Five things CAs need to know this week: 21 November 2016
A look ahead to some of the things happening in business, accountancy and politics this week.
1. The Autumn Statement
Chancellor Philip Hammond will deliver his first Autumn Statement on Wednesday, and it’s expected to be one which does not paint the most optimistic of economic pictures for the UK.
Official forecasts are expected to show that over the next four years the UK faces a deficit of between £50bn and £114bn, making it the largest weakening of public finances since 2011.
The Chancellor has indicated he will announce that the Government will be taking a new tack in borrowing, abandoning former Chancellor George Osborne’s promise to balance the books by the end of the parliamentary year.
Policies anticipated to be announced include a freeze on fuel duty, a boost in support for childcare and low-income families to save and modest giveaways to families that are just about managing – or Jams.
Follow @ICASaccounting on Twitter for live updates on the Statement and keep up with CA Today to stay informed with the latest content. ICAS will also be releasing a response to and analysis on the Autumn Statement on Wednesday afternoon.
2. ECB President to discuss uneven euro area growth
MEPs will discuss low and geographically uneven growth in the euro area, low inflation rates and the lack of investment in the real economy in Strasbourg on Monday.
Mario Draghi, President of the European Central Bank (ECB) will listen to the concerns of MEPs, with a resolution planned to be voted in on Tuesday.
Draghi has recently made assurances to maintain stimulus for the Euro as the currency suffers a record losing streak against the dollar.
Speaking at the European Banking Conference in Frankfurt, Draghi said: “Going forward, our assessment will depend on whether we see a sustained adjustment in the path of inflation towards that objective.
“And that means that inflation convergence towards 2% is durable, even with a reduction in monetary accommodation. Inflation dynamics, in other words, need to be self-sustained."
3. Black Friday kicks off holiday spending spree
It’s that time of the year again when shoppers rush to the high street in search of the best ‘Black Friday’ deals.
The day falls on 25 November this year, but many retailers have jumped the gun by offering deals weeks in advance.
Online retailer Amazon are staggering their offers each day in the run up to Friday, with their sale having begun at midnight on 14 November. Supermarket chain Morrisons has followed suit by offering cut price wine and beer a week before its sale starts.
A record breaking £1.1bn was spent during Black Friday last year, with shops experiencing a 223% increase in their daily sales figures.
4. ONS to publish GDP estimate
The Office for National Statistics (ONS) will release its second estimate of third quarter GDP on Friday.
The figures are expected to confirm initial estimates that the economy grew by 0.5% during the third quarter.
However, the figures may also show that the growth was largely unbalanced. Consumer spending has increased while business investment is likely to have fallen.
This imbalance could lead to higher import prices which may hamper consumption growth going forward.
5. Results due from Babcock, Thomas Cook, PayPoint, Mothercare
- Monday: Interims due from BGEO, Bonmarche Holdings and Georgia Healthcare. Finals due from Diploma and Future.
- Tuesday: Interims due from Assura, Babcock International, CML Microsystems and Worldwide Healthcare Trust. Finals due from Compass, CYBG and Renew Holdings.
- Wednesday: Interims due from Thomas Cook and The Paragon Group of Companies. Finals due from United Utilities and Vectura.
- Thursday: Interims due from Charles Stanley, PayPoint, Mothercare, Caledonia Investment and Pets At Home. Finals due from UDG Healthcare.
- Friday: AGM/EGM for Pan African Resources and Range resources. Interims due from Pennon.