Wednesday preview: Eurozone inflation due, Greene King and Zoopla report

(ShareCast News) - Eurozone inflation may have improved in November compared to a year ago, according to analysts' forecasts ahead of consumer price index data on Wednesday.The flash estimate of CPI for November is expected to show a 0.2% year-on-year increase, compared to 0.1% in October. Core inflation, which excludes volatile components such as energy, is projected to gain 1.1% last month, in line with October."We expect the energy component to continue to weigh on inflation for another month, before base effects push headline inflation up around the turn of the year," according to HSBC analysts.The European Central Bank has been under pressure to do more to address prolonged low inflation in the euro-area. In Thursday's policy announcement, ECB President Mario Draghi is widely expected to reveal a new set of measures including further asset purchases and a cut to the deposit rate.Michael Hewson, senior market analyst at CMC Markets, said the ECB predictions seem "completely at odds to what the economic data is telling us right now"."Furthermore the effects of the fall in oil prices is likely to drop out of the inflation numbers in February, giving a further upward boost to the headline CPI numbers while unit labour costs in Europe are also starting to rise again, which suggests that market expectations are running ahead of what the ECB is likely to deliver on Thursday," he said."Quite simply there is a risk that market expectations of what the ECB will do this week are based on the premise of shock and awe, when in reality they could get something more akin to bubble and squeak."In a note on Monday, Macquarie agreed that market expectations about the extent of the policy easing have become elevated despite clear signs of an improvement in the Eurozone economic data since the ECB's last gathering."Investors have expressed this optimism about the likely policy measures by pushing down short-term yields and the euro," Macquarie said. "Therefore there is a clear risk then that markets are, for once, disappointed in Draghi."Meanwhile among companies due to report, pub operator Greene King reports its first-half interims. Numis predicts pre-tax profit of £102m, up from £83m the previous year, boosted by the Rugby World Cup. However, it warned that the acquisition of Sprit Pub Company, completed on 23 June, might complicate and overshadow the results."The company's main challenge is to integrate Spirit, drive synergies and rationalise the managed pub brands without undermining like-for-like (LFL) trading," said Numis analyst Douglas Jack.Zoopla Property is also due to post preliminary result for the year, with the shares getting extra investor attention after being tipped in the Sunday Times. In its latest trading statement, Zoopla has highlighted full year performance slightly ahead of consensus, which currently expects sales of £107m and EBITDA of £48m. UBS added that it forecasts average revenue per advertiser (ARPA) of £341 per month, up 9% YOY, while the market will also be looking for any hints about the competitive landscape after new rival OnTheMarket.com launched earlier this year.Wednesday 02 December INTERIMS Greene King, International Greetings, Iomart Group, Telford Homes, Tricorn Group INTERNATIONAL ECONOMIC ANNOUNCEMENTSBeige Book Fed Survey (US) (19:00) International Reserves (EU) (11:00)MBA Mortgage Applications (US) (12:00)Producer Price Index (EU) (10:00)GMSTelit Communications FINALSBrewin Dolphin Holdings, Impax Asset Management Group, Numis Corporation, Sage Group, Urban&Civic , Zoopla Property Group (WI) EGMSNokia OYJAGMS Bioventix, Firestone Diamonds, Gemfields, Jubilee Platinum, London Finance & Investment Group, Matchtech Group, Purecircle Limited (DI), Vernalis plc UK ECONOMIC ANNOUNCEMENTSPMI Construction (09:30)