Thursday preview: UK GDP, Mondi in focus

09 October 2019

(Sharecast News) - The focus on Thursday will be on a raft of UK economic data, including a reading on gross domestic product and industrial production in August.
Consensus is expecting UK activity to have flatlined in month-on-month terms following the previous month's bounce, but Barclays Research believes a dip in services output, alongside a downdraft in the construction, will drag GDP down by 0.1%.

Against that backdrop, traders will be closely monitoring their screens for any fresh headlines on the first of two days of high-level US-China trade talks in Washington.

Stateside meanwhile, consumer price data for September is expected to show a rise in the year-on-year rate of increase in US consumer prices from a pace of 1.7% in August to 1.9% for last month, alongside so-called core inflation running at 2.4%.

In parallel, across the Channel, the minutes of the European Central Bank's policy meeting in September may provide further colour on what appears to have been an unusually - for the ECB's standards - policy debate when the Governing Council last met.

On the corporate side of things, <em>UBS</em>'s Mikael Doepel expects <strong>Mondi</strong> to post third quarter underlying earnings before interest, taxes, depreciation and amortisation of &euro;393.0m and guide towards "muted" demand and "some further pressure" on corrugated box and uncoated fine paper prices heading into the fourth quarter.

Regarding the stock's roughly 3% dip year-to-date and underperformance versus peers, Doepel attributed that to the higher earnings risks and valuation relative to peers.

To take note of, the paper and packaging outfit's management team had already guided towards softer prices and demand for the back half of 2019.

<strong>Thursday 10 October</strong>

INTERIMS

Brown (N.) Group, Morses Club

INTERIM DIVIDEND PAYMENT DATE

Forterra, Macfarlane Group, Restaurant Group, Zotefoams

INTERIM EX-DIVIDEND DATE

Andrews Sykes Group, Bodycote, Centaur Media, Centrica, Charles Taylor, Christie Group, Cobham, Curtis Banks Group, Morgan Sindall Group, Phoenix Spree Deutschland Limited Shs NPV , Puma VCT 10 , Saga , Shore Capital Group Ltd., Spectris, Spirax-Sarco Engineering, Tandem Group, Ted Baker, Tesco, Weir Group

QUARTERLY PAYMENT DATE

GlaxoSmithKline, XP Power Ltd. (DI)

QUARTERLY EX-DIVIDEND DATE

BlackRock Latin American Inv Trust, BMO Commercial Property Trust Limited, Fair Oaks Income Limited 2017 Shs NPV, JPMorgan Asian Investment Trust, JPMorgan Japan Smaller Companies Trust, Marble Point Loan Financing Limited NPV, Marsh &amp; Mclennan Cos Inc., Middlefield Canadian Income PCC, Primary Health Properties, Schroder Income Growth Fund

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Consumer Price Index (US) (13:30)

Continuing Claims (US) (13:30)

Current Account (GER) (07:00)

Initial Jobless Claims (US) (13:30)

SPECIAL EX-DIVIDEND DATE

Barratt Developments, Centaur Media, RDL Realisation

AGMS

Aberdeen Frontier Markets Investment Company

UK ECONOMIC ANNOUNCEMENTS

Balance of Trade (09:30)

Gross Domestic Product (09:30)

Index of Services (09:30)

Industrial Production (09:30)

Manufacturing Production (09:30)

RICS Housing Market Survey (00:01)

FINAL DIVIDEND PAYMENT DATE

Colefax Group, South32 Limited (DI) , United Carpets Group, UniVision Engineering Ltd.

FINAL EX-DIVIDEND DATE

Barratt Developments, Begbies Traynor Group, City of London Investment Group, Close Brothers Group, CPL Resources, Haynes Publishing Group, JPMorgan Mid Cap Inv Trust, Murgitroyd Group, Strategic Equity Capital