The main focus next week could be the latest meeting minutes of the US rate-setting committee. Interest-rate watchers will be dissecting the notes to gauge the members’ sentiment for a possible cut in the Fed fund rate this year.
Another report to watch could be the US June non-farm payroll numbers. Last month America added more jobs than the market was expecting. At 272,000, it was higher than the average gain of 232,000 over the last 12 months.
The UK will go to the polls next week to elect its next government. The consensus is that Labour will win with a significant majority. Opinion polls have been known to be wrong, though. Whatever the outcome of the General Election, tax rises look almost inevitable. Question is where the hammer will fall. Possible targets include capital gains tax, inheritance tax, fuel duty, pensions and even local taxes.
The second round of the French election will take place on Sunday 7 July a week after the first round. We will find out if President Macron’s audacious decision to call a snap election has paid off.
Corporate news
Foodies might want to give Kewpie Corporation (NYSE: KWPCF) second-quarter numbers a quick once-over. Shares in the Japanese mayonnaise maker jumped 16% after it raised its guidance for full-year profit. In the first quarter, net profit more than quadrupled. It said the business environment was improving thanks to an increase in consumption by foreign travellers to Japan.
Bang & Olufsen (NYSE: BGOUF) full-year results may not be music to the ears of shareholders, though. In April, it reported a sharp contraction in sales. That said, gross margin did rise to a record 53.2%. However, the Danish electronics manufacturer said it has seen no improvement in business conditions in either Europe or China. It expects annual sales to decline between 5% and 8%.
The AGM at Chow Tai Fook (NYSE: CJEWY) should be a cheerful event. The Hong Kong-based jeweller reported record revenue and profit for the full year. It said business had been boosted by improved retail activity after the pandemic. It is also cautiously optimistic that 2025 could be another good year.
Marks & Spencer (NYSE: MAKSF) has got back its mojo. Shareholders should be in a good mood when they gather for the AGM. In May, the clothing-cum-food retailer posted a 41% rise in annual profit on revenue that climbed 9.4%. It has also declared its first dividend since 2019. M&S also said that it is stepping up its focus at its international stores where sales have slid by 1%.
And don’t forget it will be a shortened trading week on Wall Street. Markets will close early on Wednesday 3 July, and will be shut on Thursday 4 July for US Independence Day.
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Disclosure: David Kuo does not own any of the shares mentioned.
