Fresh from the FTSE 100’s record closing high, more of the London index’s big names report results in the coming week that could send it even higher.
The coming week sees updates and results from blue chips AstraZeneca, Barratt, BP, British American Tobacco, Darktrace and Unilever.
Four of them were among the Footsie’s biggest dividends last year, BAT, AstraZeneca, Unilever and BP – representing a fifth of the entire index’s expected payouts.
Macroeconomic events include UK GDP numbers and an Australian central bank decision that extend the Aussie dollar’s reputation as the most-bought currency so far this year.
MONDAY 6 FEBRUARY
Darktrace PLC (LSE:DARK) has been facing intense scrutiny ahead of its second-quarter trading update as a result of claims from a US-based short seller.
As a legal expert pointed out, there has been ample evidence in recent years that scandals such as the one Darktrace finds itself in “can, and often do, result in actual legal claims”.
Later on, investors will be focused on video games, with earnings from Call of Duty maker Activision Blizzard, which Microsoft is trying to buy for US$69bln, and Take-Two Interactive Software, which owns Grand Theft Auto maker Rockstar Games and Zynga, creator of Farmville and Words With Friends.
Significant announcements on Monday
Trading updates: Darktrace
AGMs: Smithson Investment Trust Plc
Economic announcements: Construction PMI (UK)
US earnings: Activision Blizzard, Take-Two Interactive Software, Pinterest
TUESDAY 7 FEBRUARY
Full-year numbers from BP PLC (LSE:BP.) are certain to spark further calls for an increase in windfall tax on North Sea profits, even if its expected US$10bn tax bill of is its largest since 2008.
Expect that to be overlooked, as analysts foresee hefty dividends and a further share buyback announced.
In the US, earnings are due from gene sequencing company Illumina Inc (NASDAQ:ILMN), which is one of the biggest investments for FTSE 100-listed investment trust Scottish Mortgage (LSE:SMT).
Analysts foresee a decline in earnings on lower revenues, as it braces for a reported EU fine of up to 10% of its global annual turnover for closing its takeover of Grail without waiting for antitrust approval.
Significant announcements on Tuesday
Trading update: Syncona PLC
Interims: Alumasc Group, Feedback, Genus, Mattioli Woods
Finals: BP, Kosmos Energy, React Group
AGMs: BlackRock Frontiers Investment Trust, Numis Corporation, Ten Lifestyle Group (AIM:TENG)
Economic announcements: Halifax Price Index (UK), Balance of trade (US), Consumer credit (US)
US earnings: Gilead Sciences, Illumina
WEDNESDAY 8 FEBRUARY
Barratt Developments PLC (LSE:BDEV) will be able to clarify on Wednesday whether it is indeed “fundamentally strong” despite the UK’s slowing housing market seeing falling mortgage numbers and house prices.
This has left analysts in disagreement about Barratt and the wider housebuilding sector.
Elsewhere, there should be an update from Severn Trent PLC (LSE:SVT) after the water industry in the past week were confirmed as planning to hike prices well below inflation, with warnings about sewage overflows still ringing in their ears too.
Across the pond, there are earnings from Walt Disney, Robinhood Markets and Uber.
At the end of last year, Disney shares slipped to their lowest levels since March 2020 in the wake of poor fourth quarter numbers, though the returning boss Bob Iger expected to have some interesting comments about potentially reorganising how the film and TV studios divisions, with activist shareholder Nelson Peltz among those piling on the pressure.
Significant announcements on Wednesday
Trading update: Severn Trent PLC (LSE:SVT)
Interims: Ashmore Group (LSE:ASHM) PLC, Barratt Developments PLC (LSE:BDEV), Cap-XX
Finals: Hardide, Smurfit Kappa Group plc (LSE:SKG)
AGMs: AJ Bell, Grainger, Keystone Positive Change Investment Trust
Economic announcements: MBA Mortgage Applications (US), Wholesale Inventories (US), Crude Oil Inventories (US)
US earnings: CME Group (NASDAQ:CME) (pre-market), The Walt Disney Co, Robinhood Markets, Uber Technologies
THURSDAY 9 FEBRUARY
Thursday should be pretty busy for London blue-chip share followers.
Top of the table is AstraZeneca PLC (LSE:AZN), biggest company in the FTSE 100 over Shell by a few billion. Full-year results from the pharma giant come almost three months after it upgraded guidance for earnings and revenue, with shareholder returns also in focus.
Another of the top-10 dividend payers reports on the same day, with British American Tobacco PLC (LSE:BATS) to unwrap its latest pack of returns for investors.
Analysts expect a slight increase in the dividend and maybe an updated pledge about share buybacks.
Income hunters could be in for a treat, as Unilever PLC (LSE:ULVR) completes the set, but sales volumes for the fourth quarter are expected to show a further slowdown.
Compass Group PLC (LSE:CPG) was among the biggest dividend increases last year but this will be a first-quarter update from the catering colossus.
It set a target for growing profits 20% this year, so this first-quarter update will determine if it remains on track to ladle out further big returns.
Among the mid-caps, investors in Watches of Switzerland Group PLC (LSE:WOSG) will counting down to an update from Britain’s most prominent Rolex merchant amid turmoil in the secondary luxury timepiece market.
Nevertheless, analysts expect it to be one of the main beneficiaries of strong primary-market sales of Rolexes.
Significant announcements on Thursday
Trading updates: Bellway PLC (LSE:BWY), Compass Group PLC (LSE:CPG), Watches of Switzerland Group PLC (LSE:WOSG)
Interims: Redrow PLC (LSE:RDW)
Finals: AstraZeneca PLC (LSE:AZN), British American Tobacco PLC (LSE:BATS), Unilever PLC (LSE:ULVR)
AGMs: Compass Group, easyJet, Oxford Metrics (AIM:OMG), Polar Capital Global Healthcare Trust, Tritax Eurobox, Zytronic (AIM:ZYT)
Economic announcements: RICS housing market survey (UK), Continuing claims (US), Initial jobless claims (US)
US earnings: AbbVie, PepsiCo (NASDAQ:PEP), Philip Morris International, PayPal Holdings
FRIDAY 10 FEBRUARY
UK fourth-quarter gross domestic product will be updated, fresh from some gloomy forecasts from the Bank of England and IMF.
The economy contracted 0.3% in the third quarter and a similar contraction would mean the UK economy had ended last year in recession.
A slowdown in September saw a rebound in October, 0.1% expansion in November but if there was a boost from the World Cup in December it could see Q4 avoid a contraction and the “R word”, even when taking into account the disruptive nature of strike action.
"Whatever the outcome of this week’s GDP numbers it’s likely to be a close-run thing, but with the September decline of -0.8% set to drop out of the rolling 3-month numbers the UK might avoid a technical recession," said Michael Hewson at CMC Markets.
"Whatever the outcome of this week’s numbers the nuance is likely to be lost on a lot of people given how finances are coming under strain. What we do know is that any growth is likely to be pretty anaemic, and 2023 is still likely to be very challenging."
Economists expect a modest contraction in the first quarter of 2023, and possibly the second too, meaning recession is still the base case for many professional predictors.
"It is however likely to be very mild by historical standards, not least because the recent fall in gas prices now means the government can probably cancel April’s planned increase in household energy bills – and indeed they’ll probably have fallen from the current £2,500 annual average to £2,000 by the summer," said economist James Knightley at ING.
Significant announcements on Friday
Trading update: Lancashire Holdings PLC
AGMs: Red Rock Resources, Victrex
Economic announcements: GDP (UK), Balance of Trade (UK), Index of Services (UK), Industrial Production (UK), U. of Michigan Confidence (US)