Big company results and important economic data continue to flow steadily on both sides of the Atlantic in the coming week, with potential highlights including Aviva and Prudential, Antofagasta and Barrick Gold, Entain and Flutter Entertainment, Disney and Rivian.
US inflation numbers come midweek and UK and US gross domestic product figures wrap it all up at the end.
MONDAY
The week begins in quieter style, London company-wise.
Clarkson PLC (LSE:CKN) may be pick of the small bunch, though surprises may be limited given its trading update last month that revealed strong first-half trading across all divisions.
The shipping group said it expected to report a profit before tax of not less than £42mln and given limited supply growth for bulk ships and tankers, the two largest broking markets for the group, broker Peel Hunt expected the economic cycle to be "protracted" and so continues to be bullish despite economic headwinds.
Significant announcements on Monday 8 August
Interims: Clarkson PLC, Diversified Energy Company PLC, PageGroup PLC
US earnings: Barrick Gold, Palantir Technologies, Viatris, Lemonade, Upstart Holdings
TUESDAY
Financial groups of different shapes and types, from Abrdn, L&G, Just Group to pawnbroker H&T Group PLC (AIM:HAT) will be a key theme on Tuesday, revealing different ways the economy is being affected by various headwinds and market forces.
With analysts reporting a return in risk appetite among investors on both sides of the Atlantic, but the Bank of England warning of an impending recession and consumers cutting back in all sorts of ways, investors will be eager to see what these companies have to say.
Following recent profit warnings among peers in the motor insurance sector, there should be some comment on this and how the life companies are faring meanwhile, from Legal & General Group PLC (LSE:LGEN), ahead of rivals Aviva and Pru a day later.
Travel has been a sector followed closely by bargain-hunting investors, after it was crunched during the pandemic.
However, Intercontinental Hotels Group PLC (LSE:IHG) shares, which hit a high in 2019, have returned almost back to the same levels late last year and are not far off now.
The outlook looks positive, but there are concerns that next week’s interims could be the high-water mark for the company, said analysts.
In crypto land, results from Coinbase Global Inc (NASDAQ:COIN) will be well followed.
In the run up to its second-quarter earnings the crypto exchange’s problems are multitudinous, with its shares in freefall and acres of bad press.
On the flipside there has been some good news, including teaming up with the world’s largest asset manager, BlackRock, and some feelings that it might not be all doom and gloom in the longer term.
Significant announcements on Tuesday 9 August
Finals: Baillie Gifford US Growth Trust PLC
Interims: Abrdn PLC, Burford Capital PLC, H&T Group PLC, InterContinental Hotels Group PLC, IWG PLC, Just Group PLC, Legal & General Group PLC, RPS Group PLC, TI Fluid Systems PLC, Zotefoams PLC
Trading updates: Bellway PLC
AGMs: APQ Global Limited, Northern 3 VCT PLC
Economic announcements: BRC retail sales
US earnings: Peloton, Coinbase Global, Jackson Financial, Roblox Corporation, Unity Software
WEDNESDAY
Life insurer Aviva PLC (LSE:AV.) will be a key midweek set of results to watch, though TUI AG, trading almost two third below its pre-pandemic level may also tempt some thrill-seeking investors.
In May, Aviva’s chief executive Amanda Blanc was forced to contend with sexist heckles from shareholders at its London annual general meeting, so she may come out firing.
The firm has also faced pressure from Swedish activist investor Cevian Capital, which is pushing for cost reductions and higher cash returns, as well as union intervention in staff pay.
Analysts at UBS estimate growth in Aviva's operating profit will be stronger than the market expects.
As for Prudential PLC (LSE:PRU), its more Asia-focused rival, analysts predict a “dampening” in first-half business volumes, due to lockdowns in Asia, and will look to see if it secures a licence in Macau that could allow it to tap Hong Kong and China markets.
Investors are likely to be hanging on every word management will say about how Pru's business can withstand a macroeconomic downturn, especially in a scenario where rising costs of living could dampen new business sales.
In the tech sector and tapping into the gig economy, Deliveroo PLC (LSE:ROO) results should prove interesting.
Shares are down 53% since the start of the year, falling below 100p in May in the aftermath of Q1 numbers, some way from their IPO price of 390p back in April 2021.
