Monday 8 July
- Trading updates from UNITE, Hunting and Ferrexpo
- Japanese wage growth
- In Asia, quarterly results from Cathay Pacific
Tuesday 9 July
- British Retail Consortium retail sales
- US NFIB smaller companies survey
Wednesday 10 July
- Trading update from JD Wetherspoon
- UK bank stress test results from the Bank of England
- Interest rate decision from the Reserve Bank of New Zealand
- Chinese inflation
- US oil inventories
- In Asia, monthly sales figures from Taiwanese silicon chip foundry TSMC
- In the US, quarterly results from Manchester United
- Barratt Developments trading update
Barratt Developments will provide its trading update on Wednesday, giving its first trading insight since February results.
Russ Mould, AJ Bell investment director, Danni Hewson, AJ Bell head of financial analysis and Dan Coatsworth, AJ Bell investment analyst, said: “Shares in FTSE 100 housebuilder Barratt Developments have forged a steady recovery since the chaos of Trussonomics and they have gained nearly 50% since autumn 2022.
“Progress has slowed a bit in the past year, with a 15% advance, given uncertainty over when the Bank of England will start to cut interest rates, although house prices are relatively stable and mortgage approvals are way off their lows, too, which is something.”
Analysts will have eyes on sales per outlet per week, which registered at £367,600 last June. Cost increases will also be of interest, after reporting a 5% cost inflation expectation across the year in its December report. Barratt has moderated the cost inflation with a controlled building and land acquisition schedule in the second half.
Due to this, analysts expect a headline pre-tax profit of £321m, less than half of last year’s £705m.
“Guidance for the next fiscal year may well have to wait until the publication of the actual full-year numbers on 4 September, although analysts and shareholders will look for any pointers on the forward order book,” the AJ Bell team said.
“This stood at 8,760 homes with a value of £2.3 billion in December (and total sales are expected to reach £4.1 billion in the year to June 2024 and £4.4 billion in fiscal 2025).”
Thursday 11 July
- Full-year results from Jet2
- Trading updates from John Wood, Trustpilot and Renewi
- UK construction, manufacturing and industrial output
- German inflation figures
- US inflation figures
- US weekly initial unemployment claims
- In Japan, quarterly results from Uniqlo-owner Fast Retailing
- In Europe, quarterly results from Barry Callebaut, Bruno Cucinelli and Sudzucker
- In the US, quarterly results from PepsiCo and Delta Air Lines
Friday 12 July
- Trading statements from Vistry and Ashmore
- German retail sales
- US producer price (factory gate) inflation
- In the US, quarterly results from Bank of New York Mellon and Fastenal
US Banks including JP Morgan Chase, Citigroup, and Wells Fargo will report their second-quarter results on Friday following a year of recovery for the Philadelphia KBW Banks index after the collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank last year.
Despite a bounce back in the past year, the index still sits below its 2021 peak due to interest rates, high mortgage rates, and a loss of earnings momentum, according to the AJ Bell team.
“Resilient US economic growth, buoyant American financial markets and generous dividends and share buybacks from the megabanks have all helped the main KBW Banks index and their own share prices – the big four of Bank of America, Citigroup, JP Morgan Chase and Wells Fargo are all up by around 40% over the past year,” Mould, Hewson, and Coatsworth said.
“A successful push back from the banks against the initial timetable for the implementation of the Basel Endgame regulatory regime, which will be enforced later than planned – and probably oblige the banks to hold less capital than planned – is also helping, as is the clean bill of health provided by the latest annual round of US bank stress tests at the end of June. With that hurdle cleared, each of Bank of America, Citigroup, JP Morgan Chase and Wells Fargo dashed to announce dividend increases and new buyback programmes from the third quarter onwards.”
Analysts will look to net income and net earnings per share across the banks. Aggregate earnings are expected to fall across the banks year-on-year for Q2 and Q3. Dividends will also be a topic of discussion as each bank declared a raise in dividends beginning in Q3, with Citigroup expect at 0.56%, JP Morgan at 1.25%, and Wells Fargo at 0.4%. Bank of America, which will announce 16 July, is expected to raise their dividend to 0.26%.
