Tuesday preview: Coronavirus, Petrofac in focus
By Alexander Bueso
Date: Monday 24 Feb 2020
(Sharecast News) - Financial markets' focus on Tuesday will continue to be on the COVID-2019 coronavirus, both in China and abroad.
After Chinese authorities moved to dial-back some of their containment measures at the weekend, investors will likely be keeping even closer tabs on the rate of new infections in the Asian giant.
To take note of, the possibility also existed that Beijing might announce fresh stimulus measures at almost any moment to try and limit the worst downside risks for the economy.
In Italy meanwhile, investors' attention will be on whether authorities succeed in clarifying the source of one of the transmission chains in their bid to contain any further spread of the sickness.
Against that backdrop, at 1100 GMT will publish its distributive trades survey for February (consensus: 14.0).
Stateside, at 2015 GMT, Federal Reserve vice-chairman, Richard Clarida, will deliver a speech at the National Association of Business Economists.
And across the Channel, figures covering German gross domestic product in fourth quarter are scheduled for release at 0700 GMT, with the consensus already expecting no growth in quarter-on-quarter terms.
Oil field services group Petrofac is among those slated to update investors on Tuesday and its second half results will be closely watched, especially as relates to any guidance given the current worries around the possible spread of the COVID-19 coronavirus.
At the time of its 17 December trading update for the fourth quarter, the firm had already said that it was expecting a decline in 2020 sales, due to a low new order intake in recent years, with net margins in Engineering and Construction seen falling because of a higher share of awards in low margin jurisdictions.
The consensus is calling for earnings before interest, taxes, depreciation and amortisation of $245m for the half on the back of $2.7bn in revenues.
Net income and earnings per share meanwhile are pegged to come in at $149m and $0.35, respectively.
For her part, UBS's Amy Wong said that she would be looking out for any update on the ongoing investigation by the Serious Fraud Office, management's outlook for its bidding pipeline and any additional information on its activities in Iraq and Saudi Arabia.
Tuesday 25 February
INTERIMS
Bluefield Solar Income Fund Limited, Clinigen Group, DotDigital Group, Hotel Chocolat Group , InnovaDerma, Springfield Properties
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (15:00)
Gross Domestic Product (GER) (07:00)
House Price Index (US) (14:00)
FINALS
Croda International, Hammerson, Meggitt, Pantheon Resources, Petrofac Ltd., Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S), Synectics
ANNUAL REPORT
Tertiary Minerals
AGMS
Image Scan Holdings, Invesco Enhanced Income Limited, Sage Group
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
FINAL DIVIDEND PAYMENT DATE
TUI AG Reg Shs (DI)
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