24. Aug 2026
Description
(AWP Alliance News) - Oil prices retreat and calls for European equities are mixed at the start of the week as Iran warned it will deem any country joining the US economic war against the Islamic republic an enemy.
Here is what you need to know before the European market open on Monday:
----------
MARKETS
----------
CAC 40: called down 8.3 points, 0.1%, at 8,476.13
DAX 40: called down 19.5 points, 0.1%, at 26,117.06
FTSE 100: called up 8.5 points, 0.1%, at 10,825.06
----------
Hang Seng: down 2.1% at 25,465.23
Nikkei 225: down 0.5% at 65,664.06
S&P/ASX 200: up 0.5% at 9,100.90
----------
DJIA: closed up 517.80 points, 1.0%, at 53,277.01
S&P 500: closed up 33.21 points, 0.4%, to 7,674.37
Nasdaq Composite: closed up 113.29 points, 0.4%, at 26,180.46
----------
US 10-year Treasury yield: 4.71% (4.74%)
US 30-year Treasury yield: 5.25% (5.27%)
----------
EUR: higher at USD1.1677 (USD1.1673)
GBP: higher at USD1.3643 (USD1.3625)
USD: lower at JPY158.92 (JPY159.03)
GOLD: higher at USD4,635.94 per ounce (USD4,605.34)
OIL (Brent): lower at USD93.10 a barrel (USD94.08)
(changes since previous London equities close)
----------
ECONOMIC CALENDAR
----------
08:30 EDT US Chicago Fed national activity index
----------
TOP ECONOMIC NEWS
----------
Iran warned countries against participating in the US' "economic war" against the Islamic republic, saying they would be considered enemies. Washington has pushed its allies to jump aboard Donald Trump's new campaign to isolate the Iranian economy, as the US President's unpopular war drags toward the six-month mark. "We declare to all countries...do not join the economic war waged by the US," said Mohsen Rezai, the head of Iran's supreme national security council, on state television. "Any country participating in the imposition of economic restrictions against us is considered an enemy," he added.
----------
Iranian President Masoud Pezeshkian acknowledged that his country's citizens face "many problems", after the US launched a new wave of sanctions seeking to further isolate its economy. "I understand we have many problems in society right now. We are trying to prevent these as much as we can," Pezeshkian said in a speech broadcast on state television. His comments came after the US vowed last week to bring about the "collapse" of the Iranian regime through a newly announced sanctions campaign, nearly six months after the start of their war.
----------
Canadian Prime Minister Mark Carney announced retaliatory tariffs on the US, after walking away from a "bad deal" on trade in a deepening rift between the longtime allies. Negotiations between the neighbouring countries broke down Friday in Washington, putting into force new 50% US tariffs impacting about USD20 billion worth of goods, or 5.5% of Canadian exports to the US. Impacted products range from hockey sticks to cement. "You're at war when you get attacked. We got attacked," Carney said.
----------
US President Trump hit back at Canada, saying, "Canada wants the benefits of being a state, without being one!!!" "They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!" Trump added in a post on Truth Social. New Canadian tariffs will notably target the US steel and dairy industries and take effect on September 8. More details would come next week, Carney said. Trump had previously said Washington "should be able to have a deal with Canada," citing his "good relationship" with Carney. But on Saturday, Canada's prime minister said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.
----------
North Korea slammed Japan's reported plans to increase its defence budget, accusing Tokyo of preparing for a "war of aggression" as its US ally pursues talks with Pyongyang. Japan has been gradually moving away from its post-World War II pacifist stance, increasing military spending, ramping up defence pacts and deploying missile launchers to its outer islands. The Japanese defence ministry is now seeking a "record-high" budget for the upcoming fiscal year, broadcaster NHK and other media outlets reported this week, putting the sum at JPY8.9 trillion, USD56 billion.
----------
Six EU countries are stepping up calls for a bloc-wide windfall tax on oil companies as profits soar due to the Middle East war, according to a letter seen by AFP. The finance ministers of Germany, Italy, Austria, Poland and Portugal, along with Spain's economy minister, sent the joint letter to Ireland's finance minister. Ireland currently holds the EU's rotating presidency, and the ministers urged the issue of a levy be put on the agenda at a meeting of the bloc's finance chiefs in Dublin next month. "Oil companies are enjoying overall profitability and margins on refined products that exceed the rise in crude oil prices," it read.
