Economics
Mortgage figures Figures from the Bank of England, due out on
Wednesday, are tipped to show that 32,000 new mortgages were granted in
September, the same as in August. Consumer credit is expected to have edged
down from £1.2 billion to £1.1 billion.
Eurozone inflation Figures due to be published on Thursday are expected
to show that eurozone inflation fell to 3.3 per cent in October, down from
3.6 per cent in September. Eurozone unemployment is tipped to remain
unchanged at 7.5 per cent when figures are released on Friday.
German inflation Figures to be released this week are tipped to show
that German inflation on the consumer prices index fell by 0.2 per cent in
October, taking the annual rate of inflation to 2.4 per cent, down from 2.9
per cent.
German business confidence The IFO survey of the German business
climate, released today, is tipped to have fallen to 91 in October, from
92.9 in September. The index of current conditions is forecast to fall to 97
from 99.8, while business expectations are tipped to fall to 85, from 86.5.
The GFK consumer confidence index, published tomorrow, is expected to have
fallen to 1.5 for October, down from 1.8 in September.
French consumer confidence Figures due out tomorrow are tipped to show
that the index of French consumer confidence fell to minus 46 in October,
from minus 44 in September.
US consumer confidence Figures released tomorrow are expected to show
that the index of US consumer confidence fell to 53 in October from 59.8 in
September.
The US economy Preliminary GDP figures for the US economy, due out on
Thursday, are expected to show that output shrank by an annualised 0.5 per
cent between July and September, after rising by 2.8 per cent in the second
quarter.
US confidence The University of Michigan confidence index, due out on
Friday, is expected to have risen to 58 in October, up from the preliminary
estimate of 57.5.
US durable goods Figures due to be published on Wednesday are forecast
to show that US durable goods orders fell by 0.7 per cent in September,
after a 4.5 per cent decline in August. Orders excluding transportations are
expected to have fallen by 1.5 per cent, after a 3 per cent drop in August.
US interest rates The US Federal Reserve is expected to cut interest
rates by a quarter point to 1.25 per cent on Wednesday.
US new home sales Figures due out today are expected to show that
455,000 new homes were sold in September, down from 460,000 in August. The S&P
Case Shiller index, due out tomorrow, is tipped to show that US house prices
were down by 16.5 per cent in August, compared with last year, after a 16.4
per cent annual fall in July.
The Canadian economy Figures to be released on Friday are tipped to
show that Canadian GDP fell by 0.3 per cent in the third quarter, after a
0.7 per cent rise in the second quarter.
Japanese inflation Figures due to be published on Thursday are expected
to show that inflation on the consumer prices index rose by 0.2 per cent in
October, taking the annual rate of inflation to 2.3 per cent, up from 2.1
per cent.
Banking
& finance
Standard Life, the insurance group, will give a trading update on
Thursday. Analysts expect the group to report a 3 per cent drop in net
inflows of global life and pensions business, to £2.3 billion for the nine
months of the year so far, although total sales are expected to have risen
by 3 per cent to £12.6 billion.
London Stock Exchange Dame Clara Furse is planning to step down from
her role as chief executive of the London Stock Exchange. It is thought to
be unlikely that she will leave before the autumn of 2009. (The Sunday
Telegraph)
Correction: In an article on page 59 on October 23, we described Jerome
Fons as a former managing director of Fitch’s credit policy division. He is
actually a former managing director, credit policy, at Moody’s.
Construction
& property
Bulgarian Land Development has cut its exposure to the Paradiso Verde 2
ski resort in Bansko to 55 units from 100 units. It said that the Bansko Ski
Resort has a market value of €3.7 million (£2.94 million). In June 2007,
Bulgarian Land Development had entered into a contract to underwrite the
sale of 100 apartments at the Paradiso Verde 2 ski resort at 70 per cent of
the market price.
Consumer
goods
Unilever Third-quarter sales figures from Unilever, the consumer goods
group, will come under scrutiny when it gives a trading update on Thursday
after the group’s last figures were met with disappointment. It said in July
that while the value of sales had risen by 6.8 per cent, soaring price
inflation had left volumes lower.
Engineering
Volkswagen, the world’s third-largest carmaker, is likely to report
slight growth in its third-quarter operating profits to €1.5 billion (£1.19
billion) on Thursday, thanks to a continued improvement in its core VW
volume brand.
LDV, the British vanmaker owned by Oleg Deripaska, the Russian
oligarch, made a £28 million loss last year. KPMG stood down as auditor in
August, one month after signing off the accounts. It is understood that this
was because a different holding company had assumed immediate ownership of
LDV. Oleg Deripaska remains the UK company’s ultimate owner. (The Observer)
Ford, the US carmaker, may sell Volvo, the Swedish group, to BMW, its
German rival, as part of a drive to raise cash, say senior sources. (The
Sunday Times)
Continental, the German tyre and car parts maker, is expected to report
a 75 per cent fall in third-quarter net profits to €62 million on Thursday
as its customers struggle amid the global economic downturn.
Health
AstraZeneca, the Anglo-Swedish pharmaceuticals group, will report its
third-quarter results on Thursday with investors keen to hear about the
impact of generic drugs on its sales.
