Friday preview: US PCE inflation data, NatWest Group in focus.


All eyes at the end of the week will be on the latest US inflation numbers.

NatWest

Source: Sharecast

At 1230 BST, the Department of Commerce will publish personal income and spending data for June.

Included in that report is the price deflator for personal consumption expenditures, the Fed's preferred inflation gauge.

Consensus is for the headline and core rates of increase in PCE prices to tick lower by one tenth of a percentage point from 2.6% in May to 2.5% for last month.

That compares to the Fed's target of 2.0%.

Looking ahead, some economists believe that core PCE prices will remain roughly stable over the remainder of 2024.

Also due out on Friday, at 1400 BST, is a preliminary reading on the University of Michigan's consumer confidence index for July.

The subindices for inflation expectations generated by the same survey will also be scrutinised.

For NatWest Group's second quarter results, UBS analyst Jason Napier was anticipating that the lender would revise higher its guidance for income.

Among other things, Napier noted how the lender's current income guidance was premised on a forecast for five rate cuts by the Bank of England in 2024 and four more in 2025.

The yield curve on the other hand was implying just over three cuts over the next year and about five over the next two years.

For the second quarter Napier had pencilled in adjusted income of £3.37bn, for a 5% decline year-on-year, whilst adjusted profit before tax including litigation and conduct costs was seen falling 15% to £1.257bn.

Friday 26 July

INTERIMS

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INTERIM DIVIDEND PAYMENT DATE

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QUARTERLY PAYMENT DATE

Alpha Real Trust Ltd., Patria Private Equity Trust, Real Estate Credit Investments Ltd

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Personal Consumption Expenditures (US) (13:30)

Personal Income (US) (13:30)

Personal Spending (US) (13:30)

U. of Michigan Confidence (Final) (US) (15:00)

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Babcock International Group

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Record

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3i Group, Airtel Africa , Anpario, B.P. Marsh & Partners, Berkeley Group Holdings (The), Big Yellow Group, Bisichi , British Land Company, Edinburgh Inv Trust, Inspired, Land Securities Group, Premier Foods, Skillcast Group, Templeton Emerging Markets Inv Trust, Value and Indexed Property Income Trust, Vertu Motors, Wynnstay Properties


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