Tuesday preview: Ifo in focus after weak manufacturing data; TUI update due
In light of Thomas Cook's collapse, a trading update from holiday firm TUI will be the main highlight on the corporate front on Tuesday, while the German Ifo will also be closely watched following the release of weak manufacturing data.
Interim results are due from the likes of Card Factory and the AA, while TUI - whose shares surged on Monday on the back of Thomas Cook's demise - will release a pre-close trading update.
In a preview written before Thomas Cook went bust, UBS said it expects TUI to announce that the financial year is closing out in line with expectations.
"In terms of current trading we note the company has previously flagged strong summer bookings (+7%) with positive pricing in August in both UK and Europe while the early signs for the winter schedules in the UK were showing some customer hesitancy," the bank said.
"It is unclear to us how much of the strong August bookings were driven by a market recovery (on easy comps last year) versus market share gains versus Thomas Cook. More clarity is likely to emerge at the end of this month when Thomas Cook is expected to offer an update on its progress on a potential funding deal with Fosun and the banks."
As far as Card Factory is concerned, UBS forecasts first-half pre-tax profit of £23m, broadly unchanged year-on-year, while the interim dividend is expected to be flat at 2.9p a share.
"New stores continue to trade well, although like-for-like slowed into Q2 with tougher comps and lower high street footfall," it said. "UBS FY profit before estimate was trimmed at the time by £2m to £72.5m to allow for higher stock holding cost to avoid Brexit risk. Key issues looking ahead will be any further news on the trading arrangement with Aldi UK, the ability to expand production in the UK, news on product development (especially everyday cards) and any signs of progress in Getting Personal."
On the macroeconomic calendar, the German Ifo survey for September is due for release. Deutsche Bank said: "In August, the indicator fell to 94.3, its lowest level since November 2012, while the expectations reading fell to 91.3, the lowest since June 2009. Nevertheless, the consensus expectation is for a rebound in both this month, with the business climate indicator expected to rise to 94.6."
On Monday, the latest survey from IHS Markit revealed that Germany's manufacturing PMI fell to 41.4 in September from 43.5 in July, missing expectations for a level of 44.0 and marking the worst reading in more than decade.
In the UK, the CBI industrial trends survey and public sector net borrowing figures are scheduled for release.
Tuesday September 24
Alliance Pharma, Animalcare Group, Card Factory, DigitalBox, DP Poland, Everyman Media Group , Flowtech Fluidpower, Minds + Machines Group Limited (DI), Pennant International Group, S&U, Serica Energy, Ten Entertainment Group , Tremor International LTD (DI)
INTERIM DIVIDEND PAYMENT DATE
Franchise Brands, Standard Life Aberdeen
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (15:00)
House Price Index (US) (14:00)
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)
1pm, Blancco Technology Group, DX (Group), Hotel Chocolat Group , InnovaDerma, Town Centre Securities
SPECIAL DIVIDEND PAYMENT DATE
Draper Esprit VCT, Kibo Energy, Knights Group Holdings , Limitless Earth, Park Group, Versarien
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
FINAL DIVIDEND PAYMENT DATE