The Week Ahead: Rolls-Royce, WPP, Flutter Entertainment

TL;DR

Despite high jobless claims and uncertain economic recovery, the NASDAQ hits record highs with companies like Apple reaching a market value of over two trillion dollars. Three FTSE 100 companies, Flutter Entertainment, Rolls-Royce, and WPP, will be reporting their half-year numbers.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 24th of august it's been a fairly stable week for markets generally speaking that's despite u.s jobless claims popping over 1 million people again that leaves around 28 million americans currently seeking unemployment benefits there's also a fairly so... Read More

Key Insights

• 🛄 The US jobless claims indicate the ongoing economic impact of the pandemic, with millions of Americans still seeking unemployment benefits.
• ✋ Despite the uncertain economic recovery, the NASDAQ continues to reach new record highs, driven by technology companies such as Apple.
• 🙈 Flutter Entertainment has seen positive revenue growth in the US and Australia, benefiting from its online offerings and the return of sporting events.
• 😀 Rolls-Royce has faced significant challenges, burning through billions of pounds of cash and experiencing a decline in payments due to reduced hours flown.

Questions & Answers

Q: How has the US economy been impacted by the COVID-19 pandemic?

The US economy has been severely affected by the pandemic, with over 1 million jobless claims and 28 million Americans seeking unemployment benefits. The Federal Reserve also expressed uncertainty about the recovery path.

Q: Why is the NASDAQ hitting record highs despite the economic challenges?

Despite the economic challenges, the NASDAQ is hitting record highs due to companies like Apple reaching a market value of over two trillion dollars. The technology sector has performed well during the pandemic, driving the market up.

Q: How has Flutter Entertainment performed amid the pandemic?

Flutter Entertainment has been impacted by the pandemic, but its online offering has helped offset some of the losses. Diversification and the return of sporting events have been beneficial. Its share price has increased by 33% this year.

Q: What challenges is Rolls-Royce facing during this period?

Rolls-Royce has been significantly affected by the pandemic, with its shares down 63% for the year. They have already burned through three billion pounds of cash, and there may be further challenges in the second half of the year due to reduced hours flown.

Q: What factors have contributed to the struggles of WPP?

WPP, the ad and media agency, has faced challenges even before the pandemic, with a restructuring process underway. The departure of the previous CEO and the changing media landscape, with strong competitors like Google and Facebook, have affected their share price, which is down 43% this year.

Summary & Key Takeaways

• The US jobless claims have exceeded 1 million people, totaling around 28 million Americans seeking unemployment benefits.

• The Federal Reserve has expressed uncertainty regarding the path to economic recovery.

• The NASDAQ continues to reach new record highs, but the FTSE 100 remains down for the year. Flutter Entertainment, Rolls-Royce, and WPP will be reporting their half-year numbers.