Thursday preview: Bank of England, Next in the spotlight

(Sharecast News) - The Bank of England's latest policy decision would be in focus on Thursday. Consensus was for a 25 basis point reduction in Bank Rate to 4.25%.

City analyst Michael Hewson believed that while the Monetary Policy Committee "might well" lower rates on Thursday, it remained to be seen whether it would continue to do so over coming months as financial markets had priced in.

And even if it did cut on Thursday, that might not have much impact on Gilt yields, he mused out loud.

Indeed, five-year Gilt yields were trading above the levels seen last August, when the MPC began to ease policy.

He also pointed out the latest problems with ONS's estimates on foreign trade, which were on top of the already well-known issues regarding its employment data, thus muddying the waters further.

And while recent economic figures had not been "too bad", both headline and core consumer prices remained well above the monetary authority's target levels.

On the corporate side of things, online fashion retailer Next was due to update investors on its financial performance during the first quarter.

The last time around, the company had guided towards first half full price sales growth of 6.5%, against a prior estimate of 3.5%.

Full-year guidance meanwhile was for a 5% rise in sales with profit before tax seen at £1.06bn.

"Over the last few years Next has been one of the few retailers that has been able to push up its guidance at every single quarterly trading update," Hewson noted.

"Will this run of guidance upgrades continue? Recent UK retail sales data would suggest that it might, however with the shares already up 20% since the end of March, and already at record highs, there is a chance that a lot of good news may already be priced in."

Thursday 08 May

INTERIM DIVIDEND PAYMENT DATE

Manchester & London Investment Trust

INTERIM EX-DIVIDEND DATE

Fidelity Special Values, James Halstead, Seneca Growth Capital Vct B, Tracsis

QUARTERLY EX-DIVIDEND DATE

Chenavari Toro Income Fund Limited NPV

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Continuing Claims (US) (13:30)

Import Price Index (GER) (07:00)

Industrial Production (GER) (07:00)

Initial Jobless Claims (US) (13:30)

FINALS

Lords Group Trading, Lords Group Trading, Polarean Imaging

IMSS

Rathbones Group

SPECIAL DIVIDEND PAYMENT DATE

Manchester & London Investment Trust

SPECIAL EX-DIVIDEND DATE

Aquila Energy Efficiency Trust, Playtech, Seplat Energy (DI)

AGMS

Abrdn , Abrdn Asian Income Fund Limited NPV, Antofagasta, Balfour Beatty, Cairn Homes (CDI), Centrica, Cirata, Fidelity European Trust, Grafton Group Ut (CDI), Harbour Energy , Indivior, InterContinental Hotels Group, Irish Continental Group Units (Comp) (CDI), Jupiter Fund Management , Mondi, Mony Group, Mony Group, OSB Group , Personal Group Holdings, Rathbones Group, Reckitt Benckiser Group, Rosebank Industries NPV (Reg S), TBC Bank Group, The Gym Group, Uniphar (CDI), Wickes Group

TRADING ANNOUNCEMENTS

Derwent London, Harbour Energy , IMI, InterContinental Hotels Group, Mondi, S4 Capital

UK ECONOMIC ANNOUNCEMENTS

BoE Interest Rate Decision (12:00)

Halifax House Price Index (07:00)

FINAL DIVIDEND PAYMENT DATE

Dalata Hotel Group (CDI), Schroders

FINAL EX-DIVIDEND DATE

Barr (A.G.), Centaur Media, Clarkson, Franchise Brands, Hochschild Mining, Ibstock , Kenmare Resources (CDI), LSL Property Services, M&C Saatchi, Petershill Partners , Property Franchise Group, Relx plc, Seplat Energy (DI), SThree

Q1

Eesti Energia AS Perp Non-Call 5.25 Cap Secs, Helios Towers , TBC Bank Group, Vaalco Energy, Inc (DI)