Week ahead: BHP and Persimmon results in focus

Next week offers a true August holiday break in terms of macroeconomic data and central bank machinations, while there are some key results worth watching out for, including BHP Billiton and Persimmon.

Last month BHP agreed to sell its US shale assets to BP for $10.8bn and it also delivered better than expected fourth-quarter production and reiterated full year cost guidance, ahead of this coming Tuesday's final results.

Deutsche Bank said was an encouraging finish to the year following disappointing operational performance in H1 and industry inflationary pressures. Full year production guidance for iron ore was below analysts' estimate but the target to exit FY19 at 290m tonnes per annum remained unchanged. For FY18 Deutsche forecasts EBITDA of $24.3bn, net debt of $11.7bn and free cash flow of $12bn.

As well as selling its oil assets, a combination of improved production and higher prices are boosting revenues, which means BHP is awash with money, observed broker Hargreaves Lansdown, wondering what will directors do with all that loose cash.

"Some $10bn is already earmarked for return to shareholders – although in exactly what form remains to be seen – and in the past BHP has been willing to pay dividends that are far more generous than its stated 50% of earnings per share."

The other issue on investors minds is whether BHP should continue to be listed in both the UK and Australia. Activist investor Elliott Advisors has been pushing for a single Australian listing. BHP has so far rejected its calls but Hargreaves hoped to hear more details.

Looking at Persimmon, the shares have subsided badly since its half year update in early June. Revenues rose 5% to £1.84bn, helping solidify the housebuilder's position as the UK’s second largest housebuilder, but business was seen to be slowing.

Revenue rose 5% to £1.84bn in the six months to the end of June as completed sales increased 3.6% to 8,072 homes and the average selling price rose 1.2% to £215,000. A year ago revenue was up 12%, completions were up 8%, and the average selling price had risen 3.5%.

Persimmon said potential buyers of its homes remained confident and that customer enquiries were up 6%. At the end of June forward sales of new homes were 5% higher than a year ago at £1.68bn.

Investors will be wondering to see if the Bank of England's decision to raise interest rates at the beginning of August has impacted Persimmon’s selling power.

Mortgage approval rates for July showed another month of growth, Hargreaves noted, an indicator that the first time buyers Persimmon relies heavily on are continuing to find their way onto the property ladder.

"July’s results preview painted a bright enough picture, and we’ll be looking for further reassurance this time around."

Monday August 20

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Producer Price Index (GER) (07:00)

INTERIMS

Georgia Capital , NMC Health, Polymetal International, TBC Bank Group

EGMS

Public Joint Stock Company Severstal GDR (Reg S)

AGMS

Acorn Income Fund Ld, Northern Bear

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

Wednesday August 22

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)
Existing Home Sales (US) (15:00)
MBA Mortgage Applications (US) (12:00)

INTERIMS

Avast, Costain Group, Empresaria Group, Foresight Solar Fund Limited, Grafton Group Units, Hansteen Holdings, Headlam Group

TRADING ANNOUNCEMENTS

Proactis Holdings, Venture Life Group

GMS

Foresight Solar Fund Limited, Rightmove

AGMS

Collagen Solutions, Downing One VCT , Latham (James), Paragon Entertainment Ltd (DI), Puma VCT 10

QUARTERLY PAYMENT DATE

Merchants Trust

FINAL DIVIDEND PAYMENT DATE

Vedanta Resources

Thursday August 23

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Continuing Claims (US) (13:30)
House Price Index (US) (14:00)
Initial Jobless Claims (US) (13:30)
New Homes Sales (US) (15:00)

UK ECONOMIC ANNOUNCEMENTS

CBI Distributive Trades Surveys (11:00)

FINALS

Arcontech Group

INTERIMS

Anglo Pacific Group, Bank of Cyprus Holdings Public Limited Company, CRH, John Laing Group , Macfarlane Group, OneSavings Bank, Phoenix Group Holdings (DI), Playtech, Premier Oil, Sportech

Q2

MHP SE GDR (Reg S)

SPECIAL EX-DIVIDEND DATE

Quilter

AGMS

D4T4 Solutions, The Fulham Shore, The Fulham Shore

FINAL EX-DIVIDEND DATE

Cohort, Dixons Carphone , First Property Group, JPMorgan Brazil Inv Trust , Miton UK Microcap Trust, Park Group, Ramsdens Holdings , Stagecoach Group, Triad Group

INTERIM EX-DIVIDEND DATE

Apax Global Alpha Limited , Baronsmead Second Venture Trust, Baronsmead Venture Trust, CLS Holdings, Croda International, Devro, FDM Group (Holdings), Ferrexpo, Franchise Brands, Glanbia, Hikma Pharmaceuticals, Jardine Lloyd Thompson Group, London Stock Exchange Group, Marshall Motor Holdings, Mithras Inv Trust, Mobeus Income & Growth Vct, Mondi, Paddy Power Betfair, Plus500 Ltd (DI), Prudential, Rotork, Royal Bank of Scotland Group, Sabre Insurance Group

QUARTERLY PAYMENT DATE

BlackRock Latin American Inv Trust, Fair Oaks Income Limited 2014 Shs NPV, Fair Oaks Income Limited 2017 Shs NPV, M Winkworth

QUARTERLY EX-DIVIDEND DATE

Blackrock North American Income Trust , Carnival, HICL Infrastructure Company Ltd, NextEnergy Solar Fund Limited Red, Premier Global Infrastructure Trust, Real Estate Credit Investments Ltd

Friday August 24

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Durable Goods Orders (US) (13:30)
Gross Domestic Product (GER) (07:00)

UK ECONOMIC ANNOUNCEMENTS

BBA Mortgage Lending Figures (09:30)

FINALS

Byotrol

INTERIMS

Computacenter, Henry Boot, Kingspan Group

INTERIM DIVIDEND PAYMENT DATE

Independent Inv Trust, Microgen, Octopus Titan VCT

QUARTERLY PAYMENT DATE

APQ Global Limited, Primary Health Properties, Tetragon Financial Group Limited

SPECIAL DIVIDEND PAYMENT DATE

Artemis Alpha Trust

EGMS

Infrastructure India, PJSC Lukoil ADR

AGMS

Naspers Ltd. ADR

FINAL DIVIDEND PAYMENT DATE

Bloomsbury Publishing, CMC Markets, Downing One VCT , GB Group, Latham (James), Micro Focus International