Monday Morning Briefing

For the week commencing 07/07/08

JULY07

UK Results FY: Omega Diagnostics, RDF Group, Spice; AGM: Global Entertainment Group; EGM: Bradford & Bingley, CSS Stellar; Trading statement: Michael Page International, Morgan Crucible; Traffic figures: easyJet  
Selected US No major announcements scheduled
Economic Indicators UK: May manufacturing/industrial production (0930 BST); Germany: June wholesale price index (0700 BST), May industrial production (1100 BST)

JULY08

UK Results FY: Jacques Vert; AGM: JSC Chelyabinsk Zinc Plant; Trading statement: Business Post, Dunelm Group, Persimmon Homes
Selected US Q2: Alcoa, Pepsi Bottling Group
Economic Indicators UK: June NIESR GDP estimate (0001 BST); US: May pending home sales (1500 BST), May wholesale inventories (1500 BST), May consumer credit (2000 BST)

JULY09

UK Results FY: Avocet Mining, Begbies Traynor, DTZ Holdings, Intelek; AGM: 3i Group, Big Yellow Group, Booker Group, Business Post, London Stock Exchange, Marks & Spencer, Summit Corp, Telecom Plus, Zentiva; Trading statement: Interserve, London Stock Exchange, Tullow Oil
Selected US No major announcements scheduled
Economic Indicators UK: June REC report on jobs (0001 BST), June consumer confidence (0001 BST), May trade balance (0930 BST), June BRC shop price index (1030 BST); US: W/e 5/7 crude oil inventories (1530 BST); EU: Q1 final GDP (1000 BST); France: May trade balance (0745 BST); Germany: May trade balance (0700 BST), May current account (0700 BST), May import price index (0700 BST); Italy: May industrial production (0900 BST); Japan: May key machinery orders (0050 BST)

JULY10

UK Results FY: Sports Direct International, AGM: Aveva Group, Babcock International, FirstGroup, Man Group, Rapid Realisations Fund, Venue Solutions Holdings; EGM: Empresaria Group; Trading statement: Associated British Foods, Barratt Developments, Computacenter, EcoSecurities Group, Experian, Hays, SIG, Spectris
Selected US Q2: Marriott International
Economic Indicators US: W/e 5/7 initial jobless claims (1330 BST); France: May industrial production (0745 BST); Italy: May industrial production (0900 BST); Japan: May trade balance (0050 BST), May current account (0050 BST)

JULY11

UK Results AGM: Black Raven Properties, British Land, Deal Group Media, Debts.co.uk, Norkom Group, Tinci Holdings; EGM: Real Hotel Company; Trading statement: Taylor Nelson Sofres
Selected US Q2: General Electric; Q3: Rockwell Collins
Economic Indicators US: May trade balance (1330 BST), June import/export prices (1330 BST), July preliminary University of Michigan consumer sentiment survey (1500 BST), June treasury budget (1900 BST); Japan: May final industrial production (0530 BST), May final capacity utilisation (0530 BST), June consumer confidence (0600 BST); Spain: July final CPI (0800 BST)

Highlights of the past week

A volatile week worldwide saw the FTSE 100 shed 146 points (-2.6%) on Tuesday, while the mid-cap FTSE 250 also fell heavily, down 225 points to 8920.8, as downbeat economic indicators took their toll on banks and housebuilders. Rumours that Swiss banking giant UBS is set to reveal further sub-prime mortgage-related losses sent the banks lower, while the latest housing survey brought misery for housebuilders. BoE figures revealed May's mortgage approvals were 64% down year-on-year and 28% lower compared to April. The Dow also fell sharply: the 166.75-point fall to 11215.53 on Wednesday meant the US blue-chip index officially became a bear market, having plummeted more than 20% from its October peak above 14000.

There was little respite on Wednesday after the UK's largest housebuilder by volume, Taylor Wimpey, revealed it had failed to raise up to £500 million of emergency funding and plans to cut 900 jobs. Shares shed almost 50% to close the day at 35p, also dragging rivals Barratt Developments and Persimmon lower. Bradford & Bingley's own extra funding plans were plunged into doubt late on Thursday, after private US equity group Texas Pacific pulled out of its planned £179 million investment following a credit-rating downgrade. The £400 million fund-raising plans remained on course though after existing investors agreed to step in.

Wednesday was also notable for Marks & Spencer's quarterly update, which came in below expectations as like-for-like sales slumped 5.3%. Shares fell some 78p to 240p in response. M&S chief Sir Stuart Rose pinned the blame on diminishing consumer confidence, which fell to -34 according to Monday's GfK NOP index. The latest reading was 5 points lower than the previous month and barely better than 1990's mid-recession reading at -35. In the eurozone meanwhile, the ECB increased interest rates by 0.25% to 4.25% as expected on Thursday, in a measure designed to combat spiralling inflation, which hit a 16-year high at 4% in June.

The week ahead

There will be little respite for mid-cap housebuilders Persimmon Homes and Barratt Developments, latest victims of the crumbling British property market, as they announce trading statements midweek. Troubled mortgage lender Bradford & Bingley's EGM, scheduled Monday, will also generate interest at home. In the US, quarterlies come from the world's third-largest miner Alcoa and Dow stalwart General Electric.

A couple of major announcements also catch the eye this week. US Fed chief Ben Bernanke gives a speech on mortgage lending on Tuesday while the Bank of England's repo-rate decision will take centre stage at home on Thursday. Other significant data in the UK includes Tuesday's GDP estimate followed by trade balance and retail sales figures on Wednesday. The week closes in the US with the revised University of Michigan consumer confidence and trade balance figures on Friday.