View our top eight stories to look out for this week (30 October-3 November), plus our key company earnings schedule.
Markets look towards a Bank of England rate rise
Our Chief Market Analyst, Michael Hewson, looks ahead to the latest central bank meetings from the Bank of England, US Federal Reserve and the Bank of Japan. He also examines the US employment report and Apple’s latest numbers.
Optimistic outlook for banking giant HSBC
Monday: Following decent numbers from the US banking sector, even if fixed income trading was a little weak, expectations around HSBC’s results are positive given its exposure to Asian markets and China’s economic performance this year. In July the bank announced a $2bn share buyback and a boost in profits, so the outlook for this week’s Q3 numbers is optimistic. The Group is also expected to give an update on its efforts in ring-fencing its UK retail operations.
Could politics affect the Bank of Japan rate decision?
Tuesday: The recent win by Shinzo Abe in the Japanese election means that monetary policy could remain loose for some time. His increased majority may embolden him in encouraging the central bank to do his bidding when it comes to implementing reforms to the Japanese economy.
Will it be oil wells that end well for BP?
Tuesday: At its last trading update in August, BP reported a big jump in revenues, however profits fell due to one-off factors. It needed an oil price of $60 a barrel to break even earlier this year, and wants to bring this down to $47 in order to sustain its hefty dividend. As the company is still paying for its Gulf of Mexico liabilities, and its renewables projects aren’t generating much profit yet, costs may come under further pressure.
Are we likely to be shocked by Tesla’s Q3 results?
Wednesday: The desire for electric cars, and Tesla’s ability to deliver them, saw the company sign an agreement last week to build cars at its own manufacturing facility in Shanghai. Tesla’s main problem in recent years has been its inability to fill its order book, but the bigger question is around when the company will finally turn profitable. Sales of the Model S and Model X SUV’s have helped increase revenue, however there are concerns the company won’t deliver its more affordable Model 3 quickly enough to improve turnover.
Facebook continues to improve its social net worth
Wednesday: The tech juggernaut has continued to go from strength to strength, sweeping aside pretenders, or buying them out. Facebook’s most recent acquisition, TBH, is the latest disruptor to be snapped up. Mobile revenues from video ads have contributed to the company’s growth, with 2bn users and counting. Facebook is currently helping US investigators with the Russia investigation, which probably won’t hurt its prospects, but if the matter drags on there could be some brand damage.
Has Apple fallen too far from the tree?
Thursday: Following the launch of the iPhone X, there have been reports of delays and lower demand for components, suggesting the price tag of £1,000/$1,000 may be putting people off. Furthermore, demand for the iPhone 8 hasn’t been particularly high. With stronger competition from its peers, Apple may have overreached in assuming its fans will pay almost anything for its products. With the company’s Q4 update this week, will Apple revise down its guidance for the next quarter in light of these delays?
Might rising inflation affect the BoE’s rate decision?
Thursday: Speculation has been building that the Bank of England might look at raising rates this week in the face of rising inflation, despite concerns about a slowing UK economy. It’s telling that the same voices who urged the Bank to cut rates a year ago are the same ones urging the bank not to raise them at this week’s meeting. This reluctance may be due to concerns about wages, but if the BoE disappoints again this week, the market reaction on the pound could be brutal.
Index dividend schedule
If you trade indices, dividend payments from an index's constituent shares can result in either a credit or debit to your account.
View this week's indices dividend drop points table
|Monday 30 October||Results|
|Alliance Holdings GP (US)||Q3|
|Armstrong World Industries (US)||Q3|
|CNA Financial (US)||Q3|
|Compass Minerals International (US)||Q3|
|Diamond Offshore Drilling (US)||Q3|
|Edison International (US)||Q3|
|EnPro Industries (US)||Q3|
|First Interstate BancSystem (US)||Q3|
|HSBC Holdings (UK)||Q3|
|Noble Energy (US)||Q3|
|Omega Healthcare Investors (US)||Q3|
|Sempra Energy (US)||Q3|
|Simpson Manufacturing (US)||Q3|
|Summit Hotel Properties (US)||Q3|
|Summit Materials (US)||Q3|
|Tower International (US)||Q3|
|Xerium Technologies (US)||Q3|
|Tuesday 31 October||Results|
|3D Systems (US)||Q3|
|B&G Foods (US)||Q3|
|Capella Education (US)||Q3 17|
|Cummins (US)||Q3 17|
|Electronic Arts (US)||Q2|
|Horizon Global (US)||Q3|
|Innophos Holdings (US)||Q3|
|Papa John's International (US)||Q3|
|Paycom Software (US)||Q3|
|RR Donnelley & Sons (US)||Q3|
|Steven Madden (US)||Q3|
|Under Armour (US)||Q3|
|United States Steel (US)||Q3|
|Voya Financial (US)||Q3|
|Western Gas Partners (US)||Q3|
|Westmoreland Coal (US)||Q3|
|William Lyon Homes (US)||Q3|
|Wednesday 1 November||Results|
|Aberdeen Asian Smaller Cos Investment Trust (UK)||Full-year|
|Black Knight (US)||Q3|
|Cheesecake Factory (US)||Q3|
|Glu Mobile (US)||Q3|
|Great Plains Energy (US)||Q3|
|Kraft Heinz (US)||Q3|
|Laredo Petroleum (US)||Q3|
|Macquarie Infrastructure (US)||Q3|
|Marathon Oil (US)||Q3|
|McDermott International (US)||Q3|
|Molson Coors Brewing (US)||Q3|
|Prudential Financial (US)||Q3|
|Shake Shack (US)||Q3|
|Stone Energy (US)||Q3|
|Thursday 2 November||Results|
|AMAG Pharmaceuticals (US)||Q3|
|AMC Networks (US)||Q3|
|Becton Dickinson and Co (US)||Q4|
|Chesapeake Energy (US)||Q3|
|Cincinnati Bell (US)||Q3|
|Discovery Communications (US)||Q3|
|Estee Lauder (US)||Q1|
|Hyatt Hotels (US)||Q3|
|International Biotechnology Trust (UK)||Full-year|
|Lancashire Holdings (UK)||Q3|
|Marriott Vacations Worldwide (US)||Q3|
|Prestige Brands Holdings (US)||Q2|
|Ralph Lauren (US)||Q2|
|Royal Gold (US)||Q1|
|Tate & Lyle (UK)||Half-year|
|Vulcan Materials (US)||Q3|
|Yum! Brands (US)||Q3|
|Friday 3 November||Results|
|No major US or UK companies reporting|
Company announcements are subject to change. All the events listed above were correct at the time of writing.
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