Monday Morning Briefing
To keep you updated on planned events in the markets over the coming week, we will send a calendar of the financial schedule straight to your inbox every Monday morning.
The briefing includes a comprehensive listing of all the expected UK results, plus highlights from the US reporting week and the global economic calendar. We also provide brief commentaries on the past week and the week ahead. Register (on the right) to receive the email briefing every Monday. You can also read the latest issue below.
For the week commencing 08/03/10
MAR08
UK Results FY: Intertek Group, Management Consulting Group, Petrofac, Renewable Energy Holdings, Tarsus Group, Tullett Prebon
Selected US Q4: Kroger Co
Economic Indicators Germany: January industrial production (1100 GMT)
MAR09
UK Results FY: Advanced Medical Solutions Group, Antofagasta, British United Provident Association, Climate Exchange, F&C Asset Management, Gartmore Group, Inmarsat, International Power, Interior Services Group, John Menzies, Johnson Service Group, Liberty International, Lookers, Mears Group, ROK, Statpro Group, Weir Group, Zotefoams; 6M: Abcam, Interior Services Group, St Ives Group
Selected US Q3: H&R Block
Economic Indicators UK: February retail sales monitor (0001 GMT); France: January trade balance (0845 GMT); Japan: January preliminary leading indicator (0500 GMT), January key machinery orders (2350 GMT), February domestic CGPI (2350 GMT)
MAR10
UK Results FY: Arbuthnot Banking Group, Ark Therapeutics Group, Bovis Homes Group, Cape, Chaucer Holdings, Chime Communications, Costain Group, Inchcape, Interserve, Laird, Modern Water, Oxford Biomedica, Standard Life, Tullow Oil, Yule Catto & Co
Selected US Q3: Brown-Forman Corp
Economic Indicators UK: February NIESR GDP estimate (0001 GMT), January industrial/manufacturing production (0930 GMT); US: W/e 12/03 crude oil inventories (1530 GMT), January wholesale inventories (1500 GMT), February budget statement (1900 GMT); France: January industrial/manufacturing production (0845 GMT); Germany: January current account (0700 GMT), February final consumer price index (0700 GMT), January trade balance (0700 GMT); Italy: January industrial production (0900 GMT), Q4 final GDP (1000 GMT); Japan: Q4 final GDP (2350 GMT); Spain : January retail sales (0900 GMT)
MAR11
UK Results FY: Aggreko, AMEC, Avis Europe, Aviva, Balfour Beatty, Cobham, Galiform, Hardy Oil & Gas, IMI, Novae Group, Psion, Robert Walters, Schroders, Spirax-Sarco Engineering, Spirent Communications, Trinity Mirror
Selected US Q2: Pall Corp; Q3: National Semiconductor
Economic Indicators US: W/e 12/03 initial jobless claims (1330 GMT), January trade balance (1330 GMT); France: January current account (0845 GMT)
MAR12
UK Results FY: Aga Rangemaster Group, Highcroft Investments, Parity Group; 6M: JD Wetherspoon
Selected US No major announcements scheduled
Economic Indicators US: February retail sales (1330 GMT), March preliminary University of Michigan consumer sentiment survey (1455 GMT), January business inventories (1500 GMT); EU: January industrial production (1100 GMT); France: Q4 final non-farm payrolls (0845 GMT); Japan: January final capacity utilization (0430 GMT), January final industrial production (0430 GMT); Spain: February CPI (0900 GMT)
Highlights of the past week
The FTSE marched steadily upwards through the week, passing the 5500 level on Wednesday for the first time since 20 January 2010. News on Tuesday that UK consumer confidence reached a two-year high provided a welcome lift, though Thursday’s Halifax survey showing a 1.5% month-on-month fall in house prices tempered optimism. HSBC provided the latest UK banking results on Monday, reporting a disappointing 24% slide in year-on-year pre-tax profit of £4.63 billion. In contrast, Standard Chartered reported its seventh successive year of profit on Wednesday, up 13% compared to last year at a record £3.4 billion.
In the insurance sector, Prudential’s shares dropped a sharp 12% to 515p after the market reacted negatively to its plans to take over the Asian arm of AIG. Meanwhile copper prices jumped to the highest levels in five weeks after the earthquake in Chile. As the world’s premier copper miner, officials in Chile have promised to honour their export commitments, but even so prices hit $7600 a tonne last week; the highest since January. As Greece’s crisis lingers on, the euro hit its lowest levels against the dollar for ten months on Tuesday, before clawing back some ground through the week. The pound didn’t fare well either, dropping 0.3% to $1.4958 amid concerns over a possible hung parliament.
In the US, the eagerly awaited non-farm payrolls showed 36,000 jobs were lost last month – though this beat estimates of a 50,000-65,000 net loss, the figure was worse than January’s 20,000 deficit. On Thursday, the latest Fed Beige Book reported that the US economy continued to grow at a modest pace. The report did however reveal ongoing concerns for the housing market, with most districts listing commercial real estate and construction activity as weak or still in decline. Monday’s data showing that January’s consumer spending increased for a fourth month and by 0.5% over the previous month, reinforced suggestions of a cautious economic recovery.
The Week Ahead
January retail sales kick off the UK schedule on Tuesday, with the NIESR GDP estimate and January industrial production data also in focus on Wednesday. Analysts will be scrutinising these releases in the wake of the last week’s MPC decision on interest rates and the QE programme for any signs that Britain may be heading for a dreaded double-dip recession. In the US, Wednesday’s Treasury budget statement will have an impact on both sides of the Atlantic.
Results from Petrofac and International Power on Monday and Tuesday respectively will give a decent indication as to how the energy sector is currently faring. Similarly, announcements from Antofagasta on Tuesday and Standard Life on Wednesday will be studied closely to see if there are any implications for the mining and financial sectors as a whole.
Please note that this information is for guidance only and no liability is accepted for its accuracy or otherwise.