Fresnillo should show its mettle in search for safe havens
Miner set for solid results, meanwhile investors will be hoping that Stagecoach has at last turned a corner
Interim results Three
Trade balance (Japan)
BHP, Euromoney Institutional Investor, IntegraFin, Intermediate Capital, TalkTalk
Public sector net borrowing (UK), inflation (Japan)
The worst damage may already be done for Stagecoach, which will report full-year results on Wednesday that is likely lay bare the devastating effect of lockdowns on the transport company’s operations. The road ahead looks more clear: with restrictions on public transport usage set to lift, the group may see activity bounce back in the coming weeks.
Fresnillo is likely to report a pretty solid performance in Wednesday’s trading statement – the group has benefited recently from both a recovery in demand, and a strong run for gold prices prompted by demand for safe haven assets.
But after a strong run, the upside to its share price may be limited from here, warn Royal Bank of Canada analysts.
Antofagasta, Britvic, Fresnillo, PayPoint
Existing home sales (US)
Unilever has looked fairly solid during the market fluctuations of recent months: the consumer goods giant reported heightened demand for cleaning products in the first quarter, become one of a small group of FTSE 100 groups to maintain a dividend.
Still, it has held back on full-year guidance, and investors will be keen to see signs of growth in key markets such as China and India in Thursday’s first-half results. The group’s shares are lower than a year ago, so shareholders may be hoping for something to put some heat under the group.
We last heard from IT group Sage in May, when the FTSE 100 company said it had experienced a slowdown in new customer numbers. Thursday’s trading update for the three months to the end of June should give a clearer picture. Shore Capital analyst Martin O’Sullivan sounded caution, saying: “We think it more likely than not that Covid-19 has had a broad impact on businesses generally, resulting in a likely slowdown in net adds and increased churn.”
Beazley, Croda International, Howden Joinery, RELX. Unilever
IG Group, Johnson Matthey
AJ Bell, Brewin Dolphin Holdings, Countryside Properties, Daily Mail & General Trust, Sage
Economics CBI industrial trends (UK), consumer confidence (eurozone), jobless claims (US)
A possible increase in data usage prompted by more people being stuck at home might provide some pickup to Vodafone’s results, but investors are likely to focus on the bigger question surrounding the company. In particular, the telecoms group’s debt pile is a continued concern, while the tailwind provided to revenues by its acquisition of German cable assets from Liberty Global will be of key interest.
Centrica has decided to push ahead with restructuring plans, with around 5,000 jobs set to be cut as the company tries to drive down costs. Investors will be looking for signs of progress with the plans, as well as any further clarity on how demand has shifted over recent months. A rise in home usage as office demand falls left the group unable to offer guidance when it last updated the City on its performance in April – Friday may change that.
Airtel Africa, Centrica, IMI Trading statement
CVS, Hotel Chocolat, Vodafone Economics
Retail sales (UK), flash PMIs (UK, eurozone, France, Germany, US).
A good run for gold prices aided by a demand for safe haven assets should help Fresnillo