----------
UK Prime Minister Andy Burnham is set to give mayors new powers to take control of local planning decisions and greenlight large-scale developments in proposals to be unveiled this week. The move would see mayors allowed to "call in" the decisions and direct councils to take them forward or refuse them. They will also be able to grant upfront permission so developers can start building without having to apply. This will apply to developments of more than 150 homes, commercial spaces of more than 15,000 square metres or any building 30 metres or taller - which is roughly 10 storeys.
----------
French President Emmanuel Macron welcomes Saudi crown prince and de facto ruler Mohammed bin Salman for a two-day visit set to range from esports to the war in the Middle East. Several agreements on health, transport and energy will be signed on the second day of the visit on Monday, according to a French presidential official, underlining the strength of the Paris-Riyadh relationship. On Monday afternoon, MBS and Macron are to chair the first meeting of the Saudi-French strategic partnership council.
----------
Russian President Vladimir Putin has threatened Kiev with a severe response after massive Ukrainian strikes on oil refineries and logistics centres in Russia, in an interview with Russian state television published on Saturday. Putin said Ukraine had opened a "Pandora's box" with its attacks on the Russian economy, in his first interview with Moscow state television since the strikes began several weeks ago. Kiev had now let the "genie out of the bottle," he said. "The countermeasures will not be long in coming. You'll get them," he said, addressing Kiev directly.
----------
President Volodymyr Zelensky said in remarks made public that it would be too dangerous for Ukraine to hold an election while it fights Russia's invasion, after a call by his former defence minister to organise a vote. Ukraine has suspended elections under martial law, a measure still widely supported by the population as the country focuses on fighting off the Russian invasion launched in 2022. "I believe that in a war like this, elections as such are a huge risk. Elections right now are a tsunami for the country that will split Ukraine," Zelensky said.
----------
COMPANY CALENDAR
----------
Goodwin PLC - annual report
----------
TOP COMPANY NEWS
----------
Chinese tech firm Alibaba Group said it plans to issue HKD80 billion, some USD10.2 billion, in new shares in Hong Kong to fund its global artificial intelligence ambitions. The Hangzhou-based firm has been ploughing tens of billions of dollars into AI, with its shareholders eager to see how it will monetise the huge investments. "The equity placement is being undertaken to extend the company's global AI leadership," Alibaba said in a statement. The company intends to use all of the net proceeds to invest in its "full stack AI capabilities, including to expand and enhance its AI infrastructure", it said.
----------
The market debut of artificial intelligence start-up Anthropic, a chief rival to OpenAI, could break the record set by Space Exploration Technologies, US media have reported. Elon Musk's space company went public in June at a value of USD1.77 trillion and raised USD85.7 billion in its blockbuster initial public offering, the largest in history. Anthropic, maker of the Claude AI models, "expects to match or beat the size" of SpaceX's deal, according to Bloomberg. The company's bankers have told potential investors it could seek to raise "more than USD100 billion" in its IPO, which could put the company's value at USD2 trillion, The New York Times reported Friday, citing two unnamed sources with knowledge of the talks.
----------
Apple has for the first time disclosed how much profit it booked and tax it paid across individual EU countries under new transparency rules. The figures for the financial year that ended in September 2025 show particularly large tax payments in Ireland, where Apple reported USD17.1 billion in income tax paid. The company said the unusually high figure reflected the release of funds from an escrow account following a European Commission state-aid decision and a ruling by the European Court of Justice. Apple lost a long-running legal battle with the European Commission in September 2024 over tax advantages it received in Ireland. The commission ordered the company to pay EUR13 billion in back taxes plus interest.
----------
Tesla is teasing the upcoming debut of its self-driving robotaxi, dubbed "Cybercab," to compete with the likes of Uber Technologies and Alphabet's Waymo. The Elon Musk-founded company shared a promotional image on social media late Friday promising "exclusive access" to Cybercabs at a September 3 event in Austin, Texas, where Tesla is headquartered. "We're celebrating the launch of our Cybercab robotaxi with an exclusive event in Austin - and you could be there," the company said on its website, promoting a sweepstakes to win a chance to attend the event. First unveiled in October 2024, the gold-coloured vehicle can carry two passengers and marks the first Tesla car with no steering wheel or pedals.
----------
Volkswagen boss Oliver Blume is preparing the workforce for extensive cuts and calling for unity amid a global industry crisis and ahead of a series of meetings with staff in Germany. "The next few weeks will be crucial: everyone must pull together," he told mass circulation newspaper Bild am Sonntag. "We have drawn up the largest transformation plan in the history of the Volkswagen Group." Volkswagen is holding a series of extraordinary staff meetings throughout the country for the rest of the month. Worker representatives have been demanding details of the cost-cutting plans.
----------
BNP Paribas said the US District Court for the Southern District of New York had "fundamentally miscontrued" Swiss law in a long-running dispute over whether certain cross-border financial transactions were authorised under foreign law requirements. The Paris-based bank said its position has been strongly reinforced by amicus briefs filed by the governments of Switzerland and the US, along with submissions from academics, jurists and industry groups. The lender said the plaintiffs' latest brief, lodged on Friday, added nothing new and repeated arguments those authorities have already rejected. The bank said it will file its reply and looks forward to presenting its case before the US Court of Appeals for the Second Circuit.
----------
PLS reported a "record" financial year as it swung to annual profit from a loss in 2025. The Perth, Australia-based producer of lithium materials swung to a net profit after tax of AUD526 million in the financial year ended June 30, approximately USD377.0 million, from AUD196 million loss a year prior. Revenue more than doubled to AUD1.93 billion from AUD769 million. PLS declared a total dividend of 5.0 Australian cents per share from none in 2025.
----------
Reece said annual profit declined in financial year 2026 on muted US growth. The Melbourne-based plumbing and bathroom supplier posted revenue of AUD9.38 billion for the year ended 30 June, an increase of 4.5% from AUD8.98 billion the year prior. Net profit fell to AUD308 million for the full year, down 2.8% from AUD317 million year on year. The firm said that while sales volumes recovered in Australia and New Zealand, it faced less demand in the US due to reduced residential new construction. The firm opened 25 new stores in the US over the period. Reece announced a final dividend of 13.4 Australian cents per share, bringing the total dividend for the 2026 financial year to 18.84 cents per share, an increase of 2.6% from 18.36 cents a year ago.
----------
Bendigo & Adelaide Bank held its dividend as it swung to profit in financial year 2026 and delivered modest growth in cash earnings. The Bendigo, Australia-based retail and business bank swung to an attributable net profit after tax of AUD375.1 million in the twelve months to June 30 from AUD97.1 million loss a year ago. Cash earnings attributable to owners of the bank rose 3.0% to AUD530.2 million from AUD514.6 million, with cash earnings per share up 2.4% to 93.2 Australian cents from 91.0 cents. Revenue increased 2.8% to AUD1.99 billion from AUD1.94 billion. Bendigo declared a final dividend of 33.0 Australian cents per share, bringing the total dividend to 63.0 cents per share, unchanged from last year.
----------
Ansell said annual profit doubled in its 2026 financial year on the back of increased sales in key markets. The Melbourne-based personal protective equipment manufacturer reported sales of USD2.14 billion for the year ended 30 June, an increase of 6.8% year-on-year from USD2.00 billion previously. Statutory net profit doubled over the period, rising to AUD208.6 million from AUD101.6 million in financial year 2025. Statutory earnings per share also doubled, increasing to 146 US cents per share from 69.9 cents the year prior. The firm announced a final dividend of 41.5 US cents per share, increasing its total dividend to 68.1 US cents per share.
----------
Ventia upsized its on-market share buyback programme as profit in the first half of financial year 2026 declined. The Sydney-based essential infrastructure services provider said net profit after tax fell 5.1% to AUD127.6 million in the six months to June 30 from AUD134.5 million in the same period a year ago. Basic earnings per share declined 0.6% to 15.81 Australian cents from 15.87 cents. Revenue dropped 4.7% to AUD2.89 billion from AUD3.04 billion. Ventia declared an interim dividend of 11.76 Australian cents per share, up 9.8% from 10.71 cents previously. Ventia upsized its on-market share buyback programme announced in March 2025 to AUD300 million, with AUD185.8 million repurchased as at June 30.
----------
Chorus posted strong annual profit growth on the back of a surge in fibre uptake. The Wellington, New Zealand-based telecommunications infrastructure company reported that net profit for the financial year ended 30 June multiplied to NZD37.0 million, or USD22.1 million, increasing from NZD4 million the year prior. Chorus posted revenue of NZD1.03 billion, up 1.5% from NZD1.01 billion year on year. Chorus declared a final dividend of 36 NZ cents per share, bringing the total dividend to 60 cents per share for the full year, up 4.3% from 57.5 cents a year ago. Looking forward, the firm said it is targeting a full year dividend of at least 62 cents per share for the coming financial year.
----------
NIB said profit fell less than expected as it continued to reduce debt in financial year 2026. The Newcastle, Australia-based health insurance provider reported total income increased to AUD3.85 billion, or USD2.76 billion rising 6.2% from AUD3.61 billion the year prior. Net profit fell to AUD186.9 million, down 5.9% from AUD198.6 million. Pretax profit fell 0.3% to AUD258.4 million from AUD259.2 million previously. The firm announced a final dividend of 21 Australian cents per share. The final dividend included a special dividend of 5.0 Australian cents as a result of the sale of its NIB Travel business to Allianz Partners, agreed in June.
----------
EVT raised its dividend as it delivered a strong finish to financial year 2026. The Sydney-based diversified entertainment, hospitality, travel and property group said profit after tax climbed 52% to AUD50.7 million in the year ended June 30 from AUD33.4 million a year ago. Revenue increased 5.2% to AUD1.32 billion from AUD1.25 billion. Before individually significant items, revenue rose 6.3% to AUD1.31 billion from AUD1.24 billion. EVT declared a final dividend of 23.0 Australian cents per share, lifting the total dividend by 7.9% to 41.0 cents per share from 38.0 cents in 2025.
----------
Perenti delivered markedly lower annual profit but said sales will return up to AUD155 million in financial year 2027. The Perth-based mining services group posted revenue of AUD3.46 billion for the financial year ended 30 June, down 0.9% from AUD3.49 billion the year prior. Statutory earnings per share fell to 2.0 Australian cents per share, down 85% from 12.9 cents the year prior. Reported net profit fell to AUD44 million, down 68% from AUD138 million the previous year. Perenti said the decrease was partly due to the sale of BTP Group, which led to a non-cash loss of AUD64 million. Perenti completed the sale of the business to Cratus Group earlier this month, and says it will receive AUD100 million in total consideration.
----------
By Judy Amaca, Alliance News reporter Asia Pacific
Comments and questions to newsroom [at] alliancenews.com
----------
WEEK AHEAD
----------
The following is a look ahead at the most important economic and corporate events globally in the days ahead.
Top economic events:
Tuesday 25 August
11:30 AEST Australia RBA meeting minutes
08:45 CEST France consumer confidence
08:00 CEST Germany GDP
10:00 CEST Germany Ifo business climate
09:00 CEST Spain PPI
08:00 EDT US building permits
08:55 EDT US Redbook index
09:00 EDT US S&P/Case-Shiller home price index
09:00 EDT US house price index
10:00 EDT US Richmond Fed manufacturing index
10:00 EDT US Conference Board consumer confidence
10:00 EDT US new home sales
Wednesday 26 August
11:30 AEST Australia CPI
08:30 EDT Canada manufacturer sales
10:00 CEST Switzerland economic sentiment index
08:30 EDT US personal consumption expenditures
08:30 EDT US quarterly personal consumption expenditures
08:30 EDT US GDP
08:30 EDT US durable goods orders
10:30 EDT US EIA crude oil stocks
Thursday 27 August
11:30 AEST Australia building capital expenditure
11:30 AEST Australia household spending
11:30 AEST Australia plant machinery capital expenditure
11:30 AEST Australia private capital expenditure
11:30 AEST Australia RBA bulletin
08:30 EDT Canada current account
10:00 CEST eurozone money supply
08:45 CEST France PPI
08:00 CEST Germany consumer confidence
11:30 SAST South Africa PPI
08:30 CEST Switzerland nonfarm payrolls
08:30 EDT US initial jobless claims
08:30 EDT US wholesale inventories
10:30 EDT US EIA natural gas stocks
11:00 EDT US Kansas City Fed manufacturing activity
Friday 28 August
08:30 EDT Canada GDP
11:00 EDT Canada budget balance
11:00 CEST eurozone economic and industrial sentiment indices
11:00 CEST eurozone consumer confidence
08:45 CEST France CPI
08:45 CEST France GDP
09:55 CEST Germany unemployment
11:00 CEST Italy consumer confidence
08:30 JST Japan unemployment
14:00 JST Japan consumer confidence
14:00 SAST South Africa trade balance
09:00 CEST Spain CPI and retail sales
10:00 CEST Spain current account
12:00 CEST Spain business confidence
09:45 EDT US Chicago PMI
10:00 EDT US Michigan consumer sentiment index
Top corporate events:
Tuesday 25 August
AGL Energy Ltd - ex-dividend date
Ansell Ltd - full year results
Bank of Montreal - Q3 results
Coles Group Ltd - full year results
Intuit Inc - full year results
Scentre Group - half year results
Woodside Energy Group Ltd - half year results
Zoom Video Communications Inc - half year results
Wednesday 26 August
Agilent Technologies Inc - Q3 results
Aroundtown SA - half year results
Bank of Montreal - dividend payment date
Bath & Body Works Inc - half year results
CrowdStrike Holdings Inc - half year results
Domino's Pizza Enterprises Ltd - full year results
Goodman Group Ltd - dividend payment date
Hochschild Mining PLC - half year results
Kenvue Inc - dividend payment date
National Bank of Canada - Q3 results
Netwealth Group Ltd - full year results
Nvidia Corp - half year results
Okta Inc - half year results
Prosus NV - AGM
Salesforce.com Inc - half year results
Sensata Technologies Holding PLC - dividend payment date
Sirius XM Holdings Inc - dividend payment date
Telstra Group Ltd - ex-dividend date
Urban Outfitters Inc - half year results
Wisetech Global Ltd - full year results
Woolworths Group Ltd - full year results
Worley Parsons Ltd - full year results
Xero Ltd - AGM
Thursday 27 August
Aberforth Smaller Cos Trust PLC - dividend payment date
Ageas SA/NV - half year results
Alcoa Corp - dividend payment date
Autodesk Inc - half year results
Best Buy Co Inc - half year results
Delivery Hero SE - half year results
Dollar General Corp - half year results
Dollar Tree Inc - half year results
Dr Martens PLC - ex-dividend date
Genuit Group PLC - ex-dividend date
Hormel Foods Corp - Q3 results
Marvell Technology Inc - half year results
Mineral Resources Ltd - full year results
Pernod Ricard SA - full year results
PPHE Hotel Group Ltd - half year results
Prudential PLC - half year results
Qantas Airways Ltd - full year results
Ramsay Health Care Ltd - full year results
Royal Bank of Canada - Q3 results
Savills PLC - ex-dividend date
South32 Ltd - full year results
Toronto-Dominion Bank - Q3 results
TPG Telecom Ltd - ex-dividend date
Ulta Beauty Inc - half year results
Wesfarmers Ltd - full year results
Workday Inc - half year results
Friday 28 August
Amphenol Corp Q3 results
BASF SE Q3 results
Cranswick PLC dividend payment date
Endeavour Group Ltd full year results
Greencoat UK Wind PLC dividend payment date
ICG Enterprise Trust PLC dividend payment date
Starbucks Corp dividend payment date
Here's what to watch for as the week unfolds.
TUESDAY: The likely focus at Intuit's fourth-quarter earnings will be the outlook for financial 2027 after cautious comments by management at a recent conference. UBS notes Chief Financial Officer Sandeep Aujla's characterisation of FY27 as a "J-curve" year at a conference in June, appears to set the stage for a moderation in revenue growth relative to FY26. Taking a glass half-full view, Citigroup says the likely "reset" on the growth outlook into FY27, could be a "clearing event for investors to become more comfortable with the story" at the financial software provider. In May, Intuit, which owns TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite, said it was axing 17% of its staff, around 3,000 jobs, to "simplify" its structure. It said it will incur USD300 million to USD340 million in restructuring charges, largely recognised in the fourth financial quarter which ended in July. For the quarter, Intuit guided to on-year revenue growth of 11% to 12%, GAAP diluted EPS of USD0.73 to USD0.79, and non-GAAP diluted EPS of USD3.56 to USD3.62. Citigroup says it is "somewhat cautious" ahead of the results, driven by softer read-through from software vendors and its analysis of web traffic data. It has also lowered FY27 and FY28 on-year revenue growth estimates to 10% and 11% from 12% for both years respectively, on lowered expectations for TurboTax, Mailchimp, and QB Desktop. Citigroup now estimates FY27 and FY28 EPS of USD27.47 and USD31.68, down from USD28.93 and USD33.39.
WEDNESDAY: Inflation data in Australia is likely to be mixed, keeping the Reserve Bank of Australia on its toes. While Bloomberg consensus forecast annual headline CPI inflation to cool to 3.3% on-year in July from 3.8% in June, the monthly rate is expected to rise 0.9% compared to 0.1% deflation in June. Trimmed mean annual inflation is projected to be 3.5% in July, slowing from 3.6% in June, with monthly growth unchanged at 0.3%. Citigroup says the monthly increases will likely be driven by higher fuel prices and a rebound in international airfares, alongside a seasonal increase in clothing prices amplified by unusually strong retailer-reported demand for World Cup-related merchandise. At the same time, Citigroup notes rents and new dwelling construction costs remain elevated, "continuing to exert sustained upward pressure on the index as a persistent structural driver, and together these cyclical, event-driven, and structural factors underpin the projected...increase." Citigroup thinks some "moderation could follow next month if fuel prices stabilise and World Cup-related demand proves transitory, even as elevated housing costs are likely to persist."
WEDNESDAY: Prudential shares have been held back recently as investors weigh the impact of regulatory changes in China on the business. The moves, relating to the taxation of offshore insurance policies issued to mainland Chinese citizens, have served to re-set investor expectations on the outlook for Hong Kong new business growth at the Asia-focused insurer. Richard Hunter, head of markets, interactive investor says the "crackdown" has resulted in estimates of the group's new business being driven by mainland China investors buying Hong Kong savings products being reduced to 17% from 30%, weighing on the stock price. Analysts worry the clampdown may create some friction and hurt demand from mainland Chinese customers for offshore insurance policies, an area to which Prudential is highly exposed. Investors will be looking for some clarity on the topic at first-half results to help assuage some of these concerns. Company-compiled consensus looks for pretax adjusted operating profit of USD1.63 billion or 48.5 cents per share. Annual premium equivalent new sales are forecast at USD3.27 billion, and new business profit including central costs allocated to new business is projected at USD1.24 billion. A dividend of 7.17 cents is expected.
WEDNESDAY: Expectations are, as always, sky high heading into Nvidia's earnings with the chip maker likely to guide to its first ever USD100 billion revenue quarter. The expected upbeat outlook comes as US hyperscalers continue to ramp up capital expenditure to build out AI infrastructure to cope with buoyant demand. For its second quarter, Santa Clara, California-based Nvidia, which has reclaimed its crown as the world's most valuable company from Apple, is expected to deliver another chunky beat-and-raise with the scale of the upside likely to determine share price reaction. Visible Alpha consensus looks for second-quarter revenue of USD92.01 billion, gross margin of 74.2% and EPS of USD2.05. For the third quarter, VA looks for revenue guidance of USD103.99 billion, gross margin of 74.8% and EPS of USD2.36. Goldman Sachs analyst Eric Sheridan sees "meaningful" upside to guidance, although he thinks the bar for the stock is elevated. Sheridan expects investors to focus on details of Nvidia's recently announced USD500 billion financing platform with partners; the shape of the Vera Rubin product ramp in the second half; future gross margin trends; potential upside from agentic AI to CPUs; and an update on cumulative revenue guidance of USD1 trillion from its Blackwell, Blackwell Ultra and Rubin products for 2025 to 2027. Vera Rubin is Nvidia's latest, and most powerful chip, and hopes are high that its roll-out in the second half of 2026 can build on the success of Blackwell. UBS expects Nvidia to beat second-quarter revenue by USD3 billion to USD4 billion and sees third-quarter revenue guidance in the USD107 billion to USD108 billion range, with revenue ultimately coming in at USD110 billion plus. "We think the numbers are more important than the narrative and coming out of this call, we expect investors to gain greater confidence in a path to USD15 [plus] EPS in C2027E and USD20 in C2028E - numbers that should keep the stock grinding higher," Goldman's Sheridan said. Victoria Scholar, head of investment, interactive investor adds that possible sales in China could be the "wildcard" this quarter, and not factored into guidance "after Nvidia started shipping powerful H200 AI chips to China, although they are expected to be quite small."
