Friday preview: Global PMIs, Beazley in focus
By Alexander Bueso
Date: Thursday 22 Jul 2021
(Sharecast News) - Investors' focus at the end of the week will be on the results of a raft of purchasing managers' surveys for manufacturing and services sector activity in the euro area, UK and US.
The PMIs from IHS Markit are expected to show that activity in services sped up both in the single currency bloc and in the US.
Activity in the UK on the other hand is expected to have slowed marginally in both sectors however.
Also due out on home shores, at 0700 BST, is a reading on UK retail sales for June, while overnight consultancy GfK will publish its consumer confidence index for July.
For Beazley's interims, UBS's Will Hardcastle thinks the share price reaction will be driven foremost by the insurer's comments around cyber-risk, stock of capital and capital flexibility.
But for the shares to re-rate "materially", Beazley will need to inspire confidence that the peak in elevated cyber-risk is now past, that earnings benefits are imminent and that it has enough capital to support growth even if a "sizeable" catastrophe materialises, Hardcastle added.
Linked to the latter, in a research note sent to clients he reminded them that the US had only just entered its 'hurricane season'.
In any case, the analyst believed that the firm would only be able to provide partial confidence, although he expected the results to be "solid" overall.
"We believe there may be a better buying opportunity later, and so remain comfortable with our 'neutral' rating at these share price levels.
"There is also a risk skewed to the downside regarding interim dividend, though we don't think this should be seen as too great a negative was it to be below our expectations/nor instead should it be for a sufficient enough growth opportunity."
Friday 23 July
INTERIMS
Beazley, Tricorn Group
INTERIM DIVIDEND PAYMENT DATE
Income & Growth VCT , Paragon Banking Group, SCS Group , Zegona Communications
QUARTERLY PAYMENT DATE
Real Estate Investors
AGMS
Blackstone Loan Financing Limited (EUR), Hon Hai Precision Industry Co. Ltd. GDR (Reg S), Kropz , Personal Assets Trust, Premier Foods, United Utilities Group, Value and Indexed Property Income Trust, VR Education Holdings (CDI)
TRADING ANNOUNCEMENTS
Brewin Dolphin Holdings, Record
UK ECONOMIC ANNOUNCEMENTS
GFK Consumer Confidence (00:01)
Retail Sales (07:00)
FINAL DIVIDEND PAYMENT DATE
Aberdeen Japan Investment Trust , Airtel Africa , Amati AIM Vct , Baillie Gifford China Growth Trust , Electrocomponents, ICG Enterprise Trust, Land Securities Group, Medica Group , Octopus Apollo VCT, Serica Energy, Wentworth Resources NPV
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN