Wednesday preview: Mansion House speech, Sainsbury's interims

9th Jun 2015 16:21

Chancellor George Osborne is expected on Wednesday to use the annual Mansion House speech to outline plans for a review of the bank levy to prevent major lenders from moving their headquarters abroad.A review of the bank levy, a tax paid by the biggest lenders based and operating in the UK, is likely, according to sources cited by the Sunday Times.In the March Budget speech, Osborne raised the levy from 0.156% to 0.21% of a bank's liabilities. It generates around £4bn for the government each year.Bank of England Governor Mark Carney is also expected to unveil plans for a new City body with a remit to promote standards in financial markets, according to Sky News.Carney will reportedly announce the creation of the Fixed Income Markets Standards Board as part of the Fair and Effective Markets Review, ordered a year ago by Osborne.Sources told the broadcaster on Monday that Carney would announce that the FMSB will be chaired on an interim basis by Elizabeth Corley, the chief executive of Allianz Global Investors.The news follows a string of multibillion pound trading scandals, including fines for banks involved in rigging Libor and other benchmark interest rates and foreign exchange markets.Away from the Mansion House speech, UK data on industrial and manufacturing production will be released while the earnings session sees a trading statement from J Sainsbury.Analysts predict J Sainsbury will report a fall in sales of up to 2.5% like-for-like, excluding fuel, for the past three months amid a supermarket price war.It would mark the sixth consecutive quarter of like-for-like sales declines and comes as the Big Four supermarkets, including Sainsbury, Tesco, Asda and Morrison, lose market share to discounters like Aldi and Lidl."This could well be overstating things, but certainly Tesco and Sainsbury's are facing challenges as Morrisons became the latest supermarket to announce wide spread price cuts earlier this week on 200 basic food items, in reaction to the increased influence of disrupters Aldi and Lidl," said Michael Hewson, chief market analyst at CMC Markets UK."Over the past 12 months the share price performance of all three has been negative with Sainsbury's the worst performer, down over 30%."Nick Bubb, retailing analyst and consultant, said its "still pretty tough out there for Sainsbury, despite intensive vouchering, and although Friday's Nielsen market share data was a tad better for Sainsbury than the Kantar measure of their sales, whether LFL sales are down 2.2% or 2.5%, the margin pressure means that profits are still heading south". Wednesday 10 JuneINTERIMSShoe Zone, Zambeef ProductsQUARTERLY PAYMENT DATEIBM Corp.INTERNATIONAL ECONOMIC ANNOUNCEMENTSCrude Oil Inventories (US) (15:30)MBA Mortgage Applications (US) (12:00)Treasury Budget Statement (US) (19:00)GMSCircassia PharmaceuticalsFINALSBest of the Best, Ensor Holdings, FirstGroup, Flybe Group, Thalassa Holdings Ltd. (DI), Tricorn GroupIMSSTescoEGMSAluminium Bahrain B.S.C. GDR (Reg S), O'Key Group GDR (Reg S) (WI)AGMSBisichi Mining, Cdialogues , Densitron Technologies, Dexion Absolute Ltd. GBP Shares, Duet Real Estate Finance Ltd, Eden Research, Falkland Oil & Gas Ltd., Global Energy Development, Hurricane Energy, Jupiter Dividend & Growth Trust, Jupiter Dividend & Growth Trust Common, Jupiter Dividend & Growth Trust ZDP Shares, M&C Saatchi, O'Key Group GDR (Reg S) (WI), Orogen Gold, Patagonia Gold, Share plc, Soco International, Sopheon , Steppe Cement Ltd, Venture Life Group, Witan Pacific Inv TrustTRADING ANNOUNCEMENTSSainsbury (J)UK ECONOMIC ANNOUNCEMENTSIndustrial Production (09:30)Manufacturing Production (09:30)FINAL DIVIDEND PAYMENT DATEMorrison (Wm) Supermarkets, Seplat Petroleum Development Company (DI), Volga GasFINAL EX-DIVIDEND DATECompagnie de St-Gobain SA