WEDNESDAY: Much of the debate about Salesforce centres on whether the company can achieve its guided second half acceleration in revenue. For several quarters, the San Francisco, California-based cloud-software company has signalled improving bookings are expected to convert to an acceleration in core revenue growth in its financial second half. But not all analysts are convinced. UBS analyst Karl Keirstead attaches a low probability to the firm posting any "material" acceleration in its second half, noting industry checks do not support a view that demand is improving. Rather, the feedback was similar to last quarter, still "muted", he says. "Bottom line, we attach a higher probability to Salesforce tempering its outlook for a 2H acceleration," he says. JPMorgan analyst Samik Chatterjee says the second half acceleration is "key to trouncing the bear case and helping the bull thesis". He points to evidence of higher customer payments to Salesforce on account of higher consumption, while easier comparatives in businesses such as Tableau should help support the outlined acceleration. Even absent an acceleration, Chatterjee sees upside to Salesforce shares from these "inexpensive" levels, purely based on sustaining growth and margins. For Salesforce's second quarter, the FactSet market consensus forecast is revenue of USD11.32 billion, up 10% on-year from USD10.24 billion, and EPS of USD3.28, up 13% from USD2.91. Current remaining performance obligations, a closely watched guide for future revenue, is forecast of USD33.44 billion, growth on-year of 13% at constant currency. For third quarter guidance, FactSet consensus looks for revenue of USD11.41 billion, on-year growth of 11%, EPS of USD3.36, up 3.5%, and current remaining performance obligations of USD33.27 billion.
WEDNESDAY: Shares in CrowdStrike has enjoyed a strong run since first quarter earnings, with the stock up 19%. Bank of America says the key metric for the Austin, Texas-based cybersecurity company remains net annual recurring revenue, which the broker models up 29% on-year to USD286 million, roughly in-line with consensus. This would be a deceleration from the 32% growth in the prior quarter. But following the recent stock price gains, BofA believes investors may need to see a 3% beat to consensus. "The numbers will serve as evidence of whether platform consolidation remains intact, and AI threats are steering buyers to the leading platforms," says BofA. Beyond headline metrics, BofA says it will be focused on the quality of annual recurring revenue growth and whether Falcon Flex, the firm's flexible subscription and licensing model, is still driving sustainable platform expansion. Longer term, BofA's view is that the stock price hinges on CrowdStrike's ability to convert AI-driven security demand into broader Falcon monetisation. It also looks for product developments at Crowdstrike's annual Fal.Con conference on August 31 to September 3.
WEDNESDAY: US personal consumption expenditures index inflation will be closely watched, despite Federal Reserve Chair Kevin Warsh's apparent indifference to the measure. The recently installed Fed Chair has raised questions about the relevance of PCE data and has launched a taskforce to examine how the central bank measures and targets inflation. Core PCE, which excludes food and energy costs, has been the US central bank's preferred inflation gauge, but Warsh is thought to prefer trimmed mean or trimmed average inflation indicators instead. Nonetheless, for now the data will continue to resonate as analysts weigh progress in tackling inflation and look for secondary impacts from the Middle East war. Barclays analyst Pooja Sriram expects core PCE to rise 0.2% on-month in July, picking up from a 0.1% rise in June from May, for an annual rate of 3.2%, down from 3.3% in June. On a three-months annualised basis, Sriram expects core PCE to have moderated to 2.7% in July, compared with 3.8% in the prior three months ended April. Headline PCE is forecast to have risen 0.1% in July on-month, after June's 0.1% decline, with the annual rate slowing to 3.6% from 3.7%. Barclays's Sriram expects the data to be "comforting enough" for "most" on the Federal Open Market Committee to keep interest rates on hold as they await additional data.
