Friday preview: UK public finances, German PPI

With no significant London-listed corporate results on Friday, investors will be focused on the only two notable economic data releases – UK public finances and German producer prices.

The UK public sector finance release from the Office for National Statistics marks the first since the European Union referendum.

The July data is expected to show public sector net borrowing, excluding public sector banks, decreased by £2.3bn, compared to a £2.2bn fall in June to £7.8bn.

HSBC said: “One area where some indication of the referendum’s effect may come through is in corporation tax returns, which reflected expected earnings, rather than actual results.

“The OBR thinks there may be some deterioration in expected earnings this year, on the back of the vote, but that this could be offset by lower-than-expected investment costs. So, we expect a small increase on last year's surplus.”

Meanwhile, HSBC expects the German producer price index data from the Federal Statistics Office to register a month-on-month increase of 0.1% in July, compared to 0.4% in June. The bank sees the yearly change improving to a 2.1% decline in July from a 2.2% drop in June.

Friday 19 August

INTERIM DIVIDEND PAYMENT DATE
Blackrock Throgmorton Trust, Crystal Amber Fund Ltd., Sanderson Group

QUARTERLY EX-DIVIDEND DATE
M Winkworth

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Producer Price Index (GER) (07:00)

EGMS
PJSC Megafon GDR (Reg S)

TRADING ANNOUNCEMENTS
Alpha Real Trust Ltd.

UK ECONOMIC ANNOUNCEMENTS
Public Sector Net Borrowing (09:30)

FINAL DIVIDEND PAYMENT DATE
Atkins (WS), Bacit Limited, Castings, Heath (Samuel) & Sons, Immunodiagnostic Systems Holdings, Scapa Group, U And I Group