Economics
UK interest rates should need to rise only once more to bring inflation
back to its 2 per cent target, the National Institute of Economic and Social
Research says today.
The purchasing managers’ survey of UK manufacturing, due
tomorrow, is expected to show that activity dipped a little this month. A
headline index of 54.0 for April is expected, down from 54.4 in March. Any
figure above 50 indicates expansion.
The services sector, the engine of the UK economy, is expected to have
continued to expand at a rapid pace in April, according to the latest CIPS
purchasing managers’ survey of it, due on Thursday. A headline index for
activity of 57.5 for April, little changed from 57.6 in March, is expected.
The latest snapshot of UK high street conditions from the CBI, due
tomorrow, is expected to show a weakening in retail sales activity this
month, after the slowing shown in the March survey.
Mortgage approvals are tipped to have fallen back and consumer
borrowing to have softened in March, as higher interest rates bite, in
personal lending data due from the Bank of England on Wednesday.
UK consumer confidence has been stuck at lows recently, but is expected
to have risen slightly this month, according to the latest poll from GfK due
out today.
Mervyn King, Governor of the Bank of England, is to give a speech on
economic developments on Wednesday.
Eurozone inflation is expected to have fallen to 1.8 per cent in April,
from 1.9 per cent in March, according to official data due today.
A buoyant eurozone jobs market is expected to have lifted sentiment
among eurozone consumers in the latest snapshot of confidence for April, due
today from the European Commission. A small dip in confidence among
businesses is also expected.
Eurozone manufacturing is expected to have remained in robust form this
month, according to the latest purchasing managers’ study of conditions, due
on Wednesday. A headline index of 55.5 for April, up from 55.4 in March, is
forecast.
The eurozone services sector is expected to have continued to expand at
a rapid click this month. The headline index in the latest purchasing
managers’ survey of its conditions is forecast to have risen to 57.5 for
April, from March’s 57.4.
Eurozone retail sales are tipped to have risen fairly robustly in
March, by perhaps 0.5 per cent, after a 0.3 per cent rise in February, in
official data due on Friday.
German unemployment is tipped to have fallen in April data due on
Wednesday. The seasonally adjusted total is tipped to be down by 50,000,
after March’s 65,000 fall. Eurozone unemployment, to be detailed the same
day, is tipped to have fallen to 7.2 per cent in March, from February’s 7.3
per cent.
US employment is tipped to have grown by a fairly soft 85,000 in April
— as weakening of the economy hits job creation — in non-farm payrolls data
due on Friday. Payrolls grew by 100,000 in March.
US consumer spending is expected to have risen in March by 0.5 per
cent, according to official figures today.
US construction spending, hit hard by a housing market slump, is
expected to have risen slightly in March in data due today, despite an
expected twelfth consecutive month of decline in residential construction
investment.
US manufacturing is expected to have grown at a weak pace similar to
that in March, when the April survey of conditions from the Institute of
Supply Management is issued tomorrow. A headline index of 51.0 is forecast,
little changed from March’s 50.9.
The US services sector is tipped to have picked up a little steam in
April, according to the Institute of Supply Management survey due on
Thursday. A headline index of activity of 53.0 for this month, up from 52.4
for March, is predicted.
US productivity is expected to have weakened in the first quarter, in
data due on Thursday. Productivity growth is tipped to have slowed to 1.1
per cent, from 1.6 per cent in last year’s fourth quarter.
Banking
& finance
Up 1.0%
Just Retirement, the financial services group, releases its interim
results today.
Alliance & Leicester, the mortgage lender, will hold its annual
meeting tomorrow. Its chief executive, Richard Pym, announced his departure
in February, which rekindled speculation that it would be vulnerable to
takeover.
The Royal Bank of Scotland is prepared to make a bid for ABN Amro to
top a £94 billion agreed merger between the Dutch bank and Barclays. (The
Sunday Times)
Prudential is planning to hire at least 10,000 new staff in its joint
venture insurance operation in India this year, as it targets the country’s
growing ranks of affluent people and pushes into the healthcare market.
Construction
& property
Up 0.5%
Alpha Pyrenees Trust, a UK- listed investment company focused on French
and Spanish property, holds its annual meeting today.
Taylor Woodrow, the housebuilder, is to hold its annual meeting on
Wednesday. It is in talks to merge with George Wimpey.
Rok, the construction and office services group, has its annual meeting
on Thursday. Rok has said it aims to double its branch network and quadruple
its tradesman workforce to 20,000 within five years via takeovers and
organic growth.
Consumer
goods
Down 0.5%
Lambert Howarth, supplier of footwear to Marks & Spencer, publishes
its final results today. Analysts forecast a pre-tax loss of £10.50 million,
compared with a profit of £2.4 million last year.
Imperial Tobacco, the UK’s second-largest tobacco group, is to release
interim results tomorrow.
Pittards, the AIM-listed leather producer, is to hold its annual
meeting on Wednesday. It closed its Leeds site last year, and transferred
some production to Yeovil.
Unilever, the Anglo-Dutch consumer goods group, is to unveil interim
results on Thursday. Its shares have been lifted by speculation that it
might break itself up.
Engineering
Up 0.3%
Designer Vision Group, the AIM-listed in-car entertainment group,
issues final results today.
Rolls-Royce, the world’s second-largest aircraft engine maker, has its
annual meeting on Wednesday.
GKN, the engineer, is to hold its annual meeting on Thursday.
Health
Up 1.3%
Surgical Innovations Group, a maker of surgical equipment, issues final
results today.
Gyrus, the medical devices maker, holds its annual meeting today.
