The week ahead in UK stock market : 2nd August 2010
The week ahead in UK stock market : 2nd August 2010
2010/07/31 by ukcitymedia.co.uk about : Week Ahead - 0 Comments - 640 words
Concerns about the global economy wont go away after US production figures failed to excite on Friday. The gross domestic product GDP came it at an annualised rate of 2.4% in the second quarter while the market had expected 3.7% in the first quarter.
Worries remain that the US could slip back into recession and UK manufacturing output figures released Monday are expected to show a slight drop with services figures out on Wednesday. The Bank of England's Monetary Policy Committee MPC issues its latest interest rate decision on Thursday.
All the main high street banks report this week starting the HSBC on Monday, Lloyds Banking Group LLOY and Standard Chartered STAN on Wednesday, Barclays BARC on Thursday and Royal Bank of Scotland RBS on Friday.
With banking regulation very much still on the government agenda these reports could be crucial to future policy. Standard Chartered, HSBC and Lloyds are deemed to be in the strongest position and least likely to be affected by banking regulation changes. Barclays has made strides into America via shrewd investments in the Lehman Brothers banking assets but it still operates a combined retail and investment banking service.
The government last week indicated that it plans banking regulation will fall under the responsibility of the Bank of England in changes that could finally spell the demise of the FSA Financial Services Authority.
Life assurance giants also report during the week with Legal & General on Wednesday, RSA Group and Aviva AV. on Thursday and Old Mutual reporting interrims on Friday and could be affected by future government legslation into banking regulation.
The city is expecting that Legal & General interim results will be towards the top end of market forecasts while Aviva reported in the first quarter of 2010 that savings sales had recovered to over £10 billion and were 16% than the last quarter in 2009. The city will be looking for continuation of the same despite the lumpy performance of the UK stock market in the last few months.
Miners report during the week with half-year results from Xstrata XTA who reported last week copper and coal output marginally down. Rio Tinto RIO should report details on its latest deal with Chinalco, also reported last week.
First-half results from precious metals miner Fresnillo FRES on Tuesday are expected to confirm higher gold production levels and stronger metal prices. Analysts expect Fresnillo to report a continued strong balance sheet with $348 million and no debt plus an update on Fresnillo's development projects, Noche Buena, Orisyvo and San Julian.
There will be news for the housing market as Taylor Wimpey TW- reports Tuesday. The new homes builder has concentrated on debt reduction during the downturn and planning to sell some of its US land and home building assets. The city is expecting half-year net debt of £650 million to confirmed or bettered while Taylor Wimpey should also update on its newest arrangements for financing for the remainder of the year.
Fellow house builder Bellway BWY issue a full-year trading update on Thursday with analysts expecting an uplift of new builds and an increase in the average new homes sales price. Bellway have already indicated that it is looking at new land acquisition and the city will expect news how much land has been bought and at what price.
Real ales brewer and Pub management company Marstons MARS issue a trading update on Wednesday. Sales were up 1.4% in the first half and are expected to have continued in positive territory while strong trading has recently been reported in other pub restaurant group. The market will wait to see if Marstons followed suit.
Rounding off the week, Inmarsat, Logica, PartyGaming, Tomkins all report while there are AGM's at Carpathian, Majestic Wine, Pathfinder Minerals.
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