The AGMs of BT and British Airways, both due next week, could be turbulent affairs.
On Tuesday, the Office for National Statistics will release its latest inflation numbers. Prices, as measured by the Consumer Price Index, are expected to be 1.8% higher than a year ago, compared to 2.2% last month. However, the Retail Price Index, which includes mortgage costs, could show that prices are 1.6% lower.
The AGM of British Airways (LSE: BAY) could be uncomfortable for its directors. The UK flag carrier recently said market conditions continue to be very challenging with trading well below last year. Nevertheless, underlying volumes at both the front and the back of its planes have been stable for more than three months. BA is also locked in negotiations with unions over job cuts and a two-year pay freeze.
BT and C&W calling
BT Group (LSE: BT-A) will be holding its annual get-together at the Barbican Centre on Wednesday. For many years, BT's attractive dividend has been one of the prime reasons for investors to own the shares. But now that the full-year payout has been slashed almost 60%, BT will need to reassure over its progressive dividend policy.
By contrast, Cable & Wireless (LSE: CW), which will hold its AGM on Friday, has hiked its full-year payout 13%. An upbeat C&W said in May that it expects a substantial increase in its cash generation.
High street update
Sainsbury (LSE: SBRY), which holds its AGM on Wednesday, has done much to bring down the cost of our weekly shopping bill. It has slashed prices on 7,000 items since the start of the year. This boosted like-for-like sales 7% in its first quarter, and total sales were 3% higher.
Sports Direct (LSE: SPD) founder Mike Ashley is fighting battles on three fronts: depressed high streets sales, controversy over a £1.5m loan made to JJB Sports (LSE: JJB) chairman Sir David Jones, and an unwanted Newcastle United football club.
But it will be Sports Direct's annual results that will capture the headlines on Thursday. Sales should be bolstered by heavy discounting but the impact of the price cuts will dent profits significantly.
Other retailers with news next week include Burberry (LSE: BRBY) and Mothercare (LSE: MTC), both of which have trading updates. Burberry has been slashing prices, which reduced its profits by 13% last year. The up-market retailer has also been aggressively reducing its stock levels. Meanwhile, a combination of overseas expansion and Myleene Klass has helped Mothercare sidestep the worst of the recession and hike its dividend by 20%.
Notable results and updates
Monday: Dunelm
Tuesday: Alphameric, British Airways and Headlam
Wednesday: Blacks Leisure, BT, Burberry, Land Securities, JD Wetherspoon, Land Securities, Rio Tinto and Sainsbury
Thursday: Mothercare, Mitchells & Butlers and Sports Direct
Friday: Cable & Wireless
