The market was none too enthused on Monday with the Christmas trading update from supermarket group Morrisons and on Wednesday it is the turn of rival Sainsbury to march to the crease when it publishes a fiscal third quarter update. Nomura Securities thinks the UK's number three supermarket chain will have made a better fist of trading over the Christmas than its peers.
It is predicting like-for-like (LFL) sales (excluding fuel) growth of 2.0% year-on-year in the 14 weeks to January 7th. With value added tax (VAT) stripped out, that growth figure falls to 1.0%. If the Japanese broker is right, then that would represent an acceleration in LFL sales growth from the previous quarter, when the supermarket notched up year-on-year growth of 1.9%.
"Against the backdrop of sharper prices from both Tesco and Asda, we expect Sainsbury to have traded well across the period, capitalising on its traditional strength in events and Christmas in particular. A growing non-food presence (partly via extensions) and its positioning as the premium mass market player will have helped across the peak period, but with the latter likely to represent a headwind across calendar 2012," Nomura said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
JPMorgan Chase is a bit more conservative in its prediction of LFL sales growth, going for 1.8%.
Recruitment firm Michael Page has some repairs to make to its reputation after it issued a profit warning in December. The company claimed the Eurozone crisis had "reduced client and candidate confidence" and it is not likely that much has happened in the last month to alter that situation.
Credit Suisse responded to the warning by reducing its 2011 and 2012 earnings estimates by 10% and 28% respectively, and hinted that further downgrades could be coming down the road. "Our estimates are based on an underlying assumption of a European recession but see the potential for significant further downside if the challenges in the Eurozone drag the global economy into recession," the Swiss bank said.
"We forecast full year gross profit of £546m and pre-tax profit of £85m," Credit Suisse added.
On the economic front, economists have used a red pencil to record their forecast of a UK goods trade deficit of £8.35bn for November, which is even worse than the October deficit of £7.57bn.
INTERIM DIVIDEND PAYMENT DATE
3i Group, 3i Infrastructure, Anglo Pacific Group, De La Rue, Ventus 2 VCT 'C' Shares, Ventus VCT, Ventus VCT 'C' Shares
INTERIM EX-DIVIDEND DATE
Umeco, Workspace Group
QUARTERLY PAYMENT DATE
Africa Opportunity Fund Ltd.
QUARTERLY EX-DIVIDEND DATE
British Land Co, F&C Commercial Property Trust Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
National Accounts (GDP) (10:00)
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (12:00)
IMSS
Brown (N.) Group
SPECIAL EX-DIVIDEND PAYMENT DATE
Juridica Investments Ltd.
AGMS
Fenner, Ottoman Fund Ltd.
TRADING ANNOUNCEMENTS
Greggs, Michael Page International, Sainsbury (J)
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
BRC Shop Price Index (00:01)
UK Trade (09:30)
FINAL DIVIDEND PAYMENT DATE
AI Claims Solutions, Northamber, RSM Tenon Group
FINAL EX-DIVIDEND DATE
Dewhurst, Dewhurst (Non-Voting), Dunedin Smaller Companies Inv Trust, Lonmin, Paragon Group Of Companies, Schroder Asia Pacific Fund
jh
-
Buying a property is cheaper than renting again – how much could you save?News Zoopla research shows it is now 8% cheaper to buy than rent. We reveal the places where you can save more by getting on the property ladder.
-
Is now a good time to invest in India?Should you invest in India? Its market has stood out of the emerging market pack, helped by a growing pool of domestic investors.
