Thursday preview: Fed's Powell, Burberry in the spotlight

updated: 11 November 2020 at 5:05pm Author: Alexander Bueso

(Sharecast News) - Financial markets focus on Thursday will be on a preliminary print for UK gross domestic product in the third quarter.




Economists at Barclays Research forecast that the economy grew at a month-on-month pace of 1.0% in September and by 15.5% quarter-on-quarter.

That would follow the second quarter's 19.8% plunge, leaving GDP down by 8.4% year-on-year.

Output from construction is expected to have done best, expanding by 2.0% on the month, alongside rises of 1% in output from industry and services.

In the US meanwhile, all eyes are likely to be on Fed chairman, Jerome Powell, as he speaks at the ECB forum, starting from 1645 GMT.

A reading on initial weekly US jobless claims will also be closely watched for any signs of undue weakness in the jobs market.

Across the Channel meanwhile, the spotlight will be on readings for German and Swedish consumer prices covering the month of October and on euro area industrial production in September.



UBS analyst Zuzanna Pusz sounded a cautious note on shares of Burberry ahead of its first half financials given the rebound seen in the shares since their July lows.

The entire sector had since bounced back with Burberry receiving a further boost from its relatively higher exposure to the "booming" US market.

The luxury fashion brand obtained approximately a quarter of its sales from the States, against 20% on average for the rest of its sector.

But the good news was likely already in the price, the analyst argued.

What might not be in the price however were the still limited signs of brand turnaround and the limits to any further cost-cutting measures.

Hence, said Pusz: "our focus will be on the quality of sales growth (full price vs. off-price sales and especially higher margin outlets) as well as H2 profit guidance.

"We remain cautious on BRBY due to the slow progression of its turnaround plan and limit to its cost cutting measures. Sell."

Thursday 12 November

INTERIMS

B&M European Value Retail S.A. (DI), Enteq Upstream, Mediclinic International , National Grid, Norcros, Picton Property Income Ltd, QinetiQ Group, Volex

INTERIM DIVIDEND PAYMENT DATE

Pembroke Vct B

INTERIM EX-DIVIDEND DATE

Airtel Africa , Anpario, BlackRock Smaller Companies Trust, Genel Energy, Inspired Energy, Morgan Sindall Group, ProVen Growth & Income VCT, ProVen VCT, Riverfort Global Opportunities , RSA Insurance Group, Sainsbury (J), Seplat Petroleum Development Company (DI)

QUARTERLY PAYMENT DATE

British American Tobacco, JPMorgan Asia Growth & Income, Merchants Trust

QUARTERLY EX-DIVIDEND DATE

GlaxoSmithKline, Honeywell International Inc., ICG Enterprise Trust, Raven Property Group Limited Cum Red Pref, Royal Dutch Shell 'A', Royal Dutch Shell 'B', The Renewables Infrastructure Group Limited

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Consumer Price Index (US) (13:30)

Continuing Claims (US) (13:30)

Industrial Production (EU) (10:00)

Initial Jobless Claims (US) (13:30)

Q3

Arrow Global Group, Telecom Egypt SAE GDS (Regs)

FINALS

WH Smith

SPECIAL EX-DIVIDEND DATE

Aberdeen Standard Asia Focus , Sainsbury (J), Thinksmart Limited (DI)

AGMS

Clear Leisure, Grand Vision Media Holdings , James Halstead, New Star Investment Trust

TRADING ANNOUNCEMENTS

Vesuvius

UK ECONOMIC ANNOUNCEMENTS

Balance of Trade (07:00)

GDP (Preliminary) (07:00)

Gross Domestic Product (07:00)

Index of Services (07:00)

Industrial Production (07:00)

Manufacturing Production (07:00)

RICS Housing Market Survey (00:01)

FINAL DIVIDEND PAYMENT DATE

Hansard Global, JPMorgan Emerging Markets Inv Trust

FINAL EX-DIVIDEND DATE

Aberdeen Standard Asia Focus , Baillie Gifford Japan Trust, Croma Security Solutions Group, Ferguson, Genesis Emerging Markets Fund Ltd Ptg NPV, Springfield Properties