Chancellor Jeremy Hunt will present his latest Budget tomorrow with businesses and households hopeful for some helpful measures on energy bills and elsewhere, though the government has been keen to emphasise its ‘fiscal responsibility’.
The spring speech will also be accompanied by updated fiscal and economic forecasts by the Office for Budget Responsibility (OBR), which economists expect to show some positive changes.
One Budget casualty already has been the northern heading extension of HS2 and that will probably be commented on by contractor and rail maintenance group Balfour Beatty, which is heavily dependent on government infrastructure work.
Jefferies was sanguine about the impact of the two-year delay of phase 2a of HS2 on Balfour
“For Balfour Beatty, we see limited impact from this announcement given 1) its contracts are fee-based and protected against cost inflation, 2) phase 2a is not currently in its order book and 3) there is a deep pipeline of UK infrastructure projects ahead."
Re-iterate 'buy' said the broker.
Prudential’s results meanwhile will be the first chance for investors to hear new chief executive Anil Wadhwani’s plans for the UK-based life insurer.
Given that the Pru trumpeted the fact that, with Wadhwani’s appointment, it has now completed the move of its entire senior management team to Asia, whether he sees the business still needing a presence and listing in the UK will be one point of interest.
Major announcements due
Finals: 4imprint Group Plc (AQSE:FOUR), Advanced Medical Solutions Group (AIM:AMS) PLC, Balfour Beatty plc (LSE:BBY), Ferrexpo PLC (LSE:FXPO), Foresight Solar Fund Ltd (LSE:FSFL), Keywords Studios PLC (AIM:KWS, OTC:KYYWF), Marshalls PLC (LSE:MSLH), MaxCyte Inc (AIM:MXCT), Prudential PLC (LSE:PRU)
Interims: Kin and Carta PLC
Trading updates: IG Group Holdings
AGMs: BSF Enterprise PLC, Chemring Group (LSE:CHG) PLC, Katoro Gold PLC (AIM:KAT), Safestore Holdings (LSE:SAFE) PLC
Economic announcements: MBA Mortgage Applications (US), Producer Price Index (US), Retail Sales (US), Retail Sales Less Autos (US), Business Inventories (US), Crude Oil Inventories (US)