The Week Ahead: banks, Barratts, ASOS, Wetherspoon

TL;DR

Markets have remained positive due to speculation on fiscal stimulus in the US and Joe Biden being favored in the presidential polls. However, the impact of potential tax raises on US corporates is a concern.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 12th of october it's been a pretty positive week for markets generally a lot of this has been around speculation on the possibility of fiscal stimulus in the us also interestingly in terms of the polls ahead of the u.s presidential election it seems t... Read More

Key Insights

• ✌️ Speculation on fiscal stimulus in the US and Joe Biden's victory chances have influenced market sentiment positively.
• 🪡 US employment claims remain at elevated levels, highlighting the need for economic support.
• 😀 UK companies, such as Barrett Developments and ASOS, are facing challenges, and their updates will be closely monitored.
• 🏦 Banks' third-quarter earnings will provide early indications of the US economy's performance.
• 😣 Online retailers like ASOS have performed well, but their outlook for the rest of 2020 and trading conditions will be scrutinized.
• 🤨 The impact of potential tax raises by Joe Biden on US corporates is a concern.
• ❓ JD Wetherspoon's financial situation and the effect of additional localized lockdowns will be assessed.

Questions & Answers

Q: What are the factors contributing to the positive market sentiment?

The speculation on fiscal stimulus in the US and Joe Biden being favored in the presidential polls have boosted market optimism. Investors expect immediate stimulus reforms and an economic boost.

Q: What impact will Joe Biden's potential tax increases have on US corporates?

If Joe Biden gets elected, his plans for tax increases are expected to impact US corporations. Higher taxes could lower corporate profits and hinder economic growth.

Q: Which banks will be reporting their third-quarter earnings in the US?

JP Morgan, Citigroup, Bank of America, and Morgan Stanley are among the banks that will be reporting their earnings, providing insights into the US economy's performance.

Q: What will be the focus of Barrett Developments' trading statement?

Investors will be looking for updates on the impact of the stamp duty holiday, forward sales numbers, and potential mention of the dividend situation in Barrett Developments' trading statement.

Q: How has the online retailer ASOS performed this year, and what will be analyzed in their full-year numbers?

ASOS has seen a 59% increase in its share value this year. Their full-year numbers will provide insights into the trading conditions in the online retailing sector and their outlook for the rest of 2020.

Q: What will be analyzed in JD Wetherspoon's full-year numbers?

JD Wetherspoon's full-year numbers will shed light on the impact of the "Eat Out to Help Out" scheme on their trading conditions and their financial situation amidst any further localized lockdowns.

Summary & Key Takeaways

• Markets have been positive with speculation on fiscal stimulus and Joe Biden leading in presidential polls.

• U.S. employment claims remain high, highlighting the need for economic stimulus.

• UK companies, such as Barrett Developments and ASOS, are reporting trading statements and full-year numbers.