London Stock Exchange has to meet rising expectations with its interims


The market is likely to focus on London Stock Exchange Group PLC (LSE:LSEG) (LSE:LSEG)’s costs and revenue growth in the second quarter when it reports half-year results on Friday.

This will mark the first update since LSEG guided to higher-than-expected 2021 costs of integrating new acquisition Refintiv in March.

After a strong time for new listings in the past year, the initial public offerings pipeline is continuing to channel new companies onto the market in 2021, while the Refintiv addition has strengthened the group’s revenue streams into data, trading tools, analytics and risk management across financial markets.

“The shares remain a show-me story as we think it will take some time for the market to give the company credit for the acquisition-related earnings growth and cash flow generation in the coming three-five years,” said UBS.

US non-farm payrolls (NFP) is definitely one of those economic items that can move markets, so the NFP report will be the focus on Friday afternoon.

Economists’ best guess is that 925,000 jobs were added to the economy in the past month, up from 850,000 in June and May’s 583,000.

Last month’s number “didn’t tell us too much about the overall state of the US labour market in terms of how quickly those US workers who have dropped out of the workforce since February last year are likely to come back”, said CMC’s Michael Hewson, and also brought a surprise increase in the unemployment rate to 5.9% and an unchanged participation rate of 61.6%.

This latter number appears to be more of a concern for some on the Fed committee – as it wants a “broad and inclusive” recovery in the labour market – than the spike in inflation currently being seen.

Significant announcements expected

Interims: London Stock Exchange Group PLC, Hikma Pharmaceuticals PLC (AIM:HIK, OTC:HKMPF) (AIM:HIK, OTC:HKMPF), ContourGlobal PLC (LSE:GLO) (LSE:GLO), The Renewables Infrastructure Group

Economic data: US non-farm payrolls, US earnings


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