The Week Ahead: Tesla, Twitter, Vodafone & Unilever

TL;DR

Despite a spike in COVID-19 cases, markets remain positive with vaccine developments and earnings reports. Next week, the focus shifts to technology companies' updates.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 20th of july it's been a fairly positive week for markets this is despite the spike of cases in certain u.s states of the covid19 virus there has been some rather more positive news the stock moderna in the us is looking like some of its tests may be ... Read More

Key Insights

• 🪛 COVID vaccine developments, particularly from Moderna and Oxford University/AstraZeneca, continue to drive market optimism.
• 🙃 Banks are bracing for economic difficulty with write-downs on bad loans, but trading units are performing well amid market volatility.
• ❓ Technology companies, including IBM, Microsoft, Tesla, Twitter, Intel, and Amazon, will be in the spotlight next week with their updates.
• 🌸 Vodafone's numbers will be influenced by the sale of tower assets, dividend yield, increased data traffic, and loss of roaming revenues.
• ❓ Unilever's update will focus on sales spikes in hygiene and cleaning products and its defensive qualities as evidenced by maintaining its dividend.
• 😶‍🌫️ Sage's third quarter update will provide insights into the company's transition to cloud platforms.

Questions & Answers

Q: How are banks performing during the earnings season?

Banks have reported write-downs due to expected bad loans, but trading units have performed well amid market volatility. This trend is expected to continue for UK banks as they start reporting at the end of the month.

Q: What updates can we expect from technology companies next week?

Technology giants like IBM, Microsoft, Tesla, Twitter, Intel, and Amazon will provide updates on their performance and plans. These updates will give insights into the technology sector's resilience and potential growth.

Q: What key factors are impacting Vodafone's quarter one numbers?

Vodafone's quarter one numbers will be influenced by factors such as the sale or IPO of its European tower assets, the maintenance of the 6% dividend yield, and the effects of increased data traffic from remote work and the loss of roaming revenues due to international travel restrictions.

Q: What can we expect from Unilever's half-year update?

Unilever, known for brands like Marmite, Cornetto, and Domestos, is likely to provide an update on its sales performance, particularly in hand hygiene, bleach, and surface cleaner products. The company's defensive qualities and ability to maintain its dividend will also be worth noting.

Summary & Key Takeaways

• Positive news on potential COVID vaccines from Moderna and Oxford University/AstraZeneca driving market optimism.

• Earnings reports from banks show write-downs due to expected increase in bad loans, but trading units perform well.

• Next week, technology companies like IBM, Microsoft, Tesla, Twitter, Intel, and Amazon will provide updates.