Reflect & Prepare

Friday, 18th October 2019 14:54 - by Reflect & Prepare

While the trade talks between the US and China continue, the US economy continues to show signs of slowing - slowing down and turning into a recession at this stage is a little premature, especially with the Federal Reserve having further ammunition with which to stimulate the economy.  While the US President wants more decisive action from his central bankers, he may well get his wish with the latest retail sales figures this week highlighting some strains in consumption, which have been the primary driver of growth this year. Employment is still holding up though, with the labour markets suggesting there is little to get over-concerned about, though this may now require the Fed to get ahead of the curve.

 

US stocks are holding onto better levels, and for the most part this week, have been trading sideways as continued hopes for the world's 2 leading economies to sign a truce on trade.  Until that point, it seems we are in a period of levitation, with monetary policy accommodation - now more likely in the wake of recent data - adding to a backdrop of near term support.  

 

The euphoria last week over emanating from the meeting between the UK and Irish PMs have carried through this week in some style, with talks intensifying with the EU and finally resulting in a deal being agreed with the EU.  However, Boris Johnson has had to make some concessions that are not sitting well with the DUP, and when the deal goes to the Commons this week for ratification, there is a very good chance that this will be rejected.  If so, it is back to the drawing board for the PM, but more likely a case of having to do the unthinkable and ask for an extension again.

 

There will be much pressure to put politics aside and get a deal over the line in order to end the uncertainty which has dogged the UK for 3 and a half years now, so aside from any fallout between the UK and EU, the political consequences of a deal being rejected will have ramifications further down the line.  Here is a chance to end the prolonged process which has yet to clear stage one.  We await with bated breath to see whether national interests are upheld first and foremost.

 

Movers and Losers

 

Moneysupermarket.com -12.58%: Shares in the Co. shot lower today over 10 per cent after the company admitted it was still having problems with 'product availability' across its money arm.

 

Nostrum Oil & Gas 13%%: The company are still recovering from the fall out over the unable to sustain commercial flow rates at Kazakhstan well - shares have retraced after bottoming out at 5.15 per share.

 

Sophos Group 33.49%: The companies shares rocketed after a US private equity group put in an offer to buy Sophos for $3.9bn.

 

ASOS 31%: The share price bounced back after the board promised a turnaround after they missed expectations this week. Profits dropped almost 70% falling to £33.1m for the year.

 

Week Ahead

 

Monday - UK Rightmove HPI, Chinese interest rate decision, Japanese trade balance, German PPI

Trading Statement

Petra Diamonds Ltd [PDL]

Final Result

Gfinity Plc [GFIN]

 

Tuesday - CBI industrial trends orders, Canadian retail sales, US existing home sales, NZ trade balance

Trading Statement

Georgia Capital Plc [CGEO]

Reckitt Benckiser Group PLC [RB.]

St James's Place PLC [STJ]

Travis Perkins PLC [TPK]

AGM / EGM

Accrol Group Hldgs Plc [ACRL]

McBride PLC [MCB]

Final Result

Essensys PLC [ESYS]

Interim Result

Whitbread PLC [WTB]

 

Wednesday - OPEC meeting, DoE's

AGM / EGM

Beeks Financial Cloud Group Plc [BKS]

Interim Result

Harbourvest Global Private Equity [HVPE]

Final Result

Softcat Plc [SCT]

 

Thursday - Australian,  Japanese, German, US,  European manufacturing & services PMI, ECB rate decision, US core durable goods orders, US new home sales

Trading Statement

AJ Bell PLC [AJB]

Kaz Minerals PLC [KAZ]

National Express Group PLC [NEX]

Royal Bank of Scotland Group (The) PLC [RBS]

RELX Plc [REL]

AGM / EGM

Alumasc Group PLC [ALU]

Myanmar Investments International Ltd [MIL]

Oil & Gas Development Co [OGDC]

South32 Limited [S32]

Stranger Holdings PLC [STHP]

Interim Result

AstraZeneca PLC [AZN]

Kcell JSC [KCEL]

Mail.RU Group Ltd [MAIL]

Novolipetsk Steel [NLMK]

Final Result

RDI REIT PLC [RDI]

 

Friday - German GFK data, German IFO, Russian rate decision, CFTC data, Baker Hughes rig count

Interim Result
Barclays PLC [BARC]

 

Have a great weekend!

 

Kind Regards

 

Rajan Dhall

 

 

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.