Week Ahead: Spending review, Glaxo, Whitbread

15th Oct 2010 11:28

The government's keenly awaited comprehensive spending review is published on Wednesday, with the emphasis expected to be firmly on swingeing cuts in public spending.The chancellor of the exchequer, George Osborne, has set a target of cutting the structural deficit - the bit that is not subject to cyclical patterns - to zero by fiscal 2015/16.The expectations are that the government will seek to cut just over three quarters of the budget deficit through spending cuts, with the rest to be raised through increased tax revenues. That contrasts with the previous government's preference for a two-thirds/one-thirds split, though now that Labour is led by Ed Milliband, the Labour party's preference now appears to be for a 50/50 split, for fear that excessive spending cuts will derail the economy's fragile recovery. On the corporate side, drugs firm GlaxoSmithKline is scheduled to give a third quarter earnings update at noon on Thursday. Nomura Securities thinks net sales will be £6,716m and earnings per share (EPS) 27.2p. Charles Stanley is more optimistic on the sales side, going for £6,820m, but thinks EPS will be 25.6p.Tuesday sees hotels to coffee shops operator Whitbread announce its second quarter results. At the beginning of September the group said like for like sales growth at the company had accelerated in the 24 weeks to 19 August compared to the second quarter performance, so the market will be looking to see whether the momentum has been maintained.Charles Stanley thinks profit before tax will rise to £150m from £118m at the halfway stage last year. The broker has pencilled in a figure of 60p for EPS, up from 47.3p last year, and thinks the interim dividend will be nudged above 10p to 10.1p, versus 9.65p last year. "An update is expected to be provided on Premier Inn's new room pipeline," Charles Stanley reckons. "A progress report is also anticipated on fledgling operations in the Dubai and India," it added.Monday October 18INTERIM DIVIDEND PAYMENT DATELamprell, Neptune-Calculus Income & Growth VCTINTERNATIONAL ECONOMIC ANNOUNCEMENTSTertiary Industry Index (JPN)Department Store Sales (JPN)Cabinet Office Monthly Economic Report (JPN)Capacity Utilisation (US) (14:15)Industrial Production (US) (14:15)GMSEatonfield Group, President Petroleum CoFINALSEuropa Oil & Gas, Lok'n Store Group, Nanoco Group, TristelANNUAL REPORTAnimalcare GroupIMSSSeniorEGMSZhejiang Expressway Co 'H' SharesAGMSJupiter European Opportunities Trust, MBL Group, NXT, PrometheanTRADING ANNOUNCEMENTSMHP SA GDR (Reg S), SABMillerFINAL DIVIDEND PAYMENT DATEElectric & General Inv Trust, Mattioli Woods, RenishawTuesday October 19INTERIMSWhitbreadINTERIM DIVIDEND PAYMENT DATEFrench Connection GroupINTERNATIONAL ECONOMIC ANNOUNCEMENTSABC Consumer Confidence (US) (22:00)Balance of Trade (EU) (10:00)Building Permits (US) (13:30)Current Account (EU) (09:00)Construction Output (10:00) (EU)Housing Starts (US) (13:30)RBA Interest Rate Minutes (AUS) (00:00)ZEW Survey (EU) (10:00)ZEW Survey (GER) (10:00)Q3Bank of America Corp.FINALSBellway, Next Fifteen Communications, Renewable Energy Generation Ltd.IMSSJupiter Fund Management EGMSTurk Ekonomi GDR Bankasi AS GDR (Reg S)AGMSBrooks Macdonald Group, Impala Platinum Holdings Ltd.UK ECONOMIC ANNOUNCEMENTSConsumer Price Index (09:30)Retail Price Index (09:30)CBI Business Optimism (11:00)CBI Trends Total Orders (11:00)FINAL DIVIDEND PAYMENT DATEDiageoWednesday October 20INTERIMSHome Retail Group, Stobart Group Ltd., Vertu MotorsINTERIM DIVIDEND PAYMENT DATEAdmiral Group, Aggreko, Amiad