The Week Ahead: BP, Rolls-Royce, HSBC, Standard Chartered

TL;DR

Steady progress in US markets, mixed corporate numbers in the UK, and upcoming bank reports and economic updates to watch.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 2nd of august there's been some steady progress in terms of the market stateside although in the uk the future 100 has remained relatively flat this of course is among an avalanche of earnings that we've been seeing this week certainly in terms of the... Read More

Key Insights

• 💪 Market progress in the US remains steady, with strong earnings despite some downbeat outlooks.
• 🙈 UK banks have seen turbocharged profits but mixed corporate numbers elsewhere.
• 🏦 Focus on upcoming bank reports and economic updates, especially regarding credit impairments, dividends, share buybacks, and the Chinese economic situation.
• 🛢️ BP's half-year numbers will provide insights into oil prices, profits, dividends, share buybacks, and net debt.
• ❓ Half-year updates from other FTSE 100 companies like Rolls Royce, WPP, and Legal & General may provide further clues about the current economic recovery.
• 💗 US GDP continues to grow at a fair clip, with the Federal Reserve monitoring the employment situation.
• 🫓 The UK's FTSE 100 has remained relatively flat, with the banks stealing the spotlight.
• ❓ Increased customer deposits and decreased loans put pressure on margins for HSBC and Standard Chartered.

Questions & Answers

Q: How has the US market performed recently?

The US market has shown steady progress, with strong performance and growth in GDP. Despite slightly downbeat outlooks from Facebook and Amazon, the overall numbers have been very strong.

Q: What has dominated the news in the UK market?

The UK banks have dominated the headlines, with turbocharged profits and further releases of impairments. However, other corporate numbers have been fairly mixed.

Q: What can we expect from the UK banks' upcoming half-year numbers?

We can expect further releases of credit impairments based on an improving macroeconomic outlook. There may also be heightened dividends and share buybacks announced. The focus will also be on the Chinese economic situation for banks like HSBC and Standard Chartered.

Q: What updates can we expect from BP?

BP will release their half-year numbers, following a strong showing from Shell. The key areas to watch are whether the heightened oil price has bolstered profits and if there will be an increased dividend and further share buyback announced. Also, keep an eye on the net debt figure.

Summary & Key Takeaways

• US markets show steady progress, with strong performance and growth in GDP.

• UK banks dominate headlines with turbocharged profits, while other corporate numbers are mixed.

• Next week, UK banks will release half-year numbers, with expectations of credit impairments, increased dividends, and focus on the Chinese economic situation. BP will also release updates, including net debt figures.