Tuesday preview: British banks brace for BoE's stress test results

The Bank of England is expected to tell British banks on Tuesday to boost capital buffers to shield against another financial crisis.

The central bank releases the results of its latest stress tests on lenders alongside its half-yearly Financial Stability Report at 0700 GMT.

Nomura said it sees the BoE, which was given powers over banks after the 2007-2009 financial crisis, increasing the counter-cyclical capital buffer (CCB) for banks.

“Whichever way the Financial Policy Committee (FPC) decides on the need of the CCB, the very open discussion by FPC members on the need for the CCB means that banks and investors will now need to price this into their expectations,” said analyst Chintan Joshi.

“Alongside a new procyclical approach to future stress testing and the ease with which the PRA buffer could come in, means that CET1 requirements for UK banks have already increased from the 13% threshold the market had gotten comfortable with.”

On the economic data front, a batch of manufacturing data is due in China, the Eurozone, the UK and the US. China manufacturing data, both official and private, are forecast to show the sector remains in a contraction. The rest of the manufacturing purchasing managers’ index figures elsewhere are projected to reveal expansion in manufacturing.

Tuesday 01 December

INTERIMS

Collagen Solutions, GB Group, Northgate, OPG Power Ventures, Park Group, Private & Commercial Finance Group

QUARTERLY PAYMENT DATE

JPMorgan Claverhouse Inv Trust

QUARTERLY EX-DIVIDEND DATE

Schlumberger Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Auto Sales (US) (15:00)

ISM Manufacturing (US) (15:00)

ISM Prices Paid (US) (15:00)

PMI Manufacturing (EU) (09:00)

PMI Manufacturing (GER) (08:55)

Unemployment Rate (EU) (10:00)

Unemployment Rate (GER) (08:55)

Q3

JSC Acron GDR (Reg S), PJSC Novorossiysk Commercial Sea Port GDR (Reg S), TCS Group Holding GDR (Each Repr 1 A Shr) (Reg S)

GMS

Atlas Development & Support Services Limited

FINALS

Character Group, Gooch & Housego, ITE Group, Sanderson Group, Topps Tiles

AGMS

Aberdeen Asian Smaller Companies Investment Trust, Wolseley

TRADING ANNOUNCEMENTS

Merlin Entertainments


UK ECONOMIC ANNOUNCEMENTS

PMI Manufacturing (09:30)