BT Group, Lloyds, and Shell in spotlight for Thursday

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BT Group PLC (LSE:BT.A) (LSE:BT.A) (LON:BT.A) is due to deliver a trading update on Thursday as investors keep a wary eye on the telecom giant’s operating trends amid the pressures of the pandemic, competition and regulatory changes.

For the first quarter, analysts at UBS are expecting some improvement for the firm as the effects of the pandemic reduce, although they added that revenues are likely to remain under pressure.

Despite this, analysts said they expected earnings to be helped by cost savings and accounting effects, predicting earnings (EBITDA) of GBP1.8bn for the quarter and revenues of GBP5.15bn.

Investors eyes peeled for Lloyds dividend

Retail investors’ favourite Lloyds Banking Group (LSE:LLOY) Plc (LSE:LLOY) PLC is expected to post a second-quarter adjusted profit before tax of GBP1.45bn and a CET1 of 16.6%.

In the past, the company has been a favourite of income investors and shareholders would probably like at least a nod and a wink as to how high the dividend is likely to be and how soon Lloyds can return to the ranks of the FTSE 100’s top dividend payers, but it has been suggested that with Charlie Nunn not having been in the chief executive’s role for long he will be reluctant to change too much too soon.

Shell to be confirmed most profitable major

At Royal Dutch Shell (NYSE:RDS.A) Plc (LSE:RDSA) there’s plenty of talking and planning around ‘transition’ and carbon reduction.

At the same time, it is arguably positioned best to capitalise on recently strong oil prices.

Indeed, in a preview note, UBS called it the “most profitable of the majors”.

UBS – which rates Shell as a ‘buy’ with a 1,860p – expects the oiler to report US$5.5bn of net income which would mark a 28% improvement quarter-on-quarter.

“We expect Shell to retain its position as the most profitable of the majors,” the Swiss bank said in the note. “Whether it is also the most cash generative is likely to be dependent on the level of working capital build this quarter but we fully expect underlying CFFO generation to be the best as well.”

Thursday July 29

Trading announcements: Royal Dutch Shell (NYSE:RDS.A) PLC, BT Group PLC (LSE:BT.A), Airtel Africa PLC (LSE:AAF), Compass Group (LSE:CPG) PLC, discoverIE Group PLC, Evraz PLC (LSE:EVR), Headlam Group (LSE:HEAD) PLC, Intermediate Capital Group (LSE:ICP) PLC, Sage Group PLC, Johnson Matthey PLC (LSE:JMAT)

Finals: Amigo Holdings PLC (LSE:AMGO), SRT Marine Systems PLC (LSE:SRT)

Interims: Lloyds Banking Group (LSE:LLOY) PLC, AstraZeneca (LSE:AZN) PLC, Anglo American PLC (LSE:AAL), BAE Systems (LSE:BA.) PLC, Diageo PLC (LSE:DGE), SEGRO PLC, National Express (LSE:NEX) Group PLC, Rentokil Initial (LSE:RTO) PLC, Devro (LSE:DVO) PLC, Elementis plc (LSE:ELM), Equiniti (LSE:EQN) Group PLC, Inchcape (LSE:INCH) PLC, Indivior PLC (LSE:INDV), Informa PLC (LSE:INF), Relx PLC, Schroders (LSE:SDR) PLC, Smith & Nephew PLC (LSE:SN), Spectris PLC (LSE:SXS), Totally PLC (AIM:TLY), Vesuvius Plc (LSE:VSVS)

FTSE 100 ex-dividends to knock 2.57 points off the index: Royal Mail PLC (LSE:RMG), SSE PLC (LSE:SSE)

Economic data: US GDP, US jobless claims


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