius XM Radio (SIRI): $0.01
PepsiCo (PEP): $1.12
Sealed Air (SEE): $0.47
Stamps.com (STMP): $0.25
Activision Blizzard (ATVI): $0.56
Nuance Communications (NUAN): $0.36
Republic Services (RSG): $0.45
Expedia (EXPE): $0.51
Philip Morris International (PM): $1.09
Lorillard (LO): $1.95
Pitney Bowes (PBI): $0.60
Dunkin’ Brands Group (DNKN): $0.28
LinkedIn (LNKD): $0.07
Noble Energy (NBL): $1.16

Consensus estimates provided by Bloomberg. 

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See Also:

• Here Are The Key Market Moving Events For Monday, February 6, 2012
• Here Are The Key Market Moving Events For Wednesday, February 8, 2012
• Here Are The Key Market Moving Events For Tuesday, February 7, 2012

The bank of England is expected to launch another round of quantitative easing (QE) this week, in the hope of preventing the UK falling into another recession, after the economy contracted by 0.2 per cent at the end of last year.

The bank is likely to pump at least £50 billion into the economy by purchasing government gilts from pension funds and insurers with electronically created money.

This round of QE, which is designed to bring down borrowing costs, follows a £75 billion injection into the economy last October.

Since the QE programme started in March 2009, the Bank has bought £275 billion in gilts.

A final decision on the latest round of QE will be made at this week’s Monetary Policy Committee (MPC) meeting.

Some economists believe that last week’s welcome news that the UK’s manufacturing and services sector has grown to its highest level for ten months may lead the MPC to review the scale of the latest round of QE.

Last week The National Institute of Economic and Social Research (Niesr) called for the government to ease back on spending cuts in order to encourage the economy to grow.

The think tank warned that the UK economy will enter recession in the first half of 2012 if households continue to cut back on their spending.

Niesr forecasts that the economy will shrink 0.1% in 2012, however if the eurozone debt crisis is resolved the UK economy could grow 2.3% in 2013, it said.

“We forecast a return to technical recession in the first half of this year, as households continue to retrench, credit conditions remain tight, and businesses are reluctant to invest given uncertainty about both domestic and foreign demand,” the think tank said in its UK and World Economy Forecast.

The number of people declared insolvent in 2011 in England and Wales declined to 119,850, the lowest level for three years and a fall of 11.3 per cent from a record high in 2010.

There was a sharp decline at the end of 2011, when personal insolvencies fell by 5.6% compared with the last three months of 2010, according to the latest Insolvency Service figures.

The figures include bankruptcies, Individual Voluntary Arrangements (IVA) and Debt Relief Orders (DRO).

Despite the decline, personal insolvencies are still much higher than the average for the past 25 years.

One in 366 people became insolvent in 2011, compared with the 25-year average of one in every 1,600.

Although the figures seem to be on a downward trend, experts warn that the data does not include ‘zombie’ debtors, so the real level of personal debt could be much higher.

Zombie debtors are individual who have entered into informal arrangements with lenders.

While the number of personal bankruptcies fell by 28.3 per cent in the final quarter of 2011 compared with the same period in 2010, the number of IVAs rose by 4.5 per cent and the number of DROs increased by 18.3 per cent.

DROs can only be taken out by people with debts of less than £15,000, and there is the possibility that these individuals could become bankrupt at a later date.

The latest figures from the Bank of England show that consumers made an effort to reduce their debt in the run up to Christmas.

Consumer credit, excluding mortgages, fell by £377m to £207bn in December 2011, representing the biggest monthly drop since records began in 1993.

There was a £400m reduction in overdrafts and personal loans, while credit card lending remained the same.

Fred Goodwin, the former chief executive of the Royal Bank of Scotland (RBS), has been stripped of his knighthood for his role in the bank’s collapse during the 2008 credit crunch.

The Queen formally approved the annulment of the honour yesterday, after it was decided Mr Goodwin’s award brought the honours system into disrepute.

The decision is unprecedented as honours have formerly only been withdrawn from people convicted of a crime.

Mr Goodwin was knighted in 2004 for services to banking but his actions during the banking crisis are believed to have contributed to the collapse of RBS.

The bank received £45bn of rescue-funding and is now more than 80% owned by the Government.

The Financial Services Authority and Treasury Select Committee believe the banks’ failure was a key factor in financial crisis and the subsequent recession in the UK.

Mr Goodwin oversaw the takeover of Dutch bank ABN Amro in a £49bn deal which took place at the onset of the credit crunch, exposing RBS’s weak balance sheet and precipitating its collapse.

When Mr Goodwin left the bank in November 2008 his £703,000-a-year pension deal, which included a £2.7m lump sum, led to public outrage.

In the event of a future banking crisis, Britain’s finance ministry will be able to take charge after new law reforming the regulation of the country’s financial system takes effect next year.

The legislation will disband the Financial Services Authority from 2013 and give the central bank the power to supervise banks and insurers.

In a speech following the publication of the draft law, Chancellor of the Exchequer George Osborne said: “When taxpayers’ money is at risk in a crisis this legislation gives the Chancellor (of the Exchequer) the power to direct the Bank of England to act.”

Economic uncertainty and the threat of another recession is causing consumers to take charge of their finances and cut back on debt according to the latest figures from the Bank of England.

Personal debt, excluding mortgages, fell by £377 million in December, the biggest fall since records began.

Howard Archer an economist at Global Insight said: “Consumer desire to get a tight grip on their finances is clearly the consequence of current heightened concerns over the outlook for the economy and jobs.

“Consumer confidence was at one of the lowest levels on record in December, and while it rose in January, it was still extremely weak compared to long-term norms.”

According to market research firm GfK NOP, consumer confidence recovered slightly this month, with an increase of four points to minus 29, its highest level since June 2011.

The improvement suggests that consumers are becoming more optimistic that the economy and their own finance will improve, even though GDP contracted 0.2 per cent in the final quarter of 2011.

GfK NOP attributes this improvement in consumer confidence to a fall in inflation and a sense of optimism carried over from the Christmas celebrations.

Last week Aviva published its Family Finance Report which suggests that families may be struggling with debt more that other groups.

The report suggests that family debt excluding mortgages has increased by 48 per cent in the last twelve months to £7,944.

Families have taken on another £2,500 in loans and credit card debt to fund the increase in their living costs, which have outstripped the average increase in incomes of around 7 per cent.

Credit cards account for the largest proportion of unsecured personal debt, with families owing an average of £2,314 on their cards.

UK government debt rose to over £1 trillion for the first time in December, despite a fall in public sector borrowing.

Excluding bank bailouts and other financial interventions, public sector borrowing fell £2.2 billion to £13.7 billion in December according to the latest figures from the Office for National Statistics.

This was lower than City forecasts of £14.9 billion.

However, net debt increased from £883 billion in 2010 to £1,003.9 billion in 2011, representing 64.2 per cent of GDP.

The government has reduced borrowing by increasing taxes and cutting spending, with December representing the fourth consecutive month when borrowing has declined.

On average borrowing has fallen by around 5 per cent year on year over the past four months, compared with an average increase of nearly 7 per cent in the 10 years to the 2010-11 financial year, according to George Buckley, an economist at Deutsche Bank.

This has led to optimism among some economists than public sector finances may improve beyond the Office for Budget Responsibility expectations at the time of the Autumn Statement in November.

Earlier this week Adam Posen, a policymaker at the Bank of England also suggested that the UK’s economic outlook had improved, helped by the
second round of quantitative easing in October.

However, Mr Posen said that the improvement was not sufficient for the Bank’s forecasts to be upgraded.

After speaking at Nottingham Trent University, Mr Posen said: ‘Things are a little better … But that’s not enough good news in my world to suggest we have solved the problem, though I am going through the forecast round with my colleagues.’

The Bank of England expects the economy to grow by less than 1% for most of 2012, with inflation expected to fall below 2% at the end of the year.

HSBC has announced plans to lend more than £15 billion in mortgages this year, with £3m of this ring-fenced for first-time buyers.

This should provide mortgages for up to 150,000 home buyers during 2012, including 27,000 people buying their first home.

The sum amounts to 11 per cent of all the mortgage borrowing predicted for 2012 and represents HSBC’s biggest ever share of the mortgage market.

Martijn van der Heijden, head of lending at HSBC, said that the promised investment “demonstrates HSBC’s commitment to continuing to help people move up or indeed take the first step on to the housing ladder.”

Although analysts have suggested that the economic downturn will cause lenders to tighten their mortgage criteria, HSBC said it had no plans to do so.

Its promised investment will come under its current lending strategy which is designed to ensure that new lending is in the best interests of customers and shareholders, the bank said.

The latest Bank of England Trends in Lending report suggests that there will be an increase in first-time buyer mortgage deals in the first quarter of 2012.

This will help borrowers with high loan-to-value ratios and could allow prospective buyers who are currently trapped in rental properties, to purchase their first property.

The first-time buyer share of the market has improved slightly since autumn 2011, when it hit its lowest level for nearly three years.

The latest data from the Council of Mortgage lenders reveals that first-time buyers took out 17,300 loans, worth £2.1bn, in November 2011, a 4 per cent increase by volume and 5 per cent by value compared with the previous month.

