Weekly Outlook: Hargreaves Lansdown, Abrdn and M&G Show Half-Year Progress; Chinese and American inflation
Monday August 9
–Hargreaves lansdown S1 results
In the first four months of the year, Hargreaves Lansdown generated £ 4.6bn in net new business, driven by existing customers using their tax breaks during the Isa season and putting in additional cash savings, built up during the foreclosure period, to work in funds and stocks.
The platform group continued to benefit from an increase in business activity as DIY investors sought to profit from the vaccine-driven stock market rally, with revenues reaching £ 232million. However, the company warned that stock trading volumes are likely to decline as Covid restrictions ease and life returns to normal.
-H1 results from Clarkson, TI Fluid Systems and Page group
China’s consumer price index fell to 1.1% in June, helped by lower pork prices.
AJ Bell chief investment officer Russ Mold said that while central banks stick to the idea that current price hikes are “transient,” some economists are “less optimistic” about soaring prices. commodity prices, ex-factory and consumer prices and higher wage growth, the traditional harbingers of rising prices. inflation.
“Central bankers in emerging markets are clearly worried after recent interest rate hikes in Russia, Brazil, Chile, Mexico, Hungary and the Czech Republic,” he adds.
-Survey on job openings and workforce turnover in the United States (JOLTS)
– Quarterly results of Saudi Aramco
– Quarterly results of the American miner Barrel gold
Tuesday August 10
-H1 results from Intercontinental Hotels, Flutter, Gamesys and IWG
–Abrdn and M&G S1 results
“Abrdn, formerly Standard Life Aberdeen, is on a mission to turn around a business that has not been exceptional in some time,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.
The asset manager, who came out of the union of Standard Life Investments and Aberdeen Asset Management in 2017, struggled to hold onto assets, having racked up net redemptions for 13 consecutive quarters until the fourth quarter of 2020. In 2020, net outflows were £ 3.1. billion pounds, up from 17.4 billion pounds in 2019, but profits were hit as revenues fell 13%.
In addition to its new branding and changing of the guard, with Stephen Bird becoming CEO last September, the company has set out a new growth strategy to bring the business back to revenue and profit growth.
“We’re only in the early days of the new strategy, and tangible progress next week is likely to be minimal,” Hyett says.
Rival manager M&G also struggled with buybacks following the reopening of its real estate portfolio in May. Morningstar estimates that around £ 2.2bn was withdrawn from the fund house in the first half of 2021, with its UK real estate fund accounting for £ 966m, or 43% of total money out.
Although total assets reached £ 367bn in 2020, it was hit by outflows of £ 7bn, most of which came from its retail asset management business which recorded £ 12bn. pounds sterling of net redemptions.
Lower flows wreaked havoc on profits which plunged by a third, from £ 1.1bn in 2019 to £ 788m.
-Commercial update of Watches from Switzerland and Bellway
-German survey of economic activity ZEW
– NFIB US Small Business Sentiment Survey
-In Europe, the quarterly results of Hello fresh
-In the United States, the quarterly results of Coinbase
wednesday 11 august
-H1 results from Quilter, Deliveroo, Spirax-Sarco, Admiral, Prudential, Phoenix, Hill & Smith, 4imprint, Avast and CLS Holdings
US inflation of 5.4% in June, the highest since 2008, added to fears that inflation could get out of hand, Mold said. Economists will be particularly interested in the data on producer price inflation, he said, and whether it exceeds the 7.3% year-on-year increase from last month.
-United States Oil Inventory Data
-Data of the US federal budget deficit
-In Japan, the quarterly results of Rakuten
-In Europe, the quarterly results of Vestas wind systems
-In the United States, the quarterly results of Nio and eBay
Thursday August 12
–Aviva S1 results
Aviva has come under pressure to tackle its ‘appalling’ course of action, which is no higher than in 1990, with activist Cevian demanding more cost cuts and at least £ 5bn in returns in cash from the life insurer, Mold notes.
Investors will look to see if sales have recovered since being hit by the pandemic in 2020, if the company has made progress in reducing its debt by £ 1.9bn and an improvement over it. to the interim dividend of 7 pence from last year.
-H1 results from Entain, Cineworld, Just Group
-Commercial statements of UIS and Card factory
-Data on UK construction, manufacturing and industrial production
-Weekly Unemployment Claims in the United States
-In Asia, the quarterly results of Baidu
-In Europe, the quarterly results of Orsted and Deutsche Telekom
-In the United States, the quarterly results of Walt Disney, Airbnb, DoorDash and Palantir
Friday August 13
-Chinese growth figures for retail sales, investments in fixed assets and industrial production
-In the United States, the quarterly results of Madison Square Garden