Tuesday preview: Tesco, Ted Baker, housing

14th Jun 2010 15:13

Tesco boss Sir Terry Leahy surprised the market last week with his decision to retire next year, but the company is not expected to spring any more surprises on Tuesday when it issues a trading update.Like its supermarket peers Tesco has been dealing with slowing food price inflation which makes growing like for like sales harder to achieve. Depending on which broker you listen to Tesco's first quarter like for like (LFL) sales are likely to be 1.5% higher than a year earlier, or less impressive than that, especially if the effects of January's VAT increase are stripped out.Shore Capital has forecast that sales could be anywhere between 0.5% lower and 0.5% higher than in the first quarter of 2009.The benchmark for the sector comes from Wm. Morrison, which saw LFL sales grow by 0.8% year on year in the 13 weeks to 2 May.Tesco generates much of its revenue overseas these days and may have received a bit of a lift from sterling's weakness. Reports over the week-end suggested the company is interested in buying the 50-strong South Korean local supermarket chain Kim's Club Mart for about £160m.Designer fashion group Ted Baker has made an encouraging start to the year, with its Spring/Summer collections going down well. KBC Peel Hunt would like Tuesday's trading statement to include some commentary on how licensing revenues are doing but is not expecting the company to oblige, other than with some sort of general statement along the lines of "this part of the business is on track."Numis Securities reckons housebuilder Bellway will report that the housing market has changed little since its last update "with a stable sales rate and flat prices". Investec, however, suspects that house buyers have been reluctant to plonk down a deposit on a new house until after next week's Budget, a view shared by Bank of America Merrill Lynch. Sticking with the housing theme, the Royal Institute of Chartered Surveyors (RICS) releases its May housing market survey. The April survey suggested that there was some increase in buyer interest and agreed housing sales. The balance of surveyors reporting that house prices increased over the previous three months is expected to contract to around +15% from +17% in April.INTERIMSATH Resources, Datong, Interbulk GroupQUARTERLY PAYMENT DATECanadian General InvestmentsINTERNATIONAL ECONOMIC ANNOUNCEMENTSABC Consumer Confidence (US) (22:00)Balance of Trade (EU) (10:00)Employment (EU) (10:00)Import and Export Price Indices (US) (13:30)Empire State Manufacturing Survey (US) (13:30)NAHB Housing Index (US) (15:00)RBA Interest Rate Minutes (AUS) (00:00)ZEW Survey (EU) (10:00)ZEW Survey (GER) (10:00)Bank of Japan Target RateGMSCDS Oil and GasFINALSByotrol, CML Microsystems, NewRiver Retail Ltd. (Reg S), Oxford Instruments, Record, Triad, VictoriaIMSSBellway, Ted Baker, TescoEGMSCeres Agriculture FundAGMSAfrican Eagle Resources, Alexon Group, Beximco Pharmaceuticals GDR (Reg S), BlackRock Smaller Companies Trust, Ceres Agriculture Fund, EMED Mining Public Ld, Fortune Oil, Ideal Shopping Direct, Nationwide Accident Repair Services, Premier Farnell, Ted Baker, The Family Shariah Fund Ltd., The ReThink Group, Uniq, ViCTory VCT, ZincOxUK ECONOMIC ANNOUNCEMENTSConsumer Price Index (09:30)Retail Price Index (09:30)RICS Housing Index (15:00)DCLG UK House Prices (09:30)