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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Pennon's interest-linked payments and B&M European's consumer appeal in focus on Tuesday

Nationwide house price numbers and Bank of England credit data are also scheduled

Things are scheduled to be a bit busier on Tuesday, with results from two FTSE 100 companies on the calendar, as well as Wall Street traders returning from their long weekend to inject some extra volume in the markets.

End of day prices in London will also determine the next FTSE Russell index reshuffle, where Centrica is expected to rejoin the blue-chip list.

It will add to the healthy list of utilities on the benchmark, one of which Pennon Group PLC (LSE:PNN, OTC:PEGRY), is due to publish its annual results.

The owner of South West Water gave a pretty detailed preview of its full year numbers with a trading update in April, but as rival United Utilities showed recently the sector still has the capacity for unforeseen surprises.

UU posted a net loss as its net interest bill more than doubled thanks largely to a £228mln charge, up from £53mln a year earlier, on inflation-linked borrowing.

Pennon, too has inflation-linked debts, with 26% of its regulated water businesses' gross debt of £3.1bn being index-linked, meaning a 1% increase in inflation results in an additional £8min of financing costs.

At the halfway point, its interest bill rose by £8.9mln to £37mln but inflation is a lot higher now and this will be something to watch closely in the full-year numbers.

Elsewhere, retailer B&M European Retail Value SA founder and chief executive Simon Arora recently submitted notice that he intends to step down next year, adding to the exodus of Footsie bosses this year.

However, the discounter might be expected to give a confident update on current trading and the outlook alongside its results, given the likely appeal of its value offering amid the consumer cost-of-living crunch.

"Worried consumers will continue to trade down into B&M's value offering (given the state of reported consumer confidence) and current trading may be positive,” said broker Peel Hunt.

Analysts said the departure of Arora and previously his operations chief Martin Roberts "does lead us to believe that life will ultimately get tougher for B&M”.

Significant announcements on Tuesday 31 May

Finals: B&M European Value Retail SA, Pennon Group PLC (LSE:PNN, OTC:PEGRY)

AGMs: Billington Holdings Plc, Curzon Energy PLC, GYG PLC, Lookers PLC, McColls Retail Group PLC, Microlise Group PLC, PageGroup PLC, Petershill Partners PLC, Sportech PLC, Tekcapital PLC

Economic data: Nationwide House Price Index (UK), Consumer Credit (UK), M4 Money Supply (UK), Mortgage Approvals (UK), House Price Index (US), Chicago PMI (US), Consumer Confidence (US)

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