It’s the week before Christmas, and there is not much to be stirred or planned.
Omicron and inflation will dominate headlines. However, economic news releases will not be as dramatic as those of the past few days.
On Wednesday, the final reading for UK GDP in September’s quarter will be available. The preliminary figures show a decrease of 1.3% from 5.5% over the previous three months.
There is no consensus on the flash GDP figure at 1.3%.
This is all before Omicron, and the biggest contributors to quarter three’s improvement in hospitality, arts and recreation, and health might not be relevant to where we are today. Restaurants and pubs have already closed a week before Christmas because of a lack of customers.
“It’s been a bad start to December for this sector. The recovery has been a slow process and sales numbers can be expected to drop further below pre-pandemic levels,” stated Jonny Jones, managing director of CGA’s hospitality research group for the UK and Ireland.
The US’s Thursday will see the critical personal consumption expenditure (PCE), the Fed’s preferred inflation gauges.
BDSwiss reports that the headline PCE deflator will rise to 5.7% YoY (the highest since July 1982), while the core measure which is the Fed’s preferred inflation gauge, is expected to increase to 4.5%, the highest level since March 1989. “.
Both would be well above the Fed’s target of 2%, which confirms the notion that inflation is out-of-control, it adds.
Although few companies post updates during a week before Christmas, some companies are willing to take extra attention.
Monday’s spotlight will be on Gore Street. It should have interesting things to share.
Recent growth in the battery investor is alarming. This winter’s energy chaos has highlighted how urgently the renewables sector requires a storage option.
To make the most of these opportunities, the company raised £74mln in October. The pipeline now covers Europe, the US and Ireland.
You should be aware of the progress of development projects and the outlook for the pipeline.
US companies seem less concerned about the holiday season, with many big names reporting next week.
Earnings are due from Micron Technology, Nike, Cheerios and Haagen-Dazs on Monday, and General Mills (NYSE: GIS) on Tuesday. Winnebago is on Wednesday. Cintas (NASDAQ: CTAS ) on Thursday.
Semiconductor shortages are a common theme since mid-year. Micron will provide some insight into the current situation.
This Idaho-based company makes flash drives and memory chips. It will also share its views on the traditional cycle of booms and busts in the sector.
Analysts expect sales to be US$7.7bn, down 7% quarter on quarter but up by a tier compared to a year ago.
Week ahead 20/12/2021
Monday
Interims- Gore Street Energy Storage Fund PLC, (LSE:GSF)
AGMs- Aberdeen Latin American Income Fund Ltd. Cambium Global Timberland, (AIM.TREE) Ltd. Plexus Housings PLC (AIM.POS)
Trading announcements – Rightmove house prices index (UK).
Tuesday
Finals- Titon Holdings plc
Trading update- Cheerios, Haagen-Dazs
AGMs- Go Ahead Group, LSE:GOG, Lekoil Ltd and Northamber Plc
Economic data: Gross Domestic Product (UK), Net Public Sector Borrowing (UK), Current account (US).
Wednesday
AGMs- Conroy Gold and Natural Resources PLC, (AIM CGNR).
Economic data- Current account (UK), Gross domestic product (UK), MBA mortgage applications (US), Gross domestic product (US), Personal Consumption Expenditures Expenditures & Purchases (US), Existing home sales (US), Crude Oli Inventories &ories (US).
Thursday
AGMs- Beximco Pharmaceuticals Ltd., China Noferrous Gold Limited., Orosur Mining Inc., SkinBioTherapeutics plc.
Economic data – Continuing Claims, Initial Jobless Claims (US), Personal Consumption Expenditures, Personal Income (US), Personal Spending / Personal Spending (US), New Holes sales (US), US durable goods orders. (US).
Friday
Interims- Sequoia Economic Infrastructure Income Fund, (LSE:SEQI Ltd.
AGMs- Abingdon Health Limited, Origo Partners Plc
Economic data- U. of Michigan Confidence, (US)
