Five things CAs need to know this week: 24 October 2016
A look ahead to some of the things happening in business, accountancy and politics this week.
1. Bank of England Governor to testify on Brexit
Mark Carney is due to testify on Tuesday about the economic consequences of the Brexit vote before the Economic Affairs Committee in the House of Lords.
The Governor recently stated that the fall in the value of the pound will cause a rise in inflation. In that case, the Bank of England will have to weigh increased inflation against supporting the economy with low interest rates.
In his testimony to lawmakers last month, Carney defended his economic policies and said the Bank's August stimulus package had reduced the chances of the UK facing a recession.
2. UK quarterly GDP estimate to be released
The preliminary estimate of the UK's gross domestic product (GDP) for July to September 2016 will be released by the Office for National Statistics (ONS) on Thursday.
These figures may confirm the National Institute of Economic and Social Research's estimate of growth slowing in the third quarter to 0.4%. This would largely be due to a drop in industrial output as retail output was strong in the third quarter.
The April to June 2016 estimate indicated an increase of 0.4% GDP per head.
3. Australian inflation data published on Wednesday
Australia's inflation data, which may help determine whether the central bank decides to cut interest rates in the coming months, is due out on Wednesday.
The consumer price index is expected to rise to 0.5% from 0.4% previously and to 1.1% on a year-on-year basis from 1.0% in the second quarter. Reserve Bank of Australia governor Philip Lowe confirmed in his maiden speech that the figures would be an "important update".
Australian inflation data tends to move the market more than other countries as it is released only once every quarter.
4. Decision due on airport expansion in London
The government will this week announce a long-awaited verdict on whether to expand Heathrow or Gatwick airport.
While MPs will not vote on the topic for at least another year, a decision on the preferred scheme will be made by an airport sub-committee chaired by Theresa May. It will then be subject to a "full and fair public consultation" before put before the House of Commons.
Further expansion to Heathrow has been strongly opposed by Foreign Secretary Boris Johnson and Education Secretary Justine Greening in the past.
5. Results from Bloomsbuy Publishing, Debenhams, GSK, Whitbread
- Tuesday: Interims due from Atlas Mara Co-invest, Severstal and Whitbread.
- Wednesday: Interims due from X5 Retail Group, GlaxoSmithKline, JZ Capital Partners and Torchmark Corporation. Finals due from Earthport.
- Thursday: Interims due from Bloomsbury Publishing and C&C Group. Finals due from Debenhams and Redefine international.