The withdrawal of the stamp duty concession in March is expected to help fuel an increase in first-time buyer activity in the first quarter, with prospective home owners hurrying to purchase their first property before the deadline.

The rate of Consumer Prices Index (CPI) inflation fell to 4.2 per cent in December, from 4.8 per cent in November, according to the latest figures from the Office for National Statistics (ONS).

This is the third consecutive month that inflation has fallen and December’s figures represents the biggest monthly fall since April 2009.

Inflation is now at its lowest level since June last year and many economists are predicting a continued decline throughout the year.

In November, the Bank of England predicted that inflation would fall below the Government’s inflation target of 2 per cent by the end of this year.

Retailers’ attempts to generate sales by cutting prices in the run-up to Christmas have helped to push inflation down.

The price of clothing and footwear fell by 2.8 per cent between November and December and fuel prices fell by 1.1 pence a litre, although food prices increased by 1.4 per cent.

Although the fall in inflation will help to ease the strain on household incomes, analysts expect consumers to continue to control their spending in the face of continuing uncertainty over jobs and tightening credit conditions.

While there was good news on inflation today, a worrying economic forecast by the Ernst & Young Item Club suggests that the UK economy has fallen into a ‘technical’ recession due to the eurozone crisis and rising unemployment.

The Item Club has cut its GDP growth rate forecast from 1.5% to 0.2% for 2012 and expects unemployment to rise by a further 300,000 this year, to just below three million people

It does not expect the UK economy to recover until CPI inflation drops to 2 per cent late this year.

The Chartered Institute of Personnel and Development expects unemployment to remain above 2.5 million until at least 2016.

The Post Office has strengthened its range of savings products with a reward saver account offering 3 per cent interest and a notice period of only 30 days.

If savers make a withdrawal without giving 30 days notice, they will lose 30 days interest on the amount withdrawn.

The interest rate includes a 1.25% bonus for the first year.

Like all Post Office products the account is covered by a ‘savings promise’, which means that any Bank of England base rate changes until January 2013, will be mirrored by the interest on the account.

Customers can access the reward saver account at Post Office branches, by phone or by post.

Post Office Director of Savings and Investments, Richard Norman, said: “The new issue of the Post Office Reward Saver account further demonstrates our dedication to branch savers.

“The best buy rate will help more people make their money work harder for them.”

The account reflects an increasingly competitive savings market.

The latest survey by Moneysupermarket.com suggests that average savings rates for easy access accounts have increased by 0.23 per cent to 2.97 per cent in the last year.

The figures are based on the average interest rate paid by the top five easy access accounts.

ISA rates have also increased, with the average rates paid by a one year fixed rate ISA now 3.17 per cent compared with 2.99 per cent in 2011.

Bonds have followed a similar trend with the average top five rates for one year and two year fixed rate bonds based on £10,000 increasing by 0.46 per cent.

Meanwhile, mortgage and loan rates have fallen over the past year.

Kevin Mountford, head of banking at Moneysupermarket.com , said: “Savers have suffered from a low base rate environment for almost three years so it’s encouraging to see banks and building societies increasing competition to attract savers, offering attractive headline rates compared with a year ago.”

Marks & Spencer Money is offering borrowers a personal loan at a rate of just 6 per cent.

This represents the lowest rate since 2008 when Moneyback Bank was offering 5.8 per cent, while just one year ago Tesco Bank offered the lowest loan rate, of 8.4 per cent.

Marks & Spencer Money’s 6% deal is for personal, unsecured loans of between £7,500 and £15,000 for a period of one to five years.

Tesco Bank is not too far behind M&S Money after cutting its rate from 6.4 per cent to 6.1 per cent on loans of between £7,500 and £15,000 with a term of between one and ten years.

Yesterday the Co-operative Bank cut rates on all of its personal loans by one per cent for existing customers who hold Privilege and Privilege premier account holders.

This means that these customers can now borrow between £7,500 and £14,999 at 6.9 per cent, while the interest rate on loans between £15,000 and £25,000 has been cut from 8.9 per cent to 7.9 per cent.

Personal loan rates have been on a downward trend since the start of the New Year, with Santander and Barclays also announcing lower rates.

In related news the Bank of England has revealed that it expects UK banks to toughen their loan terms for both individuals and businesses because of difficulties in wholesale funding markets and the uncertain economic outlook.

In its fourth-quarter Credit Conditions Survey the Bank of England suggested that lenders would introduce more stringent credit-scoring criteria for mortgage applications and tighten covenants on business loans.

This means that homebuyers, who already struggling to raise the large deposits demanded by lenders, are likely to find it even more difficult to secure a mortgage in the coming months.

The supply of mortgages has plummeted since the onset of the international banking crisis in 2007.