The record-breaking closing high of the FTSE 100 has been broken by more big names in London’s index. They will be reporting results for the week ahead that could push it higher.
This week will see updates and results from blue chip AstraZeneca and Barratt as well as British American Tobacco and Darktrace, and Unilever.
They accounted for a fifth of all the expected payouts of the index.
Macroeconomic events include the UK’s GDP numbers and an Australian central banking decision, which have extended the Aussie dollar’s position as the most-bought currency this year.
#FTSE100 is dominated by companies such as #HSBC and #Shell, which earn most of their sales from the #UK and so benefit from a weaker pound.
Janet Mui, RBC Brewin Dolphin, said: “If we were to enter a global recession, then the defensive nature of FTSE 100 will remain attractive https://t.co/8uknUl3g8e pic.twitter.com/4nUAFEECAD
— Share_Talk ™ (@Share_Talk) February 4, 2023
MONDAY, 6 FEBRUARY
Darktrace Plc (LSE: DARK) was under intense scrutiny in advance of its second-quarter trading update due to claims from a US-based Short Seller.
A legal expert said that there is ample evidence to show that legal claims can be made against scandals like the Darktrace one.
Investors will turn their attention to video games later on. Take-Two Interactive Software owns Grand Theft Auto maker Rockstar Games, Zynga (creator of Words With Friends and Farmville), and Activision Blizzard maker Call of Duty, which Microsoft wants to acquire for US$69bln.
Important announcements Monday
Trading updates: Darktrace
AGMs Smithson Investment Trust plc
Economic announcements Construction PMI (UK).
US earnings: Activision Blizzard, Take-Two Interactive Software, Pinterest
TUESDAY, 7 FEBRUARY
BP PLC (LSE: BP) has released full-year numbers. These numbers are sure to generate further calls for an increase in windfall tax on North Sea profits.
Don’t be surprised if this happens, as analysts expect hefty dividends to be announced and a further share purchase.
Earnings in the US are due to gene sequencing company Illumina Inc. (NASDAQ: ILMN). is one of the largest investments for FTSE 100-listed investment trust Scottish Mortgage. (LSE: SMT).
Analysts expect a drop in earnings due to lower revenues. The EU could fine it up to 10% of its global annual turnover if it closes its Grail takeover without antitrust approval.
Important announcements on Tuesday
Trading update: Syncona PLC
Interims: Alumasc Group, Feedback, Genus, Mattioli Woods
Finals: BP, Kosmos Energy, React Group
AGMs: BlackRock Frontiers Investment Trust, Numis Corporation, Ten Lifestyle Group (AIM:TENG)
Economic announcements: Halifax Price Index (UK), Balance Of Trade (US), Consumer Credit (US)
US earnings by Gilead Sciences and Illumina
WEDNESDAY, 8 FEBRUARY
Barratt Developments PLC, (LSE: BDEV) will be able Wednesday to clarify whether it is truly “fundamentally sound” in spite of the UK’s slowing housing sector and falling house prices.
This has led to disagreement among analysts about Barratt and the wider housebuilding industry.
Elsewhere, Severn Trent PLC should update after the water industry confirmed that they plan to raise prices far below inflation. warnings regarding sewage overflows are still ringing in their ears.
Earnings from Walt Disney, Robinhood Markets, and Uber are all across the pond.
In the wake of disappointing fourth-quarter numbers, Disney shares fell to their lowest level since March 2020 at the close of last year. However, Bob Iger, the former boss, expected to make some interesting comments about reorganizing how the film and television studios divisions work. Nelson Peltz, an activist shareholder, was among those adding pressure.
Important announcements on Wednesday
Trading update: Severn Trent PLC (LSE:SVT)
Interims: Ashmore Group (LSE:ASHM) PLC, Barratt Developments PLC (LSE:BDEV), Cap-XX
Finals: Hardide, Smurfit Kappa Group plc (LSE:SKG)
AGMs AJ Bell, Grainger and Keystone Positive Change Investment Trust
Economic announcements: MBA Mortgage Applications (US), Wholesale Inventories, Crude Oil Inventories and US),
US earnings CME Group (NASDAQ:CME), (premarket), The Walt Disney Co., Robinhood Markets and Uber Technologies
THURSDAY, 9 FEBRUARY
For London blue-chip share investors, Thursday should be busy.
AstraZeneca Plc (LSE: AZN), the largest company in the FTSE 100, is at the top of the table. It is just a few billion more than Shell. The pharma giant reported full-year results almost three months ago after updating guidance for earnings, revenue and with shareholder returns also in view.
Another top-10 dividend payer reports the same day. British American Tobacco PLC will unwrap the latest package of returns for investors.
Analysts anticipate a slight rise in the dividend, and possibly an updated pledge regarding share buybacks.
Income seekers could have a treat as Unilever PLC completes this set. However, sales volumes for the fourth quarter are expected to show a further slowdown.
Compass Group PLC, (LSE:CPG) was one of the largest dividend increases last year. However, this will be a first-quarter update from the catering colossus.
It had set a goal to grow profits 20% by the end of this year. This first quarter update will show if it is still on track to deliver more big returns.
Mid-caps include investors in Watches of Switzerland PLC (LSE WOSG). This update will be provided by Britain’s most prominent Rolex retailer amid turmoil in the secondary luxury watch market.
However, analysts believe it will be one of the main beneficiaries from strong primary-market Rolexes sales.
Important announcements on Thursday
Trading Updates: Bellway PLC, (LSE :BWY),, Compass Group PLC, (LSE :CPG),, Watches of Switzerland Group PLC, (LSE :WOSG)
Interims Redrow PCLC (LSE :RDW
Finals: AstraZeneca PLC (LSE:AZN), British American Tobacco PLC (LSE:BATS), Unilever PLC (LSE:ULVR)
AGMs Compass Group, easyJet Oxford Metrics Polar Capital Global Healthcare Trust Tritax Eurobox Zytronic
Economic announcements RICS housing market survey (UK), Initial jobless claims US, Continuing claims (US),
US earnings by AbbVie (NASDAQ:PEP), PepsiCo, Philip Morris International and PayPal Holdings
FRIDAY, 10 FEBRUARY
The fourth quarter gross domestic product of the UK will be updated following some grim forecasts by the Bank of England, and IMF.
The third quarter economy experienced a contraction of 0.3%. A similar contraction would have put the UK economy in recession last year.
The September slowdown saw 0.1% growth in November and October. However, if the World Cup in December provided a boost it could help Q4 avoid contraction. This is even taking into consideration the disruptive nature of strike action.
“Regardless of what the GDP numbers show, it’s likely that it will be close-run.” However, Michael Hewson from CMC Markets said that the UK may avoid a technical recession with the September drop of -0.8% out of the rolling 3-month numbers.
“Whatever the outcome this week of the numbers, the nuance will likely be lost on many people due to how financially stressed they are. We do know that any growth will likely be quite anaemic and that 2023 will be extremely challenging.
Economists predict a slight contraction in the first quarter of 2023 and possibly the second. This means that the recession is still the base case of many professional forecasters.
According to James Knightley, an economist at ING, “It is however unlikely to be very mild according to historical standards. Not least because the government can probably cancel April’s planned increase in household energy bills – and in fact, they’ll likely have fallen from the current £2,500 per year average to £2,000 by summer.”
Important announcements Friday
Trading update: Lancashire Holdings PLC
AGMs Red Rock Resources, Victrex
Economic announcements: GDP (UK), Index of Services(UK), Industrial Production, (UK), U. of Michigan Confidence [US]
