The Week Ahead: Investors unlikely to clean up on McBride

 

Today

There is pressure for the City to clean up its act, but today’s first-quarter update from soap-to-detergent maker McBride might not be what people had in mind. Analysts expect the squeaky-clean update to be largely lacklustre because its results usually improve in the second half.

Numis said “growth in the full year 2013-14 is likely to be extremely second-half loaded so there is unlikely to be much to excite in the short term”. Even so, investors will be closely watching margins in the highly competitive price environment of own-brand personal and homecare products.

Although there are signs the price wars have calmed down somewhat, McBride has been focusing on developing new products so any news on this will be of considerable interest to punters.

Results/Updates: Essentra, McBride, Nanoco and Tristel.

Tomorrow

Fears of a prolonged slowdown of sales growth in China has rocked luxury goods companies again recently, and tomorrow Burberry will update on its six-months sales to October. Analysts like the long-term outlook for the group but some have warned of potential issues from the fine summer in Europe.

Luca Solca at Exane BNP Paribas said the company’s focus on outwear – including its famous trenchcoats – will have helped sales in the first quarter “when the weather was horrible but a slowdown is to be expected over the summer”. Analysts at Berenberg expect half-year sales of £981.7m – around 4 per cent below a company-compiled consensus of just over £1bn. Investors will also be watching to see how its make-up and perfumes business performs after it took the fragrances in-house. Although the longer term looks rosy, Mr Solca also pointed out that Burberry’s move into make-up and control of the fragrances business means there is “execution risk”.

Results/Updates: Burberry (pictured), Bellway, Carpetright, dotDigital, e2v Technologies, Hargreaves Lansdown, Lombard Risk Management, Michael Page, Rio Tinto and Utilitywise.

Wednesday

Latin American precious metals miner Hochschild Mining’s third-quarter update follows news of its purchase of the remaining stakes that it didn’t already own in Peruvian silver mines Pallancata and Inmaculada. Analysts thought the deals were good news for the group, especially as half of the equity will come from its chairman, Peruvian businessman Eduardo Hochschild, who is the company’s largest shareholder.

Metals prices have been weak and this will of course have an impact on the figures, but management has already adopted a highly conservative approach to guidance on the outlook for the group since May so any concerns have already been factored into the price.

Results/Updates: e-Therapeutics, Hochschild Mining, Imperial Innovations and Smiths News.

Thursday

By Thursday, the market could do with a drink but spirits giant Diageo’s third-quarter update is expected to show a mixed bag in terms of regional performance.

Europe will be tough again and there are concerns that emerging-market growth will have also slowed.

However analysts at JP Morgan think the Smirnoff-to-Guinness owner is likely to produce an update that will show its “geographical and brand diversity” means it is less “exposed” to any problems in a single region. Analysts at Nomura predict sales growth of 4 per cent “with growth in emerging markets” and resilience in the “US and a less-negative decline in Western Europe”.

Results/Updates: BSkyB, Britvic, Booker, Bunzl, Cairn Energy, Dechra Pharma, Diageo, Etalon, Ferrexpo, Fresnillo, Jupiter Fund Management, Man Group, Mothercare, Omega Diagnostics, Polymetal International, Rank, Rathbone Brothers, Renishaw SAB Miller, Speedy Hire and Travis Perkins.

Friday

The continued squeeze on household incomes should be good for door-to-door lender Provident Financial, but Numis expects this to cause volumes to fall and impairments to increase for the third quarter update on Friday.

However the broker’s analyst James Hamilton also predicts its credit card Vanquis business will have had a “very strong performance” which will off set issues in its home credit arm.

Results/Updates: Anglo American, Evraz, Provident Financial, Record and Spectris.

Economics Diary:

Today

Chinese consumer price index, Chinese producer price index.

Tomorrow

Consumer price index, Office for National Statistics house price index, producer price index, retail price index, US Empire State manufacturing index.

Wednesday

Average earnings data, claimant count data, unemployment rate.

Thursday

Retail sales, US industrial production, US unemployment claims.

Friday

China retail sales.

News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
Arts and Entertainment
Highs and lows of the cast's careers since 2004
News
news
New Articles
i100... with this review
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam