Tuesday preview: Unilever and Cussons report, IMF updates world outlook

20th Jan 2014 15:34

Unilever is expected to report its slowest sales growth for three years on Tuesday, reflecting weak demand and weakening currencies in emerging markets including Brazil, India, Russia and Indonesia.The consumer goods giant issued a profit warning in September ahead of its final results tomorrow. At the time Chief Executive Paul Polman highlighted the poor performance in emerging markets which represent almost two-thirds of Unilever's sales.The City forecasts that the owner of Flora, PG Tips, and Dove brands will post underlying sales growth of 4.2% for 2013, down on the 6.9% in 2012.Sector peer PZ Cussons will also release its latest results tomorrow. Markets are seeing a challenging trading environment, particularly in Asia due to current weakness, Numis said. However, brand innovations are expected to continue to drive organic sales and profit growth. "The balance sheet remains strong, although the intended sale of the Polish Home care operations for £46.6m no looks unlikely," Numis added.The five-month inclusion of Australian baby food business Rafferty's Garden will also alter results. In December the group said first half sale and earnings before interest and tax (EBIT) were 4% and 6% ahead, respectively. Meanwhile, SABMiller unveils its third quarter interims tomorrow with Numis predicting positive news from the brewer on the back of strong beer sales in the US, progress at Foster's in Australia and improving trends in China. On the macro-economic front, attention will turn to the International Monetary Fund's World Economic Outlook update.The IMF is expected to report faster expansion of the world economy this year, led by the UK. In October, the group forecast global growth would accelerate to 3.6% this year from 2.9% growth in 2013.Germany's ZEW survey for economic sentiment is also out with economists forecasting the index to rise to 63 in January from 62 in December. Tuesday January 21stFINALSUnileverINTERIMS1pm, PZ CussonsQ4UnileverTRADING ANNOUNCEMENTSCairn EnergyIMSsIntermediate Capital GroupAGMsMarston's, Next Fifteen CommunicationsGMsKomercni banka AS GDR (level 1)UK ECONOMIC ANNOUNCEMENTSCBI Industrial trends survey (11:00)Trends in Lending (09:30)Speech Andy Haldane (08:40)INTERNATIONAL ECONOMIC ANNOUNCEMENTSZEW Economic confidence survey (GER) (10:00)Monetary policy announcement (TKY) (12:00)Monetary policy announcement (HNG) (13:00)IMF World Economic Outlook updatedRD