Wednesday preview: US CPI, Prudential in focus

Wednesday will see the release of the week's key economic indicator, the US consumer price index for July.

Economists expect that the cost of living in the US will slow from June's pace of 5.4% year-on-year to 5.3%.

Indeed, there is some talk in markets that the recent jump in CPI inflation may indeed be controllable after all.

There are also those who believe it will still accelerate at least a tad more.

Nonetheless, according to Barclays Research, some of the categories that had been making substantial contributions to CPI in recent months were unlikely to deliver repeat performances over the coming months.

For its part, Barclays was expecting inflationary pressures to begin easing in the last quarter of 2021.

Speeches from Atlanta Fed chief Raphael Bostic and his Kansas Fed counterpart, Esther George, at 1500 BST and 1700 BST will also be closely watched.

CPI figures for July are also due out in Germany and Italy at 0700 BST and 0900 BST, respectively.

No major economic releases are scheduled in the UK.

For Prudential's interims, UBS analyst Colm Kelly expects investors' focus to be on the US side of the business, which is scheduled to be demerged in September.

Next on investors' list of priorities he said would be further details on its Asian new business sales and regarding regulatory changes in China.

On an IFRS basis, Kelly was anticipating first half Asia operating profits of $1.58bn with value of new business at $1.09bn and an interim dividend of 5.33 cents.

The former would be 4% ahead of consensus.

Uncertainty around the execution of the US demerger and caution around Asia flows had seen the shares underperform the wider insurance sector by 6% over the preceding three months.

Wednesday 11 August

INTERIMS

4Imprint Group, Admiral Group, CLS Holdings, Hill & Smith Holdings, Hostelworld Group , Quilter, RPS Group, Spirax-Sarco Engineering

QUARTERLY EX-DIVIDEND DATE

Seplat Energy (DI)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Consumer Price Index (US) (13:30)

Crude Oil Inventories (US) (15:30)

MBA Mortgage Applications (US) (12:00)

Q2

Vaalco Energy, Inc (DI)

GMS

Block Energy

FINALS

Yourgene Health

EGMS

Societatea Energetica Electrica SA GDR (Reg S)

AGMS

Albion Enterprise VCT, Conduity Capital , Mountview Estates

TRADING ANNOUNCEMENTS

Gem Diamonds Ltd. (DI)

FINAL DIVIDEND PAYMENT DATE

Baillie Gifford UK Growth Trust, Ventus VCT D Shs, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus 2 VCT D Shs, Ventus VCT, Ventus VCT 'C' Shares