ShareCast News

The resolution - or not - of the US fiscal cliff continues to be the fulcrum for the markets' daily gyrations. In this regard, Kathleen Brooks, Director of Research at Forex.com, writes that political deadlock in Washington may start to spook the market as we get closer to the fiscal cliff that the US will hit on December 31st unless a deal between Republicans and Democrats is reached soon. "If 600bn dollars of tax hikes and spending cuts hits the economy early next year then the US is expected to plunge into recession. However, discussions have stopped in recent days and there are no signs that either side is willing to give up enough ground to reach a deal," she adds.

It is against that backdrop that quite a few observers are expecting the US Federal Open Market Committee (FOMC) - the central bank's rate setting organ - to, on Wednesday, announce the implementation of a new instalment of quantitative easing. Barclays Research expects the monetary authority to resume purchases at a pace of $45bn per month.

As far as Greece is concerned, markets will be closely watching the news-flow on the take-up of the government's recent debt buy-back offer.

On Thursday and Friday EU leaders will meet to discuss and commit to "a roadmap towards a genuine economic and monetary union". However, it seems unlikely that any major and specific decisions will be made - "we will likely have to wait until after 2013 (post German Federal elections) for this," Credit Suisse believes.

Following the European Central Bank's downgrading of its 2013 growth projections for the Eurozone investors will also be keeping an eye out for Friday's purchasing managers' surveys for the single currency area's manufacturing and service sectors.

Japan's central bank will also release its short-term business confidence survey on Friday. The Markit China PMIs are also slated for release.

From a technical point of view, and as far as the FTSE 100 is concerned, Zak Mir tells us that, "despite the situation regarding the fiscal cliff negotiations being no better than mixed, we have seen the index squeeze higher towards post summer resistance at 5,900+. This suggests that traders are still being squeezed quite painfully as they try and position themselves for a failure/delay in a result regarding the US budget. Arguably, the best way of playing this market currently would be to use this week's intraday support just below 5850 as the platform in targeting a break through 5950-6000 that any year-end rally may deliver."

Lastly, and in the corporate patch, Whitbread is due to issue its third quarter interim management statement on Tuesday. At the interims the company guided towards more moderate like-for-like (LFL) sales growth in the second half compared to the 4.3% reported for the first half. Costa sales are likely to have been boosted in recent weeks due to customers boycotting Starbucks following exposure of its tax affairs. LFL sales growth in Premier Inn and Restaurants is likely to be up by approximately 2%, analysts at Panmure Gordon have told clients.

On that same day Ashtead will report its latest second quarter and interim figures. Seymour Pierce expects the company to report a 40% increase in adjusted profits before tax (PBT) to £71.4m for the quarter. "We remain positive over the outlook for Ashtead's US business given continued encouraging news over the state of the construction industry," they say. In that same vein, they point out how the most recent US construction data, which covered the month of October, revealed the strongest increase in construction spending in over five months. Looking at comparables - other companies in the sector that is to say - United Rentals' third quarter results - announced in October - beat consensus estimates with an 8.9% increase in rental revenue, rates up 7.5% and volumes 7.9% higher. Those results showed that the structural shift from ownership to rental of equipment showed no signs of abating, Seymour Pierce adds.

Monday December 10

INTERIMS

Angel Biotechnology Holdings, Polar Capital Technology Trust

INTERIM DIVIDEND PAYMENT DATE

Nippon Telegraph & Telephone Corp.

QUARTERLY PAYMENT DATE

Canaccord Financial Inc., IBM Corp., Lilly (Eli) & Co

QUARTERLY EX-DIVIDEND DATE

Canadian General Investments Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Current Account (GER) (07:00)

Factory Orders (GER) (11:00)

Harmonised Competitiveness Indicators (EU) (09:00)

Retail Price Index (GER) (07:00)

Q3

Integra Group GDR (Reg S)

GMS

Fastnet Oil & Gas, Ram Active Media

FINALS

Alternative Networks, Andor Technology, Interbulk Group, Treatt

IMSS

Barr (A.G.)

