Five things CAs need to know this week: 1 August 2016
A look ahead to some of the things happening in business, accountancy and politics this week.
1. Bank of England announces interest rate decision
The Bank of England (BoE) is set to announce its interest rate decision and publish the quarterly inflation report on Thursday (4 August).
Last week, BoE monetary policy committee (MPC) member Dr Martin Weale said he was expecting to back further stimulus measures, after the release of lower than anticipated economic figures. Only one member of the BoE MPC voted to cut interest rates at the last meeting.
Investors are reportedly predicting the benchmark interest rate to be cut from 0.5% to 0.25% and new quantitative easing measures to be announced.
2. First Labour leadership debate
Labour leadership contenders Jeremy Corbyn and Owen Smith will go head-to-head in their first live debate on Thursday (4 August) in Cardiff. There are a further four leadership debates over the next few weeks in Nottinghamshire, Birmingham, Glasgow and London and all can be watched online.
A poll released last week by Opinium/Observer revealed that Corbyn has the support of 54% of Labour Party members, with 22% for Smith and 20% still undecided.
3. Spotlight on manufacturing, services and construction sectors
We will get an insight into the health of the UK’s manufacturing, services and construction sectors following the EU referendum this week, with several purchasing managers' surveys due to be released.
The UK manufacturing purchasing managers’ index (PMI) for July is due later today (1 August), as well as for the Eurozone area.
Construction PMI data will be published tomorrow (2 August), while services PMI data follows on Wednesday (3 August).
4. Impact of Brexit on Ireland
Ireland’s central bank governor Philip Lane will make his first speech following the UK’s decision to leave the EU (2 August).
The Bank cut its economic growth forecasts for 2016 and 2017 last Wednesday, adding that Brexit would reduce Irish GDP by 0.2% this year.
Ireland’s GDP grew by 26.3% in 2015, making it the fastest-growing economy in the world, the Wall Street Journal reports.
In a statement, the Bank said: “The close relationship between the Irish and U.K. economies creates a particular exposure for the Irish economy from Brexit. Both in the short-term and in the longer-term, the economic impact of Brexit on Ireland is set to be negative and material.”
5. Results from RBS, HSBC, Standard Chartered, Rio Tinto, LSE
- Monday: Interims due from Fidessa Group, Intertek Group and Vedanta Resources. Finals due from OPG Power Ventures and Real Good Food Company.
- Tuesday: Interims due from Clarke, Direct Line Insurance, Fresnillo, Greggs, InterContinental Hotels Group, Meggitt plc, Shire plc, Spirent communications. Trading update from SABMiller. Finals from Clipper Logistics.
- Wednesday: Interims from Livanova, Rio Tinto, SOCO International, Standard Chartered. Trading update from Next.
- Thursday: Interims from Aviva, Inmarsat, Johnston Press, Ladbrokes, London Stock Exchange, Mondi plc, RSA Insurance Group.
- Friday: Interims from esure Group, HSBC, RBS and William Hill.