Smith & Nephew, the maker of replacement hips, is to report interim
results on Thursday.
Oxford Biomedica, the UK biotechnology group, has its annual meeting on
Thursday. It signed a deal worth up to €518 million for TroVax, its cancer
vaccine, with Sanofi-Aventis, the French pharmaceuticals group, in March.
Bupa’s former chairman, Bryan Sanderson, quit the board of the
healthcare group early in protest at a decision to sell its hospital
business. (The Sunday Telegraph)
Industrials
Down 0.1%
Rexam, the canmaker, has its annual meeting on Thursday. In March the
company said that it had agreed to sell its glass business for €660 million
(£450 million) to Ardagh Glass Group in order to focus on beverage cans and
plastic packaging.
Leisure
Up 1.3%
Arena Leisure, the racecourse operator, is to hold its annual meeting
today. Last month Arena won detailed planning consent for a £17.5 million
hotel and residential project at Doncaster racecourse.
888 Holdings, the online gambling operator, is to release its final
results today. Analysts predict a £35.2 million pre-tax profit, up from
£29.2 million the previous year.
Discover Leisure, which sells new and used caravans, is due to report
its interim results today.
Playtech, a developer of gambling software, is to hold its annual
meeting on Wednesday.
Rank Group, the gaming operator, is to hold its annual meeting on
Thursday.
Media
Down 2.1%
Thomson Intermedia, the media monitor, is to report interim results
today. Thomson said in January that it expected group revenue for the 15
months to 30 April to be about £20.6 million.
British Sky Broadcasting, which is 39.1 per cent owned by News
Corporation, the parent company of The Times, is to issue interim results on
Wednesday.
Natural
resources
Up 1.4%
Dana Petroleum, the UK oil and gas group, is to issue preliminary
results today. Analysts predict pre-tax profits of £142 million, up from
£107.8 million the previous year.
Kazakhmys, the FTSE 100-listed copperminer, is to release a trading
statement today.
Lonmin, the South African platinum producer, is to release its interim
report on Wednesday.
Retailing
Up 1.2%
Mothercare is planning to create dozens of “Centres for Parenting”
across Britain after buying Early Learning Centre for £85 million.
Alliance Boots is to have independent non-executive directors on its
board after Dominic Murphy, a partner in Kohlberg Kravis Roberts, bowed to
concern about the secretive operating agendas of private equity firms and
decided to recruit the directors to the retailer’s board after its £11
billion acquisition by KKR. (The Observer)
Alexandra, the Bristol-based supplier of corporate clothing, is to
report interim results tomorrow.
ASOS, the online retailer, is to issue a trading statement today. It
reported shipping 710,000 items during the Christmas season.
Ideal Shopping Direct, the television shopping business, is to hold its
annual meeting tomorrow. In March, it reported a 15.8 per cent decline in
full-year pre-tax profits after it closed the unprofitable Jewellery Vault
channel.
Support
services
Up 0.3%
Shanks, the waste management group, is to hold its annual meeting
tomorrow.
Capita, the outsourcing group, is to hold its annual meeting tomorrow.
Last month, it said it had been chosen by Southampton City Council for a
ten-year services contract valued at about £290 million.
BPP Holdings, the professional training group, is to hold its annual
meeting on Wednesday.
Rentokil is to issue a trading statement today. The services group last
month took its disposals past £1 billion by agreeing to sell Initial
Electronic Security to United Technologies for £595 million.
Serco, the support services group, has its annual meeting today.
Woodward Foodservice’s chief executive and trading director have been
dismissed by Baugur, the controlling shareholder in the UK food distributor.
Grant Thornton, the accounting firm, is poised to take over RSM Robson
Rhodes, a smaller rival, to fight the Big Four’s grip on big-ticket audit
and advisory work. (The Sunday Telegraph)
Technology
Up 1.6%
Pixology, the AIM-listed digital photo software group, is to issue
year-end results today. Analysts predict a pre-tax loss of £300,000, after a
£1.4 million loss last time.
SurfControl, the US internet security company, is to issue its interim
results tomorrow.
Telecoms
Up 1.0%
Airwave’s workers are hopeful of securing a deal with Macquarie, its
new owner, to reinstate “gold- plated” pension benefits in the police radio
network.
Telefónica, of Spain, has thwarted expansion plans of Mexican,
European and US rivals, with a deal to take part of a controlling stake in
Telecom Italia. Telefónica will pay €2.3 billion (£1.5 billion) as part of a
€4.1 billion operation to buy out Pirelli, the Italian tyre group.
Etisalat, based in the United Arab Emirates, and a consortium led by
it, will launch Egypt’s third mobile phone network tomorrow, according to
the Government. It will compete with Vodafone Egypt and Egyptian for Mobile
Services.
Transport
Down 1.1%
National Express, the coaches and trains operator, is to hold its
annual meeting tomorrow. The company recently signed a deal to become
official travel partner of the England football team.
Forth Ports, the ports operator, is to hold its annual meeting on
Wednesday. It is the only remaining listed ports operator in the UK.
DP World, owner of P&O, is considering a partial float or
refinancing just over a year after buying the British ferries and ports
group.
Utilities
Down 0.2%
EDF Energy has been accused of a “cynical” price cut amid new calls for
a competition inquiry into Britain’s energy market. EDF is cutting gas
prices by 10.2 per cent, but not until June 15. Electricity rates are being
left unchanged.
Share tips
The Sunday Telegraph: buy Associated British Foods (consumer
goods), Xchanging (support services).
Up/Down = sector index percentage change on week