SPECIAL DIVIDEND PAYMENT DATE

Renaissance Russia Infrastructure Equities Ltd

SPECIAL EX-DIVIDEND PAYMENT DATE

Wolseley

EGMS

Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs

AGMS

Baobab Resources, Starvest

Tuesday December 11

INTERIMS

Ashtead Group, Carpetright, International Greetings, Ishaan Real Estate

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

ZEW Survey (EU) (10:00)

ZEW Survey (GER) (10:00)

Q2

Ashtead Group

GMS

Baronsmead VCT, Baronsmead VCT 2, Baronsmead VCT 3

FINALS

Domino Printing Sciences, Terrace Hill Group, Victrex, Zytronic

IMSS

Whitbread

AGMS

Billing Services Group Ltd., Edinburgh Dragon Trust, Tristel

TRADING ANNOUNCEMENTS

ASOS, Go-Ahead Group, IG Group Holdings, Whitbread

UK ECONOMIC ANNOUNCEMENTS

Balance of Trade (09:30)

FINAL DIVIDEND PAYMENT DATE

Interior Services Group

Wednesday December 12

INTERIMS

Begbies Traynor Group, Darty, Imagination Technologies Group, Supergroup, Sutton Harbour Holdings

INTERIM EX-DIVIDEND DATE

3i Group, 3i Infrastructure, Babcock International Group, British Smaller Companies VCT, Caffyns, Caledonia Investments, City of London Investment Group, Cropper (James), Falkland Islands Holdings, First Property Group, Hyder Consulting, Investec, May Gurney Integrated Services, Mitie Group, Montanaro European Smaller Companies Trust, Northern 2 VCT, Northgate, red24, Sweett Group, Telford Homes, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus VCT, Ventus VCT 'C' Shares, Vianet Group, Worldwide Healthcare Trust

QUARTERLY PAYMENT DATE

M Winkworth, Unilever

QUARTERLY EX-DIVIDEND DATE

F&C Commercial Property Trust Ltd., XP Power Ltd. (DI)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Industrial Production (EU) (10:00)

Treasury Budget Statement (US) (19:00)

GMS

Utilitywise

FINALS

IDOX

IMSS

Carillion

SPECIAL EX-DIVIDEND PAYMENT DATE

Polymetal International

AGMS

Altona Energy, BowLeven, EpiStem Holdings, FRM Credit Alpha Ltd Red Part Pref Shs, GETECH Group, PureCircle Ltd. (DI), Sareum Holdings, Sylvania Platinum Ltd (DI), YouGov

TRADING ANNOUNCEMENTS

Carillion, Senior, Travis Perkins

UK ECONOMIC ANNOUNCEMENTS

Claimant Count Rate (09:30)

Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE

Hargreaves Services, Sherborne Investors (Guernsey) 'A' Shares

FINAL EX-DIVIDEND DATE

Baring Emerging Europe, Bellway, K3 Business Technology Group, Marston's, Netcall, Numis Corporation, Origin Enterprises, Qatar Investment Fund, Scottish Oriental Smaller Companies Trust, Ultimate Finance Group, Waterman Group

Thursday December 13

INTERIMS

Betfair Group, Cohort, Greenko Group, OPG Power Ventures, Sportingbet, Sports Direct International

INTERIM DIVIDEND PAYMENT DATE

Hansa Trust, Hansa Trust 'A' Non Voting Shares

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

ECB Report (EU) (09:00)

Producer Price Index (US) (13:30)

Retail Sales (US) (13:45)

Q2

Sportingbet

EGMS

Capital Lease Aviation

AGMS

British Empire Securities & General Trust, Conroy Gold & Natural Resources, Fidelity Special Values, JPMorgan Elect Managed Growth Shares, Karelian Diamond Resources, New City High Yield Fund Ltd., Uranium Resources, ZCCM Investments Holdings 'B' Shares

TRADING ANNOUNCEMENTS

Wood Group (John)

UK ECONOMIC ANNOUNCEMENTS

CBI Industrial Trends Surveys (11:00)

Friday December 14

INTERIM DIVIDEND PAYMENT DATE

Braemar Shipping Services, Carphone Warehouse Group, Charles Stanley Group, Clean Energy Brazil, Edge Performance VCT 'C' Shares, Intermediate Capital Group, Printing.com, SABMiller, Synergy Health, TalkTalk Telecom Group , Wynnstay Properties, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)

QUARTERLY PAYMENT DATE

Anglogold Ashanti Ltd., Carnival, Energy XXI (Bermuda) (Di)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (US) (13:30)

Consumer Price Index (EU) (10:00)

Harmonised Index of Consumer Prices (EU) (10:00)

New Car Registrations (EU) (10:00)

Wholesale Price Index (GER) (07:00)

AGMS

CVS Group, Firestone Diamonds, Northern Venture Trust, Pantheon Resources, Punch Taverns, Quadrise Fuels International, Reconstruction Capital II Ltd., Spitfire Oil Ltd. (DI), World Careers Network

FINAL DIVIDEND PAYMENT DATE

Air Partner, Avingtrans, Downing Absolute Income VCT 1, Downing Absolute Income VCT 1 'C' Shares , Edinburgh Dragon Trust, Keystone Inv Trust, Plexus Holdings, Tristel, Utilitywise