Filtration Systems Ltd., Fyffes, Highcroft Investment, Premier Farnell, PV Crystalox SolarINTERIM EX-DIVIDEND DATEBAE Systems, BlackRock Smaller Companies Trust, Bloomsbury Publishing, Brit Insurance Holdings NV, British Polythene Industries, C&C Group, Game Group, Lookers, Mears Group, Octopus AIM VCT, Scisys, Spectris, Ted Baker, Travis Perkins, Walker GreenbankQUARTERLY EX-DIVIDEND DATECity of London Inv TrustINTERNATIONAL ECONOMIC ANNOUNCEMENTSBeige Book Fed Survey (US) (19:00)Building Permits (US) (13:30)Crude Oil Inventories (US) (15:30)MBA Mortgage Applications (US) (12:00)Producer Price Index (GER) (07:00)Convenience Store Sales (JPN)Q3Qatar Telecom QSC GDR (Reg S)GMSBrinkley MiningANNUAL REPORTWebis HoldingsSPECIAL DIVIDEND PAYMENT DATEAdmiral GroupSPECIAL EX-DIVIDEND PAYMENT DATEAberdeen Asian Smaller Companies Inv TrustAGMSBilling Services Group Ltd., Emerging Metals Ltd., Namibian ResourcesUK ECONOMIC ANNOUNCEMENTSBoE Interest Rate Minutes (09:30)M4 Money Supply (estimate) (09:30)M4 Sterling Lending (estimate) (09:30)Public Sector Finances (09:30)Trends in Lending (09:30)Spending ReviewFINAL DIVIDEND PAYMENT DATEWeatherly InternationalFINAL EX-DIVIDEND DATEAberdeen Asian Smaller Companies Inv Trust, British Sky Broadcasting Group, Hays, London Finance & Investment Group, Smiths Group, Stavert Zigomala, Strategic Equity Capital, Thorpe (F.W.), Ultimate Finance GroupThursday October 21INTERIM DIVIDEND PAYMENT DATEoffice2office, RPS Group, ToLunaQUARTERLY EX-DIVIDEND DATECaterpillar Inc.INTERNATIONAL ECONOMIC ANNOUNCEMENTSContinuing Claims (US) (13:30)Initial Jobless Claims (US) (13:30)Leading Indicators (US) (15:00)Philadelphia Fed Index (US) (15:00)PMI Composite (EU) (09:00)PMI Services (EU) (09:00)PMI Manufacturing (EU) (09:00)Consumer Confidence (EU) (15:00)PMI Composite (GER) (08:55)PMI Services (GER) (08:55)PMI Manufacturing (FRA) (08:00)PMI Services (FRA) (08:00)Production Outlook Indicator (FRA) (07:45)Business Confidence Indicator (FRA) (07:45)Q3GlaxoSmithKline, Lilly (Eli) & CoGMSAEA Technology, MediaZest, Richoux GroupFINALSSmiths NewsIMSSAnglo American, Henderson Group, Manganese Bronze Holdings, PetropavlovskEGMSCobra Holdings, Guaranty Trust Bank GDR (Reg S)AGMSBHP Billiton, City of London Inv Trust, Gold Oil, Jupiter Primadona Growth Trust, Ludgate Environmental Fund Ltd., SpiriTel, Tanfield GroupTRADING ANNOUNCEMENTSBritvicUK ECONOMIC ANNOUNCEMENTSInternet Retail Sales (09:30)Mortgage Approvals (09:30)Retail Sales (09:30)Friday October 22INTERIM DIVIDEND PAYMENT DATEAG Barr, Ambrian Capital, Densitron Technologies, Edinburgh US Tracker Trust, F&C Asset Management, Goals Soccer Centres, H.R. Owen, Invesco Perpetual UK Small Companies Inv Trust, Just Car Clinics Group, Kentz Corporation Ltd., New World Resources NV, Petrofac Ltd., Playtech Ltd., PME African Infrastructure Opportunities, Robert Walters, Severfield-Rowen, Tribal GroupQUARTERLY PAYMENT DATEHenderson Financial Opportunities Ltd., Real Estate Credit Investments Ltd.INTERNATIONAL ECONOMIC ANNOUNCEMENTSSupermarket Sales (JPN)Balance of Payments (EU) (09:00)IFO Business Climate (GER) (09:00)IFO Current Assessment (GER) (09:00)IFO Expectations (GER) (09:00)Retail Sales (EU) (10:00)Q3PartyGaming, Schlumberger Ltd.GMSMercury Recycling GroupANNUAL REPORTPan African ResourcesIMSSUnited Business Media Ltd.EGMSPowerflute OyjAGMSBritish Sky Broadcasting Group, Charles Street Capital , Thorntons, Urals Energy Public Co Ltd.FINAL DIVIDEND PAYMENT DATEConsort Medical, Epicure Qatar Equity Opportunities, Invesco Perpetual AiM VCT, Jupiter Primadona Growth TrustQ1British Sky Broadcasting Group