What CAs need to know this week: 2 November 2015
A look-ahead at some of the key things happening this week.
Bank of England to update on inflation and interest rate rise
The Bank of England’s (BoE) quarterly Inflation Report is due on Thursday (5 November) – and it is expected to suggest that interest rates will stay at 0.5% for several more months. Last week, the US Federal Reserve hinted that it may increase the US interest rate in December, which would be the first rate rise since 2008. If this goes ahead, commentators believe that the BoE will follow suit within the first six months. Several financial experts also believe that the BoE will raise interest rates in the first half of 2016, due to the UK’s relatively strong economic performance.
Health of global manufacturing sector under spotlight
The economic health of the global manufacturing sector will be under the spotlight later today (Monday, 2 November), when the three manufacturing purchasing managers indices (PMI) are released for the UK, the EU and the US. In the UK and the US, the figures are expected to reveal that manufacturing has weakened to its lowest growth since spring 2013. Official manufacturing production figures are due for the UK on Friday (6 November).
Pre-pack Insolvency reforms announced
Pre-pack Insolvency reforms are announced today (Monday, 2 November). Pre-packs involve the negotiated sale of a struggling business before it is put into administration and the new measures include the establishment of a pool of experts to review proposed acquisitions. The reforms follow the recommendations of an independent review into Pre-packs for the UK Government by Teresa Graham CBE in 2014. ICAS has been closely involved in the development of these reforms.
Figures due from Associated British Foods, M&S, Imperial Tobacco Group, AstraZeneca
Finals are due this week from Associated British Foods (2 November) and Imperial Tobacco Group (3 November), while interim results are expected from M&S Group, Tate & Lyle, AstraZeneca, and Cable & Wireless Communications. Trading updates are also due from Weir Group, HSBC, Stagecoach Group, Cobham plc, Legal & General and Standard Chartered plc.
Nato eastern members in security talks
Bucharest will host a Nato summit on Wednesday (4 November) for eastern members to discuss security measures on its eastern flank. Poland and Baltic states have highlighted security issues amid continuing concern about the ongoing conflict between Ukrainian and pro-Russian separatists.
Fed’s Yellen quizzed on regulation
Federal Reserve Chair Janet Yellen testifies before the House Financial Services Committee on Tuesday (3 November) on Federal Reserve actions and plans for bank regulation and supervision.