Friday preview: US fourth quarter GDP, Sky interims

The US economy is expected to have eased considerably in the fourth quarter amid a global economic slowdown.

Gross domestic product data on Friday is forecast to show an annualised 0.8% increase in the last three months of the year, down from 2% growth in the third quarter.

“Despite an increase in payroll employment and total hours worked in the fourth quarter, it appears that GDP growth slowed as net exports fell and businesses cut back on inventory accumulation,” according to HSBC analysts.

The Federal Reserve on Wednesday decided to keep interest rates unchanged, noting weak global growth and low inflation. Yet the Fed said it expects the US economy to continue to grow "at a moderate pace”, supported by a strong labour market.

The US will also see the release of the final estimate of the University of Michigan’s consumer confidence index in January.

Closer to home, GFK releases on Friday releases its UK consumer confidence survey for January. Analysts expect the sentiment index to have fallen to 1 this month from 2 in December.

On the company front, Sky reports its half-year interims following solid first quarter results in October.

“For the first half, we forecast revenues of £5,664m with growth curtailed to +1% by an foreign exchange headwind of -3%,” said Numis analyst Paul Richards.

“We expect earnings before interest, tax, depreciation and amortisation of £731m, pre-tax profit of £620m (1H15 £585m) and earnings per share of 28.5p (prior year 26.9p, consensus 29.1p). We continue to rate Sky an ‘add’ against a target price of 1250p and view it as offering defensive growth in these difficult markets.”

Friday 29 January

INTERIMS
BT Group, Rank Group

INTERIM DIVIDEND PAYMENT DATE
Aberdeen New Dawn Investment Trust, Amedeo Air Four Plus Limited, Auto Trader Group , Aveva Group, Cranswick, Ediston Property Investment Company, Ensor Holdings, F&C Commercial Property Trust Ltd., F&C Global Smaller Companies, Latham (James), Marwyn Value Investors Limited, Monks Inv Trust, Northern 2 VCT, Northern 3 VCT, Poundland Group , Speedy Hire

QUARTERLY PAYMENT DATE
BlackRock Income Strategies Trust , Caledonia Mining Corporation, Middlefield Canadian Income PCC, Schroder Income Growth Fund, Twentyfour Income Fund Limited Ord Red

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (14:45)
International Reserves (EU) (11:00)
M3 Money Supply (EU) (09:00)

FINALS
Entu (UK) , Kcell Joint Stock Co GDR (Reg S)

SPECIAL DIVIDEND PAYMENT DATE
European Investment Trust

AGMS
Boxhill Technologies , Focusrite, Inspirit Energy Holdings, Ixico, JPMorgan Asian Inv Trust, MXC Capital, Ranger Direct Lending Fund, Scottish Inv Trust, Weatherly International, Weatherly International

TRADING ANNOUNCEMENTS
Vedanta Resources

FINAL DIVIDEND PAYMENT DATE
Alternative Networks, Character Group, DotDigital Group, European Investment Trust, Lowland Investment Co, Standard Life European Private Equity Trust