Week ahead in business and economics: September 1-5

Posted by Unknown on Sunday, August 31, 2014


However, others believe it will stay on hold, in particular because the bank has not yet launched its latest €400bn package of long-term loans, known as TLTROs.


The Bank of England is expected to keep interest rates on hold, despite minutes of the August meeting showing that two policymakers voted to increase rates to 0.75pc, from 0.5pc.


Key survey data for the manufacturing, construction and services sector are out this week, while revised official data are expected to show the UK did not even come close to a double-dip recession in 2012.


Monday September 1


Full-year results None scheduled


Interim results None scheduled


Trading update Berkeley Group


Economics CIPS/Markit Manufacturing PMI


Meetings Berkeley Group (AGM), IGas Energy (AGM)


Tuesday September 2


Full-year results Alumasc Group, Redrow


Interim results Johnson Service Group, Smart Metering Systems, Vislink


Trading update Energy Assets Group


Economics CIPS/Markit Construction PMI


Meetings Aberdeen New Dawn IT (AGM), Energy Assets Group (AGM), Severfield (AGM)


Wednesday September 3


Hargreaves Lansdown investors will be looking closely at this week’s full-year figures to see how much impact government investment reforms have had on profits.


Under new rules, Britain’s biggest broker is not able to take commission but has to charge an hourly rate or declare fees up front.


Hargreaves has said it will benefit from the changes and Numis analyst James Hamilton agrees – he upgraded Hargreaves to “buy” from “hold” early in August, saying the reforms left it in a strong position in a market that is experiencing structural growth.


The company may also give a hint about how the recent cut in the charges it applies to customers who re-invest share and fund dividends is affecting the bottom line.


The reduction means savers who reinvest £5,000 of dividends will now pay £10 to the firm when the money is spent buying further shares of the same stock. Under the old pricing model the same saver would have paid £50.


Hargreaves cautioned in the first half that its results were boosted by the Royal Mail float and admits


that with 80pc of revenue recurring from existing clients profits are exposed to movements in the stock market.


Peter Hargreaves, the group’s co-founder and executive director, told The Daily Telegraph the shares are operationally geared and would do worse when the market falls and outperform on the upside.


Shares at Britain’s largest investment shop have fallen 18pc so far this year, compared with the FTSE 100 which is up 0.9pc.


Full-year results A&J Mucklow, Hargreaves Lansdown


Interim results None scheduled


Trading update Ashtead Group, Safestore Holdings


Economics British Retail Consortium Shop Price Index, CIPS/Markit Services PMI, CBI Growth Indicator Survey


Meetings Ashtead Group (AGM)


Thursday September 4


All eyes will be on the sky as easyJet releases its August traffic statistics during a tumultuous time for the airline industry. As political unrest and government sanctions render some areas all but unvisitable, investors will be closely watching to see if the downturn is reflected in the numbers. Indeed, at the end of July easyJet warned shareholders that its pre-tax profits could be lower than expected, at £545m-£570m for the year to September 30.


Analysts had pencilled in full-year profits in the region of £572m, higher than the upper limit of easyJet’s guidance.


Closer to home, airlines are facing the prospect of delays caused by


an imminent volcano eruption in Iceland. Some of easyJet’s close competitors are fighting back with radical efforts to stay in the black. Last week, Ryanair announced that it is to launch a business class service to appeal to a new segment of the market. Analysts will be keen to see what easyJet has in store for passengers during the coming months.


Betfair’s results are expected to have been boosted by the World Cup and strong customer growth. Analysts at Morgan Stanley predict revenue growth of 24pc and an Ebitda increase of 12pc. “We see Betfair as a long-term winner, see upside risks to forecasts, and trading on 2014 Ebitda, the shares are attractively valued,” the firm said.


Full-year results Go-Ahead Group, Redde


Interim results Burford Capital, SuperGroup


Trading update Betfair Group, Consort Medical, easyjet


Economics Bank of England interest rate decision


Meetings Betfair Group (AGM), Carclo (AGM), Carpetright (AGM), Consort Medical (AGM), Dart Group (AGM)


Friday September 5


Full-year results None scheduled


Interim results EMIS Group


Trading update None scheduled


Economics REC and KPMG Report on Jobs


Meetings Latchways (AGM)





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