Bank of England & EA, Uber Earnings

Today I’m looking at the Bank of England meeting, US jobless claims and earnings from Uber, Nintendo and Electronic Arts.

So worth noting that the British pound was the top rising G10 currency in July- which would imply traders don’t seem too fussed about plans from the Bank of England. Markets are pricing in a 97% chance that the UK benchmark interest rate stays at 0.1% - and since the BOE added £100 billion to its QE policy las time around, it seems unlikely it would change again so soon.

This is one of those special Thursday’s when there is the INFLATION REPORT to accompany the rate decision and meeting minutes. Let’s be frank - the forecasts normally turn out wrong but they are a useful way to determine where the central bankers expect to take policy next- for example whether negative rates are really on the table.

After ADP private payrolls spectacularly missed expectations on Wednesday; there will be razor-like focus on the more high-frequency weekly jobless claims in the lead up to what US President Donald Trump told Fox News will be ‘a big job number’ in Friday’s NFP.

Earnings from Uber will be a demonstration of the company’s ability to pivot in its business model. Stay at home orders in Q2 inevitably crushed the ride hailing business because people couldn’t travel but big things are expected from the food delivery arm Uber Eats. Uber shares are up around 4% this year in comparison to the S&P 500, which is up about 2%.

Continuing the theme of how companies fared under lockdown; earnings from Nintendo and Electronic Arts - both big video games makers could be example of companies that thrived. Global video games sales jumped 26% in June over the same time last year to the highest in a decade according to research firm NPD. Nintendo shares are up 14% and EA shares are up 34% year to date.

Right thanks for reading and have a successful day ahead.


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