The Week Ahead: Vodafone, easyJet, Kingfisher

TL;DR

Vodafone, easyJet, and Kingfisher are the key companies to watch in the week commencing 16 November. Vodafone will report half-year results amid lower roaming income, easyJet will reveal whether its roughly £845 million projected loss materialized, and Kingfisher will update investors after click-and-collect reached around 90% of online orders. Read on for the figures and market forces shaping each announcement.

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: What should investors watch from Vodafone, easyJet, and Kingfisher in the week ahead?

Vodafone’s half-year results should show whether reduced international travel continued to hurt roaming income and whether data usage rose following the rollout of 5G. EasyJet’s full-year figures will test its guidance for a loss of around £845 million, while Kingfisher’s trading update should cover its transformation plan and click-and-collect service.

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

Vodafone’s shares were down about 20% year to date, while its dividend yield stood at 7% against the prevailing interest-rate backdrop. Investors will also examine the effect of reduced travel on roaming income and whether data usage continued to rise after the recent 5G rollout.

Q: What figures matter most in easyJet’s full-year results?

EasyJet had guided to a full-year loss of around £845 million and cash burn of approximately £700 million. Its shares were down 49% year to date, and winter operations were expected to run at about 25% of normal capacity.

Q: What should investors look for in Kingfisher’s trading update?

The update should indicate whether Kingfisher’s transformation plan continued to progress and how its BMQ and Screwfix businesses performed. Investors will also look for news about click-and-collect, which previously accounted for around 90% of online orders.

Q: How could working-from-home trends affect Kingfisher?

Kingfisher’s shares fell on the otherwise positive Monday because investors thought less working from home could reduce the likelihood of home improvements. Despite that decline, the shares were up 35% year to date.

Q: Why did market sentiment improve at the start of the week?

Confirmation that Joe Biden would become president and the likelihood of split power within the U.S. government helped investor sentiment. Pfizer’s announcement about a potential vaccine on the same day provided another strong boost.

Q: Why did enthusiasm about the Pfizer vaccine become more measured?

Investors became more cautious about the time needed for the vaccine rollout and regulatory approval, which was expected to take a few months. Further restrictions in Detroit and Chicago, along with California joining Texas in reporting more than one million COVID-19 cases, reinforced that caution.

Q: What drove the FTSE 100’s stronger week?

The FTSE 100 benefited from a recovery in the oil price because the index includes major oil companies. Banks also gained from expectations that the post-pandemic economic environment could improve, although the index remained down 16% year to date.

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.