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Economics
UK output: Final figures for the performance of the UK economy during
the first quarter are due out tomorrow. An estimate that GDP plunged by 1.9
per cent in the quarter could be left unrevised, although some economists
are forecasting a 2.2 per cent drop.
Manufacturing trends: The headline index of the latest CIPS/Markit
purchasing managers’ survey of manufacturing, due out on Wednesday, is
forecast to climb to 46 for June, from a May reading of 45.5. Any figure
under 50 indicates contraction.
Services trends: The latest CIPS/Markit survey of the services sector,
due out on Friday, is expected to show a headline index of 51.5 for June,
from 51.7 in May.
Financial sector sentiment: A CBI survey shows that 29 per cent of
financial institutions expect a rise in business in the new quarter,
beginning this week, with 18 per cent anticipating further decline, leaving
the CBI’s gauge of financial sector sentiment at its most upbeat since March
2007.
Eurozone interest rates: The European Central Bank is set to leave
official eurozone interest rates unchanged at 1 per cent on Thursday,
analysts believe.
Eurozone producer prices: The cost of goods leaving eurozone factories
is expected to have risen by 0.1 per cent in May to stand 5.6 per cent down
on a year ago, according to data due out on Thursday. In April, producer
output prices fell by 1 per cent, leaving them 4.6 per cent down
year-on-year.
Eurozone manufacturing: The latest Markit purchasing managers’ index of
eurozone industry is expected to remain unchanged in final June data due out
on Wednesday. A headline figure of 42.4 is tipped, on a scale where any
figure under 50 indicates contraction.
Eurozone services: The latest Markit purchasing managers’ index of
eurozone services, out on Friday, is expected to show that the sector
continued to shrink at an unchanged pace in June from that suffered in May,
with an unchanged headline reading of 44.5 predicted by analysts.
Eurozone unemployment: The jobless rate in the eurozone is forecast to
have risen to 9.3 per cent during May, from 9.2 per cent in April, according
to official data due out on Thursday.
US factory orders: New orders for American manufacturers are tipped to
have risen by 0.2 per cent in official figures for May due out on Thursday,
after a 0.7 per cent gain in April.
US house prices: The cost of homes in 20 US metropolitan areas is
expected to have fallen at an annual pace of 18.8 per cent in April, after
an 18.7 per cent year-on-year drop in March, according to the S&P/Case-Shiller
house price indices, due out tomorrow.
US consumer confidence: The latest poll from the Conference Board
research group, due out tomorrow, is expected to show that its headline
index of confidence rose to 55.1 in June, from a May reading of 54.9.
Japanese industrial production: Output from industry in the world’s
second-largest economy is forecast to have climbed by 7.3 per cent in May,
after a rise of 5.9 per cent in April, according to data due out today.
Banking
& finance
Cantor Fitzgerald: The American bond trader is to create 100 new jobs
in its UK investment banking operations as it seeks to exploit the
disappearance of rivals. The jobs will be created at Cantor Fitzgerald &
Co in institutional broking, trading and investment banking. (The Sunday
Telegraph)
Madoff Securities International: Ruth Madoff, the wife of the disgraced
financier Bernard Madoff, has agreed to give up almost $80 million (£50
million) in assets after reaching an agreement with US prosecutors. The
settlement, which allows Mrs Madoff to keep $2.5 million in cash, was
reached ahead of her husband's sentencing in New York today. (The Sunday
Telegraph)
Construction
& property
London & Stamford: The commercial property company has reported
pre-tax profits of £20.1 million in its first full financial year since
flotation in November 2007. It was the only listed property group to add
shareholder value during the financial year, with acquisitions of a City
office for £74 million and a 15.7 per cent stake in the Meadowhall Shopping
Centre, Sheffield, for £53 million. (The Sunday Telegraph)
Home Information Pack: Half of all home sales are going through without
the Home Information Pack demanded by the Government, according to a survey
by Spicerhaart, Beritain’s biggest independent estate agency group. Over a
five-week period it found that a HIP was available and completed in only 48
per cent of cases. The need to complete and pay for the pack, which includes
an energy efficiency rating for the home, is said to be slowing any recovery
in the property market. (The Mail on Sunday)
Consumer
goods
Tea: The price of tea is predicted to jump to a record high after
droughts in India, Kenya and Sri Lanka hit production. A box of 80 Tesco
premium teabags is already up to 99p from 68p a year ago — a rise of 45.5
per cent — and more price rises are expected across the industry. Teas
produced at high altitude, such as Darjeeling, have been hit worst by the
drought. Producers had to raid storage reserves last year after total demand
of 3.85 million tons trailed the 3.78 million tons produced. The fall of the
pound against the dollar, the currency used for global tea trades, has also
pushed up prices in the UK. (The Mail on Sunday)
Engineering
Volkswagen: The German carmaker has delivered Porsche an ultimatum to
accept a tie-up between the two groups in a deal that would be backed by the
Qatar Investment Authority. Porsche hit out at its rival, saying that the
ultimatum from Volkswagen and its key shareholder, the German state of Lower
Saxony, was “damaging”. (The Sunday Telegraph)
Industrials
Ineos: The chemicals group has revealed the cost of refinancing its
£6.4 billion debt will mean that annual interest will rise from £534 million
to £666 million. The group, which is being advised by Lazard, has also been
hit for one-off fees of £57 million. (The Sunday Times)
Leisure
Greene King: The brewer and pub operator is forecast to report a 16 per
cent fall in full-year pre-tax profits to about £118 million after a strong
fourth quarter, helped by an improving consumer outlook. It is expected to
face questions on its plans for the remainder of the £207.5 million proceeds
of its recent rights issue, of which it has spent £11.3 million retiring
debt and £30.4 million buying pubs.
