The Week Ahead: Vodafone, easyJet, Kingfisher

TL;DR

The market started positively with the confirmation of Joe Biden as president and the Pfizer vaccine announcement, but sentiment turned cautious due to regulatory hurdles and increasing COVID-19 cases.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 16th of november it's been a generally positive week for markets obviously started on monday with confirmation of joe biden becoming president and the likelihood of split power within u.s government also um helping investor sentiment and then of cours... Read More

Key Insights

• 📢 Confirmation of Joe Biden as president and the Pfizer vaccine announcement initially boosted market sentiment.
• ❓ Concerns about vaccine rollout effectiveness and regulatory hurdles tempered investor enthusiasm.
• 🏣 FTSE 100 strength was driven by recovery in the oil price and expectations of a better post-pandemic economic environment.
• 🈂️ Vodafone's half-year results will reveal the impact of reduced roaming charges and the growth of data usage.
• 😀 EasyJet's full-year results are anticipated to reflect the challenges faced by the airline industry during the pandemic.
• 🌱 Kingfisher's trading update will provide insights into the progress of their transformation plan.
• 👨‍💼 Working from home trends may impact Kingfisher's business, particularly the BMQ and Screwfix segments.

Questions & Answers

Q: How did the confirmation of Joe Biden as president affect investor sentiment?

The confirmation of Joe Biden as president positively impacted investor sentiment, as it brought stability and the likelihood of split power within the US government, which is generally seen as favorable for markets.

Q: What are the concerns surrounding the Pfizer vaccine rollout?

Investor sentiment has become more measured due to concerns about the regulatory hurdles the vaccine needs to pass and the timeline for its global rollout. Additionally, the imposition of further restrictions in US states indicates that the vaccine's availability may still be a few months away.

Q: Which sectors have contributed to the strength of the FTSE 100?

The FTSE 100 has been strengthened by the recovery in the oil price and the expectation of a post-pandemic economic improvement, benefiting oil majors and banks within the index.

Q: What are the expectations for Vodafone's half-year results?

Vodafone's half-year results will be closely watched, particularly for its dividend yield of 7%, which is significant given the current low-interest-rate environment. Furthermore, the impact of reduced roaming charges and the growth of data usage, especially with the rollout of 5G, will be of interest.

Summary & Key Takeaways

• Markets had a positive start with the confirmation of Joe Biden as president and the Pfizer vaccine announcement.

• However, investor sentiment turned more measured due to concerns about vaccine rollout and regulatory hurdles.

• Despite this, overall market performance has been positive, particularly in the oil, banking, and FTSE 100 sectors.