Wednesday preview: BoE minutes, Balfour Beatty, Interserve

The minutes from the August meeting of the Bank of England's policy-making team, the Monetary Policy Committee (MPC), are due out at 09:30.

The Bank's Governor, Mervyn King, made it pretty clear in his press conference following the release of the central bank's inflation trends report that he did not think it was necessary just yet to contemplate more financial stimulus, whether through more asset purchases or a rate cut, but it will be interesting to see if any of his colleagues on the MPC disagree with him.

Also out at 09:30 are unemployment figures, with the market expecting the claimant count unemployment rate to stick at 09:30.

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On the companies front, construction group Balfour Beatty issues first half results. The group said last month it is trading in line with expectations, but Panmure Gordon notes it has flagged additional investment disposals plus a greater second half weighting to its Support Service division, so the broker expects pre-tax profit to be down year-on-year at around £131m from £139m in 2011.

"In Construction a tough Rail market due to its European focus was flagged but offset by good JV [joint venture] performance. More PFI [private finance initiative] disposals have been achieved, c£10m, but this will offset higher costs from recent Utility contract wins; this means that the Support Service performance will be more H2 [second half] weighted," Panmure Gordon said.

"The order book should be stable around £15bn which provides healthy revenue visibility. Investment and working capital movement means H1 cash will be 'reduced' but an inflow is expected for the second half," Panmure Gordon added.

Peel Hunt asks whether support services outfit Interserve is turning the corner? The broker is forecasting first half profit before tax of £33.5m, "which represents a managed decline in UK construction and Middle East activity re-profiling."

"Offsetting this, self-help in Support Services should ensure modest group EBITA [earnings before interest, tax and amortisation] growth," Peel Hunt adds.

"A potential positive swing factor could be Equipment services, given the early signs of volume recovery," Peel Hunt added.

Panmure Gordon, meanwhile, predicts Interserve's pre-tax profit will be around £33m.

"A solid pre-close update suggests no surprises expected with the H1 results. Further margin recovery in its Support Services division, with good UK construction offsetting tougher International, and Equipment Services performance mixed. While shares trade on an attractive valuation we see better upside elsewhere in the sector," the broker said.

INTERIMS

Balfour Beatty, CLS Holdings, Eurasian Natural Resources Corp., Huntsworth, Interserve, Lookers, PPHE Hotel Group Ltd, Resolution Ltd., Vindon Healthcare

INTERIM EX-DIVIDEND DATE

Anglo American, British American Tobacco, CSR, Dairy Farm International Holdings Ltd. (Singapore), Foresight 2 VCT Planned Exit Shares, Foresight VCT Planned Exit Shares, Fresnillo, Hammerson, Hongkong Land Holding Ltd. (Singapore), Informa, Japan Residential Investment Co Ltd., Jardine Matheson Holdings Ltd (Singapore), Jardine Strategic Holdingd Ltd. (Singapore), Man Group, Mandarin Oriental International (Singapore), Meggitt, Moneysupermarket.com Group, Pearson, Rio Tinto, RM, Schroders, Schroders (Non-Voting), Telecity Group, Ultra Electronics Holdings

QUARTERLY PAYMENT DATE

Abbott Laboratories, Marsh & Mclennan Cos Inc., Merchants Trust

QUARTERLY EX-DIVIDEND DATE

Boeing Co, M Winkworth, MedicX Fund Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Capacity Utilisation (US) (16:15)

Consumer Price Index (US) (13:30)

Crude Oil Inventories (US) (15:30)

Industrial Production (US) (16:15)

MBA Mortgage Applications (US) (12:00)

Wholesale Price Index (GER) (07:00)

GMS

HMV Group, Mercury Recycling Group

FINALS

Stagecoach Theatre Arts

IMSS

Pennon Group

AGMS

Mountview Estate

UK ECONOMIC ANNOUNCEMENTS

BoE Interest Rate Minutes (09:30)

Claimant Count Rate (09:30)

Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE

National Grid, Speedy Hire

FINAL EX-DIVIDEND DATE

Ashtead Group, Carclo, Iomart Group, Latchways, Mulberry Group, New Century AIM VCT, Northgate, Prosperity Minerals Holdings Ltd., PZ Cussons, Vedanta Resources