C&C investors set for insight into Brexit effect
Published 04/07/2016 | 02:30
C&C chief executive Stephen Glancey will face investors this week as the repercussions of the Brexit vote continue to unfold. Shareholders will be anxious to hear his take on how the Bulmers maker will fare in the new uncertain world, with the company having posted a less than spectacular performance as of late.
Full-year operating profit was down 10.3pc in its last financial year amid difficult trading conditions in England and Wales, but for shareholders, a buyback programme and dividend increase would have sweetened that blow.
Whither the buyback programme and dividends now?
Exchequer returns figures for the first half of the year are also due. Ireland's tax take has consistently outperformed forecasts in recent years and while it will be too early to see what impact Brexit has had, the figures will provide an insight into how well placed the country is to weather a storm. Corporation tax has been the major out-performer and that's the one to keep an eye out for.
On the other side of the Atlantic, the June US employment report on Friday will be an immediate focal point made more important by last month's surprisingly anaemic jobs data.
Even an unexpectedly robust June jobs report hinting at inflation would probably not be enough to lead to expectations of an interest rate hike anytime soon. But another weak report could damage sentiment.
"If there is another shock, people will identify that as a trend and there will be recession worries," said Aaron Jett, vice president of equity research at Bel Air Investment Advisors. "Even if the jobs number is good, we still think the Fed can use Brexit as an excuse to not raise rates."
Currency volatility and global financial uncertainty created by Brexit have left most traders expecting a US rate hike well into 2017 at the earliest, compared with late 2016 prior to the vote. (Additional reporting Reuters)
The week ahead...
Monday: Exchequer returns, H1
Tuesday: CSO monthly unemployment figures
Wednesday: Donegal Investment Group annual general meeting
Thursday: C&C Annual general meeting
Friday: Vehicles licensed figures