Wednesday preview: Vote in Parliament, Tullow Oil

The focus on Wednesday will be on the magnitude of the Prime Minister's setback in Parliament, as analysts try to determine what the likely next steps might be and, of course, the end result.

Especially given that Conservatives and Labour are running nearly neck-to-neck in the latest polls of voters' intentions, albeit with the LibDems - whose support has jumped to about 10% - potentially playing the role of Kingmaker.

According to various analysts, Brexit may well end up being delayed, but whether that will result in a Norway-plus style trading arrangement with the European Union or in fresh elections appears to remain far harder to call.

Indeed, a hard Brexit can still not be ruled out completely.

Against that backdrop, a 0930 GMT the Office for National Statistics will release its consumer price index data for the month of December.

It will be accompanied by similar readings from Germany and Italy covering that same month.

In the States meanwhile, the Bureau of Labor Statistics is due to publish import price data for the month of December, at 1330 GMT, with the release of the Federal Reserve's Beige book set to follow at 1900 GMT.

Retail sales figures covering the month of December are also scheduled for release, at 1330 GMT, but will finally not be published due to the ongoing US federal government shutdown.

Oil explorer Tullow Oil is among the corporates that are set to update investors on Wednesday, with Thomas Martin at Numis highlighting the improvement he expected to see in the group's balance sheet, a trend he expected to continue over the course of 2019.

Martin estimates that Tullow will guide towards a drop in its net debt from roughly $3.5bn in the year before to approximately $2.9bn at year-end 2018, with another $200m set to come off once the Uganda farm-out deal closed.

Hence, guidance from management on the expected closing date for the Uganda transaction is now wanted, he said.

Oil production for 2018 meanwhile is seen at 89,100 barrels a day and rising to 100,000 b/d in 2019, versus management's own guidance for between 87,000-91,000 b/d.

"We believe Tullow can deliver positive FCF whilst delivering production growth down to oil prices of ~US$50/bbl.

"Production growth in Uganda should come with no associated capex net to Tullow, with costs being carried by their partner."

Wednesday January 16

INTERIMS

1pm

INTERIM DIVIDEND PAYMENT DATE

Babcock International Group, Berkeley Group Holdings (The), Mind Gym, Royal Mail, Templeton Emerging Markets Inv Trust, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus VCT, Ventus VCT 'C' Shares

QUARTERLY PAYMENT DATE

Assura

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Business Inventories (US) (15:00)

Consumer Price Index (GER) (07:00)

Crude Oil Inventories (US) (15:30)

Import and Export Price Indices (US) (13:30)

MBA Mortgage Applications (US) (12:00)

Retail Sales (US) (13:30)

GMS

Intertek Group, Just Group

AGMS

Diploma, Majedie Investments

TRADING ANNOUNCEMENTS

Bovis Homes Group, Cineworld Group, City of London Investment Group, Diploma, Energean Oil & Gas , Headlam Group, Hochschild Mining, Kenmare Resources, Pearson, Secure Trust Bank, TheWorks.Co.Uk, Tullow Oil

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (09:30)

Producer Price Index (09:30)

Retail Price Index (09:30)

FINAL DIVIDEND PAYMENT DATE

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