Life insurer Aviva PLC (LSE:AV.), Prudential, TUI and Deliveroo make it a big day for company news, but the headlines will be made later with the latest US inflation read.
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 might 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.
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