Week ahead in business and economics: June 2-6

The retailer is forecast to post a 4pc decline in UK like-for-like sales by its brokers Barclays and Deutsche Bank, highlighting the strain on the major supermarkets from the discounters and a developing price war. The drop in sales in Wednesday’s trading update will cover the three months to May 24, with Tesco also shrinking in Europe and Asia.

Clive Black, analyst at Shore Capital, said the drop in UK sales would have been “almost unfathomable in times past”, and said shareholders would remain concerned about the robustness of earnings forecasts. He added: “We also contend that the sustainability of the UK trading strategy by the market leader may come under much greater scrutiny too as it simply does not seem to be working.

“At no stage do we believe Tesco’s management has been budgeting for like-for-like sales to be as weak as they may have been in recent months.”

MONDAY JUNE 2

Interim results RWS Holdings

Economics UK manufacturing PMI for May, UK mortgage approvals and net mortgage lending for April, UK consumer credit for April, eurozone manufacturing PMI for May, US manufacturing PMI for May

AGMs: Anglo-Eastern Plantations, Ruspetro

EGM: Acal

TUESDAY JUNE 3

• Water and waste management group Pennon will be updating the market on progress with its growing “Energy from Waste” (EfW) business when it releases its full-year results this week. Profits from this unit, which burns landfill to generate energy, are expected to double by the end of 2016. The group already runs two EfW plants with six more under construction, and analysts will be watching for plans on new openings. Rivals, Severn Trent and United Utilities, will be watching closely for news on Pennon’s response to the water regulator’s price review. Pennon’s water arm, South West Water, is one step ahead of its listed rivals in the review process, after winning fast-track status. Ofwat has published draft proposals for South West Water and Pennon has until June 4 to respond.

• Wolseley, the plumbing and building supplies group, is expected to announce a slight decline in profits when it reports third-quarter numbers, with the strong pound making overseas income less valuable on a sterling basis. The company, which runs the Plumb Center retail brand and its US counterpart Ferguson, is likely to have benefited from good weather in Europe in the three months to the end of April, although cold conditions in the US will have had an impact. Shareholders are likely to be looking out for any hints from chief executive Ian Meakins of the roadmap for dividend payments.

Full-year results Establishment Investment Trust, LondonMetric Property, Pennon Group, Severfield

Trading update Wolseley

Economics UK construction PMI for May, UK Nationwide house price index for May, US factory orders for April

AGMs: Oxford Biomedica

WEDNESDAY JUNE 4

• Findel, the online retailer and education supplier, is expected to post strong full-year results after a good third quarter in its latest numbers. Consensus expectations predict full-year revenue to be £517m, up from £491m in 2013, and profit-before-tax of £22m, up from £11.9m a year earlier. Matthew McEachran and Mark Photiades, analysts at N+1 Singer, note that Findel’s results will show the results of buying a new Shanghai office, but said that all the leading indicators are positive. “We are optimistic that growth can be delivered in the future,” said the analysts.

Full-year results Advanced Computer Software Group, Findel, RPC Group, Synergy Health, Workspace Group

Interim results Alternative Networks

Trading update Tesco

Economics UK services PMI for May, eurozone composite and services PMI for May, G7 leaders summit in Brussels

AGMs: Afren, Amara Mining, Cayenne Trust, Dignity, G4S, JKX Oil & Gas, InternetQ, Mears Group, Michael Page International, Morrison Supermarkets, M.P. Evans Group, WANdisco.

THURSDAY JUNE 5

Full-year results Acal, AO World, Johnson Matthey, VP, Wincanton

Trading update Bellway

Economics UK new car registrations for May, Monetary Policy Committee announcement, European Central Bank announcement

AGMs: Air Partner, Camellia, Chariot Oil & Gas, Invesco Perpetual UK Smaller Companies Investment Trust

FRIDAY JUNE 6

Full-year results Fuller Smith & Turner, KCOM Group

Interim results Scottish Investment Trust

Economics UK trade in goods & services and global trade for April, US non-farm payrolls and unemployment for May

AGMs: Prezzo

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