Friday preview: US jobs report and tariff deadline

Attention will firmly turn to the USA on Friday with trade and jobs in mind, while a quieter day for corporate reporting in London is scheduled to include final results from Ashmore.

International trade concerns have been on traders' minds all week, with talks between Canada and the US ongoing, and Friday being the end of the consultation period for the next set of American tariffs, on $200bn-worth of Chinese goods. This could see President Trump levy a bumper 25% tariff on more goods from the People's Republic.

What's more, the President may also be pondering another tweet about job creation as it's non-farm Friday.

The monthly payrolls report comes a day after the ADP survey, which showed private payroll employment increased by a more modest 163,000 in August, down from 217,000 the month before.

Consensus for Friday's NFP is currently for 191,000.

"We look for the unwind of a one-off event to help lift nonfarm payrolls to an above consensus 225k in August," said economists at RBC Capital Markets after the Toys R Us bankruptcy weighed on the July report.

"Stores for the nationwide chain were closed for good in the last week of June and it seems the 30k+ in layoffs on the follow impacted job growth materially. Indeed, the 'Sporting Goods, Hobby, Book & Music Stores' component slipped an unprecedented 32k on the month."

RBC also looked for the unemployment rate to slide about 0.1ppt to 3.8% as well.

But Danske Bank said NFP is "not as important as previously, as the Fed seems on track to deliver two more hikes this year".

Closer to home there's Halifax's house prices index, eurozone GDP and German industrial data.

Full year results are due from emerging markets focused asset manager Ashmore, with the consensus EBITDA forecast to grow by around 11% thanks to record inflows over the past 12 months.

The company already released data for its recent performance, reporting $73.9bn assets under management for June 2018, down 3.4% quarter on quarter due to negative market performance.

The group should report good growth in underlying profitability, predicted broker Peel Hunt, with performance fees are forecast to be lower but strong growth in AUM over the last 12 months flowing through to higher net management fees.

"As the last quarter illustrated, flows have remained robust at a time when EM sentiment has been challenging. We continue to believe Ashmore is well placed to benefit from the longer-term trend of increased allocations to the asset class."

Friday 07 September

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Current Account (GER) (07:00)

GDP (Preliminary) (EU) (10:00)

Industrial Production (GER) (07:00)

Non-Farm Payrolls (US) (13:30)

Unemployment Rate (US) (13:30)

UK ECONOMIC ANNOUNCEMENTS

Halifax House Price Index (08:30)

RICS Housing Market Survey (00:01)

FINALS

Ashmore Group

INTERIMS

Secure Income Reit

SPECIAL DIVIDEND PAYMENT DATE

Lindsell Train Inv Trust, New Century AIM VCT

EGMS

AXA Property Trust Limited

AGMS

Schroder Real Estate Investment Trust Ltd

FINAL DIVIDEND PAYMENT DATE

Cranswick, Entertainment One Limited, Lindsell Train Inv Trust, Monks Inv Trust, New Century AIM VCT

INTERIM DIVIDEND PAYMENT DATE

Avon Rubber, Contour Global , Direct Line Insurance Group, Fevertree Drinks, Fresnillo, Law Debenture Corp., McColl's Retail Group , RM, Spirent Communications, Tyman

QUARTERLY PAYMENT DATE

Civitas Social Housing , Civitas Social Housing C Shs, Honeywell International Inc., ICG Enterprise Trust, Lazard World Trust Fund