The Week Ahead: US fallout, Persimmon, Flutter, Burberry

TL;DR

The US election outcome is still uncertain, but a split power in Congress may maintain the status quo. Markets have responded positively, despite additional lockdowns, with the potential of COVID-19 vaccines and some companies showing resilience.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 9th of november obviously this week has been dominated by the us election we've yet to have the actual outcome but in the meantime the markets have been taking a view a joe biden victory which was previously not going to be welcomed due to corporate t... Read More

Key Insights

• ✊ The US election outcome is still uncertain, but split power in Congress suggests a continuation of the status quo.
• 🛟 Positive noises regarding potential COVID-19 vaccines and corporate resilience have buoyed market sentiment.
• 🇭🇲 Major companies like McDonald's, Walt Disney, Persimmon, Flutter Entertainment, and Burberry will provide updates, offering insights into their sectors and performance.
• ❓ The housing market's performance will be of particular interest, given the tailwinds and ongoing supply-demand imbalance.
• 🇭🇰 China's recovery and political tensions surrounding Hong Kong may impact Burberry's performance, as it has an Asian focus.
• ❓ Online channels, including digital transformation efforts, have become crucial for retailers like Burberry during the pandemic.
• 🤩 The US reporting season is winding down, but the COVID-19 situation and market sentiment will remain key themes.

Questions & Answers

Q: How have the markets responded to the US election?

The markets have reacted positively to the possibility of a split power in Congress, which suggests the current status quo will be maintained. This has alleviated concerns over potential corporate tax hikes and regulatory reforms.

Q: What positive developments have influenced market sentiment this week?

Positive news regarding potential COVID-19 vaccines from AstraZeneca has contributed to market optimism. Additionally, some companies have shown resilience despite additional lockdown measures, which has bolstered investor confidence.

Q: Which major companies will release updates next week?

McDonald's and Walt Disney will provide updates, allowing investors to gauge their performance, particularly in light of potential lockdowns. Persimmon, Flutter Entertainment, and Burberry will also release trading updates, giving insights into their respective sectors.

Q: How has the housing market performed during the pandemic?

Despite the challenges posed by the pandemic, the housing market has seen some tailwinds, including the stamp duty holiday and mortgage availability. However, the forward order book and buyer activity in Persimmon's update will provide a more accurate assessment of the market's health.

Summary & Key Takeaways

• The US election results are still pending, but the possibility of split power in Congress suggests a continuation of the status quo, resulting in a positive week for US markets.

• Lockdowns have been implemented, but positive news regarding potential COVID-19 vaccines and corporate resilience have contributed to market optimism.

• Major companies, like McDonald's, Walt Disney, Persimmon, Flutter Entertainment, and Burberry, will release updates, providing insights into their performance and the overall market.