Source: Sharecast
In the UK, public sector net borrowing figures for September are due, along with third-quarter trading updates from Segro and XP Power.
In Europe, a quarterly update from L’Oreal is scheduled for release. On Sunday, Gucci owner Kering said it had agreed to sell its beauty business to L’Oreal for €4bn as part of a long-term strategic partnership.
The deal will see L’Oreal buy The House of Creed, the beauty and fragrance licenses of Houses of Kering and enter into "an exclusive venture to explore business opportunities in the field of wellness and longevity".
Kering said the partnership includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci, once the current license with Coty expires.
In the US, quarterly results are due from Netflix, Coca-Cola, 3M, General Motors, Halliburton and Philip Morris, among others.
UBS, which rates Netflix at ‘buy’, said it continues to believe the company is a secular winner, benefitting from DTC rationalisation and a strong content slate supporting rising engagement.
"We expect member growth (management cited strong end to 2Q), higher pricing and increased ad revenues to support 17% revenue and 25% OI growth in 3Q (in-line with guidance) versus 16%/45% last quarter," it said.
"We believe the return of marquee shows (Squid Game June 27th; Wednesday Aug 6th) and new hits (KPop Demon Hunters, Untamed) provided a tailwind to engagement/monetisation. We expect this to continue in 4Q with Monster, The Witcher, Stranger Things and NFL content all in the slate (UBSe 16% revenue and 22% OI growth in 4Q).
"We have long believed the pullback at peers could drive upside to pricing/margins in time.
"For now, we model 15% revenue/30% OI growth in '25 (margins +330 bps yoy), followed by 13%/27% in '26 (margins +350 bps). Along with $17.9bn/$19.0bn of content spend, we expect free cash flow to scale from $9.2bn in '25 to $13.3bn in '26 (versus street's $8.9bn/$12.3bn)."
Tuesday October 21
INTERIMS
B.P. Marsh & Partners
GMS
Unilever
FINALS
Bluefield Solar Income Fund Limited
AGMS
Invesco Global Equity Income Trust
TRADING ANNOUNCEMENTS
SEGRO, XP Power Ltd. (DI)
UK ECONOMIC ANNOUNCEMENTS
Public Sector Net Borrowing (07:00)
