The coming week will also see updates from easyJet, Sage, Fevertree, Wetherspoons and Marston’s
It’s another fashion week for London investors, with couture from Burberry, online from ASOS and posh wellies from Joules, with the pub sector serving up important post-Christmas updates too.
There are also reports scheduled from FTSE 100 names easyJet and Sage, as well as interest rate decisions from central banks of China, Japan, Canada and the EU, plus more economic data to fuel the following week’s decision from the .
With no major change expected in any policy settings from next week’s group, it will be the UK labour market data on Tuesday and flash purchasing managers’ index (PMI) numbers on Friday that will be under close scrutiny with expectations elevated for a rate cut.
Although the meeting is still well over a week away, the debate is at the top of the domestic business agenda, with economists at Berenberg highlighting the case for and against.
“In a low interest rate environment, central banks should err on the side of caution when downside risks emerge. With more power to lower inflation than to raise it, monetary policymakers might be inclined to overreact with too much stimulus and, if needed, hike rates later to correct course,” was the supportive argument for a cut.
The case for holding rates is that the election win for the Conservatives and the ‘phase one’ US-China trade deal have reduced uncertainty and the downside risks to the outlook, with business and consumer surveys showing a sharp bounce in confidence and expected economic activity.
“All eyes” are on Friday’s flash PMIs, said Samuel Tombs at Pantheon Macroeconomics, as markets “have been too hasty” to believe that the BoE will cut rates at its upcoming meeting.
Burberry’s drop in Hong Kong may be coated by other regions
The biggest name in the fashion week will be () as it shows off third-quarter trading on Wednesday, with its shares not far from all-time highs despite disruption in its key market of Hong Kong.
At November’s interim results, the FTSE 100-listed luxury brand said a small decline in profit margins was likely to get worse in the second half.
However the market is upbeat as sales across other regions will make up for the slowing sales from higher-margin Hong Kong, as customers have been responding well to designs under its new leadership team.
The luxury goods firm is in the second year of chief executive Marco Gobbetti’s plan to shift the brand further upmarket under new creative director Riccardo Tisci.
Signs that this may be working were perceived in like-for-like retail store sales rising 4% thanks to new collections growing at strong double digits in the first half.
ASOS’s new outfit could boost festive sales
AIM-listed () is far from upmarket but should still turn heads on Thursday as it releases its trading…