LONDON REPORT
THE week starts with a quarterly trading statement from grocer Tesco, which is expected to report a fall in earnings because of tough economic conditions and fierce competition.
Tomorrow will see the release of the UK’s latest industrial production and manufacturing data, plus a speech from Paul Tucker, deputy governor of the Bank of England.
Economists expect the Office for National Statistics to announce manufacturing output has grown by 0.1 per cent in April, following a 0.9 per cent rise in March. They predict a 0.2 per cent rise for broader industrial production, following a 0.3 per cent fall in March.
On Wednesday, advertising giant WPP will give a trading update and hold its annual general meeting. The pay of chief executive Sir Martin Sorrell is likely to prove a fiery topic, with shareholders opposing his £13m pay deal.
Also on Wednesday, supermarket J Sainsbury will give its first quarter update, with figures for the period to 9 June revealing whether sales of Jubilee-inspired bunting and paper plates compensated for April’s dismal weather.
On Thursday Carphone Warehouse will post its annual results. Analysts forecast its pre-tax profits to have slipped slightly to £53m for the year ending March 2012 from £54m last year.
Haulage company Wincanton will also release annual figures, with analysts forecasting revenue to fall from £2.18bn to £1.26bn for the year to 31 March.
In the evening, Bank of England governor Sir Mervyn King and chancellor George Osborne will speak at the annual Mansion House dinner. So far, no policy announcements have been trailed.
Thursday is also a busy day for AGMs, with WM Morrison, Kingfisher and M&C Saatchi among the meetings.
The Eurozone’s debt dilemma has been heated up by the €100bn (£80bn) loan given to Spanish banks – and European markets are likely to see at least a temporary boost this week.