Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
UK Earnings Will Tell Markets How Brexit Effecting Corporate Revenues

UK Earnings Will Tell Markets How Brexit Effecting Corporate Revenues

Varun Jaitly, Contributor

Talking Points:

  • Next week companies like GlaxoSmithKline, Lloyds Bank and Barclays will be reporting earnings
  • Companies like Ford and Airbus with major business interest in the UK will also report next week
  • Earnings reports and forward guidance may provide insight into post-Brexit business outlook

Check out the DailyFX 4thQuarter British Pound Forecast, HERE

It has been four months since the UK voted to leave the European Union in its historic “Brexit” Referendum. However, since then information has been sparse on the extent of the impact on business growth in the UK. Earnings season may provide some insight as companies report their performance over the previous quarter, as well as provide outlook for the future of their industries. It is worth noting that substantive policy change has not occurred since Brexit, as UK Prime Minister Theresa May and EU leaders have yet to announce details on the future relationship between the island and mainland Europe. May has suggested Article 50 will be invoked – starting the proceedings – in March of next year.

Single market access has been a major point of contention, as large industries in the UK have spoken out about the negative impact on foreign investment and cost-competitiveness if single market participation is forfeited. Companies such as Ford, Jaguar and Siemens have said that a hard Brexit or removal from single market participation may force factory closures or large jobs cuts as they attempt to absorb the impact. Financial services companies are currently worried about “passporting” which allows them to run their banking operations throughout Europe from the UK.

In the coming week, a number of UK companies will be reporting their earnings for the 3rd quarter of 2016.

Whitbread PLCWTB LN10/25/2016
GlaxoSmithKline PLCGSK LN10/26/2016
Lloyds Banking Group PLCLLOY LN10/26/2016
Barclays PLCBARC LN10/27/2016
BT Group PLCBT/A LN10/27/2016
International Consolidated Airlines Group SAIAG LN10/28/2016
Royal Bank of Scotland Group PLCRBS LN10/28/2016

In addition to the UK companies, there are also a number of releases from multi-national groups that have strong business interests in Britain. Among them, auto manufacturer Ford, which announces its earnings before markets open in the US on Thursday the 27th. Following the Brexit vote, Ford mentioned the importance of its access to the single market, as Europe is a large source of demand and the UK is its major base of operations for factories and jobs.

Aerospace manufacturer Airbus will release its earnings report on Wednesday the 26th next week. Airbus has its business spread wide throughout Europe with major parts manufacturing and development based in the UK. The company also mentioned the possibility of job cuts and manufacturing reduction to supplement the estimated cost increase of losing single market access.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.