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

The Daily Telegraph - Business - - Business - louis ash­worth

To­day

In­terim re­sults Three

Eco­nomics

Trade bal­ance (Japan)

To­mor­row

Trad­ing state­ment

BHP, Euromoney In­sti­tu­tional In­vestor, In­te­graFin, In­ter­me­di­ate Cap­i­tal, TalkTalk

Eco­nomics

Pub­lic sec­tor net bor­row­ing (UK), in­fla­tion (Japan)

Wed­nes­day

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.

Full-year

Stage­coach

Trad­ing state­ment

Antofa­gasta, Britvic, Fres­nillo, Pay­Point

Eco­nomics

Ex­ist­ing home sales (US)

Thurs­day

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.”

In­terim re­sults

Bea­z­ley, Croda In­ter­na­tional, How­den Join­ery, RELX. Unilever

Full-year

IG Group, John­son Matthey

Trad­ing state­ment

AJ Bell, Brewin Dol­phin Hold­ings, Coun­try­side Prop­er­ties, Daily Mail & Gen­eral Trust, Sage

Eco­nomics CBI in­dus­trial trends (UK), con­sumer con­fi­dence (euro­zone), job­less claims (US)

Fri­day

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.

In­terim re­sults

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

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