Thursday preview: Home Retail, Halfords, UK interest rates

9th Jun 2010 16:00

Argos and Homebase owner Home Retail gives a trading update a week after its big rival in the DIY business, B&Q owner Kingfisher, had a moan about adverse weather conditions hitting first quarter performance, and Home Retail is likely to voice similar grumbles. "The UK home and general merchandise market has experienced reduced levels of customer demand and industry-wide pressures on the cost of goods over the last year. On all measures, the group has produced a good result against this backdrop," chairman Oliver Stocken said, at the end of April.Moving along the High Street car parts and cycles retailer Halfords issues its preliminary results. Market expectations are for pre-tax profit of £113.5m, up from £77.5m last year, while sales are expected to edge up to £819.8m from £809.5m.Charles Stanley expects earnings before interest and tax to climb to £120m from £102m the year before, and the dividend per share to be hiked to 19p from 15.9p."Car Maintenance is expected to deliver solid sales growth, boosted by a prolonged period of winter weather and strong take-up of the 'wefit' proposition. Leisure should also have made good progress, driven by a buoyant cycle market and strength in camping, with the latter benefiting from more 'staycationers' as a result of the recession and increasing popularity of festivals. Car Enhancement sales are likely to have been soft, reflecting weak SatNav sales, partly offset by strength in in-car digital music connectivity," the broker predicts.The Bank of England's Monetary Policy Committee (MPC) will almost certainly keep its current benchmark interest rate unchanged at a historically low 0.5%, even though the annual inflation rate at 3.7% is racing ahead of the target level of 2.0%.Economists would also choke on their midday munchies were the Bank to change its Quantitative Easing policy, given the fragile recovery of the UK economy from the recession. Last month all nine members of the MPC were in favour of keeping monetary policy unchanged, though there was an admission that short-term inflation pressures have increased as a result of higher energy prices and the weakness of sterling.INTERIM DIVIDEND PAYMENT DATEWH SmithINTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Trade (US) (13:30)Monthly Budget Statement (US) (19:00)Consumer Price Index(GER) (07:00)Continuing Claims (US) (13:30)ECB Interest Rate (EU) (12:45)Initial Jobless Claims (US) (13:30)Leading Indicator Index (JPN) (05:00)RBA Bulletin (AUS) (00:00)Treasury Budget Statement (US) (19:00)FINALSElektron, Halfords Group, Park Group, Tricorn Group, WincantonIMSSHome Retail GroupIndustrial Production (FRA) (07:45)Manufacturing Output (FRA) (07:45)Non-farm Payrolls (FRA) (07:45)Wages (FRA) (07:45)Gross Domestic Product (JPN) Domestic CGIP (JPN)Consumer Confidence (JPN)SPECIAL DIVIDEND PAYMENT DATEAntofagastaAGMSAlexander Mining, Ariana Resources, Cayenne Trust, Eastern Platinum, Hansteen Holdings, Integrated Asset Management, Lifeline Scientific Inc. (Reg S), Melrose Resources, MWB Group Holdings Uts, NetDimensions, Prezzo, ProVen Health VCT, Source BioScience, Titanium Resources, Trader Media East GDR (Reg S)TRADING ANNOUNCEMENTSIG Group, PZ CussonsUK ECONOMIC ANNOUNCEMENTSBoE Interest Rate Decision (12:00)FINAL DIVIDEND PAYMENT DATEAntofagasta, Macfarlane Group, TomkinsQ1Premier Farnell