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Mayday! Mayday! Prime minister to lay out plans for Brexit

Published: 06:00 17 Jan 2017 GMT

Theresa May

 The main event today is prime minister Theresa May's speech on Britain's impending exit from the European Union.

“All things Brexit remain key. That was underscored again this week when comments by Prime Minister Theresa May, possibly pointing to the government’s willingness to sacrifice single market access in favour of Total control over immigration, sent the pound hurtling on to the $1.20 handle,” noted Ken Odeluga, a market analyst at spread betting firm City Index.

“Almost concurrently, the FTSE set its umpteenth record peak. How long can this pattern continue? The truth is nobody knows for sure, but there’s a good chance that momentum can carry the FTSE 100 higher still in the week ahead, particularly because May will be back for another bite out of the pound on Tuesday 17th,” Odeluga added.

May's speech will occur after December's inflation data is released.

“Some initial effects of the decision to leave the EU look set to be evident in the latest inflation data this week, which are expected to show that prices rose sharply at the end of last year, thanks to higher energy prices and, crucially, the drop in sterling. We expect headline CPI to have increased by 0.2ppt to 1.4%Y/Y, which would be the highest rate since August 2014, while the core rate might also inch higher to 1.5%Y/,” said Emily Nicol at Daiwa Europe.

On the corporate front, traders will be getting their teeth into Greggs, the hot snack seller.

The update will cover the fourth quarter, including Christmas, although this is one High Street dweller that does not place too much emphasis on Yule-time, unless people have taken to buying each other sausage rolls for Crimbo.

Total sales were up 5.6% year-on-year for the 13 weeks to 1 October, helped by new shop openings.

Like-for-like sales were up 2.8%, so that's the benchmark.

The company said in October that the new distribution centre in Enfield, north London, was ready to commence operations, so the food-on-the-go specialist might give an update on how things are progressing there.

Management might also reveal how the new additions to the autumn/winter menu fared.

“We have now launched our autumn/winter menu which includes new lower-calorie Balanced Choice bakes and soups along with a range of new snacks with gluten-free options. Chipotle Pulled Beef, Fiery Pulled Chicken and Onion Bhaji burritos are exciting new additions to our successful hot sandwich range,” the company said in October.

In all probability, there will also be a token nod to Christmas with a comment about sales of mince pies and turkey sandwiches.

Consumer credit provider Provident Financial is expected by broker Peel Hunt to say it remains on track to deliver a good outcome for the year when it issues its trading update.

Key in the statement will be any comment on credit quality, although there is no reason to suggest any change from what was reported in November, the broker said.

“We believe an interesting potential catalyst for Provident will come when more detail is given on the potential for Vanquis, likely to be at the capital markets day in April,” it added.

Significant announcements expected

Finals: Elegant Hotels Group PLC (LON:EHG)

Trading statementsCairn Energy PLC (LON:CNE), Greggs plc (LON:GRG), Provident Financial PLC (LON:PFG), Sinclair IS PHARMA PLC (LON:SPH

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