After shares slide due to the pandemic and Far East tension, first-half results may prove disappointing
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.
Hiscox, HSBC, Senior, Synthomer Full-year
Manufacturing PMI final (UK, China, eurozone, US, Japan, Germany, France, Italy, Spain), Q2 GDP (Japan)
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.
BP, Calisen, Centamin, Direct Line, IWG, Rotork, Spectris
Producer price inflation (eurozone), factory orders, durable goods (US)
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.
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)
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.
Aggreko, Aviva, Coca-Cola European Partners, ConvaTec, Cushman & Wakefield, Evraz, Glencore, Hammerson, Ibstock, ITV, Mondi, Savills, Serco, Spirent Communications, TT Electronics
Monetary Policy Committee decision, financial stability report, construction PMI (UK), manufacturing orders (Germany), industrial production (Italy), jobless claims (US)
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