Week ahead: Fed policy announcement eyed

5th Dec 2025 09:04

(Sharecast News) - The main highlight next week will be the Federal Reserve's latest policy announcement on Wednesday.

Danske Bank expects the Fed to cut its policy rate target by 25 basis points to 3.50-3.75%, in line with consensus and market pricing.

"We expect an equal reduction to all administered rates, but an additional 5bp cut to the IORB rate is not off the table," it said.

"The Fed could also follow up on its October decision to end QT by announcing the start of organic balance sheet expansion in 2026, which would ease USD liquidity conditions further.

"We expect Powell to verbally push back against continuation of sequential rate cuts in early 2026. Updated dots will likely signal a range of views for 2026 rates outlook, but we expect median long-range dot to remain at 3.00-3.25%."

On the corporate front, British American Tobacco is due to release a full-year pre-close trading update on Tuesday.

Derren Nathan, head of equity research at Hargreaves Lansdown, said that at the last check, it was heading to the top of its 1-2% revenue growth guidance range, helped by an improving performance in its US business.

"Consensus forecasts are expecting a slightly better growth outcome at 2.1% before currency movements," he said.

"There's still some way to go for BATS to return to its medium-term target of 3-5% growth. Tobacco volumes remain in decline, and next-generation products such as vapes are not proving to be the saviour the industry was looking for. Investors will be hoping for an improvement from the low-single-digit growth uplift seen by the New Categories division in the first half.

"The balance sheet has also been under some pressure. It's important that net debt is brought down to fit more comfortably into the group's 2.0-2.5x underlying cash profit (EBITDA) target range. Especially if regular share buybacks are to be supported."

Tuesday also sees the release of full-year results from Chemring, half-year results from Moonpig and second-quarter numbers from equipment rental firm Ashtead.

On Wednesday, housebuilder Berkeley Group will release half-year results, while travel company Tui will publish its full-year results.

As far as Tui is concerned, HL equity analyst Aarin Chiekrie said the company has already managed to paint a bright picture ahead of next week's full-year results, thanks to last month's upbeat trading statement.

"The group managed to beat full-year profit expectations, despite some weakness on the top line. Record performances across Hotels & Resorts and Cruise businesses pushed underlying operating profit up 12.6% to €1.5 billion, beating its 9-11% guidance," he said.

"Investors will be closely watching the new shareholder return strategy, with markets anticipating the return of dividend payments in the new year. There'll also be plenty of attention on how 2026 is shaping up, especially given the growing economic headwinds in TUI's main markets, with sustained progress in Germany particularly important for sentiment."

On Friday, investors will watch out for UK GDP figures for October.

Michael Hewson at MCH Market Insights noted that over the last few months, the economy has undergone a sharp slowdown in economic activity.

"While the resumption of operations in JLR ought to provide a pickup in October the economy as a whole has shown little signs of vigour ahead of the budget last month," he said.

"October GDP is unlikely to be an improvement with the services sector also joining the malaise if recent PMI data is any sort of accurate guide, and the uncertainty provided by speculation over the November budget causing businesses to sit on their hands, until the maelstrom of noise surrounding the event has subsided."

Monday December 08

INTERIMS

SDCL Efficiency Income Trust

INTERIM DIVIDEND PAYMENT DATE

Maruwa Co Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Industrial Production (GER) (07:00)

GMS

Bezant Resources, Bigblu Broadband

AGMS

aberdeen Asia Focus, Amedeo Air Four Plus Limited Red Ord NPV

FINAL DIVIDEND PAYMENT DATE

Ashmore Group

Tuesday December 09

INTERIMS

Begbies Traynor Group, Moonpig Group , Naked Wines

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Q2

Ashtead Group

FINALS

Diales Group, Ixico, Oxford Metrics

EGMS

MHP SE GDR (Reg S)

AGMS

Asiamet Resources Limited (DI) , CQS Natural Resources Growth and Income , Ikigai Ventures Limited Npv, Mila Resources, Sareum Holdings

UK ECONOMIC ANNOUNCEMENTS

Retail Sales (00:01)

FINAL DIVIDEND PAYMENT DATE

Fidelity Emerging Markets Limited Ptg NPV, YouGov

Wednesday December 10

INTERIMS

Cohort, Redcentric

INTERIM DIVIDEND PAYMENT DATE

BlackRock Smaller Companies Trust, Cavendish

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (US) (13:30)

Crude Oil Inventories (US) (15:30)

MBA Mortgage Applications (US) (12:00)

Wholesale Inventories (USD) (15:00)

GMS

Virgin Wines UK

FINALS

Fevara

AGMS

Abingdon Health , Ashoka India Equity Investment Trust, Baillie Gifford Japan Trust, BATM Advanced Communications Ltd., Gattaca, Marwyn Value Investors Limited, Virgin Wines UK, Volution Group

FINAL EX-DIVIDEND DATE

Aeci 5 1/2% Prf

Thursday December 11

INTERIM EX-DIVIDEND DATE

Baltic Classifieds Group, Caffyns, Celebrus Technologies, Cranswick, Discoverie Group, DSW Capital, Fuller Smith & Turner, Halfords Group, Mercia Asset Management, NewRiver REIT, Sirius Real Estate Ltd., Speedy Hire, TR Property Inv Trust, Vertu Motors, Zigup

QUARTERLY PAYMENT DATE

Brunner Inv Trust

QUARTERLY EX-DIVIDEND DATE

Patria Private Equity Trust

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Continuing Claims (US) (13:30)

Current Account (GER) (13:30)

Initial Jobless Claims (US) (13:30)

Producer Price Index (US) (13:30)

GMS

Capital Limited (DI)

FINALS

RWS Holdings, TwentyFour Select Monthly Income Fund Limited

AGMS

Bluefield Solar Income Fund Limited, DotDigital Group, Fairview International, Fidelity Special Values, R8 Capital Investments, Tristel

FINAL DIVIDEND PAYMENT DATE

Fidelity Asian Values, Springfield Properties

FINAL EX-DIVIDEND DATE

Associated British Foods, Investec, NewRiver REIT

Friday December 12

INTERIM DIVIDEND PAYMENT DATE

Airtel Africa , B&M European Value Retail S.A. (DI), C&C Group (CDI), Card Factory, CML Microsystems, DCC (CDI), Investec, Kainos Group , Motorpoint Group, Scottish Mortgage Inv Trust

QUARTERLY PAYMENT DATE

BlackRock American Income Trust, Greencoat Renewables (CDI), Premier Miton Global Renewables Trust

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

SPECIAL DIVIDEND PAYMENT DATE

Lancashire Holdings Limited

AGMS

Thor Explorations Ltd (DI), Ultimate Products , Westmount Energy Ltd.

UK ECONOMIC ANNOUNCEMENTS

Balance of Trade (07:00)

Gross Domestic Product (07:00)

Index of Services (07:00)

Industrial Production (07:00)

Manufacturing Production (07:00)

FINAL DIVIDEND PAYMENT DATE

Gattaca, James Halstead, New Star Investment Trust, SThree