Yet the company has continued to grow over the last 15 months, and in its full year numbers back in March, revenues rose 57% and losses increased to £298mln amid a decline in margins as market and overhead spend rocketed.
On guidance the company said it hoped to break even by 2024 on a full year basis and that on medium term gross transaction value (GTV) it expected to grow at circa 20% a year.
“Deliveroo has made great strides in signing deals with Amazon and Waitrose, helping to push Q1 GTV up to £1.79bn, a rise of 11% from the same period a year before,” said analyst Michael Hewson at CMC Markets.
“At the time the company appeared confident of delivering GTV guidance of 15% to 25% for the year, with H2 expected to be stronger than H1. This always appeared unduly optimistic given the economic backdrop and in July the company was forced to lower this to between 4% and 12%, although EBITDA guidance was kept unchanged.”
Across the Atlantic, Walt Disney Co (NYSE:DIS) third-quarter earnings will be the main event, with visitors flocking to its theme parks and recent data showing its streaming service was outshining rivals Netflix and Amazon Prime.
Disney+ captured 7.9m new subscribers, but with Netflix losing 1mln subscribers in their recent results, it will be instructive to see how this translates to the House of Mouse.
“Investors will be eager to see if Disney has gathered more momentum in the third quarter despite high inflation impacting consumers purchasing power,” said Charlie Williams, equity research assistant at Hargreaves Lansdown, adding that attention will also be focused on how well these parks have fared internationally.
Operating losses in Disney’s direct-to-consumer arm ballooned three times to US$887mln last quarter, reflecting the cost of producing popular content, so any guidance on when profits may arrive here will be welcomed.
In macro matters, US inflation numbers will be even more keenly watched, in light of the Federal Reserve’s eagerness to use interest rates as its tool to curb surging prices.
The US consumer prices index reached another 40 year high of 9.1% in June, sparking concern that the Fed might be tempted to go for a bigger than expected 1% rate move in July, though a 0.75 percentage point move was eventually seen as sufficient.
The market expects CPI to fall to 8.8%, with core prices expected to rise from 5.9% to 6.1%.
Significant announcements on Wednesday 10 August
Interims: 4imprint Group PLC, Admiral Group PLC, Aviva PLC, Atalaya Mining PLC, Arix Bioscience PLC, CLS Holdings PLC, ContourGlobal PLC, Gamesys Group PLC, Genuit Group PLC, Hostelword Group PLC, Prudential PLC, Quilter PLC, TP Icap Group PLC, TUI AG PLC
AGMs: Ariana Resources PLC, Cadence Minerals PLC, CML Microsystems PLC, Foresight Group Holdings Ltd, Investec PLC, Mountview Estates PLC, Northern 2 VCT PLC
Economic announcements: MBA Mortgage Applications (US), Consumer Price Index (US), Wholesales Inventories (US), Crude Oil Inventories (US)
US earnings: Walt Disney, The Trade Desk
THURSDAY
Thursday also brings another jam-packed morning of company news, including Ladbrokes owner Entain, fund manager M&G, as well as a smattering of property news from Derwen, Savills and RICS housing market data.
Numbers from copper miner Antofagasta PLC (LSE:ANTO) will also be instructive for more than its own shareholders, as a firm copper price is often seen as a good sign for the health of the global economy due to its many industrial uses.
However, fears of a global slowdown are weighing on the price of Dr Copper, down from $10,000 a ton to below $8,000, and therefore also the Chilean copper miner and FTSE 100 member.
“In terms of Antofagasta more specifically, shareholders will look for confirmation of three sets of figures, after the disappointing second-quarter trading update released in late July,” said analyst Danni Hewson at AJ Bell.
Alongside February’s full-year results for 2021, it said output this year would drop by around 6% at the mid-point of guidance, though a July update revealed that the first half had come in down around 26% owing to an incident at the Los Pelambres mine, and drought in Chile.
Costs are also key, with net cash costs having risen 5% to $1.20 a pound last year, wth further increases looking likely in 2022 and guidance pointing to a jump to $1.55 per pound initially, with the output shortfall now expected to raise this to $1.65 a pound, or $3,650 a metric tonne.
Along with capital expenditure, which is seen rising from US$1.8bn in 2021 to US$1.9bn for 2022, this will share how profits and cash flow come in.
