What to look out for on the European bourses in the week starting 14 February.
European investors have a lot to look out for in the coming week.
In France and the UK, the first big banks will reveal their FY results, with BNP Paribas expected to post higher revenues and profits y/y. The market is also hoping to hear an update on Fortis’ synergy target.
A day earlier, Societe Generale will post its 4Q results.
In the UK, Barclays releases preliminary numbers on Tuesday. Morgan Stanley notes that there is potential for better outturn on provisions at BarCap, as securitisation data indicates a marked improvement. Investors will also look out for comments on Basel III impacts on risk weighted assets, future impairment profile and ways to improve return on equity.
In the Netherlands, ING Groep should have experienced another solid quarter, while its insurance business has been hit by pre-announced charges of EUR 1.0bn to address the recoverability of deferred acquisition costs.
Other insurers are reporting their figures in France and Switzerland, with AXA and Swiss Re.
Italy’s Eni is one of the last oil majors to unveil its results. Consensus points at strong FY numbers.
Food giants Nestle and Danone are also releasing earnings bringing the focus on rising input costs for the sector. Soaring cocoa and grain prices risk gnawing at margins going forward. UBS expects Nestle’s results to be sweet with organic sales growth of 5.5%.
In the UK, mining giants BHP Billiton and Anglo American will both dig out their 1H and FY releases. The market widely expects the results to be similarly shiny as peer Rio Tinto’s recent figures.
Quarterly numbers from Swiss-Swedish industrial giant ABB should not be too much of a surprise, after the engineering company pre-announced results and reiterated its outlook of continued industrial growth supporting its short- and mid-cycle businesses in automation and power.
In France, electrical equipment maker Schneider should also give a confident outlook alongside its 4Q release.
Full year results at Germany’s car and truck-maker Daimler are also on the cards. Consensus view on the stock is positive, largely on account of exposure to the US truck recovery. Recent data also shows strong end markets for premium cars in China as well as Germany and the US.
Away from earnings, the calendar is similarly packed with data releases. Among the many highlights will be preliminary 4Q GDP figures for the eurozone, UK and US retail sales, the UK’s quarterly inflation report, and minutes from the Federal Reserve’s latest rate setting meetings.
Starting in the eurozone, Monday brings industrial production data for December. Consensus looks for a -0.2% reading for the month after a +1.3% rise previously.
China will also publish several sets of figures, including January inflation numbers.
