This week will see several housebuilders, whose stock suffered in the aftermath of Brexit, delivering their results for the first half of the year. Inflation and unemployment statistics will be released, as well as 2016 estimates for the UK national balance sheet.
Fund Strategy looks at some key events shaping the week and what to expect.
Monday 15 August
- Bovis Homes Group plc – results
In its most recent trading update the housebuilder said it was “too early” to assess the impact of Brexit on the UK housing market, though the stock took an 18 per cent hit the day referendum results came through. It said it had delivered 1,600 new homes in the first half, up 5 per cent from last year with average sales prices up 15 per cent to £255,000 compared to £222,000 last year.
- Japan GDP – Q2 (preliminary)
Japan’s GDP rose higher than expected in its Q1 update, at 3.9 per cent compared to a preliminary reading of 2.4 per cent increase, and up from 1.5 per cent in Q4 2015.
Tuesday 16 August
- Persimmon results
Another housebuilder releases its H1 results, with a recent trading statement pointing to new homes rising 6 per cent to 7,238 compared to 6,855 last year, while the average price rose 6 per cent to £205,500 compared to £194,378 in H1 2015. “It remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market. We believe that market fundamentals remain strong,” the trading statement said. Its stock lost 23 per cent the day after the UK voted for Brexit.
- UK consumer price inflation – July
UK consumer price index figures rose to 0.5 per cent in June compared to 0.3 per cent a month earlier, with the upward trend set to continue due to sterling weakness. IHS Global anticipates inflation will reach 1.5 per cent by the end of the year reaching a peak of 3 per cent in late 2017.
UK house price index – June
Wednesday 17 August
- UK Labour Market Statistics (unemployment statistics)
Bank of England governor Mark Carney warned earlier in the month that the central bank was preparing for job losses as a result of the UK’s vote to leave the European Union. However, statistics in the lead up to the Brexit vote were healthy with the unemployment rate falling to 4.9 per cent in June, its lowest point since July 2005.
Thursday 18 August
- Bank of England releases figures on gross and net issuance by UK residents
- EU Inflation Statistics
Eurozone inflation rose more than expected in July to 0.2 per cent, driven mostly by food, alcohol and tobacco. This was up from 0.1 per cent in June.
- ECB monetary policy discussion notes
Details from the ECB’s July monetary policy meeting will be published today. It was the central bank’s first meeting after the UK voted to leave the European Union.
- UK national balance sheet: 2016 estimates
- UK Retail Sales figures
Friday 19 August
- Public Sector Finances (UK)
- London Underground – night tube services begin
The long awaited start of night tube services in London is expected to give the city a £77m boost per year and be responsible for the creation of 2,000 new jobs, according to the Centre for Economics and Business Research. The same research also anticipated London’s night time economy would be worth £30bn a year by 2030.