Wednesday preview: US CPI, TUI AG in the spotlight
The focus in financial markets on Wednesday will be squarely on the latest consumer price inflation data due out in the States.
Consensus is calling for an acceleration in the year-on-year rate of CPI price gains from 2.6% for March to 3.6% in April - a prospect which had pushed five-year US Treasury inflation breakevens to multi-year highs.
At the core level, the pick up in CPI is expected to be more restrained, from 1.6% to 2.3%.
Nevertheless, a headline rate of 3.6%, even if part down to negative base effects, was well above the norms of the past two decades.
It also came on the back of expectations for many economies around the world to reopen and enormous economic stimulus, in the pipeline or planned, offset by an equally daunting amount of slack in labour markets, not least in the US.
On home shores meanwhile, at 0700 BST the Office for National Statistics will publish a reading for UK gross domestic product in March (consensus: 1.3% month-on-month) and a preliminary print on first quarter GDP (consensus: -1.7% quarter-on-quarter).
On the corporate side of things, UBS analyst Cristian Nedelcu anticipates that travel operator TUI AG will post second quarter earnings before interest, taxes, depreciation and amortisation of €500m.
Critically, the firm is expected to gave burnt through €750m of cash during the period, excluding proceeds from disposals.
However, Nedelcu estimates that second quarter will mark a trough, with the third quarter to the end of June expected to see a sequential improvement in traffic and pre-Covid 19 cash losses slowing to €200-250m per month.
By the fourth financial year quarter, revenues are seen recovering to 85% of their pre-pandemic level, for €1.0bn of EBITDA.
Full-year cash burn meanwhile is pegged to be at €600m, helped by a positive contribution of €800m from working capital.
Wednesday 12 May
Compass Group, Sage Group
QUARTERLY PAYMENT DATE
British American Tobacco
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (GER) (07:00)
Industrial Production (EU) (10:00)
MBA Mortgage Applications (US) (12:00)
Investec, Mears Group, Vertu Motors
Aberdeen Asian Income Fund Ltd., AIREA, Albion Development VCT, Allied Minds , Antofagasta, BP, Cenkos Securities, Centaur Media, Condor Gold, Contour Global , EnQuest, FBD Holdings (CDI), Gresham House, Hochschild Mining, Impact Healthcare Reit , Irish Continental Group Units (Comp) (CDI), Just Eat Takeaway.Com N.V. (CDI), LMS Capital, Marshalls, Maven Income & Growth 4 VCT, National Express Group, Nippon Active Value Fund , Primary Health Properties, Rentokil Initial, Robert Walters, Savills, Secure Trust Bank, Spirax-Sarco Engineering, Standard Chartered, TP Icap Group , UK Oil & Gas , Ultra Electronics Holdings, Uniphar (CDI), Vesuvius, Wood Group (John), X5 Retail Group NV GDR (Reg S), Xtract Resources
Coca-Cola HBC AG (CDI)
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (07:00)
GDP (Preliminary) (07:00)
Gross Domestic Product (07:00)
Index of Services (07:00)
Industrial Production (07:00)
Manufacturing Production (07:00)
FINAL DIVIDEND PAYMENT DATE
CPP Group, Dairy Farm International Holdings Ltd (Bermuda), Dairy Farm International Holdings Ltd. (Jersey), Dairy Farm International Holdings Ltd. (Singapore), Hongkong Land Holding Ltd. (Bermuda), Hongkong Land Holding Ltd. (Jersey), Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Matheson Holdings Ltd. (Bermuda), Jardine Matheson Holdings Ltd. (Jersey), Personal Group Holdings, Smith & Nephew
Hellenic Telecom Industries SA ADS