Thursday preview: US GDP growth expected to slow in third quarter

US economic growth is forecast to slow considerably in the third quarter following a recent batch of weak data.

The US gross domestic product report on Thursday is estimated show an annualised 1.5% rise in the third quarter, compared to 3.9% in the second quarter.

“Having seen September’s durable goods figures yesterday, we’re slightly more downbeat on business investment and inventories, so we aren’t raising out GDP forecast by the full 0.5% points (i.e. the difference between -0.7% and -0.2%),” said Paul Ashworth, chief US economist at Capital Economics.

“Nevertheless, we do now think that third-quarter GDP growth was 1.8% annualized rather than 1.5%. We still don’t think that would be strong enough to convince the Fed to raise interest rates as soon as December, however, since it would still be below the economy’s 2% potential growth rate.”

Initial jobless claims and pending home sales figures are also due in the US on Thursday. Analysts predict jobless claims rose to 264,000 in the week to 24 October from 259,000 the previous week.

Pending home sales are expected to have risen 7.4% in September compared to a year ago, after a 6.7% gain in August.

Economic data releases elsewhere will include German inflation, Nationwide UK house prices, UK mortgage approvals and Eurozone economic confidence.

In company news, BT Group reports its second quarter interims. In a boost to the firm ahead of its results, BT's £12.5bn acquisition of the EE mobile network was provisionally approved by UK competition officials unconditionally and without remedies.

The Competition and Markets Authority (CMA) said on Wednesday morning it had decided the acquisition "is not expected to result in a substantial lessening of competition in any market in the UK".

Deutsche Bank expects revenues of £4.33bn, down 1.2% year-on-year, and adjusted EBITDA of £1.43bn, down 1.6% year-on-year.

Thursday 29 October

INTERIMS
BT Group

INTERIM DIVIDEND PAYMENT DATE
BBGI SICAV S.A. (DI), Capital & Regional, Stilo International, TT Electronics

INTERIM EX-DIVIDEND DATE
Booker Group, Development Securities, Exova Group , Goals Soccer Centres, Hilton Food Group, ITV, Lombard Risk Management, Lookers, M&C Saatchi, Maven Income & Growth VCT, Moss Bros Group, Provident Financial, Quantum Pharma, TLA Worldwide

QUARTERLY EX-DIVIDEND DATE
Unilever

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Climate Indicator (EU) (10:00)
Continuing Claims (US) (13:30)
Economic Sentiment Indicator (EU) (10:00)
GDP (Advance) (US) (13:30)
Initial Jobless Claims (US) (13:30)
Pending Homes Sales (US) (15:00)
Unemployment Rate (GER) (08:55)

Q2
BT Group

Q3
COLT Group SA, Millennium & Copthorne Hotels, Royal Dutch Shell 'A', Royal Dutch Shell 'A', Royal Dutch Shell 'B', Royal Dutch Shell 'B', Samsung Electronics Co Ltd (ATT) GDR (Reg S), Smith & Nephew

GMS
Stanley Gibbons Group

FINALS
Matchtech Group

ANNUAL REPORT
Petra Diamonds Ltd.(DI)

IMSS
Aviva, Barclays, COLT Group SA, Henderson Group, Kaz Minerals , Laird, National Express Group

SPECIAL EX-DIVIDEND PAYMENT DATE
Barratt Developments

EGMS
Datang International Power Generation Co Ltd., Fondul Proprietatea S.A. GDR (Reg S), Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)

AGMS
Atlas Development & Support Services Limited , Genesis Emerging Markets Fund Ltd Ptg NPV, Goldplat, Ideagen, Mirada, Murgitroyd Group, Redde, Seeing Machines Ltd.

TRADING ANNOUNCEMENTS
Laird, Playtech

UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
Consumer Credit (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)

FINAL DIVIDEND PAYMENT DATE
Standard Life UK Smaller Companies Trust

FINAL EX-DIVIDEND DATE
AIREA, Barratt Developments, Dechra Pharmaceuticals, El Oro Ltd, Fidelity Asian Values, Go-Ahead Group, Ideagen, Mulberry Group, NWF Group