Belfast Telegraph

Wednesday 27 August 2014

Glencore bidding to bounce back after first-quarter shock

The Week Ahead

No matter how volatile the markets may have been, dropping a third of its share price in just three months after floating has not been seen as a success for Glencore International.

The controversial commodities trader came to market in May in what was London's largest ever IPO before being fast-tracked into the FTSE 100, yet has only once finished a session above its 530p float price.

The company received a major knock from the reaction to its first-quarter figures in June.

It failed to meet forecasts despite an increase in its earnings of 45%.

Today

Its exposure to emerging markets looks set to be a key part of G4S's first-half figures with UBS predicting the security services group will have seen organic growth in this area of 9%, up from 6% for the previous six months. The broker believes that overall the company will have enjoyed a year-on-year jump in sales of 3% to £3.74bn, saying its "margins have been resilient to wage-related pressures in Europe".

In terms of developed markets, Espirito Santo's David Brocktonexpects the company will "cite (a) pick-up in volume, primarily in commercial activity", with the analyst adding that its "geographic spread across Europe (with no presence in France, Germany, Spain or Portugal) should continue to provide protection against pricing pressure being witnessed by other European peers".

Results/Updates: Cairn Energy, G4S, Persimmon, Segro, Spectris and Wood Group.

Tomorrow

BHP Billiton announces its full-year results, with the miner expected to reveal a boost from the recent jump in commodity prices. As a result, Investec believes its earnings before interest and tax will have risen by a third to $32.8bn (£19.4bn).

Results/Updates: Admiral, BHP Billiton, Carillion, Derwent London, New World Resources, Serco, Tullow Oil, Unite and WPP.

Thursday

Results/Updates: Aegis, Aggreko, AMEC, Avis Europe, Diageo, Glencore, Hansteen Holdings, Premier Oil and Salamander Energy.

Friday

Results/Updates: Yule Catto.

Economics diary

Today

BBA mortgage approvals; CBI industrial order expectations; US new home sales.

Tomorrow

Inflation hearings; Nationwide house price index; US crude oil inventories; US durable goods data.

Thursday

CBI realised sales; US unemployment claims.

Friday

Preliminary business investment; Revised GDP;US University of Michigan consumer data.

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