The Week Ahead: HSBC, Taylor Wimpey, Next

TL;DR

Positive week for US and UK markets with strong GDP numbers, falling inflation, and potential interest rate hike in September.

Transcript

foreign hello I'm Richard Hunter head of markets and Welcome to our look ahead for the week commencing the 31st of July been a fairly positive week again generally speaking on both sides of the pond especially in the states we had a 0.25 interest rate high as expected the question now of course is whether there's one more to come or whether the FED... Read More

Key Insights

• 💪 The US economy showed resilience with strong GDP numbers and falling inflation.
• ☠️ The Federal Reserve may consider another interest rate hike in September.
• 🙈 UK banks, particularly HSBC, have seen positive growth due to the reopening of the Chinese economy.
• 🏪 Next's second-quarter trading statement will provide insight into the performance of physical store shopping versus online sales.
• 🍹 Taylor Wimpy's half-year numbers will indicate the performance of the house building industry during a busy summer season.
• 🤩 Key metrics like return on equity and net interest margin will be essential in assessing HSBC's performance.
• 🏦 The macro situation in China is uncertain, impacting the performance of UK banks.

Questions & Answers

Q: How did the US economy perform this week?

The US economy had a positive week with a 0.25% interest rate hike, strong GDP numbers, and falling inflation. The Federal Reserve may consider another rate increase in September.

Q: How have UK banks, especially HSBC, been performing?

HSBC has seen significant growth, up 27% in the last year, partly due to the reopening of the Chinese economy. Key metrics like return on equity and net interest margin will be important to watch in the upcoming half-year numbers.

Q: What can we expect from Next's second-quarter trading statement?

Next had an extremely positive unscheduled trading update, so there is anticipation for its full price sales performance. The statement will also shed light on the ongoing dynamic between physical store shopping and its online presence.

Q: What should investors look out for in Taylor Wimpy's half-year numbers?

Taylor Wimpy, a house builder, has faced pressures from rising mortgage rates and the general cost of living. Observing reservations and cancellations and assessing the forward order book will give an indication of the company's performance.

Summary & Key Takeaways

• The US had a 0.25% interest rate hike, and the Federal Reserve is considering another rise in September based on data dependency.

• UK banks, especially HSBC, have seen positive growth due to the reopening of the Chinese economy, with upcoming half-year numbers and possible dividend increases.

• Next, a clothing retailer, will release its second-quarter trading statement, assessing the impact of physical store shopping versus online sales. Taylor Wimpy, a house builder, will also release half-year numbers, indicating the performance of the industry during a busy summer season.