Tuesday preview: US CPI, Vodafone in focus

Stateside, the year-on-year rate of increase in consumer prices was seen slowing from 1.5% for March to 0.4% in April.

In the People's Republic of China on the other hand, CPI inflation was seen slowing from 4.3% to 3.7%.

Chinese factory gate prices were seen slowing a bit more quickly, from -1.5% to -2.6%.

No major economic releases were scheduled in the UK.

The calendar across the Channel was also quite sparse across the Channel, with just a survey reading for French industrial confidence and on Irish unemployment due out, both for the month of April.

Looking out to Vodafone's fourth quarter update, UBS analyst Polo Tang said he expected the telecommunications carrier to prove "relatively resilient" to the Covid-19 downturn, even if it was not going to prove immune.

In particular, Tang was expecting Vodafone to keep its dividend payout at 0.09 euro per share, which he said would increase its relative appeal to income investors.

He was also looking for an update regarding the company's new chairman.

The analyst also expected management to announce fresh cost cutting initiatives that would take the run rate for cost savings to €1.0bn.

That, he said, wasn't yet factored into the consensus.

"We think recent underperformance is a function of financial leverage (2.9x), investor positioning and Spain/Italy exposure," Tang added.

"Nevertheless, we see the pull back in the shares as overdone and an IPO of European Towers (expected early calendar 2021) with help crystallise value and act as a de-leveraging event."

Tuesday 12 May

INTERIMS

Numis Corporation, Treatt

INTERIM DIVIDEND PAYMENT DATE

British Smaller Companies VCT 2

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (US) (13:30)

Wholesale Price Index (GER) (07:00)

FINALS

Inspects Group , Land Securities Group, Vodafone Group

ANNUAL REPORT

IWG , Land Securities Group

EGMS

Globaltrans Investment GDR (Reg S)

AGMS

Fidelity European Values, GLI Finance Limited, HGCapital Trust, IWG , IWG , M Winkworth, Macfarlane Group, Mobeus Income & Growth Vct, Reckitt Benckiser Group, Standard Life Aberdeen, X5 Retail Group NV GDR (Reg S)

UK ECONOMIC ANNOUNCEMENTS

Balance of Trade (09:30)

GDP (Preliminary) (07:00)

Index of Services (07:00)

Industrial Production (09:30)

Manufacturing Production (09:30)

FINAL DIVIDEND PAYMENT DATE

Rathbone Brothers