Tuesday preview: BHP Billiton and Persimmon in focus

Corporate results will take the spotlight on Tuesday, amid a light calendar for economic data both at home and abroad.

Among those outfits which were set to update investors on Tuesday were BHP Billiton and Persimmon.

For BHP, estimates from analysts at Deutsche Bank were calling for fiscal year 2018 earnings before interest, taxes, depreciation and amortisation of $24.3bn, net debt of $11.7bn and free cash flow of $12.0bn.

In annualised terms, the latter implied $14bn of FCF over the back half of the fiscal year.

Among the potential near-term catalysts for the shares, they said, were self-help measures, the upcoming disposal of its onshore activities and, within the next 12 months, a share repurchase plan.

For Persimmon meanwhile, analysts at Numis had penciled-in a 10% rise in the homebuilder's profits before tax for the six months ending on 30 June, on the back of a further improvement in its margins of about 150 basis points.

"Overall, we think that Persimmon is well placed to continue growing profits due to its regional geographic profile, low exposure to higher price points and the potential for further margin growth," they said, but added, "Whilst we think that the attraction and safety of the group yield is not fully reflected in its valuation, we do see superior upside elsewhere in the sector."

On the economic side of things, public sector borrowing figures covering the month of July were set to be on the top of investors' minds.

According to Barclays Research, the latest figures from the Office for National Statistics, at 0930 BST, were set to reveal a surplus of £0.9bn, leaving the rolling 12-month deficit at £35.0bn, which would be its lowest level since in over 15 years.

Also set for release were the results of the Confederation of British Industry's Industrial Trends survey for August, at 1100 BST.

As well, Brexit talks between the UK and European Union were set to restart on Tuesday.

Tuesday August 21

UK ECONOMIC ANNOUNCEMENTS

CBI Industrial Trends Surveys (11:00)

Public Sector Net Borrowing (09:30)

FINALS

BHP Billiton

INTERIMS

Charter Court Financial Services Group , Empiric Student Property , Hostelworld Group , Persimmon, Wood Group (John)

INTERIM DIVIDEND PAYMENT DATE

Dewhurst

QUARTERLY PAYMENT DATE

Supermarket Income Reit

GMS

Micro Focus International

ANNUAL REPORT

Renishaw

AGMS

Albion Enterprise VCT, Henderson Diversified Income Ltd.

FINAL DIVIDEND PAYMENT DATE

Gabelli Value Plus Trust