Mansion House to offer news on Lloyds and RBS

ALL eyes will be on chancellor George Osborne at Wednesday’s Mansion House speeches as the City waits to hear his plans for selling the UK’s shares in state-backed Lloyds and RBS.

“George Osborne is likely to focus on the banking sector and is expected to announce plans to begin selling off the government’s shares in Lloyds,” said Vicky Redwood of Capital Economics. “However, he appears to have backed away from the idea of a quick sale of RBS.”

The banking news will follow a raft of economic updates, due tomorrow, including May’s retail price index, producer price index, consumer price index and inflation report.

“We forecast May CPI inflation to increase by 2.7 per cent year on year because of higher food, alcohol & tobacco and transport prices,” said Barclay’s Blerina Uruci. “Although CPI inflation has eased significantly in recent months, we expect it to remain elevated and above the Bank of England’s two per cent target for the rest of the year.”

Later in the week, retail sales figures and public sector net borrowing for May are set to be announced, along with CBI industrial order numbers for June.

In the corporate calendar, the week begins with reports from Majestic Wine, Immunodiagnostic Systems Holdings, Sorbic International and Sthree.

Tomorrow’s news is set to come from First Derivatives, Chemring Group, Crest Nicholson Holdings, One Media IP Group and Aggreko.

On Wednesday Imagination Technologies, Micro Focus International, Berkeley Group Holdings, Darty, Sutton Harbour Holdings and Spirit Pub Company will all update the market.

Thursday’s reports will come from Ashtead Group, Dixons Retail, HML Holdings, UBC Media Group, Go-Ahead Group and Ted Baker.

Cantor Fitzgerald predicts good news for retailer Dixons, with a “buy” recommendation and a forecast for full-year figures to be at the top end of £75m to £85m market expectation.

“We are forecasting 19 per cent growth in FY13 profit before tax to £84.3m,” analysts stated, “helped by a good product cycle and consolidation benefits.”

Finally on Friday Alpha Real Trust, and Flybe Group are set to update the market. The airline’s shares soared last month on confirmation of talks to sell its slots at Gatwick.