Tuesday preview: Osborne may come under scrutiny as UK GDP expected to slow

27th Apr 2015 14:59

Chancellor George Osborne is expected to come under pre-election scrutiny on Tuesday when official figures reveal UK economic growth has slowed.Economists predict the Office for National Statistics report will reveal gross domestic product (GDP) rose 2.6% year-on-year in the first quarter, easing back from 3% growth the previous three months.The report follows a raft of weak data from the manufacturing and construction sectors, adding pressure on Osborne ahead of the 7 May general election."Indications point to a cooling of growth, with business confidence falling back for a third consecutive quarter according to the latest ICAEW/Grant Thornton Business Confidence Monitor. Some pre-election uncertainty may be contributing to this," said Cebr economist Alasdair Cavalla.Standard Chartered will announce first-quarter results the day after its shares have been on the rise in anticipation of the company following HSBC in moving its headquarters out of London.Morgan Stanley noted that the results are likely to be more detailed than prior period statements, "making annual comparisons difficult", but that it believes results will be in line with the key messages from the full-year results."We believe that StanChart's credit losses should stabilise from their 2014 exit rate...We expect a 10 basis-point improvement in CET1, to 10.8%, as the bank embarks on $30bn risk-weighted-asset reduction.""With the highest buffer to required CET1 and one of the strongest leverage ratios in Europe, we believe the capital debate should fade."In the earnings session, Whitbread reports its final results. The company's pre-close update indicated that full-year results would reach the top end of guidance, following strong sales growth in the fourth quarter supported by growth at its Premier Inn and Costa units.Numis estimates pre-tax profit of £412m, compared to £357m the previous year.The broker noted that Premier Inn has been benefiting from the recovery in the UK regional hotel market, which accounts for 85% of room stock."Premier Inn plans to open 5,500 rooms in the UK (+9%) and with consensus estimates for RevPAR growth of 5% it should be another year of excellent revenue and profit growth," Numis analyst Wyn Ellis said."We believe that Costa is also well placed for further strong growth and we detect increased confidence about progress in International markets." Tuesday 28 AprilINTERIMSAB Dynamics, Avacta Group, Infrastrata, Xeros Technology GroupINTERNATIONAL ECONOMIC ANNOUNCEMENTSConsumer Confidence (US) (15:00)GMSMCB Bank Ltd GDR (Reg S), OJSC Phosagro GDR (Regs), Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)FINALSAllied Minds , Aseana Properties Ltd., Centralnic Group , EU Supply, Gresham House, WhitbreadANNUAL REPORTGulf Keystone Petroleum Ltd.(DI)IMSS/Q1BP, Henderson Group, SEGRO, Standard CharteredAGMSAqua Bounty Technologies Inc. (Reg S), Dalata Hotel Group, Greencoat UK Wind, JPMorgan Senior Secured Loan Fund Limited, Maintel Holdings, Mithras Inv Trust, Murray International Trust, Murray International Trust 'B' Shares, Murray International Trust 'B' Shares, Rexam, Servelec Group , Shire Plc, Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)TRADING ANNOUNCEMENTSCarpetright, Synety GroupUK ECONOMIC ANNOUNCEMENTSBBA Mortgage Lending Figures (09:30)GDP (Preliminary) (09:30)Index of Services (09:30)FINAL DIVIDEND PAYMENT DATEAnglo American