Wednesday preview: Next sweating on a change in the weather

1st Nov 2011 16:37

Results from clothing retail chain Next could see the company having a gripe about the recent spell of good weather most of Britain has been enjoying.While the sunny weather will have pleased the brewers and ice-cream makers, fashion chains such as Next may have struggled to persuade shoppers to splash out on new Autumn-Winter ranges. Expectations that the third quarter will have got off to a lacklustre start recently prompted Deutsche Bank to cut its third quarter and second half revenue growth assumptions by 3% and 1%, respectively. The broker is expecting the group's high street stores to see a 6.5% fall in like-for-like sales.Liberum Capital's Simon Irwin has been harping on a similar theme, saying that the hot spell will exacerbate problems retailers are already suffering, such as "weakening consumer confidence, peaking input prices and high levels of inventory". Irwin anticipates a 4% decline in like-for-like sales, with even the Directory division - the star performer in recent years - seeing a slowdown in sales growth. On the economic front, eyes will be directed across the Atlantic to the Federal Open Market Committee (FOMC), the policy-making committee of the US central bank, the Federal Reserve. The FOMC is widely expected to maintain its current policy, so focus will be on any comments from Fed chairman Ben Bernanke in the press conference after the interest rate decision announcement, with analysts looking for clues as to whether he is considering loosening monetary policy even more. The Fed may also lift its outlook for US economic growth and inflation. "The US economy has surprised to the upside lately and it is likely that Bernanke acknowledges this improvement," predicts Barclays Capital (BarCap). "That said, while unemployment remains elevated and concerns about the housing market linger, the FOMC is likely to continue discussing ways to promote growth, reduce downside risks and examine why the recovery has been so slow. As such, we expect Bernanke's overall tone to remain doveish," BarCap added.INTERIMSVolexINTERIM DIVIDEND PAYMENT DATEArbuthnot Banking Group, Mears Group, StatPro GroupINTERIM EX-DIVIDEND DATEBloomsbury Publishing, China Food Co, Collins Stewart Hawkpoint, Downing Planned Exit VCT 2 'C' Shares, Downing Planned Exit VCT 2 'D' Shares , Downing Planned Exit VCT 3 'C' Shares, Downing Planned Exit VCT 3 'D' Shares , Elderstreet VCT, Hilton Food Group, Intertek Group, ITV, Laird, Lookers, M&C Saatchi, Persimmon, Provident Financial, SThreeQUARTERLY EX-DIVIDEND DATEBP, GlaxoSmithKline, JPMorgan Claverhouse Inv Trust, Royal Dutch Shell 'A', Royal Dutch Shell 'B'INTERNATIONAL ECONOMIC ANNOUNCEMENTSPMI Manufacturing (FRA) (08:50)PMI Manufacturing (GER) (08:55)Unemployment Rate (GER) (08:55)PMI Manufacturing (EU) (09:00)MBA Mortgage Applications (US) (12:00)ADP Employment Change (US) (12:15)Crude Oil Inventories (US) (15:30)FOMC Rate Decision (US) (16:30)Q3Inmarsat, Marsh & Mclennan Cos Inc., Randgold Resources Ltd., Yamana Gold Inc.GMSCobra Holdings, Fuse 8, G4SIMSSGem Diamonds Ltd. (DI), Henderson Group, Logica, Next, St James's Place, Standard LifeSPECIAL DIVIDEND PAYMENT DATEAegis GroupSPECIAL EX-DIVIDEND PAYMENT DATESThreeAGMSActive Capital Trust, Frontier IP Group, Petro Matad Ltd., Schroder Japan Growth FundUK ECONOMIC ANNOUNCEMENTSHalifax House PricesPMI Construction (09:30)FINAL EX-DIVIDEND DATEAbcam, Ashmore Group, El Oro Ltd, Go-Ahead Group, James Halstead, JPMorgan Overseas Inv Trust, London Finance & Investment Group, Matchtech Group, Tawa, United Carpets Group--jh