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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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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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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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Tuesday's Agenda: Prudential catches the eye of investors

The Pru's decision to focus on Asia has proved a smart one, but with regulatory changes affecting the retail annuity market in the UK, it can't afford a slowdown in its Asian operations.

With little in the way of macro-economic news, it will be a big day in corporate news tomorrow.

Investors will likely be squarely focused on the big beast of the insurance sector, the Pru, which reports half year results, and the emphasis is likely to remain on itsgrowth in Asian markets.

This should offset a slow-down in annuity sales in the UK, which is not only a mature market for the Pru but is also one where the pension scene is still settling down after a radical shake-up.

"Both earnings and the dividend payment are expected to grow by around 10% year-over-year, whilst an update on Solvency II regulations may be provided," suggests broker Hargreaves Lansdown.

Investors will be keen to see how the insurance firm is getting on with life after Thiam as current chief executive Mike Wells was promoted to to on 1 June

This week also sees the two “bad boys” of the government outsourcers report results.

It kicks off on Tuesday with Serco (LON:SRP), which has undergone major restructuring activity, both operationally and financially.

“The market remains eager to learn when the revised strategy is set to see revenue flows stabilise and a new contract pipeline emerge, driving the business back to future growth” broker Shore Capital said.

Brewin Dolphin said: "We still think that the former “dream team” from Aggreko of Rupert Soames and Angus Cockburn still have plenty work to do to convince the market that their strategy is working."

Little is expected in economic news in the UK, but in Europe, a deal between Greece and its creditors, ahead of an August 20 payment to the European Central Bank, could be struck as early as tomorrow morning.

Tuesday

Final: Hargreaves Services (LON:HSP)

Interims: Johnston Press (LON:JPR), Ladbrokes (LON:LAD), Partnership Assurance Group (LON:PA.), Prudential (LON:PRU), Serco Group (LON:SRP), SIG (LON:SHI), Synthomer (LON:SYNT)

Trading statement: Card Factory (LON:CARD)

Economic: EU - ZEW economic sentiment. US - Non-farm productivity, Wholesale inventories.

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