Friday, 17th May 2019 13:58 - by Reflect & Prepare
Centre stage is the US-China trade standoff, which up until 2 weeks ago constituted a set of negotiations but is now turning into a war. China is fully prepared to retaliate, and matters have been further soured by the US ban on Chinese tech companies to enter US networks - in the interests of national security. Huawei has been the focal point in these latest developments, but in the broader scheme of things, pushes the odds of a deal with China further out. Adding to global tensions is the US withdrawal from the nuclear deal with Iran. This has caused fractures with other global counterparts, not least of all Europe.
However, the US president has decided to delay the auto tariffs which has been well received by European markets, with Japan also set to benefit as it continues its trade talks with the US.
On the domestic economy, some of the data could have been better. The latest consumer spending data missed on expectations to show an unexpected dip of 0.2%, while industrial production has also contracted. Employment data still looks healthy though as per the weekly claims data.
The Pound has taken a battering this weak, as not only have the cross-party talks with Labour failed to bear any fruit, but the PM has now agreed to set out a timetable for her departure after her withdrawal bill is put through parliament for the final time next month. The whole Brexit saga has taken on a fresh twist - or a series of twists - which have multiplied the number of outcomes to the whole process of leaving the EU.
Markets have been focused on the new leader and what approach he or she will take with Brexit going forward. Boris Johnson is top of the list to succeed Theresa May, so it is natural to believe he will take a hard line - hence increased odds of a no deal. However, this also raises the prospect of another general election, and a Corbyn government carries its own risks - certainly in the eyes of the market!
Movers and Losers
Staffline -50%: The Co. downgraded EBIT forecasts and stated that Brexit issues are having a material effect on their business. There is also a minimum wage scandal hanging over the group.
Thomas Cook -35%: In the Co's latest trading update they announced a loss of nearly GBP 1.5bln. The groups 6 month performance was also slower than expectations.
Metrobank +18%: This move higher is largely a retracement of recent losses seen after the miss-classification of the Co.'s mortgage books.
ECR Minerals +15%: ECR’s 100% owned Australian subsidiary received a cash R&D refund of AUD 318,971.73 (approximately GBP 171,000).
Next Week
Monday - Japanese GDP
AGM / EGM
City Pub Group Plc [CPC]
Forterra Plc [FORT]
Keywords Studios [KWS]
Final Result
LXI Reit Plc [LXI]
McKay Securities PLC [MCKS]
Interim Result
Cerillion Plc [CER]
Tuesday - Fed's Powell speaks, RBA meeting mins, UK inflation report hearings, US existing home sales, Oil API's, NZ retail sales, Fed's Rosengren and Evan's speak.
AGM / EGM
Accesso Technology Group [ACSO]
BP PLC [BP.]
Corero Network Security PLC [CNS]
Fresnillo PLC [FRES]
Greggs PLC [GRG]
Lamprell PLC [LAM]
Marshall Motor Holdings PLC [MMH]
Nahl Group [NAH]
Provident Financial PLC [PFG]
Royal Dutch Shell [RDSA]
Riverstone Energy Limited [RSE]
Restore PLC [RST]
Vitec Group (The) PLC [VTC]
Warpaint London Plc [W7L]
Trading Statement
Electrocomponents PLC [ECM]
Galliford Try PLC [GFRD]
Provident Financial PLC [PFG]
WH Smith PLC [SMWH]
Final Result
Assura Group Ltd [AGR]
Bloomsbury Publishing PLC [BMY]
Big Yellow Group Plc [BYG]
Cranswick PLC [CWK]
Electrocomponents PLC [ECM]
First Derivatives PLC [FDP]
Halfords Group PLC [HFD]
Homeserve PLC [HSV]
Immedia Group PLC [IME]
Severn Trent PLC [SVT]
Warehouse Reit Plc [WHR]
Interim Result
APC Technology Group PLC [APC]
Nexus Infrastructure Plc [NEXS]
Renew Holdings PLC [RNWH]
Shaftesbury [SHB]
Topps Tiles PLC [TPT]
UDG Healthcare PLC [UDG]
Wednesday - Japanese trade balance, ECB's Draghi speaks, UK CPI, Canadian retail sales, DoE's, Fed meeting minutes
AGM / EGM
Antofagasta PLC [ANTO]
Allianz Technology Trust Plc Ord 25p [ATT]
Boku Inc. [BOKU]
Deltex Medical Group PLC [DEMG]
Gamma Communications Plc [GAMA]
Georgia Healthcare Group Plc [GHG]
Judges Scientific PLC [JDG]
Medica Group Plc [MGP]
Motif Bio PLC [MTFB]
SafeCharge International Group [SCH]
Property Franchise Group Plc The [TPFG]
Trading Statement
Close Brothers Group PLC [CBG]
IG Group Holdings PLC [IGG]
Final Result
Babcock International Group PLC [BAB]
Great Portland Estates PLC [GPOR]
HICL Infrastructure Co Ltd [HICL]
Intermediate Capital Group PLC [ICP]
Marks & Spencer Group PLC [MKS]
Picton Property Income Ltd [PCTN]
Pets At Home Group Plc [PETS]
Royal Mail Plc [RMG]
SSE PLC [SSE]
U and I Group Plc [UAI]
Interim Result
Britvic PLC [BVIC]
IXICO plc [IXI]
Paragon Banking Group PLc [PAG]
Picton Property Income Ltd [PCTN]
Paradigm Metals Ltd [PDM]
Thursday - German GDP, German manufacturing PMI, German IFO, EU manufacturing, UK retail sales, ECB meeting mins, US new home sales, NZ trade balance
AGM / EGM
Aviva PLC [AV.]
Avast Plc [AVST]
Coats Group Plc [COA]
Cambridge Cognition Holdings [COG]
EnQuest Plc [ENQ]
Gocompare.com Group Plc [GOCO]
GYG Plc [GYG]
Hastings Group Holdings Plc [HSTG]
Hydrogen Group PLC [HYDG]
Inchcape PLC [INCH]
JKX Oil & Gas PLC [JKX]
Strix Group Plc [KETL]
Legal & General Group PLC [LGEN]
Intelligent Ultrasound Group PLC [MED]
Manx Financial Group PLC [MFX]
Nucleus Financial Group PLC [NUC]
Pebble Beach Systems Group Plc [PEB]
Sabre Insurance Group Plc [SBRE]
Shefa Yamim Ltd [SEFA]
Secure Income Reit Plc [SIR]
Final Result
Dairy Crest Group PLC [DCG]
Helical Bar PLC [HLCL]
Mediclinic International Plc [MDC]
NewRiver Retail Ltd [NRR]
PayPoint PLC [PAY]
PayPoint PLC [PAY]
TalkTalk Telecom Group PLC [TALK]
Tate & Lyle PLC [TATE]
United Utilities Group PLC [UU.]
Trading Statement
Coats Group Plc [COA]
Essentra [ESNT]
Inchcape PLC [INCH]
Intertek Group PLC [ITRK]
Interim Result
AJ Bell PLC [AJB]
Hollywood Bowl Group Plc [BOWL]
Mitchells & Butlers PLC [MAB]
Friday - UK retail sales, US goods data, US Baker Hughes rig count
AGM / EGM
Informa PLC [INF]
Old Mutual Limited [OMU]
Yew Grove Reit Plc [YEW]
Final Result
Urban Logistics REIT Plc [SHED]
Volvere PLC [VLE]
Trading Statement
Spectris PLC [SXS]
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.