Week ahead in business and economics: June 23-27

Posted by Unknown on Sunday, June 22, 2014


Week ahead in economics


New figures are expected to show that the economy grew at the fastest rate for almost four years at the start of 2014, when the Office for National Statistics (ONS) releases its third estimate of output for the first quarter of the year on Friday.


The ONS is expected to revise its original 0.8pc reading up to 0.9pc, after recent construction data showed stronger than expected activity. This would be the fastest since the second quarter of 2010, and would mean the economy grew by 3.2pc in the past 12 months.


The housing market will be the other key economic issue this week. On Thursday, the Bank of England’s financial policy committee is expected to toughen up mortgage rules in order to ward off overheating, while Nationwide will release monthly house price data.


On Tuesday, Bank Governor Mark Carney will be grilled by the Treasury select committee about May’s Inflation Report, when his forward guidance on interest rates was tweaked.


Monday June 23


Full-year results None scheduled


Interim results Porvair


Trading update None scheduled


Economics Bank of England credit conditions survey, Bank of England’s bank liabilities survey


AGMs None scheduled.


Tuesday June 24


Full-year results Imagination Technologies Group, Carnival, Carpetright


Interim results Chemring Group, Domino Printing Sciences


Trading update Petrofac


Economics Bank of England Governor Mark Carney gives evidence to Treasury committee, BBA main high street banking groups’ statistics


AGMs Aon, Gulfsands Petroleum, Huntsworth, Blur Group


Wednesday June 25


Stagecoach’s pre-close trading update in April indicated the transport giant has had a “satisfactory” year, with like-for-like revenue growth in all of its bus and rail divisions.


The company flagged challenges in its UK bus business, as local authorities cut back on the amount they reimburse operators to provide free travel and other concessionary schemes.


Stagecoach said it does not expect “significant short-term growth in concessionary and tendered revenue” but will focus on further growing commercial bus revenues.


Megabus.com in North America has recently been the fastest-growing part of the group , increasing revenue by 16.5pc in the 11 months to March 31.


Rail franchising will also be a key focus for investors. Stagecoach lost out on the Thameslink, Southern and Great Northern “super franchise” but it is bidding for the East Coast Main Line in conjunction with Virgin, and, separately, for the contract to run London’s Docklands Light Railway.


The group last week announced its joint business with Virgin had secured a near three-year deal with the Department for Transport to continue running the West Coast Main Line.


A consensus of analysts’ forecasts points to full-year, adjusted pre-tax profit of £180m.


Full-year results Northgate, Stagecoach Group


Interim results None scheduled.


Trading update None scheduled.


Economics CBI monthly distributive trades survey


AGMs Gresham House, Royal Bank of Scotland, Patagonia Gold


Thursday June 26


Full-year results Dixons Retail, Carphone Warehouse, Mountview Estates, DS Smith, Photo-Me International.


Interim results Stobart Group, Safestore


Trading update Wood Group, Standard Chartered


Economics Bank of England’s financial stability report, CBI growth indicator survey, aluminium stocks statistics


AGMs Liberty Global, Aberdeen New Thai IT, Exillon Energy, JD Sports Fashion, NMC Health, Stobart Group


Friday June 27


Tesco chief executive Philip Clarke will be under pressure to explain what he is doing to turn around the grocery retailer’s ailing fortunes on Friday. Mr Clarke has come under heavy criticism in recent months as sales plunged and the company reported its worst quarterly figures for 40 years.


Earlier this month, Tesco was also downgraded to Baa2, just two notches above junk status, by ratings agency Moody’s. However, David Herro, chief investment officer at Harris Associates, told The Sunday Telegraph that Sir Terry Leahy handed a “poisoned chalice” to his successor, and that Mr Clarke had “correctly specified the problems”. Analysts say that there is still much work to be done, and it remains to be seen what Mr Clarke will do to turn around what was once Britain’s most successful supermarket.


All eyes will be on Hornby’s new chief executive, Richard Ames, when he presents his first set of results for the model train maker on Friday.


Mr Ames is expected to lay out his strategy following a turbulent year in which sales were derailed by issues with a major supplier. The company warned markets in April that it will post a £1.2m loss for the year, due to the strength of the pound eroding overseas revenues. Stripping out currency movements, the company said it had broken even in the year.


Full-year results Hornby, Stanley Gibbons


Interim results None scheduled.


Trading update Keller, Serco, Berendsen


Economics Quarterly national accounts (GDP), balance of payments, business investment revised results, UK consumer confidence survey, Land Registry house price index, UK monthly service sector figures


AGMs Johnston Press, Asia Resource Minerals, Silence Therapeutics, Tesco, Tissue Regenix





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