Wednesday preview: Osborne to deliver Spending Review and Autumn Statement
Chancellor George Osborne will reveal the government’s budget and plans for the economy in the joint Spending Review and Autumn Statement on Wednesday.
Osborne is widely expected to announce deep cuts to public sector spending. He is also tipped to announce possible changes to tax credits, pensions, motoring, savings and housing.
“There is an event risk for the pound this week with the Autumn Statement set to be announced by George Osborne,” said FXTM research analyst Lukman Otunuga.
“If the UK Chancellor hints towards widespread spending cuts in the future, this has the potential to impact domestic confidence and limit investor attraction towards the currency.”
John Rathbone, founder of financial risk management consultancy JC Rathbone Associates, said he expects the Office for Budget Responsibility is likely to revise its borrowing forecast for this year upwards by about £10bn after dire revenue figures in October.
He also noted the pressure Osborne is likely to face over tax credit cuts.
“It would seem unlikely that the Chancellor will actually go back on his withdrawing the tax credit cuts, but simply find a way in which it can be delayed in being applied to those most severely affected.”
A flood of US economic data is also due ahead of close of trading on Thursday for Thanksgiving.
Reports include figure on durable goods orders, personal consumption expenditure, initial jobless claims, weekly mortgage applications, the house price index, services, new home sales and the University of Michigan’s consumer confidence index.
Among the most important releases, US durable goods orders are expected to have risen 1.5% in October following a 1.2% drop a month earlier.
Core personal consumption expenditure is forecast to increase 1.4% year-on-year in October after a 1.3% rise in September.
Wednesday 25 November
INTERIMS
Better Capital Pcc Ltd (2009), Hogg Robinson Group, RPC Group, United Utilities Group, VP
INTERIM DIVIDEND PAYMENT DATE
Cayenne Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
House Price Index (US) (15:00)
MBA Mortgage Applications (US) (12:00)
New Homes Sales (US) (15:00)
Personal Consumption Expenditures (US) (13:30)
Personal Income (US) (13:30)
Personal Spending (US) (13:30)
GMS
Horizonte Minerals
FINALS
Britvic, Thomas Cook Group, Zambeef Products
AGMS
F&C UK Real Estate Investments Limited, Finsbury Food Group, Finsbury Food Group, Mysale Group, