Investors wait for SSE’s spending plans to blow in

Investors will want an update from SSE on spending plans at its interim results on Wednesday. The FTSE 100 energy group, which is one of the largest developers of offshore wind projects in UK waters, has reached completion on the 443-megawatt Viking onshore wind farm, the Shetland subsea link, which will connect the Shetland islands to the British transmission network, and the Slough Multifuel energy-from-waste power station.
The results should also give investors an indication of whether Dogger Bank A, which together with its two sister wind farms will have a combined installed capacity of 3.6 gigawatts, has incurred any more delays after completion was pushed back again to the second half of next year.
The energy group has pledged to grow earnings by an annual compound rate of between 13 and 16 per cent and increase its dividend by 5 to 10 per cent by 2027 against the 2022 level. It cut the dividend for this year to 60p a share to fund the development of its renewables assets.
With the authorities in China — a market accounting for 13 per cent of AstraZeneca’s sales — investigating allegations of medical insurance fraud, illegal drug importation and inappropriate collection of patient data, attention during the pharmaceutical company’s third-quarter trading update will naturally be focused on its outlook in the country.
Following a share sell-off last week, AstraZeneca has moved to reiterate its $80 billion 2030 group revenue target. Investors, however, will be looking for further reassurance on the FTSE 100 company’s trading and operations.
Management, meanwhile, will most likely prefer to talk about AstraZeneca’s growing pipeline, including encouraging safety data for an early-stage weight-loss drug presented last week. Interims: 3i Infrastructure, Cake Box, DCC, Oxford Instruments, Renewi, Vodafone Trading updates: AstraZeneca, Convatec, Diversified Energy Company Economy: ONS monthly employment figures
Babcock International, the naval dockyard operator and warship builder, is reckoned to be generally back on the right course with chief executive David Lockwood in charge even if the group has not quite shaken off its reputation for unwelcome surprises. This year has already included an upgrading of its forecast losses on the five Type 31 frigates it is building for the Royal Navy to £190 million under one of the contracts it inherited from previous management. Investors will hope it is still steaming towards a £300 million profit for the year to next March, up from £211 million last year. The FTSE 250 company has a medium-term operating margin of at least 8 per cent. Finals: Ten Lifestyle Interims: Babcock, Experian, Fuller Smith & Turner, Intermediate Capital, SSE, Tatton Asset Management Trading updates: Flutter Entertainment, Regional Reit, Secure Trust Bank, Smiths Group
Walt Disney’s fourth-quarter earnings come after the entertainment giant reported its first profit in its streaming division in August but warned of a slowdown in consumer demand for its US theme parks. Revenues for the fourth quarter are expected to be $22.6 billion, up 6.4 per cent from the same period last year. “We expect to see a flattish revenue number in the fourth quarter coming out of the parks,” Hugh Johnston, chief financial officer, said after the third-quarter results. Investors will be hoping for any weakness to be offset by the streaming business, which includes Disney+, Hulu and ESPN+.
WH Smith’s travel business is expected to boost annual revenues. The FTSE 250 retailer is forecast to report pre-tax profits of £166 million for the year to the end of August according to analysts consensus, up from £110 million last year. The company’s UK travel division has already reported a 12 per cent increase in annual sales after strong trading over the summer. Finals: WH Smith Interims: ActiveOps, Assura, B&M European Value Retail, Burberry, FirstGroup, Great Portland Estates, Premier Foods, QinetiQ, Syncona, United Utilities, Young & Co’s Brewery Trading updates: Alfa Financial Software, Aviva, Keller, Kier, Metro Bank, TT Electronics
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