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Thursday preview: EU leaders' summit, Unilever in the spotlight
22nd Apr 2020 13:20
(Sharecast News) - The focus on Thursday will be on a key teleconference between European Union leaders to try and thrash out an economic relief package that some reports say could reach as high between €1.0-1.5trn in size.
Significantly, at a preparatory meeting on 19 April, German Chancellor, Angela Merkel, was said to have opened the door to the temporary issuance of joint debt under the umbrella of the European Commission.
Such a mechanism, some observers said, would limit the amount of 'mutualisation' of debt that member states might be left on the hook for.
To take note of, in the days and weeks leading up to the summit, there had been open speculation that a failure to agree to a common response could lead to the fragmentation of the bloc.
According to the Atlantic Sentinel, that had led one analyst, Claus Vistesen at Pantheon Macroeconomics, to quip that the EU could have a nuclear umbrella, ten aircraft carriers, a direct monthly solidarity transfer from Bavaria to Palermo and a €10 train ticket from Helsinki to Malaga, and it would still be a disappointment to the consensus.
Against that backdrop, manufacturing and services sector survey data for April were due out in the euro area and UK.
Stateside, the focus would be on weekly jobless claims and new home sales data, with the former, in particular, expected to again make for grim reading.
Unilever was due to publish a first quarter trading update on Thursday.
UBS analyst Nik Oliver expects the consumer goods giant will publish a 1.9% rise in organic sales due to a 50% reduction in out-of-home sales in China in January and February.
OOH sales account for approximately 30% of the company's Food & Refreshments business or approximately 14% of total group sales, he explained.
OOH food and beverage sales in Europe and North America were also expected to get whacked, with only half of the drop being recovered in the form of home consumption of Unilever brands.
But that would be more of a second quarter story, he added, with the rate of increase in second quarter organic sales slowing further to 1.1%.
Yet for now, the analyst was assuming a "normalises" environment starting from May.
Full-year margins on an earnings before interest and taxes basis meanwhile were pegged to come in at 19.5%, or 36 basis points above the 2019 figure with diluted earnings per share seen up by 1.6% at €2.59.
Thursday 23 April
FINALS
Walker Greenbank, NMCN, Alfa Financial Software Holdings
Q1
Unilever
TRADING ANNOUNCEMENTS
RELX plc, Gear4music (Holdings), Meggitt
AGMs
RELX plc, Domino's Pizza Group, Redx Pharma, CLS Holdings, Taylor Wimpey, Tullow Oil, Mobius Investment Trust, JPMorgan Claverhouse Inv Trust, MD Medical Group Investments GDR (Reg S), Croda International, Synectics, Meggitt, Aggreko, AFC Energy, N4 Pharma, Blencowe Resources, OJSC Novolipetsk Steel GDS (Reg S), ITV, St. Modwen Properties, Senior, O'Key Group GDR (Reg S) (WI), AssetCo, Rotork, Pearson
EGMs
Palm Hills Developments SAE GDR (Reg S)
FINAL EX-DIVIDEND DATE
Rathbone Brothers, 888 Holdings, Downing Three VCT J Shs, Antofagasta, M. P. Evans Group, Drax Group, Fresnillo, Downing Two VCT G Shs, Legal & General Group, Tclarke, Sanne Group, Bodycote, Dunedin Enterprise Investment Trust, Chesnara, KAZ Minerals, Downing Two VCT K, John Laing Group, TI Fluid Systems, Spirax-Sarco Engineering, Maven Income & Growth 4 VCT, Sabre Insurance Group, RELX plc
FINAL DIVIDEND PAYMENT DATE
Oakley Capital Investments Ltd. (DI)
INTERIM EX-DIVIDEND DATE
CQS Natural Resources Growth and Income, Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs, Sequoia Economic Infrastructure Income Fund Limited, Highland Gold Mining Ltd., Aberdeen Asian Income Fund Ltd., Bankers Inv Trust, City Merchants High Yield Trust
International Public Partnerships Ltd., Tritax Big Box Reit, Invesco Perpetual Select Trust Managed Liquidity Shares, NB Global Floating Rate Income Fund Ltd GBP, TwentyFour Select Monthly Income Fund Limited, SME Credit Realisation Fund Limited NPV, JPMorgan American Inv Trust, Investment Company, Invesco Perpetual Select Trust Glbl Eqty Inc Shs, NB Global Floating Rate Income Fund Ltd USD, Mcbride, Cello Health, Invesco Perpetual Select Trust UK Equity Shares, Smart Metering Systems, Montanaro UK Smaller Companies Inv Trust, CQS New City High Yield Fund Limited
INTERIM DIVIDEND PAYMENT DATE
JPMorgan Mid Cap Inv Trust, BlackRock Energy and Resources Income Trust
SPECIAL EX-DIVIDEND PAYMENT DATE
Pacific Alliance China Land Ltd., John Laing Group
QUARTERLY EX-DIVIDEND DATE
Yew Grove Reit, M Winkworth, City of London Inv Trust, SME Credit Realisation Fund Limited NPV, CUSTODIAN REIT, Merchants Trust,
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Initial Jobless Claims (US) (13:30)
New Homes Sales (US) (15:00)
Significantly, at a preparatory meeting on 19 April, German Chancellor, Angela Merkel, was said to have opened the door to the temporary issuance of joint debt under the umbrella of the European Commission.
