Thursday preview: ECB policy decision, Sky reports third quarter

The European Central Bank announces its latest policy decision on Thursday after introducing a raft of new measures in March to address prolonged low inflation and a stagnant economic recovery.

The Governing Council is widely expected to keep key rates and its asset purchase programme unchanged.

In March, the ECB surprised the market as it slashed its main interest rate by five basis points (bps) to 0.00% and increased quantitative easing (QE) by €20bn to €80bn per month. The ECB also cut the deposit facility rate by 10bps to -0.40% and the marginal lending facility rate to 0.25% from 0.30%.

“Despite the comprehensive package of easing, which was announced in March, the ECB is still under pressure to ease again as inflation expectations remain around a historically low level, while the effective euro has strengthened following the easing from the ECB,” said Danske Bank.

Minutes of the ECB’s last meeting showed that the Governing Council “would not rule out future cuts in policy rates” as new shocks might change the outlook for inflation and warrant further action.

Governor Mario Draghi’s press conference will be monitored closely on Thursday for any clues on the ECB’s next move. Draghi is expected to deliver a dovish tone.

“We believe Draghi will re-open the door for additional rate cuts after stating at the latest meeting in March that he did not anticipate more rate cuts,” Danske Bank added.

“Draghi is likely to do this by emphasising the ECB's forward guidance stating that policy rates are expected to 'remain at present or lower levels for an extended period of time'. “

On the company front, Sky reports its third quarter interims.

UBS expects a 10% increase in earnings before interest, tax and appreciation to £1.34bn, driven by growth in the UK. Underlying revenues are forecast to rise 5% to £8.71bn.

“We expect to see a steady quarter with continued solid growth in financials and moderate growth in key performance indicators,” said UBS analyst Polo Tang.

“We will be watching for any insight into upside from new initiatives such as the new high-end Sky Q box (launched in February), the launch into UK mobile and the potential launch of an online/OTT product into new European markets.”

Thursday 21 April

INTERIM DIVIDEND PAYMENT DATE
Sky

INTERIM EX-DIVIDEND DATE
Orchard Funding Group , UK Mortgages Limited

QUARTERLY EX-DIVIDEND DATE
Ediston Property Investment Company, TwentyFour Select Monthly Income Fund Limited

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
House Price Index (US) (14:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (14:00)
Philadelphia Fed Index (US) (13:30)

Q3
Sky

FINALS
Corero Network Security, Immedia Group

ANNUAL REPORT
Mail.ru Group Ltd GDR (Reg S)

SPECIAL EX-DIVIDEND PAYMENT DATE
Bodycote, Novae Group

AGMS
Acacia Mining, Anglo American, Fevertree Drinks, Horizonte Minerals, Meggitt, Relx plc, Sampo OYJ

TRADING ANNOUNCEMENTS
Ladbrokes, Mail.ru Group Ltd GDR (Reg S), SEGRO

UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trends Surveys (11:00)
Public Sector Net Borrowing (09:30)
Retail Sales (09:30)

FINAL DIVIDEND PAYMENT DATE
Lavendon Group, Law Debenture Corp., Lighthouse Group

FINAL EX-DIVIDEND DATE
Aggreko, ARM Holdings, BAE Systems, Belvoir Lettings, Bodycote, Capita, Centamin (DI), Communisis, Drax Group, Fresnillo, Greggs, Hastings Group Holdings , Impax Environmental Markets, IndigoVision Group, John Laing Group , Kingspan Group, M. P. Evans Group, Man Group, Marshall Motor Holdings, Martinco , Merchants Trust, Mondi, NAHL Group, Novae Group, Pendragon, Petrofac Ltd., Portmeirion Group, RPS Group, Sherborne Investors (Guernsey) 'B' Limited, Smith & Nephew, Stilo International, Tyman, Unite Group, Vitec Group, Zotefoams

Q1
Acacia Mining