London Report: Carney likely to bear good news about inflation

GOVERNOR of the Bank of England Mark Carney is likely to be the bearer of good news when he presents his inflation report on Wednesday, with the growth rate heading up and the unemployment rate coming down.

Carney pledged in August not to raise rates until unemployment fell to at least seven per cent, a date the Bank currently forecasts will not fall until the second half of 2016.

However economists predict the Bank is now likely to bring this date forward because of improving figures.

“We expect the Bank to pull forward by six months the point it projects unemployment to breach seven per cent,” said Philip Rush of Nomura.

Tomorrow’s swathe of economic data includes the RICS Housing Price Balance, and price indexes for producers, housing retail and consumers.

Barclays’ Blerina Uruci said: “We forecast the October CPI inflation to decline slightly to 2.6 per cent year-on-year due to lower fuel prices.”

Labour market figures on Wednesday are expected to show the unemployment rate down and inflation easing. Retail sales figures follow on Thursday.

The corporate calendar starts today with updates from Carr’s Milling Industries, Flybe Group, Admiral Group, Cobham and Hammerson.

Tomorrow’s news comes from Babcock International, BTG, CRH, John Menzies, Land Securities, Lo-Q, Oxford Instruments, Speedy Hire, Synergy Health, TalkTalk Telecom, Trifast, TT Electronics, Premier Farnell, Resolution and Sportech.

On Wednesday London Stock Exchange Group, J Sainsbury, SSE, Bowleven, Fenner, British Land, ICAP, Barratt Developments, Centaur Media, Derwent London, Drax, Interserve, Johnston Press, Kier Group, Tullow Oil, and Xchanging will all report.

Thursday brings results from Euromoney Institutional Investor, Hanger8, Burberry, Charles Stanley, Norcros, Carphone Warehouse, Electrocomponents, Great Portland Estates, 3i Group, Volex and WS Atkins. Amlin, Antofagasta, Centrica, Devro, Hill & Smith Holdings, Ophir Energy, Pace, Perform Group, Prudential, Rexam, Serco, SIG, Taylor Wimpey, Ted Baker, Trinity Mirror and WH Smith will give trading updates.

On Friday Brammer, Capital & Counties Properties, UTV Media, Vedanta Resources, Gem Diamonds and Restaurant Group will report.