This week Barclays, Lloyds Banking Group and Royal Bank of Scotland will publish their results following the Brexit vote.
Fund Strategy looks at some key events shaping the week and highlights what to expect.
Monday 24 October
- Markit – Flash Eurozone Purchasing Managers’ Index
Tuesday 25 October
- Apple Inc – results
Wednesday 26 October
- GlaxoSmithKline (Q3 results)
The Share Centre investment research analyst Graham Spooner says: “The shares have done very well recently partly down to the fact that a large portion of its earnings are from overseas which benefit from translations effects. However, operational performance has also been good with new product sales seeing rapid growth which should follow on from last year and the first quarter of this year.
“Vaccines and Consumer Healthcare are also doing well. A key future driver for the business is the progress from their R&D, investors will be expecting and update here along with the progress on the integration of the Novartis business and cost savings programme.”
Lloyds Banking Group (Interim management statement)
Spooner says: “The news flow surrounding the UK listed banks isn’t improving much and investors are very cautious as to the implications on them of a “hard Brexit”. This will be the first quarter of full post Brexit results for them and management comments will be scrutinised very closely.
“Investors should expect to see PPI claims still being a drag while assets and the loan portfolio will still be written off. The current state of low interest margins will hurt them more while we should expect to see further branch closures.”
Thursday 29 October
- BT (Q2 results)
Spooner says: “A first quarter trading update in July was better than expected. The company said the mobile network EE was performing well and integration was also progressing well. Good uptake of the TV services has been a strong feature for the consumer division in recent times so those products will be of interest.
“The shares have underperformed this year due mainly to concerns about the group’s pension deficit and the future of the infrastructure division Openreach so any comments on those will be of interest to investors.”
- Barclays (Q3 results)
Spooner says management have previously said that Brexit won’t impact on the pace of the group’s restructuring.
He says:”Forward guidance will also be sought after especially since interest rates and fallen further which will no doubt hurt their net interest margin.”
Friday 28 October
- Royal Bank of Scotland Group – results