Weekly outlook: BoE inflation report, May’s exit and ECB decision

The key events for UK wealth managers for the week starting 3 June

Monday 3 June

– Parliamentary hearing on latest Bank of England inflation report

This hearing has already been delayed once and there remains the risk that it could be again, given the political environment and ongoing confusion over Brexit. AJ Bell investment director Russ Mould said if it happens as scheduled, governor Mark Carney will be quizzed over inflation (which at 2.1% is almost bang on target) and the future trajectory of interest rates.

– Tatton Asset Management final results

Mould said Tatton’s April trading update should mean there are relatively few surprises in the numbers for the year to March 2019 and attention is more likely to focus on an early steer of fund flows for the new financial year.

Tuesday 4 June

– EU inflation figures

Last month’s headline figure was 1.7%, with a core reading of 1.2%, so that is the benchmark for the latest number.

Wednesday 5 June

– Impax Asset Management Group interim results

April’s trading update revealed that Impax’s AUM reached £13.3bn by the end of March, up 6% from the financial year end in September. Inflows were good across the thematic equity funds, while real asset funds and fixed income were quieter. Analysts will be looking for any early steer in inflows and AUM for the third quarter, as well as how pre-tax profit compares with last year’s interim figure of £5.5m.

– Services and composite PMI data in the US

– Trading update from greetings cards specialist Card Factory

– Analysts’ meetings at Royal Dutch Shell and Babcock International

Thursday 6 June

– Interest rate decision from the European Central Bank

– Full-year results from Auto Trader and CMC Market

Friday 7 June

– Theresa May’s formal resignation.

All eyes will be on the Conservative Party leadership battle and the potential candidates.

– US non-farm payrolls, wage growth and unemployment data

In April, America’s economy added 263,000 jobs, taking unemployment down to 3.6%, the lowest rate since 1969. Psigma Investment Management head of investment strategy Rory McPherson said the latest reading will be interesting given the market is expecting another strong jobs number and how it affects the read through to inflation/Fed rate hikes, with the bond futures market pricing in an 84% chance of a rate cut this year.

– In Europe, quarterly results from Finnair

 

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