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Thursday preview: European parliamentary elections, TalkTalk in focus

By Alexander Bueso

Date: Wednesday 22 May 2019

Thursday preview: European parliamentary elections, TalkTalk in focus

(Sharecast News) - All eyes on Thursday will be on the start of voting for MEPs to the European Parliament.
The results will not be known until Sunday, but may reveal a significant shift towards populist parties across the bloc, including in the UK, where investors will be closely watching to see what can be gleaned from voters' preferences in terms of their support for the various Brexit alternatives.

Against that backdrop, no major official data releases are scheduled on this side of the Channel, but on the Continent market participants will be digesting the results of the latest IHS Markit Purchasing Managers' Index covering the month of May, alongside the IFO institute's closely-followed business confidence survey for Germany.

On the corporate side of things on Thursday meanwhile, one of the main talking points will be ... TalkTalk.

After issuing three profit warnings over the course of the past two financial years, the spotlight will be on the company's guidance for the 2020 financial year, says Numis's John Karidis.

The company-compiled consensus for 2020 is for 2% growth on the topline to reach £1,652m and for adjusted EBITDA to be up by 11% to £263m.

But given the competitive market conditions, with the outfit going head-to-head with BT Group on various fronts, Karidis sees "downside and material" risks to that outlook.

Among the headwinds faced by Talk Talk management, BT had decided not to raise the price of its branded services, BT was also trying harder to steal customers back in wholesale and accelerating the deployment of its own FTTP.

The latter meant Talk Talk's own FTTP venture, Fibernation, would continue to sap TalkTalk's cash for longer even as it made it more difficult for it to sell a majority stake in its AltNet business, he said.

Valuation wasn't helpful either, the analyst said, with the company's shares changing hands on a 2020 price-to-earnings multiple of 32.3, versus the sector on 13.2 and of 23.8 for 2021, against the sector on 12.6.

Thursday 23 May

Finals

Helical, NewRiver REIT, Mothercare, Mediclinic International, PayPoint, Dairy Crest Group, TalkTalk Telecom Group, QinetiQ Group, United Utilities Group, Tate & Lyle

Interims

Hollywood Bowl Group, AJ Bell, Mitchells & Butlers

Trading announcements

Intertek Group, Regional REIT Limited, Tungsten Corporation

AGMs

Bakkavor Group, Henry Boot, Ibstock, Foresight VCT, GYG, Manx Financial Group, Aviva, Inchcape, BMO Private Equity Trust, Hydrogen Group, EnQuest, Intelligent Ultrasound Group, Intertek Group, Hastings Group Holdings, Alliance Pharma, Nucleus Financial Group, Shefa Yamim (A.T.M.) Ltd (DI), Sabre Insurance Group, Soco International Dunedin Income Growth Inv Trust, Essentra, Highland Gold Mining Ltd., StatPro Group, Instem, Legal & General Group, Cambridge Cognition Holdings, Regional REIT Limited, Mercantile Investment Trust (The), Ingenta, Coats Group, Gocompare.Com Group, Trinity Exploration & Production, Stilo International, Strix Group, Secure Income Reit, Polypipe Group, GCP Asset Backed Income Fund Limited, Avast, Pebble Beach Systems Group, JKX Oil & Gas

EGMs

GCP Asset Backed Income Fund Limited

Final ex-dividend date

Ten Entertainment Group, DCC, Tarsus Group, Michelmersh Brick Holdings, Provident Financial, FDM Group (Holdings), Downing Strategic Micro-Cap Investment Trust Red, Huntsworth, Nasstar, Non-Standard Finance, Avast, Hill & Smith Holdings, Seneca Growth Capital Vct, Burford Capital, Bunzl, Advanced Medical Solutions Group, Howden Joinery Group, Ra International Group, British American Inv Trust, Menzies(John), The Gym Group, Spectris, Mincon Group, Morrison (Wm) Supermarkets

Final dividend payment date

Reckitt Benckiser Group, Seplat Petroleum Development Company (DI), Capital & Regional, Curtis Banks Group, ITV, 888 Holdings

Interim ex-dividend payment date

JPMorgan Elect Managed Income Shares, Tritax Big Box Reit, Coca-Cola European Partners (DI), Diploma, Avingtrans, Schroder Real Estate Investment Trust Ltd, Scottish American Inv Company, Euromoney Institutional Investor, Imperial Brands, Marston's, Elegant Hotels Group, Genel Energy, Countryside Properties, Bellway, SDCL Energy Efficiency Income Trust, Baring Emerging Europe, Town Centre Securities, BioPharma Credit, Litigation Capital Management Limited (DI), Brewin Dolphin Holdings, Titon Holdings, JPMorgan Elect Managed Growth Shares

Interim dividend payment date

Fair Oaks Income Limited 2017 Shs NPV, City Merchants High Yield Trust

Special ex-dividend data

Morrison (Wm) Supermarkets

Special dividend payment date

888 Holdings, Glencore

Quarterly ex-dividend date

Pershing Square Holdings Ltd NPV (USD), Carnival, Premier Global Infrastructure Trust, Blackrock North American Income Trust, Pershing Square Holdings Ltd NPV, NextEnergy Solar Fund Limited Red

Quarterly payment date

M Winkworth

International economic announcements

Gross Domestic Product (GER) (07:00)

GFK Consumer Confidence (GER) (07:00)

IFO Current Assessment (GER) (09:00)

IFO Business Climate (GER) (09:00)

IFO Expectations (GER) (09:00)

Initial Jobless Claims (US) (13:30)

Continuing Claims (US) (13:30)

New Homes Sales (US) (15:00)

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