The focus of the latest trading update from Centrica PLC (LON:CNA) will again be on how many customers have switched away from British Gas in the past quarter.
At the end of July, Centrica said the UK's biggest energy supplier lost almost 400,000 customers in the first half of the year as households continue to switch to smaller suppliers after years of rows over too high bills and poor service.
The loss of customers contributed to a 13% drop in Centrica’s first half group revenues to £13.4bln, which was also hit by extreme weather in North America and falling oil prices - although a recovery in crude prices since then could provide a lift this quarter.
Analysts at Deutsche Bank today cut their rating for Centrica to ‘sell’ from ‘hold’ due to worries over pricing pressures in the UK energy retail market.
READ: Deutsche downgrades Centrica ...
Central banks eyed …
The first US interest rate hike of 2016 is expected to be announced by the Federal Reserve this evening, although the main interest will be on the accompanying statement which could indicate how many more hikes are likely in the coming year.
With US President-elect Donald Trump having previously criticised the Fed for its timidity on rate hikes, the market will be wary of what the central bank will be planning.
Meanwhile, any lingering prospects for further UK rate cuts, following the post-Brexit vote move the Bank of England made in August, have been torpedoed by persistently upbeat UK economic data, notably a pick-up in inflation which last month hit a two year high.
Therefore, although tomorrow’s BoE Monetary Policy Committee decision – the first for six weeks under its new schedule – is expected to leave rates unchanged, the meeting minutes will be scanned closely for clues to future hikes as inflation gets boosted by a jump in wholesale prices due to the drop in the pound.
Significant announcements expected …
Trading statement: Centrica PLC (LON:CNA), Go-Ahead Group PLC (LON:GOG). Petrofac Ltd (LON:PFC), PZ Cussons PLC (LON:PZC)
Finals: Falanx Group Plc (LON:FLX)