What CAs need to know this week: 4 July 2016
A look ahead to some of the things happening in business, accountancy and politics this week.
Bank of England releases Financial Stability report
The Bank of England (BoE) will release its semi-annual financial stability report tomorrow (5 July). BoE Governor Mark Carney hinted last week that fresh stimulus measures were likely following the UK’s vote to leave the EU.
He said the UK’s economic outlook had “deteriorated” and that the committee would “take any further actions it deems appropriate to support financial stability”. Some analysts are predicting that interest rates could be cut from their record low of 0.5% as soon as this month.
Conservative leadership race begins
The Conservative Party will get closer to electing its new leader – and the new UK Prime Minister – this week.
The five candidates will go forward to the first round of voting by Tory MPs on Tuesday (5 July) and the candidate with the least support will be eliminated. This will be followed by a second and third round of voting on 7 and 12 July (if required), until just two candidates remain and the vote is put to party members.
In the running is Stephen Crabb, Liam Fox, Michael Gove, Andrea Leadsom and Theresa May. Both Crabb and May backed the remain campaign, while Fox, Gove and Leadsom campaigned for the UK to leave the EU.
The top 35 CAs under 35 will be announced
ICAS will be announcing the list of the top 35 CAs under 35 this week, as part of this year’s One Young CA competition.
The 35 finalists will be named in each of the four categories: entrepreneurship, leadership, sustainability and CSR, and influence and innovation. The finalists will proceed to the judging stage of the competition, before one winner is crowned this year’s One Young CA.
London Stock Exchange decides on merger
London Stock Exchange shareholders will vote today (4 July) on the proposed merger with Deutsche Boerse, which was announced in March.
Reuters reports that sources close to the deal expect the merger to be approved, despite the UK's decision to leave the EU. The $27 billion merger is expected to be completed in the first quarter of next year.
Australia announces rate decision
The Reserve Bank of Australia (RBA) meets tomorrow (5 July) to decide on further cuts to interest rates. In the wake of the country's election on Saturday – which has yet to produce an overall winner – and the economic impact of the Brexit vote, most economists believe the Bank will leave rates unchanged. However, economic easing is predicted next month to help prop up growth.
Updates and results due from M&S, Sports Direct, Premier Oil, Associated British Foods
- Monday: Finals due from Oneview Group. Interims due from RM plc.
- Tuesday: Finals due from Hayward Tyler Group, Imagination Technologies and Solid State plc. Trading updates due from Carillion, The Gym Group and Persimmon.
- Wednesday: Interims due from Low & Bonar. Trading update from Booker Group plc.
- Thursday: Finals due from NCC Group, Sports Direct, ReNeuron Group. Trading updates from Associated British Foods, Dunelm, M&S, Premier Oil.