Friday preview: Investors look ahead to RBS, WPP, Eurozone inflation, US data
Royal Bank of Scotland (RBS) results, Eurozone inflation and US data on both personal spending and consumer confidence will be high on Friday’s agenda.
Kicking off the day, RBS is expected to report an increase in third quarter pre-tax profit amid improving economic conditions and asset prices. It follows third quarter results from Barclays and Lloyds earlier in the week and comes after the Scotland-based lender passed its European stress test on capital buffers.
WPP releases its third quarter trading update, which is forecast to report broadly flat sales, weighed down by foreign exchange headwinds.
Following the earnings session, a report on Eurozone inflation is forecast to show consumer prices rose by 0.4% in October, up from the 0.3% seen in September.
The European Central Bank has been fighting hard to bring inflation closer towards its target of just below 2%. It has brought interest rates to an all-time low of 0.05%, turned the deposit facility negative, and introduced a packaged of asset backed securities and covered bonds purchases.
“The turbulence in financial markets in the middle of October won’t have a major impact on monetary policy in developed economies,” said Capital Economics.
“We do not think it is a sign that the world is heading for another recession. Even the slump in oil prices, which we suspect will be sustained, should have less impact on monetary policy than many expect, because it will primarily affect headline inflation. Having said that, lower oil prices are yet another reason for the ECB and BoJ to ease policy further because of the risk of deflation in the Eurozone and Japan.”
In the US, analysts predict a report will show personal spending rose by 0.1% in September, while the University of Michigan’s consumer confidence index is expected to confirm a reading of 86.4 in October.
Friday 31 October
INTERIMS
1Spatial
INTERIM DIVIDEND PAYMENT DATE
32Red, Advanced Medical Solutions Group, BBA Aviation, Central Asia Metals, Crawshaw Group, Dignity, EMIS Group, Hargreave Hale AIM VCT 2, Huntsworth, Lighthouse Group, Maven Income & Growth 2 VCT, NAHL Group, Old Mutual, Servelec Group , Smurfit Kappa Group, Tandem Group, Wynnstay Group, XLMedia
QUARTERLY PAYMENT DATE
Albion Technology & General VCT, F&C Commercial Property Trust Ltd., JP Morgan Chase & Co, Mercantile Investment Trust (The), Middlefield Canadian Income PCC, Schroder Income Growth Fund, Torchmark Corp.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (13:45)
International Reserves (EU) (11:00)
Personal Consumption Expenditures (US) (12:30)
Personal Income (US) (12:30)
Personal Spending (US) (12:30)
Retail Sales (GER) (07:00)
U. of Michigan Confidence (Final) (US) (13:55)
Unemployment Rate (EU) (10:00)
NBS Manufacturing PMI (CH) (Sat 1 November)
Consumer Price Index (EZ) (10:00)
Consumer Price Index (JP)
Q3
Aon, International Consolidated Airlines Group SA (CDI), Royal Bank of Scotland Group
GMS
Gresham House, Jupiter Second Split Trust Geared Gwth Shares
IMSS
Berendsen, Direct Line Insurance Group, Regus, Royal Bank of Scotland Group, Weir Group
TRADING STATEMENT
WPP
AGMS
CEB Resources, Cientifica , Ideagen
UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:05)
FINAL DIVIDEND PAYMENT DATE
Abbey, Chemring 7% Cumulative Preference Shares 1, City of London Investment Group, Heavitree Brewery 11 1/2% Cum Prf , Latham (James) 8% Cumulative Preference 1, Mid Wynd International Inv Trust