Tuesday preview: Services data, Imperial Brands in focus

updated: 4 November 2019 at 2:45pm Author: Alexander Bueso

(Sharecast News) - The focus on Tuesday will be on the release of services sector data in the States and the UK.


The results of the US Institute for Supply Management's services sector Purchasing Managers' Index for the month of October, in particular, will be scrutinised for confirmation that weakness in American manufacturing is not feeding through into the services side of that economy.

Ahead of that report, consultancy IHS Markit's services PMI for the UK is expected to reveal a rise from September's level of 49.5 to 49.8 for October.

And overnight, rate-setters in Australia and Malaysia are due to meet to decide on interest rates.

In the corporate space meanwhile, investors will be focusing on Imperial Brands's results for the financial year ended on 30 September.

However, in the wake of the company's downgraded expectations as per its pre-close trading update, what will most matter is the outlook for the year ahead, said JP Morgan analyst Celine Pannuti.

According to Adlington, investors will also be keen for the timeline on the CEO/Chairman's change and the pipeline for product applications at the Food and Drug Administration.

Against that backdrop, and despite the company's seemingly attractive valuation, at six times JP Morgan's estimate for its earnings in 2020 and 12.8% dividend yield, Pannuti remained "cautious".

Among the reasons she cited for her wariness were Imperial's outlook and the growing risks for its large investments in NGP.

"While we do not expect the departing CEO to give an '[medium-term] strategic update' and an FY20 outlook guiding towards large NGP reinvestments, the growing lag in NGP and weakening top-line growth lead us to remain on the sidelines. We are Neutral with a cautious [short-term] stance.

Tuesday November 05

INTERIMS

Castleton Technology, MXC Capital

INTERIM DIVIDEND PAYMENT DATE

Cenkos Securities, Synthomer, Weir Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

ISM Non-Manufacturing (US) (15:00)

PMI Composite (EU) (09:00)

PMI Composite (GER) (08:55)

PMI Composite (US) (14:45)

PMI Services (EU) (09:00)

PMI Services (US) (14:45)

Producer Price Index (EU) (10:00)

Q3

Public Joint Stock Company Polyus (REG S)

FINALS

Associated British Foods, Up Global Sourcing Holdings

SPECIAL DIVIDEND PAYMENT DATE

Barratt Developments

AGMS

AEW UK Long Lease Reit , Murray Income Trust

TRADING ANNOUNCEMENTS

AIB Group, Gem Diamonds Ltd. (DI), Intu Properties, Morrison (Wm) Supermarkets

UK ECONOMIC ANNOUNCEMENTS

Balance of Trade (13:30)

BRC Shop Price Index (00:01)

PMI Services (09:30)

FINAL DIVIDEND PAYMENT DATE

Barratt Developments