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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

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Week ahead: AB Foods, Ocado, Persimmon, Pearson, ITV and new PMI surveys

It's a fairly busy week from start to finish for followers of London stocks, starting with AB Foods and Bunzl, running through Ocado, Flutter, ITV, Croda, Persimmon and Pearson.

In the US, there's AMC, HP, NIO, Plug Power (NASDAQ:PLUG), Rivian, Virgin Galactic and Zoom Video.

MONDAY 27 FEBRUARY

The week is set to get started in an unusually busy style, led by Primark owner Associated British Foods PLC (LSE:ABF) as it unveils a pre-close trading update, following a last statement that showed festive sales surged 20%.

Ahead of this week's numbers, many analysts have been rather coy.

Also on Monday we should hear from Bunzl PLC (LSE:BNZL), the FTSE 100-listed distributor of packaging, safety and other single-use products, whose shares hit new all-time highs last year.

Expectations are high, with revenues expected to grow around 10%, boosted by higher prices and acquisitions, and a December update pointing to higher profit margins too.

Significant announcements expected on Monday

Finals: Bunzl PLC, CentralNic Group PLC (AIM:CNIC), GlobalData PLC (AIM:DATA), Greencoat Renewables PLC (LSE:GRP), RH (NYSE:RH) Magnesita NV, Senior PLC (LSE:SNR), Smith & Nephew PLC (LSE:SN), Spectral MD Holdings Ltd (AIM:SMD)

Interims: Beeks Financial Cloud Group PLC (AIM:BKS), Dechra Pharmaceuticals PLC (LSE:DPH)

Trading updates: Associated British Foods PLC

AGMs: Carrs Group PLC, Oncimmunce Holdings PLC, Ramsdens Holdings PLC (AIM:RFX)

Economic announcements: Durable Goods Orders (US), Pending Homes Sales (US)

US earnings: Viatris, Zoom Video Communications

TUESDAY 28 FEBRUARY

Ocado Group PLC (LSE:OCDO) issued four profit warnings last year and it seems the market is not sure what to expect from full-year results on Tuesday, with the shares roughly flat since early November.

While many analysts have issued sceptical previews in recent months, the company seems to surprise with good news almost as often as bad.

Elsewhere, it's another busy results season day, including several blue chips and FTSE 250 names.

Croda numbers were highlighted by analysts at AJ Bell as one of just fifteen current members of the FTSE 100 to have grown annual dividend every year for at least a decade, with the chemicals group’s growth streak going back to 1999.

The board signed off on an 8% increase in 2022’s interim dividend and unsurprisingly analysts have pencilled in higher full-year payments for 2022 and 2023, with City consensus forecasts eyeing 110p in total in 2022 and 114p in 2023.

"Such a phenomenal run is the result of Croda’s lofty operating margins, which in turn feed profits and cash flow."

In the US there are also some retail investor favourites, including cinema chain AMC Entertainment, electric vehicle maker Rivian and space tourism hopeful Virgin Galactic, which recently affirmed its aim to begin commercial space-flights in the coming quarter.

Significant announcements expected on Tuesday

Finals: Abrdn PLC (LSE:ABDN), Croda International PLC (LSE:CRDA), Derwent London PLC (AIM:DLN), Hutchmed (China) Limited, Intertek Group PLC (LSE:ITRK), Kitwave Group Ltd, Man Group PLC (LSE:EMG), Morgan Advanced Materials plc (LSE:MGAM), Ocado Group PLC, Rotork PLC (LSE:ROR), Serco Group PLC (LSE:SRP), St James’s Place PLC, Travis Perkins (LSE:TPK) PLC, Uniphar PLC (AIM:UPR), Unite Group PLC (LSE:UTG), Videndum PLC (LSE:VID), Vitec Group PLC, XP Power Limited

Interims: Bluefield Solar Income Fund (LSE:BSIF) Limited, McBride PLC (LSE:MCB)

AGMs: Aberdeen Diversified Income and Growth Trust PLC, Newmark Security PLC (AIM:NWT), Velocity Composites PLC, Watkin Jones PLC (AIM:WJG)

Economic announcements: House Price Index (US), Chicago PMI (US), Consumer Confidence (US)

US earnings Tuesday: AMC Entertainment, HP, Occidental Petroleum, Rivian Automotive, Virgin Galactic

WEDNESDAY 1 MARCH

Aston Martin Lagonda Global Holdings PLC (LSE:AML) is expected to show modest signs of recovery when it opens the bonnet on full-year results on Wednesday, according to Goldman Sachs at least.

Final results are also due from blue-chip consumer goods maker Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB), following some mixed numbers from rival Unilever due to continued input cost inflation.

Analysts at UBS also expect a mixed update from RB, but the company has long been confident about its ability to pass on cost increases.

Persimmon PLC (LSE:PSN) is among the housing blue-chips repotting in the week, with analysts at Citi lately pointing out that UK housebuilders and building products sectors have both had a good start to the year, "driven by an improving sentiment and expectations of a soft landing".

However, any sustainability of the near-term strength "relies crucially on the outlook of mortgage rates and house prices", analysts added, with the seasonal demand uplift and recent reductions in mortgage rates supporting stable asking house prices but a gap between achieved and asking prices to be "keenly watched".

In the US, customer relationship management powerhouse Salesforce and hydrogen fuel cell star Plug Power, as well as one of Tesla’s Chinese rivals, NIO, are all reporting.

