The Week Ahead (23-27 June): NATO spending, inflation and Nike
The Bank of England left interest rates unchanged at 4.25% this week, with six members of the Monetary Policy Committee (MPC) voting to hold and three preferring a 0.25% cut.
However, the MPC noted that “underlying UK GDP growth appears to have remained weak” and said it expects to see “a significant slowing” in pay growth over the remainder of the year. The consensus view in the market after this week’s decision seems to be that another rate cut may be likely in August.
Source: Bank of England
Looking ahead, next week’s NATO Summit in The Hague is expected to be relatively brief, with the agenda focused on discussing a new target for members' defence spending.
The proposal on the table is for members to increase their spending to 5% of GDP over the next 10 years. That could be bullish for UK and European defence stocks and perhaps some infrastructure construction groups.
However, an increase in NATO defence spending has been expected for a while, given pressure from President Trump and wider events in Europe and the Middle East. I think we might argue that a certain amount of growth is already priced into companies such as BAE Systems (LON:BA.) , which is currently trading on 25x forecast earnings.
Elsewhere, next week is expected to bring a fresh batch of economic data to help investors gauge the health of the US, UK and European economies. Results from US heavyweights Nike and FedEx may also provide insights into consumer spending, tariff impacts and broader conditions in the US economy.
In company news, it’s looking like another relatively quiet week for UK big cap news, but there are a few interesting small and mid-caps scheduled to report. We’ll be covering all the top stories in the Daily Stock Market Report, as always.
Economic Calendar
Date | Time (BST) | Country | Event |
23 June | 08:30 | Germany | Manufacturing PMI |
23 June | 09:30 | UK | Manufacturing & Services PMIs |
23 June | 15:00 | US | Existing Home Sales |
24 June | 09:00 | Germany | Ifo Business Climate |
24 June | 11:00 | UK | CBI Industrial Trends Orders |
24 June | 14:00 | US | Case-Shiller Home Price Index |
24 June | 21:30 | US | API Crude Oil Inventories |
25 June | 05:00 | EU | New Car Registrations |
25 June | 15:00 | US | Federal Reserve Chair speaks |
25 June | 15:00 | US | New Home Sales |
25 June | 15:30 | US | EIA Crude & Gasoline Inventories |
26 June | 12:00 | UK | BoE Governor speaks |
26 June | 13:30 | US | Q1 GDP |
26 June | 13:30 | US | Jobless Claims |
27 June | 13:30 | US | May Inflation (PCE) |
Companies Reporting
Date | UK Trading Updates and AGMS | UK Financial Results | International Financial Results |
Monday 23 June | Kingfisher (KGF) Amcomri Group (AMCO) Anglo-Eastern Plantations (AEP) Poolbeg Pharma (POLB) EPE Special Opportunities (ESO) | SDCL Energy Efficiency Trust (SEIT) One Health Group (OHGR) | |
Tuesday 24 June | SThree (STEM) Saga (SAGA) Elixirr International (ELIX) Atalaya Mining (ATYM) Kooth (KOO) Gresham House Energy Storage (GRID) ICT Enterprise Trust (ICG) Tandem Group (TND) | Carnival (CCL) Telecom Plus (TEP) Foresight Environmental Infrastructure (FGEN) TPXImpact Holdings (TPX) Intercede Group (IGP) LBG Media (LBG) Accsys Technologies (AXS) CML MIcrosystems (CML) Gear4Music (G4M) | FedEx ($FDX) |
Wednesday 25 June | Vertu Motors (VTU) Facilities by ADF (ADF) Anglo Asian Mining (AAZ) Sanderson Design Group (SDG) Gemfields (GEM) Logistics Development Group (LDG) THG (THG) Cora Gold (CORA) Aberdeen European Logistics Income (ASLI) Caspian Sunrise (CASP) | Babcock International (BAB) Sequoia Economic Infrastructure Income Fund (SEQI) Liontrust Asset Management (LIO) Duke Capital (DUKE) Marks Electrical (MRK) ProCook (PROC) Velocity Composites (VEL) | Micron Technology ($MU) |
Thursday 26 June | 3i (III) Creo Medical Group (CREO) CT Automotive (CTA) Built Cybernetics (BUC) 80 Mile (80M) Next 15 Group (NFG) Serabi Gold (SRB) NAHL (NAH) Seascape Energy Asia (SEA) | Foresight Group Holdings (FSG) Schroder European Real Estate IT (SERE) Cake Box Holdings (CBOX) James Latham (LTHM) Moonpig (MOON) Patria Private Equity Trust (PPET) Volex (VLX) | Nike ($NKE) |
Friday 27 June | The Renewables Infrastructure Group (TRIG) Brave Bison Group (BBSN) Jersey Oil & Gas (JOG) KRM22 (KRM) Likewise (LIKE) Rockhopper Exploration (RKH) Cambridge Cognition (COG) Surgical Innovations (SUN) MicroSalt (SALT) HydrogenOne Capital Growth (HGEN) | Various Eateries (VARE) |
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