Economics
Consumer confidence Figures due on Wednesday are expected to show that
the balance of consumer confidence fell from minus 19 in March to minus 20
in April.
Mortgage lending is expected to have fallen further in March when
figures are published tomorrow. A total of 70,000 loans are forecast to have
been granted, down from 73,000 in February. Lending to consumers is also
expected to have fallen, from £2.4 billion in February to £1.4 billion in
March.
House prices The Nationwide house price survey, due out on Wednesday,
is expected to show that prices fell by 0.5 per cent during April, after a
0.6 per cent fall in March. This will take annual house price growth to 0
per cent, down from a 1.1 per cent annual rise in March.
Manufacturing sector The manufacturing Purchasing Managers’ Index, due
on Thursday, is expected to show a fall from 51.3 in March to 50.8 in April.
Any figure above 50 indicates activity.
Credit crunch Mervyn King, Governor of the Bank of England, will come
under pressure from MPs this week to explain why the Bank was slower to
react to the fallout from the credit crunch than other central banks.
Eurozone inflation Official figures due out on Wednesday are tipped to
show that eurozone inflation fell from 3.6 per cent in March to 3.4 per cent
in April.
French consumer confidence is expected to have dipped slightly when
data are released tomorrow. The index of confidence is tipped to have fallen
to minus 37 in April, down from minus 36 in March.
US economic growth. Data due out on Wednesday are expected to show that
US GDP rose by 0.5 per cent in the three months to April, down from 0.6 per
cent growth in the final quarter of last year.
US interest rates The US Federal Reserve is expected to cut interest
rates by a quarter-point to 2 per cent when it announces its rate decision
on Wednesday.
US unemployment Data due out on Friday are expected to show that the US
unemployment rate rose to 5.2 per cent in April, from 5.1 per cent in March.
Nonfarm payrolls are expected to have fallen by 75,000, from a drop of
80,000 in March.
US house prices The US S&P/Case Shiller house price index is
expected to show further falls in house prices, but at a slower rate than in
previous months. The index, due out tomorrow, is tipped to show that the
annual rate of house price growth fell to minus 11.7 per cent during
February, from minus 10.7 per cent in January.
US consumer confidence Figures to be published tomorrow are expected to
show that the index of consumer confidence fell from 64.5 in March to 62 in
April.
Japanese interest rates The Bank of Japan is expected to keep the base
rate unchanged at 0.5 per cent when it announces its interest rate decision
on Wednesday.
Japanese industrial productionis tipped to have fallen by 0.7 per cent
in March. Preliminary figures to be released on Wednesday are expected to
show that production fell, after growing by 1.6 per cent in February, taking
the annual growth to 2.1 per cent, down from the 5.1 per cent reported in
February.
Japanese retail sales at large stores are tipped to have fallen in
March. Figures to be released today are expected to show that sales are 0.4
per cent lower than in March last year, after a 1.4 per cent annual rise in
February.
Banking
& finance
Friends Provident, the insurance group, is tomorrow expected to report
a 7.6 per cent decline in first-quarter sales to £206.1 million, hit by
reduced consumer demand for savings products amid growing economic
uncertainty.
Standard Life, the insurance group, is expected to report a 1 per cent
decline in total first-quarter sales to £4.1 billion on Wednesday, held back
by tougher conditions as the credit crunch continues to take its toll on the
economy.
Bear Stearns Numis Securities, the stockbroking group that is chaired
by Michael Spencer, the City’s richest man, is in advanced talks to carve
out the UK equities business of Bear Stearns, the stricken US investment
bank.
HBOS is close to committing to a rights issue raising possibly £4
billion of fresh capital after taking the view that it wants a big cushion
of capital as Britain enters a housing downturn. The banking group will hold
its annual meeting in Glasgow tomorrow.
Construction
& property
Barratt Developments, the UK’s third-biggest housebuilder, will have no
option but to raise fresh capital via a rights issue, according to leading
shareholders. The builder has a £1.7 billion debt burden. (The Observer)
Consumer
goods
Household productsA study by The Grocer magazine has found that a
trolley-load of 350 consumer items now costs £241.50 - £10 more than in
April 2007. But while dairy and bakery goods now cost 13.4 per cent and 10
per cent more, health and beauty prices have fallen by 7 per cent and
household products by 2.3 per cent. (The Observer)
Pig farmers, who are sending an increasing number of breeding animals
to slaughter to avoid the soaring cost of feed, are forecast to report
losses of £200 million this year. The British breeding herd has halved over
the past decade to 436,000 sows.
