STOCKS TO WATCH: Banking regulators to make crucial call

As Boris Johnson and pals assess whether to lift all Covid restrictions on June 21, banking regulators have their own crucial call to make. 

Late last year, the Bank of England’s Prudential Regulation Authority relaxed its request for banks to suspend dividends to shareholders during the pandemic. 

However, temporary ‘guardrail’ restrictions were left in place. These put limits on payouts based on previous quarterly profits. 

Decision time: The Prudential Regulation Authority relaxed its request for banks to suspend dividends to shareholders during the pandemic, but ‘guardrail’ restrictions were left in place

The PRA vowed to ‘transition back’ to normality for dividends this year and banks appear to believe the time is right to ramp up shareholder payouts. 

Analysts at Jefferies met with Barclays finance chief Tushar Morzaria last week. They reported back: ‘Whilst not having any formal discussions yet, [Morzaria] sees no reason why the PRA’s so-called guardrails, established last year, should not be lifted.’ 

Regulators will pore over economic data and loan default rates and are likely to update lenders this month or next. Could the shackles soon be off for bank dividends?

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Naked Wines was a pandemic winner and investors have continued to lap up the stock even as bars reopen. 

This week’s results should give a clue as to whether the firm thinks its model, selling direct to consumers, will remain as popular after the pandemic. 

Its booming US business alone may see bosses crack open the fizz.

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Delayed annual results for Ted Baker on Thursday could present an improving picture after an horrific few years.

The quirky fashion retailer appears to be moving from survival to revival mode, with the balance sheet stabilised and stores open again. 

Newly-hired global creative director Anthony Cuthbertson’s first designs land this autumn/winter, and could prove a gamechanger. Their arrival will be timely with the holiday and wedding season likely to last longer this year and Christmas bashes back on the calendar. 

Investors will look to chief executive Rachel Osborne for a steer on her plans to grow Ted’s online business and how shoppers may react to the return of retail freedoms.

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Car salesmen may have a reputation on a par with estate agents, but vehicle listing site Auto Trader’s standing in the City appears in rude health. 

The stock took a knock after it offered free listings in lockdown last year, but it has clicked back into gear since, hovering around £5.60 of late. 

This week brings its annual results, and analysts are pencilling in operating profits of £141million. 

They believe household savings in lockdown will be spent on cars so a resumption of the dividend may be on the cards. 

The only fly in the ointment could be the supply of used cars drying up as a result of weaker new vehicle sales, which have been disrupted by a shortage of vital semiconductor chips.    

This post first appeared on Dailymail.co.uk