Friday preview: Eurozone inflation, RBS third quarter interims

The Eurozone consumer price index may have improved slightly in October compared to a year ago, according to the consensus forecast.

Friday’s Eurozone CPI is expected to show 0% year-on-year growth in October, up from a 0.1% fall the previous month.

However, inflation remains well below the European Central Bank’s target of just below 2%. Amid weak inflation, the ECB has said it will re-examine its €60bn monthly asset purchase programme at December’s policy meeting.

The Eurozone unemployment rate is also due on Friday, with analysts predicting it will remain at 11% in September.

GfK releases its consumer confidence report on the UK ahead of the open. Economists estimate the index will increase to 4 in October from 3 in September.

Stateside, personal spending and income figures are due along with the University of Michigan’s final estimate on consumer confidence and the Chicago purchasing managers’ index on manufacturing.

RBS third quarter interims

Royal Bank of Scotland is likely to report an adjusted pre-tax profit of £923m in the third quarter, according to Deutsche Bank's forecast.

DB's said its estimate is slightly below consensus of £988m and is due to higher restructuring and litigation charges of an expected £1.2bn and £1.6bn, respectively.

“We retain our Hold rating,” said DB analyst David Lock.

“Key upside risks are a stronger-than-expected performance in non-core run-off and Corporate & Institutional Banking, faster-than-expected run-off of RWAs, lower litigation/conduct than we forecast. Downside risks relate to legacy settlements and regulatory change.”

RBS is trying to rebuild its capital buffers up to a level that will allow the bank to pay its first dividend since it was bailed out during the financial crisis. The FTSE 100 bank last paid a dividend in 2008, shortly before its collapse. The lender has earmarked 2017 for the resumption of the dividend.

Friday 30 October

INTERIMS
Marlowe Holdings Limited (DI)

INTERIM DIVIDEND PAYMENT DATE
32Red, Advanced Medical Solutions Group, BBA Aviation, BrainJuicer Group, Cdialogues , Central Asia Metals, Crawshaw Group, Dignity, Elegant Hotels Group , EMIS Group, Essentra, International Public Partnerships Ltd., John Laing Group , Learning Technologies Group , London Security, Maven Income & Growth 2 VCT, Mortgage Advice Bureau (Holdings) , NAHL Group, Northbridge Industrial Services, Old Mutual, Partnership Assurance Group , Premier Technical Services Group , Primary Health Properties, Smurfit Kappa Group, Sprue Aegis, Wynnstay Group, XLMedia

QUARTERLY PAYMENT DATE
Albion Technology & General VCT, F&C Commercial Property Trust Ltd., Middlefield Canadian Income PCC, Schroder Income Growth Fund, Torchmark Corp.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (14:45)
International Reserves (EU) (11:00)
Personal Consumption Expenditures (US) (13:30)
Personal Income (US) (13:30)
Personal Spending (US) (13:30)
Unemployment Rate (EU) (10:00)

Q3
International Consolidated Airlines Group SA (CDI), Royal Bank of Scotland Group

GMS
88 Energy Limited (DI)

IMSS
Berendsen, Elementis

SPECIAL DIVIDEND PAYMENT DATE
Maven Income & Growth 2 VCT, River and Mercantile Group

EGMS
Eastbridge Investments

AGMS
Ashley House, Blenheim Natural Resources , Environmental Recycling Tech., Ross Group, Sacoven, Sylvania Platinum Ltd (DI)

UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:05)

FINAL DIVIDEND PAYMENT DATE
Bioventix, City of London Investment Group, Coral Products, Eckoh, Fulcrum Utility Services Ltd. (DI), IG Group Holdings, Pembroke Vct, River and Mercantile Group