The Week Ahead: Lloyds Bank, Sainsbury’s, AstraZeneca, Persimmon

TL;DR

Mixed earnings season, with strong performances from airlines but disappointments from Netflix. US markets under pressure due to hawkish comments from the Fed. UK banks reporting, focus on shareholder returns. Updates from house builders, Sainsbury, Primark, and pharmaceutical companies.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 25th of april it's been another bitty week earning season getting into full flow particularly in the states although there have been some fairly mixed performances on the plus side we've had some good numbers from the airlines who are expecting to get... Read More

Key Insights

• 😀 Earnings season shows mixed performances, with airlines expecting profitability and Netflix facing subscriber declines.
• 💬 Hawkish comments from the Fed create pressure on US markets.
• 🏦 UK banks' Q1 numbers, loan demand, and shareholder returns are in focus.
• 😀 House builders face strong demand but not reflected in share prices.
• ❓ Updates from Sainsbury, Primark, and pharmaceutical companies are expected.
• 🆎 Weak retail sales may impact Primark and AB Foods.
• 👀 Pharmaceutical updates from Astrazeneca and GlaxoSmithKline will be closely watched.

Questions & Answers

Q: What were the highlights and disappointments of the recent earnings season?

The airlines performed well, expecting to be profitable due to strong seasonal demand. However, Netflix reported lower subscriber numbers for the first time in a decade, causing their shares to decline.

Q: How are US markets performing in the year to date?

US markets have been under pressure, with the Dow Jones down 4.3%, the S&P 500 down 7.8%, and the Nasdaq down 15.8% in the year to date.

Q: What can we expect from UK banks in terms of their Q1 numbers and shareholder returns?

The read across from the US has not been positive, and so the focus will be on underlying loan demand and potential developments in shareholder returns, such as share buybacks or increased dividends.

Q: What updates are expected from the house building sector and other companies?

Updates from house builders like Persimmon and Taylor Wimpey will be watched for strength in the current order book and impact of the cost of living crisis. Sainsbury's full year numbers will show if there's improvement in sales, and Primark's updates may be affected by weak retail sales. Q1 updates from pharmaceutical companies Astrazeneca and GlaxoSmithKline are also expected.

Summary & Key Takeaways

• Earnings season in the US has been mixed, with airlines expecting profitability but Netflix reporting lower subscriber numbers.

• US markets are under pressure due to hawkish comments from the Fed on interest rates.

• UK banks, including HSBC and Barclays, will be reporting, with focus on loan demand and shareholder returns. Updates from house builders, Sainsbury, Primark, and pharmaceutical companies also expected.