Share this story!            

London stock exchange awaits BoE report

LONDON: Investors on the London Stock Exchange are looking at a busy week starting Monday, highlighted by a quarterly report from the Bank of England on British economic prospects.

The week will also see a torrent of corporate earnings reports and an expected decision by US food group Kraft on a bid for British rival Cadbury.

The market closed Friday at 5,142.72 points, a 1.95 percent gain from Friday’s finish last week. The BoE report is a keenly awaited assessment of the health of the British economy, containing growth and inflation projections, and will be accompanied by comments from bank governor Mervyn King.

The bank on Thursday left its main interest rate at a record low 0.5 percent and announced plans to inject another 25 billion pounds (28 billion euros, $41 billion) to boost the recession-hit British economy. The government on Wednesday will release its latest unemployment report, which is expected to show that joblessness is increasing at a slower pace than at the start of the year.

Analysts have predicted a jobless rate of 8.0 percent in September after 7.9 percent in August. In corporate news, Kraft is expected to reveal Monday at the latest if it will launch an official takeover bid for Cadbury.

Some analysts foresee an improvement in a Kraft proposal put forward in September valued at 10.2 billion pounds (12 billion euros, $18 billion).

Banks HSBC and Barclays publish quarterly results on Tuesday, along with mobile phone group Vodafone and Intercontinental Hotels.

Telecom group BT is to report half-year results on Thursday. afp

Home | Business

Share this story!