CUR­REN­CIES

Af­ter shares slide due to the pan­demic and Far East ten­sion, first-half re­sults may prove dis­ap­point­ing

The Daily Telegraph - Business - - Front Page - louis ash­worth

To­day

HSBC’s shares re­cently hit a decade low, re­flect­ing its un­en­vi­able po­si­tion: caught be­tween the pres­sures of the pan­demic and its en­tan­gle­ment in con­tin­ued ten­sions over Hong Kong.

The group’s first-half re­sults should show the same trad­ing strength demon­strated by many of its ri­vals, but bad debt pro­vi­sion are likely to be big.

In­terim re­sults

His­cox, HSBC, Se­nior, Syn­thomer Full-year

Pur­ple­bricks

Eco­nomics

Man­u­fac­tur­ing PMI fi­nal (UK, China, euro­zone, US, Ja­pan, Ger­many, France, Italy, Spain), Q2 GDP (Ja­pan)

Tues­day

BP chief Bernard Looney took over with an com­mit­ment to turn the oil gi­ant in a net-zero com­pany by 2050. Since then, coron­avirus has up­ended the oil in­dus­try, caus­ing prices to drop to records lows and vir­tu­ally guar­an­tee­ing the group’s sec­ondquar­ter re­sults will make for nasty read­ing. At stake is one of the FTSE 100’s few re­main­ing div­i­dends: if BP de­cides it can’t sus­tain the pay­out, shares could take a fresh hit.

In­terim re­sults

BP, Calisen, Cen­tamin, Di­rect Line, IWG, Ro­tork, Spec­tris

Full-year

Bab­cock, Di­a­geo

Eco­nomics

Pro­ducer price in­fla­tion (euro­zone), fac­tory or­ders, durable goods (US)

Wed­nes­day

Prop­erty de­vel­oper Se­gro re­leases its first-half re­sults against a tough back­ground. The FTSE 100 group’s share price has re­cov­ered, but is still fac­ing week rent col­lec­tions.

Yet there are still op­por­tu­ni­ties, says Good­body’s Colm Lauder – in par­tic­u­lar, there’s been clear on­line re­tail sales growth, and “few are bet­ter placed than [Se­gro] to pro­vide space for such oc­cu­piers”. For now how­ever, the out­look looks un­cer­tain.

In­terim re­sults

Fer­rexpo, Hast­ings Group, Hill & Smith, IP Group, Le­gal & Gen­eral, Metro Bank, Mor­gan Sin­dall,

PageGroup, Se­gro, Wil­liam Hill Eco­nomics

New car reg­is­tra­tions (UK), ser­vices PMI fi­nal (UK, China, euro­zone, US, Ja­pan, Ger­many, France, Italy, Spain), re­tail sales (euro­zone), ADP em­ploy­ment, trade bal­ance (United States)

Thurs­day

Ham­mer­son be­fore the pan­demic. Now, the strug­gling re­tail land­lord faces a greater chal­lenge than ever be­fore. In the face of a sec­tor de­cline, Ham­mer­son’s re­sponse “has been dis­pro­por­tion­ally small, re­sult­ing in sig­nif­i­cant share­holder value de­cline,” says Citi’s Aaron Guy. As it con­tin­ues to search for a new chief ex­ec­u­tive, a mo­ment of truth seems im­mi­nent.

May’s first-quar­ter re­sults re­vealed a 42pc de­cline in ad­ver­tis­ing for ITV in late March and early April. The broad­caster is likely to have seen per­for­mance pick up a lit­tle since then, but its first-half re­sults are bound to be painful. With that in mind, most in­vestors will fo­cus on the path ahead, but as its ri­vals grow ever stronger, the group looks in­creas­ingly vul­ner­a­ble.

In­terim re­sults

Ag­greko, Aviva, Coca-Cola Euro­pean Part­ners, Con­va­Tec, Cush­man & Wake­field, Evraz, Glen­core, Ham­mer­son, Ib­stock, ITV, Mondi, Sav­ills, Serco, Spirent Com­mu­ni­ca­tions, TT Elec­tron­ics

Full-year

Pan­theon In­ter­na­tional

Eco­nomics

Mon­e­tary Pol­icy Com­mit­tee de­ci­sion, fi­nan­cial sta­bil­ity re­port, con­struc­tion PMI (UK), man­u­fac­tur­ing or­ders (Ger­many), in­dus­trial pro­duc­tion (Italy), job­less claims (US)

Fri­day

In­terim re­sults

Hikma Phar­ma­ceu­ti­cals, Right­move, Stan­dard Life Aberdeen, TP ICAP Full-year

Har­g­reaves Lans­down, Scapa Eco­nomics

Hal­i­fax house price in­dex (UK), trade bal­ance (China), in­dus­trial pro­duc­tion (Ger­many, France, Spain), non-farm pay­rolls, un­em­ploy­ment (US)

HSBC’s first-half re­sults should show it trad­ing at a sim­i­lar strength to its ri­vals

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