Such a mechanism, some observers said, would limit the amount of 'mutualisation' of debt that member states might be left on the hook for.
To take note of, in the days and weeks leading up to the summit, there had been open speculation that a failure to agree to a common response could lead to the fragmentation of the bloc.
According to the Atlantic Sentinel, that had led one analyst, Claus Vistesen at Pantheon Macroeconomics, to quip that the EU could have a nuclear umbrella, ten aircraft carriers, a direct monthly solidarity transfer from Bavaria to Palermo and a €10 train ticket from Helsinki to Malaga, and it would still be a disappointment to the consensus.
Against that backdrop, manufacturing and services sector survey data for April were due out in the euro area and UK.
Stateside, the focus would be on weekly jobless claims and new home sales data, with the former, in particular, expected to again make for grim reading.
Unilever was due to publish a first quarter trading update on Thursday.
UBS analyst Nik Oliver expects the consumer goods giant will publish a 1.9% rise in organic sales due to a 50% reduction in out-of-home sales in China in January and February.
OOH sales account for approximately 30% of the company's Food & Refreshments business or approximately 14% of total group sales, he explained.
OOH food and beverage sales in Europe and North America were also expected to get whacked, with only half of the drop being recovered in the form of home consumption of Unilever brands.
But that would be more of a second quarter story, he added, with the rate of increase in second quarter organic sales slowing further to 1.1%.
Yet for now, the analyst was assuming a "normalises" environment starting from May.
Full-year margins on an earnings before interest and taxes basis meanwhile were pegged to come in at 19.5%, or 36 basis points above the 2019 figure with diluted earnings per share seen up by 1.6% at €2.59.
Thursday 23 April
FINALS
Walker Greenbank, NMCN, Alfa Financial Software Holdings
Q1
Unilever
TRADING ANNOUNCEMENTS
RELX plc, Gear4music (Holdings), Meggitt
AGMs
RELX plc, Domino's Pizza Group, Redx Pharma, CLS Holdings, Taylor Wimpey, Tullow Oil, Mobius Investment Trust, JPMorgan Claverhouse Inv Trust, MD Medical Group Investments GDR (Reg S), Croda International, Synectics, Meggitt, Aggreko, AFC Energy, N4 Pharma, Blencowe Resources, OJSC Novolipetsk Steel GDS (Reg S), ITV, St. Modwen Properties, Senior, O'Key Group GDR (Reg S) (WI), AssetCo, Rotork, Pearson
EGMs
Palm Hills Developments SAE GDR (Reg S)
FINAL EX-DIVIDEND DATE
Rathbone Brothers, 888 Holdings, Downing Three VCT J Shs, Antofagasta, M. P. Evans Group, Drax Group, Fresnillo, Downing Two VCT G Shs, Legal & General Group, Tclarke, Sanne Group, Bodycote, Dunedin Enterprise Investment Trust, Chesnara, KAZ Minerals, Downing Two VCT K, John Laing Group, TI Fluid Systems, Spirax-Sarco Engineering, Maven Income & Growth 4 VCT, Sabre Insurance Group, RELX plc
FINAL DIVIDEND PAYMENT DATE
Oakley Capital Investments Ltd. (DI)
INTERIM EX-DIVIDEND DATE
CQS Natural Resources Growth and Income, Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs, Sequoia Economic Infrastructure Income Fund Limited, Highland Gold Mining Ltd., Aberdeen Asian Income Fund Ltd., Bankers Inv Trust, City Merchants High Yield Trust
International Public Partnerships Ltd., Tritax Big Box Reit, Invesco Perpetual Select Trust Managed Liquidity Shares, NB Global Floating Rate Income Fund Ltd GBP, TwentyFour Select Monthly Income Fund Limited, SME Credit Realisation Fund Limited NPV, JPMorgan American Inv Trust, Investment Company, Invesco Perpetual Select Trust Glbl Eqty Inc Shs, NB Global Floating Rate Income Fund Ltd USD, Mcbride, Cello Health, Invesco Perpetual Select Trust UK Equity Shares, Smart Metering Systems, Montanaro UK Smaller Companies Inv Trust, CQS New City High Yield Fund Limited
INTERIM DIVIDEND PAYMENT DATE
JPMorgan Mid Cap Inv Trust, BlackRock Energy and Resources Income Trust
SPECIAL EX-DIVIDEND PAYMENT DATE
Pacific Alliance China Land Ltd., John Laing Group
QUARTERLY EX-DIVIDEND DATE
Yew Grove Reit, M Winkworth, City of London Inv Trust, SME Credit Realisation Fund Limited NPV, CUSTODIAN REIT, Merchants Trust,
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Initial Jobless Claims (US) (13:30)
New Homes Sales (US) (15:00)