Thursday preview: BoE rate decision, Halfords, Hays

6th Apr 2011 17:13

The Bank of England's Monetary Policy Committee (MPC) will announce its decision on its key lending rate and also on the quantitative easing programme at noon on Thursday, some 45 minutes ahead of the announcement by the European Central Bank (ECB) of its decision on its key lending rate.Unlike the ECB, which is widely expected to opt for a quarter point increase as it gets tough on inflation, the Bank of England is expected to maintain the status quo, though it is by no means a foregone conclusion.Since the last meeting of the Bank's Monetary Policy Committee, the Budget has been announced and with it the downgrading of growth projections for the UK economy., That, despite the worsening inflation outlook, is likely to ensure that those in favour of holding off on an interest rate hike will remain in the majority.On the company results side, things look fairly quiet. Recruitment firm Hays follows hot on the heels of sector peer Robert Walters with a trading update. Robert Walters pointed to strong growth in its Asia Pacific and European operations as it posted a 23% rise in year-on-year income for the first quarter, and those areas are likely to be strong points for Hays as well.As with Robert Walters, Hays is expected to give an update on how its Japanese operations have been affected by the earthquake and subsequent tsunami last month.Retailer Halfords has, if you will forgive the pun, got itself into a vicious cycle of underperformance of late, and Shore Capital is not expecting Thursday's trading update to break the chain. It thinks the retail division, which accounts for 90% of revenues, "will continue to be under pressure" while it struggles to see any catalysts to boost revenues at either its car enhancement or leisure businesses, both of which put in lacklustre performances in the company's third quarter.INTERIMS Matchtech Group INTERIM DIVIDEND PAYMENT DATE Dechra Pharmaceuticals, Oxford Instruments, Wilmington Group QUARTERLY PAYMENT DATE GlaxoSmithKline INTERNATIONAL ECONOMIC ANNOUNCEMENTS Bank of Japan target rate (JPN)Current Account (JPN)Trade Balance(JPN)Industrial Production (GER) (11:00) ECB Interest Rate (EU) (12:45) Continuing Claims (US) (13:30) Initial Jobless Claims (US) (13:30) Consumer Credit (US) (20:00) GMS London Capital Group Holdings, Western & Oriental FINALS Asterand, HydroDec Group, OJSC Magnitogorsk Iron & Steel Works GDR (Reg S) IMSS Hays AGMS CQS Rig Finance Fund Ltd., London Capital Group Holdings, Mentum Inc., NBNK Investments, OJSC LSR Group GDR (Reg S), Scottish American Inv Company TRADING ANNOUNCEMENTS Halfords Group, Victrex UK ECONOMIC ANNOUNCEMENTS BoE Interest Rate Decision (12:00) FINAL DIVIDEND PAYMENT DATE Domino Printing Sciences, Henderson Private Equity Inv Trust, Thomas Cook Group