Stock market watchlist: Barclays set to post a rise in profits; important update at Travis Perkins; stock recovery at Amazon?
He may have lost the battle for a seat on the board, but activist investor Edward Bramson hasn’t given up on forcing change at Barclays just yet.
The bank, run by American Jes Staley, is due to release its third-quarter results on Friday and it could spell another blow for Bramson.
Through his investment vehicle Sherborne, Bramson has taken a 5.5 per cent stake in Barclays, and has been pushing for an overhaul of the bank’s investment banking arm, which he believes has failed to deliver for shareholders in recent years.
But Barclays looks set to post a rise in turnover and profits this week from its Corporate and Investment Bank, with pre-tax profits at the division expected to have jumped 43 per cent to £714million in the period from July to September this year. Your move, Ed.
It’s an important third-quarter update for Travis Perkins on Tuesday, amid fears of an economic slump, scribblers at Peel Hunt say.
They reckon the builders’ merchant is making operational improvements, but fears most of these ‘will be lost to tougher trading’.
Any details on plans to split off Wickes could soften the blow for investors, but if Travis paints a gloomy picture it could hit shares in rivals such as Kingfisher.
Shares in Amazon have taken a hit since it announced weak second-quarter results in July.
So it is now some way off the ‘world’s largest listed company’ status, jointly held by Apple and Microsoft, which both have a market capital of just over $1 trillion (£750 billion).
But strong third-quarter data on Thursday could help its stock recover. Earnings of $4.46 a share are expected – down 22 per cent on last year. The key is if it can beat that consensus figure.