BP & Shell are both issuing interims on Tuesday – about as likely as Taylor Swift and Katy Perry performing a duet together.
If their web sites are to be believed, oil colossi BP and Shell will both release results on Tuesday.
This happens about as often as the Beatles and the Rolling Stones issued singles in the same week back in the sixties, so the expectation is that one company will reschedule, if only to prevent the heads of oil analysts round the world exploding.
Both integrated oil companies will have benefited from the recent recovery in oil prices, but both are likely to place great emphasis in their trading statements on reducing capital expenditure and implementing cost cuts.
Multi-national advertising conglomerate WPP will kick the week off with its third quarter trading statement.
WPP’s updates are usually keenly watched as they are often a foretaste of economic trends to come, and as in the last quarterly update, there will be a lot of interest in how things are progressing in the post-Brexit and pre-Presidential election environments.
“Investors will appreciate that the firm got a boost from the EU referendum result and subsequent weakening of sterling,” suggested Graham Spooner, an investment research analyst at The Share Centre.
If WPP is a barometer of the economy then house builder Persimmon is a bellwether for the UK housing market.
The company’s interims towards the end of August showed the group suffering few signs of any effects of the Brexit decision.
“Given the results/data we have since had from other house builders and sources, we expect this pattern has not changed, especially as the group’s exposure to the South East is relatively modest,” said Peel Hunt.
“Comments about land buying and site openings will give some guide as to the level of confidence management has about 2017, although ahead of the [Chancellor of the Exchequer’s] autumn statement the element of uncertainty remains high,” the broker added.
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SOURCE: Proactive Investors
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