UBS analyst Alan Detmeister points out that core PCE price inflation is above core consumer price inflation by the "most it has been since the early 1980s", after annual core CPI eased to 2.5% in July from 2.6% in June. Information processing equipment, driven by AI adoption, and financial services, driven by the stock market, are the biggest reasons that core PCE price inflation remains elevated, he says. Detmeister explains these subcomponents will undergo methodological changes at the end of September that should lower core PCE inflation by around 25 basis points, and "perhaps by as much" as 40 basis points. "The revisions will not affect the CPI and, as a result, will narrow the wedge between the two inflation measures," he adds.
THURSDAY: lululemon remains in a state of flux awaiting the arrival of its new chief executive, Heidi O'Neill. In June, the Vancouver-based athletic apparel retailer lowered full-year sales and earnings guidance with trading in North America proving especially troublesome. The dismal trading update continued a bad run for lululemon which led to the departure of previous CEO Calvin McDonald in January. The firm has faced falling sales in North America, product design missteps, and strong new competition from the likes of Alo and Vuori. "The damage under the prior CEO is significant and long lasting," wrote Jefferies analyst Randal Konik in a recent note. "Brand momentum is fading, share losses are building, and sales per foot are deteriorating, driving sharp margin compression," he added. For the second quarter, Citigroup analyst Paul Lejuez expects EPS of USD1.90, versus consensus of USD1.80, and guidance of USD1.76 to USD1.81 as he believes lululemon will beat on selling, general & administrative expenses, despite a slight miss on sales/gross margin. But he does not expect any beat to flow through to the second half given continued pressures in the Americas and China weakness, and he maintains a full-year EPS forecast of USD11.12, ahead of USD10.81 consensus. On sales, JPMorgan looks for a 2.5% decline year-on-year, with the Americas down 9.5%, China up 18% and the Rest of the World up 9%. JPM models second quarter gross margins down 410 basis points year-on-year to 54.4%.
THURSDAY: Royal Bank of Canada is expected to deliver strong quarterly results led by its Capital Markets and Asset/Wealth Management divisions. The Toronto-based bank was the only Canadian lender on the SpaceX initial public offer and in the initial lender consortium to Anthropic, showing its ability to compete with Wall Street's finest. But the bar remains high heading into the financial third quarter earnings with the stock having risen 50% in the past 12 months. Looking ahead, analysts at Jefferies think the outlook for Canadian banks for 2027 "remains murky". In a report, the broker said it remains "concerned that the current valuation multiples do not fully reflect the uncertain outlook for the banks' earnings," although it is not "concerned about any specific issue heading into the quarter". However, should third-quarter earnings "not be supportive to the base case 2027 outlook, their being priced for perfection implies potential downside," the broker adds.
FRIDAY: The impact of the 2026 Jackson Hole symposium is harder to judge than in past years, given new Federal Reserve Chair Kevin Warsh's stated desire not to provide forward guidance. However, a number of his colleagues on the Federal Open Market Committee continue to freely offer up their views, adding pressure on Warsh to offer some pearls of wisdom on where he sees US monetary policy heading. The three-day annual central banking conference hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, kicks off on Thursday and brings together central bankers, finance ministers, academics, and market experts from around the world to debate major long-term economic issues. Warsh is scheduled to give his key-note speech around 1000 EDT on Friday. At its last meeting, the Federal Open Market Committee voted 9-3 to leave interest rates unchanged, despite mounting disquiet about progress ing bringing inflation down closer to the 2% target. Since then, inflation has cooled in line with expectations, while jobs data saw a surprise drop in nonfarm payrolls. Citigroup analyst Andrew Hollenhorst thinks that should Warsh choose to say something "market relevant, risks now skew dovish". While noting that any explicit guidance would be "anathema" to his "communications philosophy", Hollenhorst thinks the message could still be "effectively sent" by noting that according to a broad set of metrics inflation is slowing. Such a stance could soothe the bond market which has seen yields ramp up, particularly at the long-end of the curve, prompting the US Treasury to signal it intends to double buy-backs of longer-dated treasuries.
Week Ahead by Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom [at] alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
