Week ahead: Whitbread, Ashtead

7th Dec 2012 18:38

The resolution - or not - of the US fiscal cliff continues to be the fulcrum for the markets' daily gyrations. In this regard, Kathleen Brooks, Director of Research at Forex.com, writes that political deadlock in Washington may start to spook the market as we get closer to the fiscal cliff that the US will hit on December 31st unless a deal between Republicans and Democrats is reached soon. "If 600bn dollars of tax hikes and spending cuts hits the economy early next year then the US is expected to plunge into recession. However, discussions have stopped in recent days and there are no signs that either side is willing to give up enough ground to reach a deal," she adds. It is against that backdrop that quite a few observers are expecting the US Federal Open Market Committee (FOMC) - the central bank's rate setting organ - to, on Wednesday, announce the implementation of a new instalment of quantitative easing. Barclays Research expects the monetary authority to resume purchases at a pace of $45bn per month. As far as Greece is concerned, markets will be closely watching the news-flow on the take-up of the government's recent debt buy-back offer. On Thursday and Friday EU leaders will meet to discuss and commit to "a roadmap towards a genuine economic and monetary union". However, it seems unlikely that any major and specific decisions will be made - "we will likely have to wait until after 2013 (post German Federal elections) for this," Credit Suisse believes. Following the European Central Bank's downgrading of its 2013 growth projections for the Eurozone investors will also be keeping an eye out for Friday's purchasing managers' surveys for the single currency area's manufacturing and service sectors. Japan's central bank will also release its short-term business confidence survey on Friday. The Markit China PMIs are also slated for release. From a technical point of view, and as far as the FTSE 100 is concerned, Zak Mir tells us that, "despite the situation regarding the fiscal cliff negotiations being no better than mixed, we have seen the index squeeze higher towards post summer resistance at 5,900+. This suggests that traders are still being squeezed quite painfully as they try and position themselves for a failure/delay in a result regarding the US budget. Arguably, the best way of playing this market currently would be to use this week's intraday support just below 5850 as the platform in targeting a break through 5950-6000 that any year-end rally may deliver."Lastly, and in the corporate patch, Whitbread is due to issue its third quarter interim management statement on Tuesday. At the interims the company guided towards more moderate like-for-like (LFL) sales growth in the second half compared to the 4.3% reported for the first half. Costa sales are likely to have been boosted in recent weeks due to customers boycotting Starbucks following exposure of its tax affairs. LFL sales growth in Premier Inn and Restaurants is likely to be up by approximately 2%, analysts at Panmure Gordon have told clients.On that same day Ashtead will report its latest second quarter and interim figures. Seymour Pierce expects the company to report a 40% increase in adjusted profits before tax (PBT) to £71.4m for the quarter. "We remain positive over the outlook for Ashtead's US business given continued encouraging news over the state of the construction industry," they say. In that same vein, they point out how the most recent US construction data, which covered the month of October, revealed the strongest increase in construction spending in over five months. Looking at comparables - other companies in the sector that is to say - United Rentals' third quarter results - announced in October - beat consensus estimates with an 8.9% increase in rental revenue, rates up 7.5% and volumes 7.9% higher. Those results showed that the structural shift from ownership to rental of equipment showed no signs of abating, Seymour Pierce adds. Monday December 10INTERIMSAngel Biotechnology Holdings, Polar Capital Technology TrustINTERIM DIVIDEND PAYMENT DATENippon Telegraph & Telephone Corp.QUARTERLY PAYMENT DATECanaccord Financial Inc., IBM Corp., Lilly (Eli) & CoQUARTERLY EX-DIVIDEND DATECanadian General Investments Ltd.INTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Trade (GER) (07:00)Current Account (GER) (07:00)Factory Orders (GER) (11:00)Harmonised Competitiveness Indicators (EU) (09:00)Retail Price Index (GER) (07:00)Q3Integra Group GDR (Reg S)GMSFastnet Oil & Gas, Ram Active MediaFINALSAlternative Networks, Andor Technology, Interbulk Group, TreattIMSSBarr (A.G.)SPECIAL DIVIDEND PAYMENT DATERenaissance Russia Infrastructure Equities LtdSPECIAL EX-DIVIDEND PAYMENT DATEWolseleyEGMSAlcentra Euorpean Floating Rate Income Fund Ltd Red Ord ShsAGMSBaobab Resources, StarvestTuesday December 11INTERIMSAshtead Group, Carpetright, International Greetings, Ishaan Real EstateINTERNATIONAL ECONOMIC ANNOUNCEMENTSZEW Survey (EU) (10:00)ZEW Survey (GER) (10:00)Q2Ashtead GroupGMSBaronsmead VCT, Baronsmead VCT 2, Baronsmead VCT 3FINALSDomino Printing Sciences, Terrace Hill Group, Victrex, ZytronicIMSSWhitbreadAGMSBilling Services Group Ltd., Edinburgh Dragon Trust, TristelTRADING ANNOUNCEMENTSASOS, Go-Ahead Group, IG Group Holdings, WhitbreadUK ECONOMIC ANNOUNCEMENTSBalance of Trade (09:30)FINAL DIVIDEND PAYMENT DATEInterior Services GroupWednesday December 12INTERIMSBegbies Traynor Group, Darty, Imagination Technologies Group, Supergroup, Sutton Harbour HoldingsINTERIM EX-DIVIDEND DATE3i Group, 3i Infrastructure, Babcock International Group, British Smaller Companies VCT, Caffyns, Caledonia Investments, City of London Investment Group, Cropper (James), Falkland Islands Holdings, First Property Group, Hyder Consulting, Investec, May Gurney Integrated Services, Mitie Group, Montanaro European Smaller Companies Trust, Northern 2 VCT, Northgate, red24, Sweett Group, Telford Homes, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus VCT, Ventus VCT 'C' Shares, Vianet Group, Worldwide Healthcare TrustQUARTERLY PAYMENT DATEM Winkworth, UnileverQUARTERLY EX-DIVIDEND DATEF&C Commercial Property Trust Ltd., XP Power Ltd. (DI)INTERNATIONAL ECONOMIC ANNOUNCEMENTSConsumer Price Index (GER) (07:00)Industrial Production (EU) (10:00)Treasury Budget Statement (US) (19:00)GMSUtilitywiseFINALSIDOXIMSSCarillionSPECIAL EX-DIVIDEND PAYMENT DATEPolymetal InternationalAGMSAltona Energy, BowLeven, EpiStem Holdings, FRM Credit Alpha Ltd Red Part Pref Shs, GETECH Group, PureCircle Ltd. (DI), Sareum Holdings, Sylvania Platinum Ltd (DI), YouGovTRADING ANNOUNCEMENTSCarillion, Senior, Travis PerkinsUK ECONOMIC ANNOUNCEMENTSClaimant Count Rate (09:30)Unemployment Rate (09:30)FINAL DIVIDEND PAYMENT DATEHargreaves Services, Sherborne Investors (Guernsey) 'A' SharesFINAL EX-DIVIDEND DATEBaring Emerging Europe, Bellway, K3 Business Technology Group, Marston's, Netcall, Numis Corporation, Origin Enterprises, Qatar Investment Fund, Scottish Oriental Smaller Companies Trust, Ultimate Finance Group, Waterman GroupThursday December 13INTERIMSBetfair Group, Cohort, Greenko Group, OPG Power Ventures, Sportingbet, Sports Direct InternationalINTERIM DIVIDEND PAYMENT DATEHansa Trust, Hansa Trust 'A' Non Voting SharesINTERNATIONAL ECONOMIC ANNOUNCEMENTSECB Report (EU) (09:00)Producer Price Index (US) (13:30)Retail Sales (US) (13:45)Q2SportingbetEGMSCapital Lease AviationAGMSBritish Empire Securities & General Trust, Conroy Gold & Natural Resources, Fidelity Special Values, JPMorgan Elect Managed Growth Shares, Karelian Diamond Resources, New City High Yield Fund Ltd., Uranium Resources, ZCCM Investments Holdings 'B' SharesTRADING ANNOUNCEMENTSWood Group (John)UK ECONOMIC ANNOUNCEMENTSCBI Industrial Trends Surveys (11:00)Friday December 14INTERIM DIVIDEND PAYMENT DATEBraemar Shipping Services, Carphone Warehouse Group, Charles Stanley Group, Clean Energy Brazil, Edge Performance VCT 'C' Shares, Intermediate Capital Group, Printing.com, SABMiller, Synergy Health, TalkTalk Telecom Group , Wynnstay Properties, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)QUARTERLY PAYMENT DATEAnglogold Ashanti Ltd., Carnival, Energy XXI (Bermuda) (Di)INTERNATIONAL ECONOMIC ANNOUNCEMENTSConsumer Price Index (US) (13:30)Consumer Price Index (EU) (10:00)Harmonised Index of Consumer Prices (EU) (10:00)New Car Registrations (EU) (10:00)Wholesale Price Index (GER) (07:00)AGMSCVS Group, Firestone Diamonds, Northern Venture Trust, Pantheon Resources, Punch Taverns, Quadrise Fuels International, Reconstruction Capital II Ltd., Spitfire Oil Ltd. (DI), World Careers NetworkFINAL DIVIDEND PAYMENT DATEAir Partner, Avingtrans, Downing Absolute Income VCT 1, Downing Absolute Income VCT 1 'C' Shares , Edinburgh Dragon Trust, Keystone Inv Trust, Plexus Holdings, Tristel, Utilitywise