Monday 18 January
– Rio Tinto trading statement
– Chinese Q4 GDP growth
– Chinese monthly growth figures for retail sales, fixed asset investment and industrial production
– In Europe, quarterly results from Aeroports de Paris
Tuesday 19 January
– Netflix Q4 results
Netflix shares have gained 45% over the past 12 months as a result of lockdowns, noted AJ Bell investment director Russ Mould, but they currently sit about 13% lower than September’s all-time high.
“Whether this is the result of the current shift toward cyclical, recovery stocks and away from those stocks which shone during the early stages of the pandemic, Netflix’s lofty valuation (a $220bn market cap equates to 7.5 times 2021’s forecast sales and 78 times 2021’s forecast net profits, according to the analysts’ consensus) or mild disappointment with the guidance given at the third-quarter by co-CEO and founder Reed Hastings – or a combination of all three – is hard to divine,” said Mould.
“What is clear is that Netflix’s shares are not going up even as the broader, headline US equity indices continue to do so. Shareholders will therefore be looking for some positive surprises from Netflix in terms of new customer numbers and profits – something which the firm does have a track record of delivering.”
– Experian Q3 2021 trading update
The Share Centre noted the world’s largest credit data group has continued its expansion of the range of industries it services, from its original focus on financial services to areas such as telecoms, automotive, healthcare, identity checking, anti-fraud and debt collection advice and the public sector.
“The company has also been keen to expand its geographic reach, particularly in Europe, Latin America and Asia Pacific, and to make bolt-on acquisitions where appropriate. The US remains its most important market where around 60% of group revenue is generated. The share price is currently back to pre-pandemic levels.”
– Superdry first-half results
– Trading statements from BHP Group, Experian and Premier Foods
– German ZEW economic confidence survey
– In the US, quarterly results from Bank of America, Goldman Sachs and Halliburton
Wednesday 20 January
– Antofagasta Q4 update
Mould said Antofagasta is the sixth-best performer in the FTSE 100 over the past year behind only Scottish Mortgage, Ocado, Fresnillo, Pershing Square and Flutter. Shares in the company, which extracts copper at four different sites in the Antofagasta and Coquimbo regions of Chile, are up by two thirds over the past year.
“This might seem odd, for a miner to be doing so well when then pandemic is still a concern and the global economy still struggling, but the copper price is forging ahead and giving the shares a lift.
“This is one reason why this update could be interesting, because copper is seen as a key indicator to global economic well-being – hence the nickname ‘Dr Copper’.”
– Bank of Japan policy decision
The amount of assets on the BoJ’s balance sheet surged by 23% in 2020, although the bank is not expected to alter policy at its latest meeting, noted Mould. The headline interest rate has been at -0.1% since March 2016.
“However, the bank is currently holding a root-and-branch review of its policies and economists will comb the policy statements for any hints on any new thoughts from policymakers on inflation, rates, QE, growth and even financial markets,” said Mould.
– Bank of Canada policy decision
The Bank of Canada’s last move was a one-and-a-half point cut in April of last year to 0.25% and like the BoJ, changes to policy are unlikely, said Mould.
– Dixons Carphone trading update
Dixons’ interim results in December showed good growth in sales of electrical goods in the six weeks up to 12th of that month, which gave the shares a useful boost, said the Share Centre. The company has seen a big increase in online sales during the pandemic, helping to offset the enforced closure of its stores during lockdowns.
“Profits at the electricals business tripled in the first half, and in this update, investors will be looking to see if that momentum carried on up to and beyond Christmas. Any comments on prospects for 2021 will also be of interest, although the current lockdown raises a lot of uncertainty for high street retailers, including Dixons.”
– Pearson trading update
Nick Train holding Pearson’s share price is close to a 12-month high following a long period of difficult trading conditions, said the Share Centre, and investors have been hoping they’ll start to see the benefit of the restructuring the group has undertaken.
“Many also believe the ongoing pandemic to have bolstered demand for the group’s online learning products, which it is hoped will be reflected in an increase in demand, continued over the longer-term. As ever, the performance of its important US operations will be key.”
– Burberry trading update
Another Train holding, Burberry, delivers a trading update covering crucial holiday season sales. But contact between consumers due to the virus, the closure of physical retail outlets, fear over income and job losses is likely to have taken a toll on the group’s sales, said the Share Centre.
“Investors will be expecting the luxury goods retailer’s online and social media presence to have helped mitigate the overall sales decline. The new range of products have been doing well and we expect these to take up a greater share of overall sales over legacy products.”
– WH Smith trading update
– UK inflation figures
– EU inflation figures
– In Europe, quarterly results from ASML
– In the US, quarterly results from Procter & Gamble, Morgan Stanley, BNY Mellon, United Airlines and Alcoa
Thursday 21 January
– European Central Bank policy decision
Mould said the ECB, headed by Christine Lagarde (pictured), which increased the scope of its quantitative easing programme in December, is not expected to change its policy at the latest meeting. The headline interest rate for the bloc is likely to remain therefore at 0.00%, as it has been since April 2016.
-First-half results from Joules
-Trading updates from Entain, Sage, Pets At Home and Ibstock
-US weekly jobless claims figures
-US new homes permits and new home starts
-In Europe, quarterly figures from Sandvik
-In the US, quarterly figures from Intel, IBM, CSX and Baker Hughes
Friday 22 January
-Trading update from Computacenter
-UK retail sales figures
-UK monthly government borrowing data
-GfK UK consumer confidence survey
-Flash manufacturing purchasing managers indices in Asia, Europe and the UK
-US existing homes sales figures
-US oil inventories data
-In the US, quarterly results from AbbVie, Honeywell and Schlumberge
