Lloyds to face questions at AGM

Published on Saturday 30 May 2009 14:29

A SHORT but turbulent week saw the London market end on a high, helped by events across the Atlantic and economic data.

The Footsie was buffeted by trader nerves as news of General Motors' plans for bankruptcy protection broke in the US. But a boost came on Friday with increased confidence over GM and a survey from Nationwide suggesting UK house prices rose in May. The FTSE 100 closed up 52.7 points at 4,417.9 across the week.

This week Ryanair boss Michael O'Leary will give his take on the state of the battered airline sector, while investors will also get the chance to quiz Lloyds Banking Group about its controversial HBOS takeover.

LBG appeased shareholders recently with news that chairman Sir Victor Blank is stepping down, but investors may still vent fury at the annual general meeting on Friday. There has been growing discontent over the decision to take over ailing HBOS in last autumn's dramatic rescue.

Low-cost carrier Ryanair reports full-year figures on Tuesday after a turbulent year for the sector.

Ryanair said in February it had swung into the red with third-quarter losses of 88.9m. But the lower fuel costs saw it up profit expectations for the full-year, with the firm forecasting an annual profit of between 43.8m and 70m.

A note of optimism is expected from B&Q owner Kingfisher as the home improvement giant gives an update on trading on Tuesday. Kingfisher, which saw a 19% slump in profits at its UK DIY chain last year, has recently unveiled plans to spruce up its own offering as it looks to diversify and boost its performance.

Deutsche Bank expects first-quarter profits to be up 38% at B&Q and 9% for the group.

Supermarket Morrisons is set to maintain its recent trading momentum in its first-quarter trading update on Thursday, although gradually easing food inflation should be reflected in lower sales growth.

Industry figures from TNS Worldpanel last week showed the Bradford-based group enjoying the greatest level of annual growth in the four weeks to May at 7.9%.

Cost-cutting and the demerger of the Talk Talk broadband business are likely to come into focus when Carphone Warehouse releases its full-year results on Friday. The firm has outlined strategies to reduce expenditure in recent months, including the February announcement that 450 jobs were at risk across the company as part of an overhaul to keep costs under control.