The Australian reporting season steps up this week with a host of major corporates reporting.
In fact, around 40 major companies will release results – either full year or half year figures.
By the close of business Friday we will have a very good idea if the June 30 reporting season has been as weak as many brokers and investment firms have forecast.
Companies reporting will range from the Commonwealth Bank, Wesfarmers, JB Hi Fi and Santos as well as UGL, Stockland, Bradken and Newcrest Mining (which last week put its write-offs at $6.2 billion).
Late today, or tomorrow, GPT releases half year figures, as will James Hardie as will Singapore Telecom which releases its first quarter figures (including Optus)
Full-year results are also expected from Carsales.com.au, Computershare, CSL, Domino’s, Goodman Fielder, Primary Healthcare, Southern Cross and WorleyParsons.
On Wednesday, the CBA releases its full year figures with another record profit expected, as well as a higher dividend. Leighton Holdings and OZ Minerals will release first-half figurtes sales while Singapore Telecom will unveil its first-quarter numbers.
Thursday will deliver full-year numbers for Forge, Goodman Group, Wesfarmers and Service Stream.
AMP, media group APN and Westfield will also produce their first-half results.
On Friday, ANZ delivers its third quarter trading update, while Duet, Murchison and Pharmaxis will release their full-year figures.
Santos will unveil first-half numbers the same day as well.
The AMP’s Dr Shane OIiver says resources profits may show signs of bottoming with a fall of 18% according to brokers (they will be be driven by the results for Rio Tinto (down 71% for the first half, and BHP Billiton), but domestically exposed cyclicals are vulnerable to further weakness.
"On the positive side though, ongoing cost control and the fall in the $A are likely to be supports for the profit outlook going forward, with the fall in the $A to date potentially boosting profits by around 4.5%," Mr Oliver again said in his weekly client note.
Apart from that, we have some data – mostly private, about the health of the economy.
The NAB business survey readings for business conditions and confidence for July are out tomorrow and are likely to have remained weak but consumer confidence (released on Wednesday) could show a slight improvement after the latest interest rate cut.
June quarter wages growth (Wednesday) will be weak and average weekly earnings for the three months to May (Thursday) will be likewise.
The Treasury’s Pre-Election Economic and Fiscal Outlook will also be published tomorrow and will be compared to the government’s recent Economic Statement.
Reserve Bank assistant governor Guy Debelle speaks for the second time in 10 days on Friday on funding issues for the banks and liquidity for the financial system.
And tomorrow, Jenny Hancock, senior manager in the RBA’s payments system stability and payments policy department, will take part in a panel discussion at the Risk Australia 2013 conference in Sydney.
Offshore, China’s data release has all but finished for the time being.
More corporate results will be released in Europe, while the US second quarter earning season is winding down.
The next two full weeks of earnings season are packed with major consumer-facing companies such as department store retailers like Macy’s and Nordstrom discount retailers such as Wal-Mart and Kohl’s.
Reuters said at the weekend that US second quarter earnings have mostly been better than forecast.
"Earnings on the whole have topped expectations, with 67% of the 446 companies in the S&P 500 that had reported earnings so far beating estimates. About 54% of companies have reported revenue above expectations, exceeding the average of the past four quarters, but below the historical average.
"The consumer discretionary sector has tallied the second-best earnings growth of the 10 S&P 500 industry sectors, with 8.5 percent growth in the second quarter, according to Thomson Reuters data. Consumer staples have been weaker, with earnings growth at 3.8 percent for the second quarter," Reuters said.
US economic data won’t appear until Wednesday with import prices for July, business inventories for June, the July producer price index and retail sales, also for July.
The consumer price index for July will be out Thursday, Industrial production for July on Friday, along with housing starts and building permits also for July.
Elsewhere, Japan’s second quarter GDP estimate will be updated, along with industrial production for June (GDP was up, and industrial production was down in the preliminary figures).
And tomorrow, consumer and producer price indices for July for the UK.
