The Week Ahead: Barclays, NatWest, British American Tobacco

TL;DR

U.S. stocks stronger than UK, tech stocks lead, UK avoids recession, UK banks reporting upcoming.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the 15th of february it's probably been a slightly stronger week for u.s stocks rather than the uk this week obviously there are still hopes surrounding the proposed 1.9 trillion package from the president at the same time technology stocks have also cont... Read More

Key Insights

• 🥺 U.S. stocks stronger than UK counterparts, led by tech sector.
• ❓ UK avoids recession with 1% Q4 growth.
• 🦡 UK banks to report full-year results, potential for dividends and bad debt provision release.
• 🙈 British American Tobacco struggles but sees upgrade in profit forecast.
• 👶 Dividend yield of British American Tobacco stands at 8%, driven by new category products.
• 🪐 Net debt and regulation concerns remain for the tobacco sector.
• 🤞 Market focus on recovery hopes later in the year.

Questions & Answers

Q: How did U.S. stocks perform compared to UK stocks?

U.S. stocks had a stronger week compared to UK stocks, with tech stocks leading the way while UK saw 1% growth in the fourth quarter, avoiding a double-dip recession.

Q: What can we expect from UK banks in the upcoming reporting season?

UK banks are set to report full-year results with a focus on dividends and potential release of bad debt provisions. Barclays and NatWest will kick off the season, with hopes for a bounce back after the vaccine announcement.

Q: What factors could impact the performance of British American Tobacco?

British American Tobacco is expected to reveal full-year numbers, with an emphasis on new category products like vaping. Investors will be watching the net debt figure and the impact of litigation and regulation on the company's performance.

Summary & Key Takeaways

• U.S. stocks outperform UK, driven by tech sector.

• UK avoids recession with 1% Q4 growth.

• UK banks to report full-year results, focus on dividends and bad debt provisions.