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Thursday's agenda: Rio Tinto to lift mining spirits

Published: 03:10 11 Feb 2016 AEDT

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The mining industry should get a bit of respite from the gloom hanging over it when Rio Tinto reports annual results on Thursday.

Broker UBS expects the numbers to be a "small positive catalyst" to the miner, which like rivals has been hit by lower demand and falling commodity prices.

UBS expects Rio to report earnings about 5% ahead of consensus and to keep its 2015 dividend flat year-on-year at US$2.15 per share.

It also forecasts net debt to have risen by US$1bn in the six months to December 2015 due to the dividend and buy-backs.

It predicts underlying earnings of US$4.7bn versus a market consensus of US$4.5bn.

"We expect underlying earnings to fall 49% year-on-year in 2015 to US$4.8bn due to lower commodity prices," it said.

Elsewhere, investors will be keen to hear what Imperial Brands (LON:IMB) has to say about takeover speculation when it gives a first quarter update.

Shares in the company formerly known as Imperial Tobacco have been boosted in recent weeks by media reports linking the maker of Lambert & Butler and JPS to possible tie-ups with peers including British American Tobacco (LON:BATS), Japan Tobacco and China Tobacco.

Analysts at The Share Centre said: "In the more volatile market conditions experienced in the last six months, the solid and defensive characteristics of a tobacco giant have proved attractive for some investors.

"The market will be keen to hear how sales of vaping products are performing, any comments on the expected impact of the new plain packaging regulations in the UK."

The Share Centre has Imperial Tobacco down as a 'buy'.

Companies also reporting on Thursday include Informa, Shire, Cable & Wireless Communications, Dairy Crest, Halma, Pennon, SAB Miller, Tate & Lyle, Thomas Cook and Enterprise Inns. Glencore is also due to present a production report. 

Thursday

Finals Henderson (LON:HGG); Informa (LON:INF); Rio Tinto (LON:RIO); Shire (LON:SHP)

Interims Ashmore (LON:ASHM)

Trading statement -  Cable & Wireless (LON:CW.); Dairy Crest (LON:DCG); Halma (LON:HLMA); Imperial Tobacco (LON:IMT); Pennon (LON:PNN); SABMiller (LON:SAB); Tate & Lyle (LON:TATE), Thomas Cook (LON:TCG)

Production report Glencore (LON:GLEN)

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