Premium Bars & Restaurants: The operator of the Living Room and
Prohibition chains is poised to undergo a pre-pack administration before
being acquired for about £50 million by the Reuben brothers. The brothers,
already the group’s biggest shareholders, are tipped to run the business
under the auspices of Northern Racing, their racecourse business.
Camelot: The lottery operator is in advanced talks to pick up a
lucrative contract to advise California on running its state lottery.
Through Camelot Global Services, its sister company, the British group will
advise California on product development and aspects of corporate and social
responsibility. (The Sunday Times)
Media
Setanta: Doughty Hanson, the private equity group, lost €100 million
(£85 million) when the Irish sports broadcaster collapsed last week.
Deloitte, the accountancy group handling the insolvency, has indicated that
shareholders will be wiped out, but there could be a return for lenders that
include hedge funds such as Avenue Capital and Montrica Investment
Management. (The Observer)
Springer Science and Business Media: EQT, the Swedish private equity
group, is favourite to win a €500 million (£425 million) stake in the German
publishing house. Springer, which is co-owned by Candover and Cinven, the
private equity groups, has struggled under a debt pile estimated at more
than €3 billion. (The Independent on Sunday)
Natural
resources
Anglo American: The mining group being stalked by Xstrata, its Swiss
rival, is in talks with Dubai Natural Resources World to codevelop iron ore
assets in Brazil.
Cadogan Petroleum: The London-listed oil explorer has been granted a
High Court order to freeze the assets of its former chief executive and
chief operating officer in six countries after “potential irregularities” in
its accounts. Cadogan’s value has fallen from more than £200 million to £23
million. Last year it was forced to suspend trading in its shares five weeks
after raising £153 million from investors in a London float. (The
Sunday Telegraph)
Retailing
Marks & Spencer: The high street retailer will report its
first-quarter results on Wednesday, which are expected to show a fall of up
to 3.5 per cent in like-for-like sales, an improvement on a 4.2 per cent
fall last time. (The Sunday Telegraph)
Harrods: Omar Fayed, youngest son of Mohamed Al Fayed, has left
Harrods, raising questions about a future successor at the helm of the
shopping group. Harrods Holdings increased its pre-tax profits by 60 per
cent to £55.7 million in the 12 months to February 2008 on a small increase
in sales to £441 million. (The Sunday Telegraph)
Valentino: Permira, the private equity group, has begun discussions
with a consortium of banks about the sustainability of the Italian fashion
company’s debts of €2.5 billion (£2.1 billion). (The
Sunday Times)
Carpetright: The floor coverings retailer is expected to report a 70
per cent drop in pre-tax profits to £17 million when it unveils its
full-year results today. It has been hit by the recession as shoppers delay
purchasing big-ticket items such as carpets amid fears over unemployment. (The
Sunday Times)
Support
services
Ernst & Young: The financial services group is planning to move the
headquarters of its global training camp for oil and gas professionals from
Houston, in Texas, to Bahrain this year. Bahrain sits between the largest
global oil reserves, in Saudi Arabia, and the largest global gas reserves,
in Qatar. (The Sunday Telegraph)
Telecoms
Daisy Communications: The Lancashire-based telecoms group is in talks
to float on the stock market in a £200 million deal. Daisy, which provides
corporate telecoms to small and medium-sized companies, plans to launch on
the Alternative Investment Market at the same time as raising funds for
acquisitions. (The Sunday Times)
Transport
National Express: Talks between National Express and the Department for
Transport (DfT) over the future of the East Coast main line have reached an
impasse, days before a trading update is due from the quoted bus and rail
group. A resolution of the dispute is vital to National Express, which faces
heavy losses from its current deal with the Government to run trains on the
line. It is also considering a £400 million rights issue, which it will not
be able to launch without a settlement. (The Sunday Times)
Utilities
Thames Water: Britain’s biggest water company is rewarding thousands of
its staff with bonuses of at least £600 while warning customers that they
face inflation-busting price rises. The bonus news came on the back of a
surge in profits at the group, with the figure up by 4 per cent to £435.1
million. Thames Water has told customers that it wants to put up prices by
as much as 10.6 per cent above inflation next April, arguing that this is
necessary to fund an ambitious investment programme. (The Mail on Sunday)
Share
tips
The Sunday Telegraph: buy Hill & Smith (industrials), Standard
Chartered (banking & finance) The Mail on Sunday: buy FirstGroup (transport)
