Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Barclays is next up in this week’s UK banking procession

Much like Lloyds, Barclays has had to set aside provisions for PPI claims.
Barclays bank logo on building
Barclays will be Thursday's highlight

Barclays Plc (LON:BARC) is next up in the procession of UK banking updates, with its trading update due to guide the market on Thursday.

Retail banking rival Lloyds on Wednesday revealed a jump in third quarter profit, supported by the acquisition of credit card business MBNA and the absence of further provisions for its payment protection insurance mis-selling scandal.

But shares in Lloyds fell lower as it warned that risks remain with Brexit uncertainty, an increase in PPI claims and ongoing legacy issues.

Much like Lloyds, Barclays has had to set aside provisions for PPI claims.

Barclays swung to a first half loss after a £700mln provision for PPI and a loss on the sale of further stake in its Africa business as it focuses on its more profitable core businesses. 

The group is also trying to resolve technical problems with its stockbroking arm that has prompted some of its clients to leave.

Many Barclays clients have complained about having login-in problems and long waits after the bank moved 200,000 customers from its Stockbroker service to its new Smart Investors offering in August.

Credit Suisse said overall levels of client activity in the third quarter have been low and the same period a year ago delivered a strong performance.

Investors will no doubt be eager to see what Barclays has to say come 7:00am on Thursday.

Friday, meanwhile, sees Royal Bank of Scotland Plc (LON:RBS) come into focus.

ECB also in focus on Thursday

Away from the corporate news, the big focus will be on the latest European Central Bank council meeting, with economists expecting Mario Draghi & Co to finally announce a retreat on quantitative easing on Thursday.

In a preview, economists at UBS said they expect the ECB to announce that it will cut its monthly asset purchases from €60bn to €30bn as of January, with a commitment for nine months, until end-September 2018.

They added: “We think the ECB will leave open whether it  will extend QE after September and hint that this decision will be taken in a data- dependent fashion, closer to the time. We believe the ECB will maintain a QE easing bias, indicating that it will stand ready to scale up QE again in the event of negative shocks.”

The economists concluded: “We think the Bank will once again commit to maintaining a ‘very sUBStantial degree of monetary accommodation’ in order to bring inflation back to the target.

Thursday’s agenda

Trading update: Avocet Mining PLC (LON:AVM), KAZ Minerals PLC (LON:KAZ), National Express Group PLC (LON:NEX), RELX PLC (LON:REL)

Finals: Connect Group PLC (LON:CNCT), Redefine International PLC (LON:RDI)

Interims:  C&C Group PLC (LON: CCR)

Ex-dividends:  Barratt Developments PLC (LON:BDEV), Ferguson Plc, ITV plc, Rolls-Royce PLC

Economic data: GfK German consumer confidence; US weekly jobless claims; US balance of trade; US pending home sales

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use