Tuesday preview: Brexit talks, Ashtead in focus

The focus on Tuesday will continue to be on Brexit talks between the UK and the European Union, although according to some reports the possibility existed that they might be called off overnight.

Also in the spotlight ahead of a European Union heads of state summit on Thursday was a Tuesday deadline for Budapest and Warsaw to unblock approval of the EU's next five-year budget and Covid-19 relief funds or proceed without them.

The ZEW institute's closely-followed economic confidence index for Germany in the month of November was also due out.

Stateside meanwhile, the NFIB's small business confidence index was set for release.

A raft of indicators were anticipated in Japan, including a revised reading on third quarter GDP and for household consumption in October.

No major UK economic data were scheduled to be published.

On the corporate side of things and for Ashtead's second quarter update, Morgan Stanley's Amelies Vermeulen expects investors' focus to be on the outlook and on possible updates to the equipment rental outfit's guidance for the 2021 financial year.

In a research report sent to clients, the analyst said she saw upside risk to the firm's guidance for rental revenues for FY21 both at the group level and in the US.

Related to the above, Vermeulen noted that Ashtead rival, United Rentals had recently raised their full-year 2020 guidance in October.

For the second quarter specifically, she had penciled-in group sales of £1,251m for earnings before interest, taxes, depreciation and amortisation of £593m, for declines of 11% and 15% year-on-year, respectively.

Profits before tax and earnings per share meanwhile were seen coming in at £276m and 46.0p, respectively.

For 2021, profit before tax was pegged at £751m and EPS at 124p, which was broadly in-line with the current consensus.

Tuesday 08 December

INTERIMS

Begbies Traynor Group, GB Group, SDCL Energy Efficiency Income Trust, Solid State, ULS Technology , Vianet Group

INTERIM DIVIDEND PAYMENT DATE

Morgan Sindall Group, Tribal Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Gross Domestic Product (EU) (10:00)

ZEW Survey (EU) - Economic Sentiment (10:00)

ZEW Survey (GER) - Current Situation (10:00)

ZEW Survey (GER) - Economic Sentiment (10:00)

Q2

Ashtead Group

FINALS

Numis Corporation, Renew Holdings, Zytronic

EGMS

Orascom Investment Holding SAE (REG S)

AGMS

Allergy Therapeutics, Fidelity Asian Values, Greatland Gold, Haydale Graphene Industries, Henderson International Income Trust, UIL Limited (DI), Volta Finance Limited NPV (GBP), Worsley Investors Limited NPV

FINAL DIVIDEND PAYMENT DATE

NWF Group