Engineering
Siemens, the German engineering conglomerate, is expected to report a
drop in second-quarter group profits on Wednesday after it issued a profit
warning in March, saying that its earnings would be negatively affected by
€900 million (£708.2 million).
Health
Smith & Nephew, the FTSE 100 medical devices company based in
London, is expected on Thursday to report first-quarter sales up between 16
and 25 per cent to between $866 million (£437.3 million) and $930 million,
boosted by the weakening dollar against the euro.
Leisure
Whitbread, the pubs group, is expected today to report an increase in
full-year earnings, driven by a strong performance from its Premier Inn
budget hotel chain, which generates more than 70 per cent of its profits.
Market expectations for full-year underlying pretax profits range between
£204 million and £207 million, compared with £167 million last time.
Regent Inns Sun Capital Partners, the buyout group that owns Lee Cooper
jeans, has emerged as a leading contender to acquire Regent Inns, the £16
million bar group and owner of the Jongleurs comedy clubs, Old Orleans
restaurants and the Walkabout chain of pubs. (The Sunday Times)
McDonald’s, the US burger restaurant chain, is to unveil an
agreement with RoadChef, the motor-way services operator, which will herald
a new type of fundraising model for the fast food giant in Britain. (The
Sunday Telegraph)
Media
Shed Media, the television production company, will report its
full-year results on Wednesday, with analysts expecting a rise in pretax
profits to £9.7 million, from £7.9 million last time.
BSkyB, the satellite broadcaster, will deliver its third-quarter
results on Wednesday. Analysts expect sales to rise to £1.3 billion, from
£1.2 billion last time, with operating profits down to £208 million, from
£218 million. News Corporation, parent company of The Times, has a 39.1 per
cent stake in BSkyB.
United Business Media, the publishing and events group, is set to
announce plans to shift its tax base to Ireland, dealing a fresh blow to the
Government’s tax policies.
Natural
resources
BP and Royal Dutch Shell, the oil giants, are expected to
publish higher first-quarter earnings tomorrow, benefiting from soaring oil
prices, which outweigh the impact of their downstream businesses.
Antofagasta, the copper mining group, is on Wednesday expected to
report higher first-quarter copper production. UBS expects total copper
output to have increased to 115,000 tonnes, from 105,900 tonnes last time.
BG, the natural gas producer, is expected to report increased
first-quarter earnings on Wednesday, buoyed by its liquefied natural gas
business and higher oil prices.
Retailing
Game Group, the video games retailer, is expected tomorrow to confirm a
150 per cent increase in ful-year underlying pretax profits to not less than
£74 million.
N Brown, the Manchester-based home shopping group, is expected tomorrow
to reveal a 14 per cent increase in full-year underlying pretax profits to
£74.6 million .
Supermarkets The Competition Commission will this week spark anger
among supermarket bosses by demanding that they fund much of the bill for
the controversial industry omobudsman it is planning. (The Sunday Telegraph)
Support
services
Johnson Service, the troubled textile cleaning company, is expected to
clarify future strategy and leadership while delivering its results
tomorrow. Analysts are forecasting full-year pretax profits of £18.4
million, compared with £25.6 million last time.
Technology
SAP, the German software group, is expected to report a slight decline
in first-quarter net profits on Wednesday, down by 4 per cent at €298
million (£234.5 million), compared with €310 million last year, as analysts
anticipate that it will feel the impact of the US economic downturn.
Telecoms
Verizon Communications, the US telecoms group, is expected to report
solid first-quarter earnings today, driven by its wireless segment. AT&T,
its rival US telecoms carrier, reported strong quarterly earnings last week.
Transport
BAA The Government has stopped secret attempts by BAA, the airports
operator, to hand a nonexecutive directorship to Sir David Rowlands, former
permanent secretary at the Department for Transport, who played a key role
in directing national airport policy. (The Sunday Telegraph)
The Port of Dover, Europe’s busiest ferry port, is considering bringing
in an outside investor to help to fund a £420 million expansion project.
(The Sunday Telegraph)
Eos, the US business class airline that flew between London and New
York, has filed for Chapter 11 bankruptcy protection.
Utilities
Centrica, the owner of British Gas, has given warning that it will
oppose the takeover of British Energy, the nuclear power group, by EDF of
France or RWE of Germany, and will lobby the Office of Fair Trading to refer
any bids to the Competition Commission. (The Observer)
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Need to know
Can we have good news first then the others on the second day. I usually do not want to spoil my days with good and sad. It spoils my bath habits. honest.
I thank you.
Firozali A Mulla MBA PhD, Dar-Es-Salaam, Tnazania