The forward look from The Share Centre w/c 6th Feb 2012

Sheridan Admans, investment research manager at The Share Centre, gives his thoughts on what to expect from companies announcing results w/c 6 February 2012.

Monday

Companies reporting today include Randgold Resources full year results – HOLD

Tuesday

GlaxoSmithKline  Q4 results

Investors have been warming to GlaxoSmithKline recently and will be watching for news on the group’s future pipeline. Analysts have been keen to promote the potential for its cancer vaccine and heart disease drug. Any comments on emerging markets and where the company intends to focus on in the future will also be worth noting.

We currently list GlaxoSmithKline as a BUY

Other companies reporting today include BP Q4 results - HOLD

Wednesday 

BHP Billiton interim management trading statement

Mining companies have reported a mixed bag of results in recent weeks and we don’t expect BHP Billiton to be any different. 

We already know that depressed prices in commodities have led to BHP Billiton looking to trim its workforce in its nickel mining operation and we expect these weaker prices to impact the miner’s profits growth. However, it’s not all gloom in the sector as iron ore and petroleum are likely to offset some weaker production in other commodities as BHP Billiton reported a record output for iron ore in January. 

Looking ahead, many predict China’s economy will suffer a ‘hard landing’ due to weaker demand for its exports and a toppy property market. If this is the case some commodities could weaken further, putting more pressure on profit growth. Investors should closely monitor this situation as any real monetary loosening by the Chinese Government and the US Federal reserve could make quite a difference. 

We currently list BHP Billiton as a BUY

Thursday

Vodafone Q3 trading statement

Mobile phone usage and data have proved fairly defensive in recent years. The thirst for data services is being driven by the advent of the smart phone and mobile tablets, such as the iPad by Apple. It seems that mobile phones have become embedded in our everyday lives, with people preferring to reduce budgets elsewhere than surrender their personal phone. 

We expect steady growth to be seen in its emerging market operations and demand for data services to have continued to show good growth. With low market penetration of smart phone and tablets we expect to see demand for data services to continue for some time. 

A report in January by Verizon Vodafone’s US business, in which it has a 45% stake saw a jump in wireless usage, however profits were hit by a large pension related charge. 

The resolved situation regarding a potential tax charge for Vodafone’s purchase of Hutchison Essar will have come as a relief to shareholders.

We currently list Vodafone as a BUY

Rolls Royce preliminary results

Rolls Royce’s share price has been outperforming over the last 12 months so followers of the company will be looking for a confident outlook. Investors should also look out for comments on US defence spending, the recent joint venture with Pratt & Whitney and Rolls Royce’s growing marine business.

We currently list Rolls Royce as a BUY

Other companies reporting today include Diageo interim results – BUY, Rio Tinto full results – BUY, British Land Q3 results – BUY, Hargreaves Lansdown interim results – HOLD, Shire Pharmaceuticals full results - HOLD 

Friday

Companies reporting today include Barclays full results - BUY

Economic Diary

Economic announcements for the w/c 6 February 2012

9 February, Monetary Policy Committee Meeting and Announcement – Bank of England

Minutes from previous meetings of the MPC have suggested that the committee is waiting for the latest round of quantitative easing QE to have been fully completed before it announces further measures. That point is now close. With recent data showing that the UK broad money supply saw its sharpest month on month drop ever recorded in December, there is a good chance we will see the announcement of more QE today.

9 February, Governing Council meeting of the ECB in Frankfurt – ECB

Although inflation is much lower in the euro area than in the UK, interest rates remain higher. A recent increase in German inflation is not likely to encourage the ECB to look any more favourably on lowering interest rates. But it may yet spring a surprise. However, if the central bank does make any significant moves, it is more likely to be in the area of unconventional monetary measures.  

10 February, Producer Price Index, January 2012 – ONS

December saw input prices fall 0.6%, month on month, while output prices fell 0.2% on the month before. It takes time before changes in inflation at the factory gate show up in the wider CPI measure, but the recent data has been encouraging. Will the trend continue?

Other economic announcements include:

7 February

• Retail sales monitor, January – BRC/KPMG

8 February

• Shop price inflation, January – BRC/KPMG

9 February

• Governing Council meeting of the ECB in Frankfurt – ECB
• US International Trade, Census and BEA – December
• Monetary Policy Committee Meeting and Announcement – Bank of England
• Mortgage and landlord possession statistics, England and Wales - October to December 2011 NS – ONS
• Index of Production, December 2011 – ONS
• UK Trade, December 2011  ¬– ONS

10 February

• Producer Price Index, January 2012 – ONS

THIS DATA IS PROVIDED BY THE SHARE CENTRE. THIS IS NOT INTENDED TO CONSTITUTE AN OFFER OR AGREEMENT TO BUY OR SELL INVESTMENTS.

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2012-02-03 10:12:44 © Moneyextra.com