Significant announcements expected on Wednesday

Finals: Aston Martin Lagonda, Capital & Counties Properties PLC (LSE:CAPC), GetBusy PLC (AIM:GETB), Nichols PLC (AIM:NICL), Persimmon PLC, Rathbones Group PLC (LSE:RAT, OTC:RTBBF), Reckitt Benckiser Group PLC, Weir Group PLC (LSE:WEIR)

Interims: Haydale Graphene Industries PLC

Trading updates: Rathbones PLC

AGMs: River & Mercantile UK Micro Cap Investment Company

Economic announcements: BRC Shop Price Index, Nationwide House Price Index, Consumer Credit, M4 Money Supply, Mortgage Approvals, PMI Manufacturing, MBA Mortgage Applications (US), PMI Manufacturing (US), Construction Spending (US), ISM Prices Paid (US), Crude Oil Inventories (US), Auto Sales (US)

US earnings Wednesday: NIO, Jackson Financial, Plug Power, Salesforce, Snowflake

THURSDAY 2 MARCH

ITV PLC (LSE:ITV) full-year results on Thursday come on the back of its booming in viewership numbers in January, which were boosted by its new ITVX streaming platform and the FIFA World Cup.

There may also be an update from the company on the board's review of the Studios business, which has apparently attracted Hollywood-linked interest.

ITV shares are up 5% over the past year, above where they were pre-pandemic, but they have been outdone by Paddy Power owner Flutter PLC, which has climbed by a third to now value the bookmaking group at a chunky £24bn.

Investors are likely to be most interested in the US-based FanDuel sports betting business, as more states liberalise gambling and what that could mean for further gains.

From betting on sport to betting on companies, with London Stock Exchange Group PLC (LSE:LSEG).

The final results come with investors keen to hear from the company on its recent investment from Microsoft, a stock overhang and other market cliff-hangers.

In macro news, EU inflation numbers will be in focus, following January CPI numbers showing core inflation at a record high of 5.3%.

"This is likely to be a bigger concern for the European Central Bank and any lack of progress here is going to be the probable driving force going forward, and not any continued weakness in headline inflation," said analysts at CMC Markets.

Significant announcements expected on Thursday

Finals: Alfa Financial Software Holdings Ltd, Anheauser-Busch Inbev, Apax Global Alpha Ltd, Beazley PLC (LSE:BEZ), Cairns Homes PLC, Capita PLC (LSE:CPI), Capital & Regional PLC, Coats Group PLC (LSE:COA), CRH PLC (LSE:CRH), Flutter Entertainment PLC (LSE:FLTR), Grafton Group PLC (ISE:GFTU), Hunting PLC (LSE:HTG), ITV PLC, London Stock Exchange Group PLC, Melrose Industries PLC (LSE:MRO, OTC:MLSPF), National Express PLC, Network International Holdings, PPHE Hotel Group Ltd, Schroders PLC (LSE:SDR), Spire Healthcare Group Plc (LSE:SPI), Synthomer (LSE:SYNT) PLC, Taylor Wimpey PLC (LSE:TW.), Tritax Big Box REIT PLC (LSE:BBOX), Tyman (LSE:TYMN) PLC

AGMs: Chenavari Toro Income Fund Ltd (LSE:TORG), Victorian Plumbing PLC

Economic announcements: Continuing Claims (US), Initial Jobless Claims (US)

Ex-dividends to reduce FTSE 100 by 18.18 points: Diageo, Hargreaves Lansdown, HSBC Holdings, Berkeley Group Holdings

US earnings Thursday: Broadcom, ChargePoint Holdings, Hewlett Packard Enterprise, Zscaler

FRIDAY 3 MARCH

Pearson PLC (LSE:PSON) and Rightmove PLC (LSE:RMV) wrap up the weekly.

The former was one of the blue-chip stand-outs in 2022 and recently suggested it had finished the year in mixed style, though with profits higher than previously guided.

Hargreaves Lansdown analysts said the education group has "displayed some impressive momentum in its digital transformation and investors will want evidence this is being maintained", with shares up by 47% over the past year to make it the second biggest gainer on the FTSE 100.

Friday may have the biggest macro data of the new month, with purchasing managers' index surveys for the UK and other major economies.

The most recent PMI numbers all pointed to an improvement in economic activity at the start of the new year, with a slightly improved economic outlook in Europe and the UK that is expected to continue to be reflected in the latest services PMI update.

UK and the major EU economies are all expected to show an improvement as the decline in energy prices eases the pressure on consumer wallets.

In the US, it will be the ISM report that is the main event, having jumped from 49.6 in December to 55.2 last month. A modest slowdown to 54.4 from 55.2 is expected with the employment component also likely to be a leading indicator for next week's delayed US non-farm payrolls report.

Significant announcements expected on Friday

Finals: Faron Pharmaceuticals OY, IMI PLC (LSE:IMI), Pearson PLC, Rightmove PLC, Vesuvius Plc (LSE:VSVS)

Interims: Avation PLC (LSE:AVAP)

AGMs: Guild Esports PLC (LSE:GILD, OTCQB:GULDF)

Economic announcements: PMI Composite (UK), PMI Services (UK), PMI Composite (US), PMI Services (US), ISM Prices Paid (US), ISM Services (US)

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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK