Tuesday preview: US-China trade, Rolls Royce in the spotlight

updated: 5 August 2019 at 4:08pm Author: Alexander Bueso

(Sharecast News) - The flow of economic data is set to be quite thin, although traders' attention will likely continue to be on the US-China trade spat, particularly the risk of further escalation.
Against that backdrop, in the States, only the Federal Reserve's JOLTS labour market survey for July was scheduled for relase, at 1500 BST, followed by a speech from St.Louis Federal Reserve chief, James Bullard, two hours later.

Across the Channel, the main release was set to be a report on German factory orders in June.

No major UK economic reports were due out.

For Rolls Royce, UBS's Celine Ferraro has penciled-in 6.0% revenue growth excluding the engineer's marine unit, with the Power systems division expected to deliver earnings before interest and taxes of £101.0m with a 27/73 split between the first and second halves of 2019.

Total free cash flow meanwhile is seen at -£300m, dragged down by multiple factors including: working capital, a lower contribution of flying hours, a high level of check and repairs, concessions outflow, and a lower level of spare engines.

"Hopefully [Rolls Royce] can reassure investors by reducing further its OE losses (at £1.4mn loss per engine as of Fy18) and explaining the underlying progress on Trent 1000 aircraft on the ground."

Tuesday August 06

INTERIMS

Genel Energy, InterContinental Hotels Group, IWG , Meggitt, Public Joint Stock Company Polyus (REG S) , Rolls-Royce Holdings, Rotork, Synthomer, Synthomer, TP ICAP, Zotefoams

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Factory Orders (GER) (07:00)

Industrial Production (GER) (07:00)

Q2

Public Joint Stock Company Polyus (REG S)

AGMS

GoldStone Resources Ltd

UK ECONOMIC ANNOUNCEMENTS

Retail Sales (00:01)

FINAL DIVIDEND PAYMENT DATE

Intermediate Capital Group, Johnson Matthey