The end of the week will see the fashion and mining sectors firmly in focus with updated due from both Burberry and Rio Tinto.
Meanwhile, some investors may be keeping an eye on the macro diary for the latest set of US retail sales figures.
Burberry eyed for successor news
Burberry Group PLC (LON:BRBY) will give a fiscal first-quarter trading update on Friday, with many investors still reeling from the news that Marco Gobbetti is to quit as chief executive officer at the end of 2021.
The announcement was made at the end of June and a search for a successor is underway but it is way too soon for any news on that front.
In the final quarter of the previous fiscal year, the luxury fashion firm’s stores posted a 5% fall in like-for-like sales compared to the corresponding quarter of 2019, i.e. pre-pandemic.
The recovery seems to be strongest in mainland China, Korea and the US, Burberry said.
Its name is Rio and it dances on ancient artefacts
The company, which among a host of board changes in recent months has appointed a former regional aboriginal affairs minister a non-executive director, has faced calls for a “reckoning with the past” in reference to unnamed “past actions” referenced by another director recently – and with environmental activists getting eye-opening results at oil giants like Shell and Exxon, it surely won’t be long before their crosswires swing over to the major miners.
Many investors will, however, be more focused on potential windfalls from Rio and its peers, with UBS recently forecasting a return of about US$26bn from the FTSE 100 mining giants to shareholders this summer.
In terms of operations, UBS predicted that Rio Tinto’s shipments will drop about 12% and for the full year is “at risk of falling short of the mid-point” after a weak second quarter.
Significant announcements for Friday July 16:
Economic data: US retail sales