After Barclays disappointed the market on Tuesday, fellow banking giant HSBC reports on its first quarter performance on Wednesday.
“The banking group last updated the market in February with full-year pre-tax profits that were c.9% higher than the previous year, but which fell short of market expectations as revenues and costs both disappointed,” notes broker Charles Stanley.
“Attention … will focus on the extent of ongoing revenue softness, mainly due to difficult trading conditions in emerging markets, and management’s ability to control costs in response to this. The share price suggests that investors are not confident of a significant improvement in returns in the near term from either a material pick-up in revenues or a meaningful reduction in costs,” the broker added
Lager, lager and lager brewer SABMiller is a conviction buy down at Goldman Sachs. The company has around 15% of its sales in the US, which Goldmans predicts will enjoy a beer revival through improved innovation and the rise in popularity of craft beer, where SABMiller’s horse in the race is Blue Moon, a Belgian style wheat beer.
Significant announcements expected
Companies: Trading Statement: Carillion (LON:CLLN), CRH (LON:CRH), easyJet (LON:EZJ), G4S (LON:GFS), HSBC Holdings (LON:HSBA), Legal & General Group (LON:LGEN), Meggitt (LON:MGGT), SABMiller (LON:SAB). Interims: Imperial Tobacco Group (LON:IMT), Inmarsat (LON:ISAT). Finals: Sainsbury (LON:SBRY), Experian (LON:EXPN)
The following widely held stocks are trading in ex-dividend form on Wednesday: Morrison (Wm) Supermarkets, Rexam, Ted Baker, Unilever, Rightmove, JD Sports, CSR, Bunzl
Economic: UK: BRC Shop Price Index. EU: German Factory Orders, French Industrial Production, French Trade Balance, Retail PMI. US: Prelim Nonfarm Productivity, Prelim Unit Labour Costs, 10-y Bond Auction, Consumer Credit.