“Analysts and investors will look to management for any comment on the political situation in Chile,” said Hewson, with president Gabriel Boric failing in his attempt to nationalise key copper, lithium and gold assets, after Parliament voted it down, but potentially eyeing new, higher, mining royalty payments.
Across the pond, many early investors in electric vehicle startup Rivian Automotive Inc (NASDAQ:RIVN) are looking very forlornly at its US$78 IPO price.
Major stakeholders Ford and Amazon took huge write-downs on their stakes in the business over the past six months, with the shares hit a low of just below US$20 after its Q1 earnings announcement.
Production has got underway, though, with 2,553 vehicles built in the first quarter and 1,227 delivered, with management confident this would see 4,000 vehicles produced in the second.
With Q1 revenue of US$95m below expectations of US$131.2m, and losses coming in at US$1.6bn or US$1.43c a share, investment in a new factory means losses are expected to come in higher at US$1.60c a share for Q2.
Earnings from Illumina Inc (NASDAQ:ILMN), the specialist in analysis of genetic variation and biological function, are important for UK investors too, especially those backing Scottish Mortgage Investment Trust PLC (LSE:SMT), as it is its fourth largest holding.
In the first quarter the genomics group reported a near halving of earnings per share to US$0.55 due to a significant operating loss from its acquisition of GRAIL, the maker of the Galleri blood test, which it snapped up last August.
Boss Francis deSouza said the group's core business fundamentals are "robust", with record orders and a record backlog, with GRAIL gaining "traction".
Illumina is expected to post earnings of US$0.63 per share for the past quarter.
Significant announcements on Thursday 11 August
Interims: Antofagasta PLC, Coca-Cola HBC AG, Derwent London PLC, Empiric Student Property PLC, Empresaria Group PLC, Entain PLC, M&G PLC, Network International Holdings PLC, Pressure Technologies PLC, Savills PLC
AGMs: Inspecs Group PLC, Marks Electrical Group PLC, Silver Bullet Data Services Group PLC
Ex-dividends to reduce the FTSE 100 index by: 24.71 (Ashtead, Informa, Rio Tinto, Shell, Barclays, SEGRO, Astrazeneca, Standard Chartered, Pearson, BP, Fresnillo)
Economic announcements: RICS Housing Market Survey (UK), Continuing Claims (US), Initial Jobless Claims (US), Producer Price Index (US), Chinese inflation, retail sales, industrial production
US earnings: Illumina, Rivian Automotive
FRIDAY
The week finishes with two more gambling groups, Flutter Entertainment PLC (LSE:FLTR) and 888 Holdings PLC (LSE:888).
The owner of Paddy Power and Betfair will be hoping to build on its first-quarter performance where betting and gaming revenue grew by 6% to £1.6bn.
But like big rival Entain earlier in the week, Flutter’s UK business could be set for some certainty following the UK Gambling Act review which “should act as a meaningful positive catalyst, even in the event of a cut in online slot stakes to £2, as investors are provided with much needed certainty,” according to Citigroup analysts.
The focus will be mainly on trading in the UK, the US and consumer behaviour, said analysts at UBS, forecasting half-year revenues of £3.17bn, group underlying earnings (EBITDA) excluding the US of £594mln and a US EBITDA loss of £129mln.
For 888 Holdings PLC, where first-quarter revenues slumped 18%, investors will want some commentary on the performance of William Hill’s non-US business, which it finally gained control of last month.
Coming just over a week after the Bank of England warned of an impending recession lasting five quarters, UK growth numbers for the second quarter are due out from the Office for National Statistics.
Economists anticipate that the second quarter delivered positive GDP growth, but negative growth for the month of June.
The Q2 GDP figure is expected to show a 0.2% decline and be up 2.8% year-on-year.
Significant announcements on Friday 12 August
Interims: 888 Holdings PLC, Flutter Entertainment PLC, TBC Bank Group PLC
AGMs: iEnergizer Limited PLC, Pineapple Power Corporation PLC
Economic announcements: GDP Q2 Preliminary (UK), Gross Domestic Product (UK), Balance of Trade (UK), Index of Services (UK), Industrial Production (UK), Manufacturing Production (UK)Import and Export Price Indices (US), U. of Michigan Confidence Prelims (US),