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Day ahead: ITV, Vodafone and Bovis Homes results, UK inflation data

The day ahead includes corporate earnings from ITV, Vodafone and Bovis Homes as well as official UK inflation data
Vodafone's dividend will be in focus in its second quarter results

Investors and analysts will be kept busy wading through a raft of corporate results and UK inflation data on Tuesday.

Vodafone Group PLC (LON:VOD) reports its second quarter results with the attention likely to centre on its dividend.

“With little in the way of share price growth over the last two years, investors have focused more on the attractive 6% yield,” said Graham Spooner, analyst at The Share Centre.

“Areas to concentrate on will be the performance in key European operations, which have been mixed, along with India and other emerging markets.”

ITV to see easing decline in advertising income

For ITV plc (LON:ITV), which posts its third quarter trading update, the focus will be on advertising income.

In July, the broadcaster said it expects pressures on its advertising income to ease. It said net advertising revenue for its family of channels is anticipated to fall by around 4% in the third quarter, compared with an 8% drop in the first half.

HSBC thinks the decline will be slightly better than ITV had been predicting at 3.5%, thanks to a decent September.

“We believe that a lot of the potential negatives are discounted, expectations have bottomed and the market has formed a view that ‘everything is bad’. This arguably leaves room to beat expectations and close some of the discount to peers,” the bank said.

New boss of Bovis Homes under the microscope

Struggling housebuilder Bovis Homes Group PLC (LON:BVS) also posts its third quarter update as it undergoes a restructuring under new boss Greg Fitzgerald.

Fitzgerald in September unveiled an ambitious plan to turnaround the company and signalled his confidence in his strategy by raising the dividend as the company  

His strategy was laid out as the group reported a decline in first half profits after setting aside a further £3.5mln to compensate unhappy buyers for poor quality homes it built.

Fitzgerald's strategic plan to overhaul the business includes cutting building costs, reducing its land investment on a number of larger sites, disposing of non-performing assets and streamlining its operations to focus on a few core regions.

UK inflation set to rise

Away from corporate earnings, official UK data on inflation will be closely eyed.

The Office for National Statistics is expected to reveal UK consumer price inflation rose to an annual rate of 3.1% in October after reaching a five-year high of 3.0% in September.

The slump in the pound following the Brexit vote has pushed inflation well above the Bank of England’s 2% target, putting a strain on consumers’ disposable incomes and hitting UK retail sales. 

Significant events expected:

Interim results - Land Securities Group Plc (LON:LAND), Jackpotjoy PLC (LON:JPJ), Trifast PLC (LON:TRI), AVEVA Group PLC (LON:AVV), Telecom Egypt (LON:TEEG), Speedy Hire Plc (LON:SDY), Romgaz (LON:SNGR), Picton Property Income (LON:PCTN), SRT Marine Systems PLC (LON:SRT), Vodafone Group PLC (LON:VOD), Intermediate Capital Group PLC (LON:ICP), DCC Plc (LON:DCC),  BTG PLC (LON:BTG), Cropper James PLC (LON:CRPR), Electrocomponents PLC (LON:ECM), Wentworth Resources (LON:WRL), Renold (LON:32ID), FirstGroup PLC (LON:FGP)

Final results – McCarthy Stone Plc (LON:MCS)

Trading statement - BBA Aviation PLC (LON:BBA), Meggitt plc (LON:MGGT), Polypipe Group Plc (LON:PLP), UBM Plc (LON:UBM), Bovis Homes Group PLC (LON:BVS), Irish Continental Group PLC (LON:ICGC),  ITV plc (LON:ITV)

AGM/EGM - Global Petroleum Ltd (LON:GBP), Mucklow Group PLC (LON:MKLW), Nanoco Group PLC (LON:NANO), Smiths Group PLC (LON:SMIN), Rainbow Rare Earths Limited (LON:RBW)

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