Companies reporting w/c 1 January

Graham Spooner, Investment Research Analyst at The Share Centre, gives his thoughts on what to expect from companies announcing results week commencing 1 January 2018.

Article updated: 29 December 2017 12:00pm Author: Graham Spooner

Companies reporting

Wednesday

Next (Q4 standing statement)

The latest news that footfall on the high street for the Boxing Day sales was lacklustre won’t make pleasant reading for investors in Next and other retailers. However, this trading period covers the weeks leading up to Christmas which is notably key for the whole year. There are some hopes that trading could have been better especially given the more seasonal weather pattern and we’ll wait to see if shoppers have been seeking bargains on Next’s online store instead. However, the last trading update wasn’t very encouraging as the group reported sales falling by 7.7% partly due to the pressures faced by the consumer and online competition and this will no doubt show up in the full year sales figures.

We currently list Next as a HOLD

ECONOMIC DIARY

Announcements for the w/c 1 January 2018:

2, 3 and 4 January, UK purchasing managers indexes tracking UK manufacturing, construction and services, December – Markit/CIPS

The purchasing managers indexes (PMIs) give us our first indication of how well the UK economy performed in December and thus for the whole of 2017. Last month, the PMI tracking manufacturing rose to a 51-month high (58.2), the construction PMI rose to 53.1, an encouraging reading, especially given that the index fell to below 50 in the summer suggesting contraction in the sector. Alas, the Business Activity Index tracking services fell back to 53.8, mediocre by the standards of this index. Together, the three indexes suggest that the UK was on course for growing at 0.45% in Q4, did the readings for December support this projection?

3 January, FOMC Minutes, Meeting of December 12 - 13, 2017 – FED

US interest rates were increased by 0.25 percentage points in December to between 1.25% and 1.5%. However, did the minutes hint at further rises in rates under the new chair, Jerome Powell?

5 January, Q3 UK productivity – Office for National Statistics

Maybe UK productivity is the most important of all drivers of the UK economy; it sets the speed limit for expansion in the economy. In Q3, output per hour rose by just 0.1%. Economic output is a function of output per hour and how many hours are worked. For sustainable growth, productivity must grow faster.

Further announcements include:

1 and 2 January

• Purchasing Managers Indexes worldwide, including China, Euro area and US – Markit, Caixin (China) and ISM (US)

5 January

• Flash Estimate, euro area inflation, December – Eurostat
• US Employment Situation, December – U.S. Bureau of Labor Statistics


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Graham Spooner portrait photo
Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FSA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.