A big, big week with end of month and quarter.
There’s the end of financial year and interims as well for some September 30 companies in Australia, such as the big banks and some industrials; the second financial stability review of the year in Australia; Telstra’s strategy day and overseas a slew of data on global manufacturing, US house prices, Japanese business confidence and the third estimate for US second quarter economic growth.
In Australia it’s a week that will define Telstra with its annual investor day to be held full of promise for investors who have watched the value of their investment in the Telco sink sharply by the week in the past month or so.
That’s on Wednesday in Sydney.
Telstra shares closed at $2.65 on Friday after touching yet another all time low of $2.63 during trading.
Telstra executives are expected to give more detail on the new approach from the company’s management team, but the big imponderable remains the NBN and the political impasse in Canberra.
But there will also be financial results from two other companies under pressure; Sigma Pharmaceuticals will reveal losses on Wednesday and Nufarm, the embattled rural chemical group, will also report a lot of red ink, and hopefully confirm that it remains a going concern when it reports on Tuesday.
Nufarm is talking to its banks about breaches of the loan agreements after debt blew out badly in late July.
Meetings this week in Australia include Amcil, Dynasty Metals, Avexa, Flinders Mines, Gloucester Coal, ASX, Headline Group, Telecom Corp of NZ; all hold AGMs.
We will also get August building approvals figures on Thursday, and the private sector credit figures for August will also be released by the RBA on Thursday.
A small rise in approvals is expected by analysts, while private lending is expected to have again been soft in August.
As foreshadowed in the Minutes from the September Board meeting the Financial Stability Review is expected to show that the Australian financial system remains strong.
But RBA comments on housing, home loans and house prices will be closely examined.
The RBA’s commodity index for September is due on Friday.
Population growth data for the March quarter is also due on Wednesday from the Australian Bureau of Statistics.
New home sales figures for August are out Thursday, as well as the RP Data/Rismark home price index.
Friday sees the start of the monthly release of surveys of manufacturing for last month from around the world.
Details of Australia’s survey will start the releases, with two coming in China (possibly one on Friday and another over the weekend).
Reports on European and the US manufacturing sectors will be released also on Friday.
The AMP’s chief economist Dr Shane Oliver says that, "Various regional surveys suggest that the key US ISM manufacturing conditions index is likely to slip slightly to a reading around 54.5 (from 56.3 in August).
"This would still be consistent with continuing recovery though."
The final two US consumer confidence surveys are out this week from the Conference Board and Reuters and the University of Michigan.
Economists expect both to be weaker.
The latest Case-Shiller house price index is likely to be weak, and probably fall for August.
US vehicle sales figures for September are all due out on Friday and are expected to again be weak.
Data for US construction spending, personal spending and the third estimate of second quarter GDP will also be released.
Economists expect no change from the 1.6% reading (annual), a month ago.
In Asia China’s manufacturing conditions surveys, or PMI, is likely to show that conditions remain stable consistent with overall economic growth around 9%.
But the HSBC report should be watched because it has been the more negative of the two.
In Japan, the Tankan business survey for the September quarter is out on Friday from the Bank of Japan and is likely to show a softening in conditions and the outlook.
Figures on Japanese inflation, employment, retail sales and industrial production are also due for release.
In Europe, Tuesday sees second quarter gross domestic product figures released in the UK.
On Wednesday, the European Union releases economic confidence data for September, as well as industrial confidence data for the month.
UK mortgage approval figures for August and consumer confidence data for September is also due on Wednesday.
European fashion firm Hennes & Mauritz reports third quarter figures on Wednesday and will give a guide to the health of European retailing, especially in the clothing sector.
Germany’s labor office is set to release August employment data on Thursday, while Eurostat will release eurozone figures on Friday.
German retail sales are also due for release.
