Economics
Interest rates The Bank of England’s Monetary Policy Committee is
expected to leave interest rates unchanged at 5 per cent on Thursday.
The services sector The Purchasing Managers’ Index for April, due out
tomorrow, is expected to have fallen to 51.7, from 52.1 in March. Any figure
above 50 indicates activity.
Industrial production growth is tipped to have slowed to 0.1 per cent
in March, from 0.3 per cent in February, in data due out tomorrow. This will
depress the annual rise in production to 0.9 per cent, from 1.3 per cent.
Manufacturing production is tipped to have stalled in March, cutting the
annual rise to 1.2 per cent, from 1.9 per cent.
The Eurozone Producer Prices Index, due out tomorrow, is tipped to have
risen by 0.7 per cent in March, against 0.6 per cent in February, taking the
annual increase to 5.6 per cent, from 5.3 per cent.
Eurozone interest rates The European Central Bank is tipped to leave
interest rates unchanged at 4 per cent on Thursday.
Eurozone retail sales Figures due out tomorrow are tipped to show that
eurozone retail sales rose by 0.3 per cent in March, after falling by 0.5
per cent in February.
German industrial production Figures out on Thursday are expected to
show German industrial production fell by 0.5 per cent in March, after
rising by 0.4 per cent in February, taking the annual increase in production
to 5 per cent, from 5.9 per cent in February.
US non-farm productivity is tipped to have slowed in the first quarter.
Data out tomorrow are expected to show productivity rose by 1.2 per cent,
from 1.8 per cent in the previous quarter.
US pending home sales are expected to have fallen by 0.8 per cent in
March, after a 1.9 per cent fall in February, when figures are released
tomorrow.
The US trade deficit is expected to have fallen to $61 billion (£31
billion) in March, from $62.3 billion in February, in data due out on
Friday.
US manufacturing output Figures released today are tipped to show that
the US ISM non-manufacturing index fell to 49.5 in April, down from 49.6 in
March.
US consumer credit Data out on Wednesday are forecast to show US
consumer credit at $6.5 billion, after $5.2 billion in February.
Banking
& finance
WestLB, the German regional bank, may sell Banque d’Orsay, its French
banking unit, and has hired Rothschild & Cie, the investment bank, to
advise it. Funds under management at Banque d’Orsay slumped to €7.8 billion
(£6.1 billion) in 2007, from €16 billion a year earlier.
UBS, the Swiss bank, is expected to announce thousands of job losses
when it reports first-quarter results today.
Brit Insurance, the reinsurance broker valued at £800 million in
London, is investigating whether jurisdictions such as Dublin or Geneva are
more tax efficient than the UK, which increasingly is seen as operating a
“business- unfriendly” regime.
Construction
& property
Barratt Developments Apollo Management, the private equity group, is
understood to have offered to take a stake of almost a third in Barratt
Developments, the troubled British housebuilder, of between £300 million and
£400 million.
Consumer
goods
Drinkaware Trust, the voluntary body set up by the drinks industry and
the health sector to educate consumers on the misuse of alcohol, confirmed
that Jean Collingwood, its first permanent chief executive, had stepped down
after less than a year.
Engineering
ABB, the Swedish-Swiss engineering group, has announced the acquisition
of Vectek Electronics, the New Zealand-based electrical engineering company,
for an undisclosed sum.
Health
Over-the-counter drugs Wal-Mart Stores, the American retail giant,
plans to expand its $1 billion (£508 million) discounted prescription drug
programme by lowering the price of more than 1,000 over-the-counter drugs.
Leisure
Virgin Active, the health and fitness club operator, announced plans to
open 20 further clubs, the majority in Italy, as it reported a 28 per cent
rise in underlying full-year earnings to £76.2 million.
Accor, the French hospitality company, enjoyed a rise in shares on the
Paris Bourse after Colony Capital and Eurazeo, the investment groups,
announced a five-year shareholder pact governing their combined 17.5 per
cent stake and outlined plans to raise their joint stake to 30 per cent.
Media
BBC and ITV Mark Thompson, Director-General of the BBC, and Michael
Grade, chief executive of ITV, will outline plans to challenge BSkyB with
the launch of a free 80 channel satellite television service. News
Corporation, parent company of The Times, has a 39.1 per cent stake in
BSkyB.
Natural
resources
Permanently high oil prices have the potential to snuff out any
moderate recovery in global economies in 2009 and 2010, according to
research by the Ernst & Young ITEM Club.
Retailing
Vistula & Wolczanka, the Polish fashion chain, has launched a 290
million zloty (£66.5 million) bid to buy out 66 per cent of W Kruk, the
jewellery chain.
Support
services
Co-operative Funeralcare AXA Sun Life Direct, the AXA Group offshoot
that provides life insurance to the over-fifties, has signed a partnership
deal with Co-operative Funeralcare, Britain’s biggest funeral director, to
offer a policy covering funeral costs.
Technology
Microsoft, the American software giant, is understood to be in
preliminary bid talks with Time Warner about acquiring AOL, its internet
arm, after being forced at the weekend to abandon plans to buy Yahoo!, the
US internet search engine, for $47.5 billion (£24.1 billion).
Telecoms
Sprint Nextel, the US mobile phone operator, saw its shares rise 83
cents to $8.72 on the New York Stock Exchange on speculation that Deutsche
Telekom may bid.
Transport
Manchester Airports Group, the UK’s second-largest airports operator,
has said that it would be interested in buying Gatwick if Ferrovial, the
Spanish owner of BAA, the operator, is forced to sell. Industry experts
estimate that the price tag for Gatwick could be about £2 billion.
Utilities
Centrica, which owns British Gas, is to hold talks with continental
rivals about becoming involved in the auction of British Energy, the nuclear
power group, either as part of a bidding consortium or by signing supply
contracts with the eventual purchaser.
