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Thursday's agenda: Burberry looks to steady after China woes

Published: 16:42 11 Nov 2015 GMT

Burberry-Womenswear-Autumn_Winter-2015-Show-Final_002

Fashion house Burberry reports its half year results on Thursday, with the backdrop of the Chinese economy likely to be the big talking point.

Previously announced first half sales disappointed, undermined by weak second quarter demand from Chinese consumers in particular.

In its latest update, Burberry said a "more challenging external environment" affected second quarter demand from luxury consumers, particularly Chinese customers.

Keith Bowman, at Hargreaves Lansdown, said: “Half year adjusted pre-tax profit is forecast to fall by just under 8% to £140mln, with any accompanying management outlook comments, as always, watched for closely.

Elsewhere, aero-engine maker Rolls Royce disappointed investors with a profit warning earlier in the year, and the market will be hoping there will not be a repeat performance on Thursday.

With lower oil prices, investors had been expecting a positive note from Rolls Royce, before the warning.

Graham Spooner, at The Share Centre, said the issues were with “weak orders on marine drive systems and defence spending”

Chief executive Warren East has not long been in the job, and investors will be hoping he can turn things around quickly.

Spooner said the market will be looking at whether it can add to its large order book, last reported to be around £76.5bn.

 

Significant announcements expected:

Final: Punch Taverns (LON:PUB)

Interim: Burberry Group (LON:BRBY), FirstGroup (LON:FGP), Halfords Group (LON:HFD), Infinis (LON:INFI), JSC TBC Bank (LON:TBCB), Norcros (LON:NXR), SABMiller (LON:SAB)

Trading statement: Derwent London (LON:DLN), IMI (LON:IMI), Irish Continental Group (LON:ICGC), Premier Oil (LON:PMO), Rolls-Royce Group (LON:RR.), Safestore Holdings (LON:SAFE)

Reading ex-dividend: Lloyds Banking.

US companies: Advance Auto PartsApplied MaterialsCisco SystemsHelmerich & Payne; Kohl's Corp; NordstromViacom; Wal-Mart Stores

Economic: USA – Weekly jobless claims; UK – RICS House Price Balance; EU – Industrial Production.

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