It is an “important” week for UK economic events headlined by Chancellor George Osborne, who is due to deliver a dual autumn statement and spending review on Wednesday.
Heading into the statement, the chancellor has been hit by the blow that October government borrowing figures were the worst for more than six years.
Public sector net borrowing rose £1.1bn in October compared with the same month a year ago to £8.2bn and means Osborne will need to restrict borrowing to just £15bn between now and April.
After the House of Lords blocked his working tax credit changes, it will be interesting to see “how, if at all, he finds the £4.4bn of budget savings lost by the rejection” Investec said.
The broker added that the spending review should be the “more significant event” with markets looking to see exactly how the Chancellor allocates the reductions in public expenditure across relevant departments
On the corporate front, B&Q, Brico and Screwfix owner Kingfisher reports its third quarter results on Tuesday.
French same store sales are expected to prove broadly flat, having gained by 1.3% in the second quarter while UK same store sales could prove similar to the second quarter at around 5.5%.
Investors will be keen to see how its Screwfix business is getting on, and whether the trend of consumers using tradesman and not DIY is still persisting.
Any news on further store closures at its B&Q chain, or news on its turnaround plan will be keenly followed.
Keith Bowman at Hargreaves Lansdown, said: “Adverse currency movements may have dragged further on profits, whilst an additional update on the DIY retailer’s ‘One Kingfisher’ strategic plan could be forthcoming.”
Elsewhere, a generally uninspiring list of film releases in the third quarter are unlikely to dampen the results of Cineworld according to Numis Securities.
The broker reckons the firm will be boosted by average prices, which rose 8% in the first half, when it reports its third quarter update on Tuesday
Despite the dearth of blockbusters, the release of the latest in the James Bond franchise, Spectre, is expected to have helped slowing admissions rates.
The film, which broke box office records by becoming the highest grossing film on a Tuesday, took in £6.3mln beating Skyfall’s opening day of £6.2mln in 2012.
The unusual decision to release the film on a Monday paid off for the film and UK market box office, which saw admissions up by 60% over the last six weekends.
This should ensure Cineworld’s admissions growth is much higher than the 1.6% of the first half, Numis said.
“In a slower market in Q3, we would expect Cineworld to perform better against its peers, in admission terms, largely due to an estimated 3 0% of Cineworld’s admissions being subscription members,” it added.
Significant announcements expected:
Monday
Interim: MITIE Group (LON:MTO), Bonmarche Holdings (LON:BON), Trakm8 Holdings (LON:TRAK), Kainos Group (LON:KNOS)
Tuesday
Final: Paragon Group (LON:PAG), Renew Holdings (LON:RNWH), Shaftesbury (LON:SHB), Greencore Group (LON:GNC), Mitchells & Butlers (LON:MAB), Compass Group (LON:CPG)
Interim: AFI Development (LON:AFRB), Signet Jewelers (LON:SIG), De La Rue (LON:DLAR), Pets at Home Group (LON:PETS), CML Microsystems (LON:CML), Severfield (LON:SFR), Babcock International Group (LON:BAB), Creston (LON:CRE), Telecom plus (LON:TEP), AO World (LON:AO.)
Trading statement: Kingfisher (LON:KGF), Intertek Group (LON:ITRK), Cineworld (LON:CINE)
Economic: US – Durable goods orders, GDP, consumer confidence
Wednesday
Final: Thomas Cook Group (LON:TCG), Daily Mail & General Trust (LON:DMGO), Britvic (LON:BVIC),
Interim: RPC Group (LON:RPC), TR Property Investment Trust (LON:TRY), VP (LON:VP.), Betfair Group (LON:BET), United Utilities Group (LON:UU.), Hogg Robinson Group (LON:HRG)
Economic: UK – Chancellor statement; US – Personal income and spending, new home sales, house price index, crude oil inventories
Thursday
Final: Marston's (LON:MARS), SSP Group (LON:SSPG)
Interim: Torotrak (LON:TRK), Severn Trent (LON:SVT), LondonMetric Property (LON:LMP), Charles Stanley Group (LON:CAY), Arrow Global Group (LON:ARW), First Property Group (LON:FPO), LON:HL.="" rel="3587">LON:HL.L), PayPoint (LON:PAY)
Trading statement: Anglo Pacific Group (LON:APF)
Reading ex-dividend: Amec Foster Wheeler (LON:AMFW), 3i Infrastructure Ltd (LON:3IN), Anglo Pacific Group (LON:APF)
Economic: Eurozone – M3 money supply;
Friday
Final: Patisserie Holdings (LON:CAKE, Future (LON:FUTR)
Interim: Pennon Group (LON:PNN), Real Estate Credit Investments Ltd (LON:RECI)
Economic: UK – Consumer confidence, GDP, index of services; Eurozone – Economic sentiment indicator, business climate indicator