Friday preview: Still lots of work to be done at RBS

After the massive let-down that was the European Central Bank's policy meeting on Thursday economists turn their attention to US job data for July.

Expectations are that non-farm payrolls will have increased by 100,000, after rising 80,000 in June. The US unemployment rate is tipped to remain at 8.2%.

On the corporate front Royal Bank of Scotland (RBS) gets a rest from having its knuckled rapped as it presents interim results.

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Sky News reported on Thursday that the part-nationalised lender is set to be fined £300m in relation to IT breakdowns at NatWest and two mis-selling scandals.

The Financial Times (FT), meanwhile, has heard whispers that the government has considered going the whole hog and buying out minority shareholders to run what might well become known as the Nationalised Westminster Bank.

According to the FT, the move has been considered because of exasperation in government circles at a perceived reluctance by UK banks to lend to small and medium sized businesses.

As for the results, they are likely to show further progress in boosting the performance of the core business while running down the non-core operations, thereby de-risking the bank.

Oriel Securities has pencilled in £1,982m for operating profit. The broker reckons the non-core operations will put a £979m dent in profits, so there is still a lot of work to be done on de-risking.

Rentokil Initial has long since expanded beyond pest extermination but is still frequently referred to as a rat-catcher. Some shareholders wish it had stuck to that particular line of work.

Things have been going OK in the Pest Control division and the other main money-spinner, Textiles & Hygiene, has also been cleaning up, but the group's courier business, City Link, is taking an interminable length of time to turn round.

Tony Shepard, an analyst at Charles Stanley notes that 40% of sales emanate from continental Europe, and says "clearly trading conditions here are becoming more challenging as recessions in Southern Europe become more

entrenched."

"In addition, currency translation is likely to have a negative impact as the £/€ has moved to €1.28 compared to €1.19 at the beginning of the year," Shepard adds.

The broker expects profit before tax to be around £69m, down from £73.5m at the half-way stage last year.

INTERIMS

Bank Pekao SA GDS (Reg S), Inmarsat, International Consolidated Airlines Group SA (CDI), Logica, Novae Group, Rentokil, Royal Bank of Scotland Group

INTERIM DIVIDEND PAYMENT DATE

Chemring Group, Driver Group, Heavitree Brewery, Heavitree Brewery 'A' Shares

QUARTERLY PAYMENT DATE

Investors Capital Trust 'A' Shares, Investors Capital Trust 'B' Shares

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

ISM Non-Manufacturing (US) (15:00)

ISM Services (US) (15:00)

Non-Farm Payrolls (US) (13:30)

PMI Composite (EU) (09:00)

PMI Composite (GER) (08:55)

PMI Services (EU) (09:00)

PMI Services (GER) (08:55)

Unemployment Rate (US) (13:30)

IMSS

Diploma

TRAFFIC STATS

International Consolidated Airlines

SPECIAL DIVIDEND PAYMENT DATE

Octopus Eclipse VCT 2, Walker Crips Group

AGMS

Alpha Tiger Property Trust Ltd., Hotel Corporation (The), Indian Hotels Company Ltd. GDR (Reg S)

UK ECONOMIC ANNOUNCEMENTS

PMI Services (09:30)

UK Official Reserves (09:30)

FINAL DIVIDEND PAYMENT DATE

Bond International Software, Carphone Warehouse Group, Charles Stanley Group, CML Microsystems, E2V Technologies, Establishment Inv Trust, Fidelity China Special Situations , Halfords Group, Invensys, Lindsell Train Inv Trust, Octopus Eclipse VCT 2, Plastics Capital, TalkTalk Telecom Group , Tate & Lyle, Telecom Plus, United Utilities Group, Workspace Group

JH