Economics
GDP growth The economy is believed to have had a strong second quarter.
Data on GDP growth in Q2, due out on Friday, are expected by analysts to
confirm initial estimates that the economy expanded by 0.8 per cent and grew
by 3 per cent over the year to the second quarter, above its long-run
average.
Public finances figures will be published today by the Office for
National Statistics. Public sector net borrowing is tipped to show a fall —
equivalent to a government surplus — of £6 billion in July, compared with
borrowing of £7.4 billion in June. The public sector net cash requirement is
forecast to show a surplus of £11 billion.
Money supply M4, the broadest measure of the money supply, is expected
to record a 12.6 per cent rise in the year to July in data which is out
today, compared with a 12.9 per cent rise in the year to June.
Business investment is expected to show a 2 per cent rise in the second
quarter in data out on Thursday, compared with a 0.6 per cent fall in the
previous quarter. However, that would still take the annual rate lower, to
8.8 per cent from the 9.4 per cent reported last time.
US durable goods orders are expected to show a 1 per cent rise in
figures for July, which are due out on Friday, compared with the 1.3 per
cent increase that was recorded in June.
US house sales New home sales figures for July in the United States are
expected to soften to 825,000, compared with 834,000 in June, in figures
which are due out on Friday.
Japanese interest rates The Bank of Japan’s Monetary Policy Committee
had been expected by some economists to raise interest rates this month.
However, the consensus now is that it will keep rates steady at 0.5 per cent
on Thursday, amid market turmoil and a surge in the yen.
Banking
& finance
Hiscox, the insurance group, will deliver its full-year results today,
with analysts forecasting a 45 per cent rise in pre-tax profits to £89
million.
London insurers face the prospect of claims worth hundreds of millions
of pounds arising from America’s sub-prime mortgages debacle as class-action
lawsuits begin to pour into the US courts.
Northern Rock, the mortgage lender, is considering using cheap loans
from the US central bank to keep its business on track amid the recent
financial markets turbulence. (The Mail on Sunday)
Nationwide, Britain’s biggest building society, has stoped all sales of
payment protection insurance following an admission that staff were not
advising customers properly. (The Mail on Sunday)
Alternative Investment Market Hundreds of companies quoted on London’s
junior Alternative Investment Market have been updating their websites to
comply with a new London Stock Exchange rule that comes into effect today.
(The Independent on Sunday)
Private investors in Britain started baling out of shares months before
the current turmoil in world financial markets. Small punters sold a net
£5.9 billion of their shareholdings in the eight months to July and also
took refuge in defensive stocks, according to an analysis by Capita
Registrars.
Construction
& property
Persimmon, the FTSE 100 housebuilder, will deliver its half-year
results tomorrow, which should give a clear indication of how demand for new
homes has fared in the face of recent interest rate rises. Analysts forecast
pre-tax profits of between £276 million and £279 million, on £1.5 billion of
revenues, down from £1.55 billion last year.
Keller, the UK ground engineer which worked on the foundations of the
new Goldman Sachs headquarters in New York, will announce its half-year
figures this week, after “excellent” trading during the first five months
including $110 million (£55.6 million) worth of new Middle East contracts.
Speymill, the UK property company, has formed a joint venture with The
Goodman Group, a Minneapolis-based operator of healthcare homes for the
elderly, to work on building about ten retirement villages in Britain.
Goodman, the industrial property development group which was formerly
known as Macquarie Goodman, has signed an agreement with Birmingham City
Council and Advantage West Midlands, the regeneration agency, to develop the
£450 million Ventureast scheme in Birmingham.
Rightmove Asking prices for properties in London have fallen for the
first time in a year, according to Rightmove, the property website, bringing
hope that this could ease house price pressures across the country.
Rightmove said that London asking prices fell by 0.1 per cent in the past
month; prices in the capital have risen by about 2 per cent per month for
the past year.
Consumer
goods
Mattel, the US toy maker, admitted that there may be shortages this
Christmas after it recalled 18 million products made in China on safety
grounds. It says that it is a month behind on its Christmas deliveries. (The
Mail on Sunday)
Russian Alcohol, which makes Green Mark vodka, has appointed ABN Amro,
the Dutch investment bank, to advise on a sale that is expected to value the
business at about $600 million (£303 million). The auction is expected to
attract interest from the world’s biggest drinks companies. (The Sunday
Times)
Engineering
Weir Group, the engineer, will deliver its interim figures tomorrow
with first-half pre-tax profits expected at between £39.6 million and £41.8
million, from £37.2 million last time.
Lotus, the Norfolk-based sports car manufacturer and engineering
consultancy, is developing a range of cars for Jinhua Youngman Automobile, a
newcomer to the Chinese motor industry. (The Sunday Times)
Health
Chi-Med, the AIM-listed pharmacuetical research company that derives
medicines from traditional Chinese therapies, has formed a joint venture
with Eli Lilly, the US pharmaceuticals giant, to focus on the development of
cancer and inflammation treatments.
