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Week ahead: Companies updating the market

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Written by:
04/08/2014
Some key economic data this week will demonstrate whether the UK's recovery remains on track.

The Nationwide house price data will show whether there has been any cooling of the UK’s potentially disruptive housing boom, while UK services data revealed mid-week will show whether momentum is being sustained. Finally, the Bank of England Monetary Policy Committee meets on Thursday. An interest rate rise would come as a surprise, but Mark Carney continues to hint at a rise sooner rather than later.

Monday

Banking behemoth HSBC Holdings plc reports its interim results on Monday. Investors will be hoping it has performed a little better than rivals Lloyds, where results were lacklustre. Intertek releases its second quarter results. There have been concerns over the slowing in organic growth and the effects of a stronger pound, which have dented share price performance in recent months. The group was hoping for a better performance in the second half, so the outlook statement will be closely scrutinised. The group has grown through acquisition so any news relating to this will be worth noting.

Tuesday

Aggreko updates the markets on its second quarter results on Tuesday, with analysts generally regarding the group’s long term prospects as positive; However, Sheridan Adams, an analyst at The Share Centre says: “It is the short to medium term outlook that becomes a little cloudy. The market has concerns over the direction the new management might take the business. There are also ongoing fears regarding a slowdown in emerging markets and the effect of currency movements.”

Tuesday also sees updates from previous metals group Fresnillo, satellite group Inmarsat and InterContinental Hotels, plus hedge fund group Man Group.

Wednesday

A number of the big insurers report on Wednesday, including Friends Life and Legal & General, both of which give second quarter performance. Investors will be interested in the impact of the new pension rules on both groups.

Standard Chartered also reports its second quarter earnings. Investors in the Asia-focused banking group will be hoping for an end to the flow of bad news from the group. Management has been under pressure, which has led to a strategic review, but any immediate reform is unlikely. Investors are likely to focus instead on trading conditions in Asia, bad loans, currencies, regulatory costs and individual country performance. Johnston Press gives its half year results today as well.

Thursday

AMEC gives its second quarter results today. Adams says: “The industry has gone through tough times recently leading to AMEC’s elimination from the FTSE100. However, the company is one of the more diversified businesses amongst its peer group and we would expect the trading update to show some resilience. Investors will expect to hear the outlook from management for the coming year, along with news of contract wins and updates on the progress of integrating recently acquired businesses.”

Coca-Cola, Mondi and Old Mutual also update the market.

Randgold Resources will be closely watched to see whether the stabilisation in the gold price has had an impact. The group has seen improving production numbers despite tensions in Mali, where it has most of its operations. Investors will be expecting an update on its exploration programmes.

Investors will also be hoping to see further evidence of Rio Tinto restructuring feeding through into second quarter results. They will want to see improved production numbers and sales, particularly as commodities prices have held up well in recent months.

Insurer RSA also gives its results today.

Friday

A quieter day on Friday, with only TUI Travel updating the market on its quarterly results.

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