Wednesday preview: MPs to grill Carney and Co

9th Sep 2014 15:12

On Wednesday, four members of the Bank of England's Monetary Policy Committee (MPC) will sit down before the Treasury Committee and answer questions on the Bank's inflation report, providing an opportunity for the market to glean more concrete guidance on monetary policy.As well as a stronger guidance on future monetary policy and the timing of impending interest rate rises from Governor Mark Carney and fellow committee members Martin Weale and David Miles, the market will be particularly interested in what new member Nemat Shafik has to say, since her views are still fairly unknown, noted Sam Tombs at Capital Economics.The inflation report took place back in mid-August, with the Bank's Governor Mark Carney underlining that whilst there has been a reduction in slack within the economy, the BoE also lowered wage growth expectations."The main takeaway from that meeting was that there is a great degree of uncertainty within the MPC and that is likely to be one of the major points that will be hammered home on Wednesday," said Alpari UK's Josh Mahony.Carney and his cabal's reluctance to provide an accurate timeline for interest rate hikes, alongside constantly changing sentiment, is the root cause, says Mahony, of the increased market volatility in recent months."Therefore, I expect to see the Treasury Select Committee push Carney into providing something more concrete in relation to future monetary policy."On Wednesday, Chinese credit growth statistics for August will be published, which will be keenly followed after showing a sharp decline in July.US wholesale inventories and French industrial production figures are also due on Wednesday.After a busy week of central bank announcements, Wednesday will see the only major rate decision in the next seven days, with the latest Reserve Bank of New Zealand decision.Company newsBarratt Developements is unveiling its finals but after a detailed pre-close update in July annalysts are not looking for any surprises. The market will be hoping to see guidance on current trading and strategic objectives with regard to volume growth and dividend policy.Sports Direct is due to unveil an interim management statement, with broker Numis expecting the continuation of trends from its encouraing previous update.At the company's full year results in July, boss Mike Ashley said trading since the year end had been in line with its expectations, with somestronger weeks offset by England disappointing performance in the World Cup."As such, we look for a broad continuation of the previous trends in Sports Retail, with cash gross profit likely to be double-digit ahead and believe that management os likely to reiterate its full year guidance of £360m EBITDA," wrote analysts Andrew Wade."We expect to leave our FY EBITDA estimate of £385m unchanged and, with the shares trading on 18.7x cal-15 earnings, retain our positive stance, seeing significant scope for the group to build on its leading position in the UK and expand aggressively into Europe."Wednesday 10 SeptemberINTERNATIONAL ECONOMIC ANNOUNCEMENTSCrude Oil Inventories (US) (15:30)MBA Mortgage Applications (US) (12:00)Wholesales Inventories (US) (15:00)FINAL RESULTSBarratt Developments, Mcbride, Purecircle LimitedINTERIM RESULTSAccesso Technology Group, Advanced Medical Solutions Group, Alkane Energy, Alliance Pharma, Anpario, Belvoir Lettings, Corero Network Security, Electrical Geodesics Inc (Regs), Kingfisher, Optimal Payments Plc, RestoreIMSSSports Direct InternationalINTERIM EX-DIVIDEND DATEAdmiral Group, AL Noor Hospitals Group, APR Energy, Arrow Global Group, BBGI SICAV S.A. (DI), Berendsen, Bwin.party Digital Entertainment, Cape, Centaur Media, Chesnara, Churchill China, Clarke (T.), Clarkson, Communisis, Elementis, G4S, H&T Group, Holders Technology, Lavendon Group, Rathbone Brothers, Restaurant Group, Savills, Standard Life, Temple Bar Inv Trust, Tex Holdings, TreattQUARTERLY PAYMENT DATECanaccord Genuity Group Inc., IBM Corp., UnileverQUARTERLY EX-DIVIDEND DATEBritish Assets Trust, Land Securities GroupSPECIAL EX-DIVIDEND PAYMENT DATEAdmiral Group, Hargreaves LansdownEGMSOAO Severstal GDR (Reg S)AGMSAcorn Minerals, BATM Advanced Communications Ltd., Downing One VCT , Greene King, ITM Power, Mwana Africa, Sports Direct International, Stewart & Wight, Trinity CapitalFINAL DIVIDEND PAYMENT DATEBacit Limited, Mulberry GroupFINAL EX-DIVIDEND DATEColefax Group, Dart Group, Darty, Goodwin Plc, Hargreaves Lansdown, Mattioli Woods, Rank Group, Swan (John) & Sons