Wednesday preview: Sainsbury, Mouchel, Unemployment

15th Jun 2010 16:47

Hot on the heels of a trading update from sector leader Tesco comes an update from Sainsbury, the number three player in the UK supermarket sector.Tesco reported UK like for like (LFL) sales growth of 1.1% in the thirteen weeks ending 30 May, but that was with the effects of January's VAT increase and petrol sales included; strip those out and the growth rate was barely visible at 0.1%.Sainsbury is expected to have found it similarly difficult to grow sales in this low food inflation environment. Expectations are for LFL sales to have risen by somewhere between 1% and 1.5%. That's a big come-down from the year on year LFL sales growth of 7.8% the middle market retailer was seeing this time last year.Bank of America Merrill Lynch thinks the industry will be doing well to see 1% LFL sales growth for the rest of this year in the UK. Depending on what the government does with VAT next week in its Budget, even that forecast could go out the window.Sainsbury boss Justin King, who recently had his remuneration details picked over after it was revealed that he received an £8m pay out last year, said last month that he expects the environment to remain challenging and consumer spending to remain under pressure.Broker KBC Peel Hunt is expecting Mouchel, the consulting and business services firm that escaped the clutches of rival VT Group earlier this year, to issue a third quarter trading update on Wednesday in which the key point of interest will be the company's view on public-sector contracts in the new hair-shirt environment."Although Mouchel enjoys good levels of visibility in a number of key areas (Highways Maintenance and Business Process Outsourcing), we remain concerned about the pricing pressures in management consulting, increasing competition for new work and timing of recovery in the Regulated Services division," KBC said.The broker rates the shares as no more than a "hold" but Panmure Gordon is a bit more bullish, having turned positive on the company in April after taking the view that all the bad news is in the price. The broker is expecting Mouchel management to say that the company is trading in line with expectations.Unemployment data for May is due out with the claimant count unemployment rate expected to hold steady at April's level of 4.7%. Claimant count unemployment is expected to decline by about 20,000.Using the International Labour Organisation (ILO) methodology unemployment is forecast to have risen by about 60,000 in the Feb-Apr quarter to around 2.51m. The ILO unemployment rate is expected to stabilise at 8.0%.INTERIMSSafestore, ServocaINTERIM DIVIDEND PAYMENT DATEDiplomaINTERIM EX-DIVIDEND DATEIntec Telecom Systems, RWS HoldingsINTERNATIONAL ECONOMIC ANNOUNCEMENTSBuilding Permits (US) (13:30)Capacity Utilisation (US) (16:15)Consumer Price Index (EU) (10:00)Labour Costs (EU) (10:00)Crude Oil Inventories (US) (15:30)Harmonised Index of Consumer Prices (EU) (10:00)Housing Starts (US) (13:30)Industrial Production (US) (16:15)MBA Mortgage Applications (US) (12:00)Producer Price Index (US) (13:30)Tertiary Industry Index (JPN)Bank of Japan Monthly Report (JPN)Machine Tool Orders (JPN)GMSBright Things, Coventry 6.092% Perm Int Bearing SharesFINALSBango, Liontrust Asset Managament, RPC Group, TrifastAGMSAegis Group, Atlas Estates, Biocompatibles International, China Food, Christie Group, Dexion Equity Alternative, Dexion Trading, Ote ADS, Patagonia Gold, Princess Private Equity Holding Ltd., Sport Media Group, State Bank of India GDR (Reg S), Tarsus Group, Vimetco GDR (Reg S)TRADING ANNOUNCEMENTSSainsbury (J)UK ECONOMIC ANNOUNCEMENTSClaimant Count Rate (09:30)RICS Housing Market Survey (09:30)Unemployment Rate (09:30)FINAL DIVIDEND PAYMENT DATECello Group, Centrica, Eurasian Natural Resources, Irish Continental Group Units, LamprellFINAL EX-DIVIDEND DATEAcal, Alliance Pharma, Autoclenz, Brulines, Charles Stanley, China Biodiesel International, China Shoto, Edinburgh Inv Trust, Elektron, Hamworthy, JPMorgan European Fledgling Inv Trust, KCOM Group, Northern 3 VCT, Oxford Technology 3 VCT, Oxford Technology VCT, PayPoint, Prezzo, Severn Trent, Sinosoft Technology, Speedy Hire, Tawa, Tex Holdings, Tribal Group, United Utilities Group, Utilico Emerging Markets Ltd., Value and Income Trust, Walker Crips Group, Workspace Group