Nestor, the healthcare group, is to come under pressure to confirm that
takeover talks with potential bidders have been abandoned. The group has a
market value of £156 million. (The Sunday Times)
Industrials
Sulzer, the Swiss industrials giant, is on the prowl for small-to-
medium sized business acquisitions, Ton Büchner, its chief executive, told
Neue Zürcher Zeitung, the Swiss newspaper, ahead of its interim results due
out tomorrow. Analysts forecast first-half net profits of SwFr131 million
(£55 million), a 26 per cent rise on last year.
Leisure
Esporta Duke Street Capital, the private equity group, is in talks with
Neil Gillis, the former chief executive of Esporta, about launching a bid to
buy back the troubled fitness chain just months after selling it. (The Mail
on Sunday)
New York tourism The latest tourism numbers from New York &
Company, the city’s tourism authority, show that Britons make up the
majority of its foreign tourists, with 1.1 million visiting last year, a 4
per cent increase on 2005. (The Observer)
Media
Indian television industry More than 100 new television channels are
awaiting government approval in India as media companies jostle for position
in the second wave of expansion in the television industry. India’s
broadcasting minister has so far received applications from more than 50
companies for permission to launch 130 channels in the next 12 to 18 months.
Live Nation Madonna, the US superstar, is considering leaving Warner
Music, her career-long record label, for a landmark deal with Live Nation,
the venues and promotions company, in a deal valued at about $100 million
(£50.5 million).
Emap’s consumer magazine division is being eyed by Lagardère, the
French publishing group, which could see Kevin Hand, the former Emap chief
executive, back in charge of the company from which he was once ousted. Mr
Hand now runs Hachette- Filipacchi UK, Lagardère’s British magazine arm.
ITV Michael Grade, executive chairman of ITV, the commercial
broadcaster, is close to securing a review of the rules that limit how much
ITV can charge advertisers. (The Sunday Telegraph)
Natural
resources
BHP Billiton, the FTSE 100 Anglo-Australian mining group, will announce
its full-year results on Wednesday with the City expecting a $1.8 billion
(£909 million) fall in underlying earnings before interest and tax to $15.3
billion. Analysts will hope for an update on the company’s share buyback
programme and its acquisitions strategy after rival Rio Tinto’s $38 billion
bid for Alcan, the aluminium giant.
Retailing
River Island Members of the Lewis family, owners of the River Island
retail chain, shared a windfall of more than £50 million last year,
according to accounts filed at Companies House. (The Observer)
Wild Orchid, Russia’s biggest lingerie retailer, will make its debut in
Britain this week at the Bluewater shopping centre in Kent. The shop will be
called Vendetta.
MK One, the 172-store low-price fashion retailer which is owned by
Baugur, the Icelandic group, dived £21.4 million into the red last year and
the company was forced to restructure its balance sheet. Baugur has had to
plough £15 million into MK One while Landsbanki, one of the group’s bankers,
converted £38.7 million of debt into equity.
Supermarkets and suppliers The Competition Commission is about to be
deluged by more than 12 million e-mails from supermarkets and their
suppliers as part of an investigation into alleged threats by the stores.
Support
services
Neteller, which specialises in processing payments for online gaming
companies, will hold its annual meeting today and will announce its interim
results on Thursday, when investors will have the chance to see its new
strategy after the US clampdown on internet gaming companies. Trading in
Neteller shares resumed only last month after it agreed to pay $136 million
(£66 million) to the US Government to avoid being prosecuted for conspiracy.
Michael Page International, the recruitment group, will announce its
interim results today. A second-quarter trading update last month revealed a
36 per cent rise in first-half gross profits to £226.5 million. All eyes
will be on the outlook for City jobs in the wake of recent market
turbulence.
Rentokil, the rat-catcher to washroom services company, will report its
interim results on Thursday with analysts forecasting a fall in pre-tax
profits to between £80 million and £84 million, from £103 million last year.
Berkeley Scott, the recruitment company, is signalling a bid for Robert
Walters, its significantly bigger rival, which is valued at £230 million.
(The Independent on Sunday)
Technology
Touchstone, the business software group, will hold its annual meeting
on Wednesday, when investors will be looking for signs of an increased flow
of new work after June’s publication of full-year figures showed pre-tax
profits broadly flat at £1.1 million.
Spinvox, the business that converts mobile voicemail into text, has
secured a landmark deal to offer its service to customers of Alltel, the US
mobile phone group. The British group’s service is to be made available to
Alltel’s 12 million strong customer base later this year.
Telecoms
Telekom Austria, the country’s leading telecoms company, is expected to
deliver flat second-quarter revenues of € 1.75 billion (£797 million) when
it announces its interim results on Wednesday. Analysts also forecast
second-quarter earnings before interest, tax, depreciation and amortisation
of € 461 million
Transport
National Express, the transport group, could see its award of the
InterCity East Coast rail franchise thrown into doubt after the Office of
Fair Trading revealed that it is to investigate the company’s suitability on
competition grounds. (The Sunday Telegraph)
Utilities
Gazprom, the Russian gas supplier, has approached some of Britain’s
biggest companies with a plan to offer cheap supplies after already starting
to sell direct to companies on a small scale via its Cheshire-based Gazprom
Marketing & Trading arm. (The Mail on Sunday)
Share tips
The Sunday Telegraph: buy HSBC (banking & finance), Mondi
(industrials), Wm Morrison (retailing), Character Group (consumer goods)
