Thursday preview: BoE rate decision, AB Foods, Man Group

8th Jul 2009 17:52

The Bank of England's Monetary Policy Committee (MPC) announces its interest rate decision on Thursday. The decision itself is likely to prove a non-event with the MPC unanimously expected to keep the Bank's key lending rate unchanged, but there may be an update on the quantitative easing (QE) programme, which some economists are forecasting will be expanded by £25bn to its current £150bn limit.The minutes from the last meeting of the MPC revealed enduring concerns about how strong the bounce back by the economy will be and how long it will last. The Committee is also concerned about bank lending to businesses, all of which may persuade the MPC to pump up the QE programme. The committee also welcomes a new member, David Miles, a former top adviser to the Treasury on the mortgage market. He opined last week that the worst of the recession and the housing slump is probably over but Britain is set for an "anaemic" recovery with little chance of returning to buoyant growth."On the company front trading statements are expected from Primark owner Associated British Foods, housebuilder Barratt Developments, hedge fund manager Man Group, recruitment firm Hays and online gaming outfit PartyGaming.The third quarter update from Associated British Foods may be short on numbers and long on descriptive narrative, according to broker Citigroup. Citi is expecting Primark to put in its usual strong performance, but the food side may be more mixed, with margins likely to be under pressure in the Silver Spoon sugar business.Barratt Developments' performance will be judged against that of sector peer Persimmon, which issued a generally upbeat trading update on Tuesday. Barratt said in May that its order book has risen by 70% since the start of 2009, though the group justifiably remains cautious over the health of the housing market, which is still suffering from lack of mortgage availability.Man Group is likely to have seen a dip in assets under management as customers withdraw funds. Shareholders in recruitment firm Hays will have been encouraged by the statement from fellow recruiter Michael Page on Tuesday which suggested that the rate of decline in the UK market has slowed., though they will have also noted that Michael Page warned that the third quarter figures to be "challenging".With the economic outlook remaining uncertain employers are increasingly laying off permanent staff and looking to contractors to plug the gaps, so it would be no surprise if Hays's temps business were to outperform the permanents side of the business.Online poker firm PartyGaming will issue a second quarter update on key performance indicators. The company is continuing to compete with one hand tied behind its back against those companies still operating in the US, the world's biggest online poker market, though there are moves afoot in the US congress to move to a more liberal approach towards online gaming.QUARTERLY PAYMENT DATEGlaxoSmithKlineFINALSBegbies Traynor Group, MorseAGMSAveva Group, Brulines, Man Group, Panceltica Holdings, Richoux GroupUK ECONOMIC ANNOUNCEMENTSBoE Interest Rate Decision (12:00)Visible Trade Balance (09:30)Non-EU Trade Balance (09:30)INTERNATIONAL ECONOMIC ANNOUNCEMENTSWeekly Jobless Claims (US) (13:30)Wholesale Inventories (US) (15:00)CPI (GER) (07:00)Trade Balance (GER) (07:00)Current Account (GER) (07:00)FINAL DIVIDEND PAYMENT DATEF&C Managed Portfolio Trust Income Shares, International Power, Perpetual Income & Growth Inv TrustQUARTERLY RESULTSSandvine CorporationTRADING STATEMENTAssociated British Foods, Barratt Developments, Hays, Man Group, PartyGaming, Computacenter