What you need to know before the open
A slightly lower open is expected in Europe this morning, as earnings results continue to come in and investors look to economic data from both sides of the Atlantic.
Growth data from the US could well show a weaker number after the freezing winter, and after that we’ve for the Federal Reserve’s rate decision.
A $10bn taper being expected again; there's no press conference and markets are expected to be less preoccupied with the outcome than they’ve been in some time.
Corporate news
A report on Co-op tells “a sorry store of failings on a number of levels”. Carried out by ex-civil servant Sir Christopher Kelly, it details a litany of failings which begin with the merger of Co-op with Britannia building society.
Next has upped its profit and sales guidance on the back of a strong first quarter, with sales up almost 11 per cent.
Home Retail, owner of Argos and Homebase, has seen pre-tax profit jump 27 per cent to £115.4m in the first quarter, under new chief executive John Walden.
Heritage Oil has said it’s to be bought be Qatar's Al Mirqab Capital for £924m.
Shell’s reported a 36 per cent fall in income before tax to $8.5bn in the first quarter. A $2.9bn impairment charge hit earnings, although the oil company has raised its dividend by four per cent, as expected.
Japanese bank Nomura saw a decline in profits in the first quarter to 41bn yen. It also announced a share buyback of up to 70bn yen.
Saga’s confirmed it’ll float on the London Stock Exchange as it tries to raise £550m to reduce debt.
And Domino’s Pizza has announced David Wild as its new chief executive. Wild was already interim chief, but will now be permanent.
Data in focus
- 8.55am: German April unemployment change
- 10.00am: EU April inflation
- 12.00pm: US MBA mortgage applications
- 1.15pm: ADP April employment change
- 1.30pm: US first quarter GDP
- 1.30pm: US first quarter personal consumption
- 2.45pm: US April Chicago purchasing managers’ index
- 7.00pm: US Fed interest rate decision & April pace of MBS/Treasury purchase program