Drug research Investment in drug research is seriously threatened as
investors become more risk-averse amid the global economic meltdown,
according to the Economic and Social Research Council.
Leisure
Luminar, the nightclub operator, will release its interim results on
Thursday. Last month it said that trading conditions had remained difficult,
with half-year sales to August 28 dropping by 2.4 per cent on a
like-for-like basis across its dancing club portfolio, compared with a 4.1
per cent rise a year ago.
MBI International, the Saudi-owned investment group which is based in
London, will sign an agreement to buy 12 hotels in France from Starwood
Capital in a deal that could be worth $2 billion (£1.26 billion), according
to reports. The deal will include Le Crillon Hotel in Paris.
Hilton, the US hotel group, is to take on two prestigious London
properties, including one that will become the first representative in
Britain of its deluxe WaldorfAstoria brand. (The Sunday Times)
Media
BSkyB, the satellite broadcaster, will be closely watched on Friday for
clues about demand when it announces its quarterly subscriber numbers. In
July the group reported a better-than-expected rise in net customer
additions in its fourth quarter, at 92,000, taking total customers to 8.98
million. News Corporation, parent company of The Times, has a 39.1 per cent
stake in BSkyB.
Natural
resources
BG, the FTSE 100 gas exploration group, is in talks about a £2 billion
takeover of Queensland Gas, the Australian utility. This weekend it was
holding final negotiations with AGL Energy, Australia’s largest utility, to
buy its 25 per cent stake in Queensland Gas. The agreement would pave the
way for a full offer for Queensland. (The Sunday Times)
BP Peter Sutherland, the chairman of BP, has agreed to extend his
tenure at the oil and gas group in order to facilitate the potential
appointment of Paul Skinner, the Rio Tinto chairman, as his successor. (The
Sunday Telegraph)
Retailing
Blacks Leisure, the outdoor equipment retailer, will deliver an interim
report on Friday. Earlier this month it said that first-half losses would
widen to about £4.5 million, from £600,000 last time, because of a
“difficult” August and poor sales of surfwear.
Wyevale Garden Centres Concern about the performance of Wyevale Garden
Centres has prompted HBOS, the banking group, to draft in KPMG to conduct a
review of the business. HBOS has a 19 per cent stake in Wyevale which also
has a large debt facility with the bank. (The Sunday Telegraph)
Support
services
Four Seasons The threat of bankruptcy looms over Four Seasons, the
struggling nursing homes operator, which faces the end of a standstill deal
on debt repayment on Friday. But sources say they are hopeful that a rescue
can be agreed. (The Observer)
The Hospital Group, the cosmetic surgery company based in
Worcestershire, is understood to have hired Grant Thornton, the accountancy
firm, to advise it on a strategic review after receiving a number of
unsolicited bid approaches. (The Sunday Times)
Granada Learning, which sets ability tests for two-thirds of Britain’s
primary and secondary schools, has been put up for sale by Veronis Suhler
Stevenson, its private equity owner, with a price of £55 million. (The
Sunday Times)
Technology
Wolfson Microelectronics, the London-listed maker of computer chips
which is based in Edinburgh, will report its third-quarter sales today with
investors wanting to hear about how badly the company has been affected by
the downturn in mobile handsets and other consumer electronics.
Telecoms
Verizon Wireless has settled a lawsuit over voicemail technology with
Klausner Technologies, the patent’s owner. Klausner said that it had granted
Verizon Wireless, jointly owned by Verizon Communications and Vodafone, a
patent licence related to voice message alerts. No financial terms were
disclosed about the settlement.
Transport
Ryanair, the no-frills airline, has announced the closure of its base
at Valencia. It said that the investment of more than $140 million (£88.3
million) will be moved to another base in its network which will be
announced later this week.
British Airways The ballooning pensions deficit at British Airways is
becoming a serious obstacle in its all-share merger talks with Iberia, the
Spanish carrier, whose investors are now calling for at least 40 per cent of
the combined group. (The Sunday Telegraph)
BAA The infrastructure arm of Citigroup, the US bank, and the Vancouver
Airports Authority are planning a joint £2 billion bid for Gatwick airport,
which has been put up for sale by its owner BAA. Other consortiums are
expected to emerge in the coming weeks. (The Sunday Times)
Porterbrook, the train leasing company, has been sold by Abbey to
Deutsche Bank for an estimated £2 billion. Details of the deal will be
announced this week. Meanwhile, HSBC has appointed NM Rothschild to conduct
a strategic review of its eight-year-old HSBC Rail business, which could
lead to a sale. This could delay a multibillion-pound programme to buy new
train carriages.
Utilities
Infinis the waste-to-energy company owned by Terra Firma, the buyout
group, has set in motion a £1.2 billion plan to become one of the largest
wind energy producers in the country, aiming to buy or build up to 800MW of
onshore wind-generating capacity over ten years. (The Sunday Times)
Share tips
The Sunday Telegraph: buy Prudential (banking & finance), Telecity
(telecoms), OMG (technology)
The Mail on Sunday: buy Aveva (technology)
