Five things CAs need to know this week: 25 July 2016
A look ahead to some of the things happening in business, accountancy and politics this week.
1. UK and Eurozone economic growth in focus
The preliminary estimate of the UK’s economic growth for the second quarter of 2016 is due on Wednesday (27 July) from the Office for National Statistics (ONS). Economists are predicting the figures to reflect that the UK approached the EU referendum in relatively good health, although slightly down on the same time last year. Second-quarter GDP data for the Eurozone will follow on Friday.
The results come after the International Monetary Fund (IMF) cut the UK’s growth forecast last week. The IMF now expects the UK’s GDP to be 1.3% in 2017 – a downgrade by 0.9% than its previous prediction. However, The Telegraph reports that this is higher than the projections for economic growth in Germany, France and Italy next year.
2. US to decide on interest rates
The US Federal Reserve will announce its interest rate decision this week (27 July). Analysts are expecting no change for now – despite signs of pick-up in the economy’s growth and employment. Morgan Stanley strategists have predicted rates to stay the same until at least 2018, signalling caution after the UK’s vote to leave the EU.
On Friday (29 July), the US will report its first estimate of GDP for the second quarter. Bloomberg reports that growth is projected to increase at its strongest advance in a year at 2.6%.
3. Insolvency figures due
The UK Government’s Insolvency Service will release insolvency figures for the second quarter of 2016 on Thursday (28 July).
Last quarter’s figures showed an increase in company insolvencies for the first time since 2014. In Q1 2016, there were 3,694 company insolvencies, a 5.4% rise. KPMG recently released analysis that showed a fall in companies entering insolvency across England and Wales in Q2, but a rise in Scotland.
4. Insight into manufacturing and retail sector
Two business surveys will be released this week that might offer some clues into the future impact of Brexit.
The CBI’s survey of retailers, released on Wednesday (27 July), should contain some insight into consumer confidence and consumer spending following the referendum vote.
Earlier in the week, the organisation releases its quarterly survey of manufacturers. Analysts are predicting it to reflect a fall in business confidence and investment plans.
5. Earnings from BP, Shell, Weir Group, Barclays, Capita, Sky
- Monday: Interims due from Hammerson, Hiscox Ltd. Finals due from Great Eastern Energy Corporation and Tungsten Corporation. Trading update from Cranswick plc and Aberdeen Asset Management.
- Tuesday: Interims due from BP, Capital & Counties Properties, Croda International, Drax Group plc, Man Group plc, Huntsworth plc, Provident Financial plc, Segro, Unite Group plc and Virgin Money. Finals due from Victoria plc. Trading update from Sage Group plc.
- Wednesday: Interims due from Megafon, ARM Holdings, Burford Capital, Capita Group, Dignity, GlaxoSmithKline, ITV, Nord Gold, Rightmove plc, St James’ Place, Tullow Oil, Taylor Wimpey. Finals due from Renishaw plc. Trading update from Jupiter Fund Management.
- Thursday: Interims due from Anglo American plc, AstraZeneca plc, BAE Systems, British American Tobacco, BT Group, Centrica, Countrywide, Henderson Group, Intu Properties, Just Eat, Lloyds Banking, National Express Group, Royal Dutch Shell, Rolls-Royce, Schroders, Sky, Telefonica, Weir Group. Finals due from Angle plc, Diageo plc, Sky plc.
- Friday: Interims due from Barclays plc, Centaur Media, Diageo plc, FBC Holdings, IMI plc, Indivio plc, Pearson plc, UBM plc.