Market Watch: Big hitters set to publish results

Published on Saturday 7 November 2009 16:37

MARKET confidence will be put to the test next week when heavyweight firms publish trading updates, writes Erikka Askeland.

Banking giants Barclays and HSBC should confirm a widening gap in performance with their part-nationalised counterparts when they report third-quarter figures on Tuesday. The duo have avoided government support and the subsequent onerous European Commission penalties that have caused seismic changes at Lloyds Banking Group and Royal Bank of Scotland.

However, while Barclays is making hay in the wake of its takeover of parts of bankrupt Lehman Brothers, HSBC is struggling with bad debts.

Mobile phone giant Vodaphone has been struggling to compete with Apple's iPhone, for which O2 has exclusive rights, with Orange coming on stream as distributor this month. Vodafone recently secured a deal with iPhone, but it does not start until after the peak Christmas period, which will leave it on the back foot compared with its UK rivals.

BT reports interim results on Thursday.

Consumers will be on the lookout for any suggestion that energy prices could rise when British Gas owner Centrica and Scottish & Southern Energy provide trading updates. Centrica is set to outline recent trading on Thursday.

Supermarket Sainsbury's, which reports half-year figures on Wednesday, has already warned of slowing sales growth as inflation begins to ease.

Analysts have pencilled in underlying pre-tax profits of 300 million, up from 272m a year earlier.