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The Week Ahead: Vodafone, Kingfisher and MPC minutes

Amid mounting fears over debt crises on both sides of the Atlantic, investors will focus next week on management statements from Kingfisher (KGF.L) and Vodafone (VOD.L), as well as minutes from the Bank of England’s last policy-setting meeting.

 
The Week Ahead: Vodafone, Kingfisher and MPC minutes

Amid mounting fears over debt crises on both sides of the Atlantic, investors will focus next week on management statements from Kingfisher (KGF.L) and Vodafone (VOD.L), as well as minutes from the Bank of England’s last policy-setting meeting.

More stimulus from the Bank of England?

Minutes from the July meeting of the Bank of England’s Monetary Policy Committee, to be published on Wednesday, will be examined for signs that the policymakers are warming to the idea of providing more stimulus to boost the ailing UK economy.

Howard Archer, chief UK economist at IHS Global Insight, pointed out that until recently, there had seemed little likelihood that the Bank could relax monetary policy further.

But he added: ‘A recent extended series of weak data and surveys has significantly heightened concerns over the health of the economy and its ability to withstand the increasing fiscal squeeze.’

Retail sales and government borrowing for June are also likely to add to the policy debate, according to economists at Markit, with the former ‘likely to show high street sales struggling and the latter closely watched to see if the improvement seen in May can be repeated.’

Kingfisher

Ahead of Kingfisher’s second-quarter trading announcement on Thursday, Andrew Wade, analyst at Numis, said: ‘We expect France to remain solid, albeit slowing from Q1, while the UK, having benefited from Easter and weather in Q1, is likely to drop into negative territory.'

He pointed out that shares in the B&Q owner – a top holding in Philip Matthews’ Jupiter Growth & Income fund, a Citywire Selection pick – have lost some of their recent gains, leaving it on a valuation of just over 11x January 2012 expected earnings.

‘While we remain cautious on consumer spending in this tough environment, we believe Kingfisher’s self-help strategy is sensible, with clear management incentive targets closely aligned to shareholders interests and remain positive,’ Wade said.

Land Securities and Severn Trent

The announcement will be preceded by final results from spreadbetter IG Group (IGG.L) on Tuesday, when Land Securities (LAND.L), Britain’s largest listed landlord, and retinal-imaging equipment firm Optos (OPTS.L) are to release management statements.

On Wednesday, Water Company Severn Trent (SVT.L) is to release an interim management statement, while outsourcing group Capita (CPI.L) is to produce interim results on Thursday.

The day will also see an interim management statement from Mitchells & Butlers (MAB.L), the All Bar One owner whose chairman just became the sixth to leave in the last three years, and a trading announcement from brewer SABMiller (SAB.L).

Vodafone

Cable & Wireless Communications (CWC.L) is to produce an interim management statement on Friday, when Vodafone, the world’s biggest mobile operator by revenue, is set to publish a first-quarter interim management statement.

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4 comments so far. Why not have your say?

DEREK SMITH

Jul 15, 2011 at 19:54

Perhaps Mr Kaye would like to elaborate on his so eloquent observations!!!

Could he perhaps be an ex-employee with attitude?

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alan franklin

Jul 16, 2011 at 08:50

I agree with Mr. Kaye, as a long suffering customer and former shareholder of this utter shambles of a company.

Having experienced what happens when you order something not in stock, and are still trying to get all the bits delivered months later, I am astounded that they are still even moderately successful.

I once went, early morning, to a sale, to look at kitchens. At the entrance, another customer asked me what I was there for. When I told him he rolled his eyes and said: "Whatever you do, NEVER order a kitchen from B and Q." A tale of woe followed.

I ignored his advice, ordered a kitchen- and yes, delivery was an utter shambles. They just can't hack the supply chain, warehouse and delivery system, as many people tell the same story. That's why professional builders tend to go to Howdens Joinery, a vastly more professional and utterly reliable outfit (I have no connection, other than as a customer.)

I tend to be a sucker for punishment, for was planning on ordering another B and Q kitchen. I still have the e-mail from my builder, which is a classic. He started out: "Noooooo! Whatever you do. don't order anything from B and Q."

The problem is, their utter ineptitude wasts the time of expensive tradesmen, who are unable to complete a job if all the right parts are not present.

This was repeated again, when we (eventually) took delivery of wardrobes, in a difficult location. I called and said: "Whatever you do, DO NOT try and deliver in a large truck." Next day, the world's biggest truck drove up - and drove off. "We couldn't get access," was the plaintive whine. Oh really, what a surprise. I could go on - and on.

B and Q has taken over from MFI and clearly adopted their "Made for Idiots" motto. Shop elsewhere- and stay clear of their shares. This company couldn't run one of their own baths.

Finally, they didn't even have the good manners to answer my complaints. A shambles!

I feel better for that.

report this

Paul Eden

Jul 16, 2011 at 17:06

I am grateful to Mr Franklin for enlightening me about B & Q. Unlike him I will steer clear of them. I have also made a note of Howdens Joinery for when I do need a new kitchen.

Leaving comments can be very useful for potential customers.

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Geoff James2

Jul 18, 2011 at 08:31

I remember when B&Q was a trail blazer in the sector. It was “the” go-to place for everything from paint to strippers (can I say that here?). Then its ownership changed, and it has tried to go up market. It fails on so many customer focus measures that it should be put out of its misery as has been suggested here.

Never owned the shares though. Just a customer.

Regards

Geoff

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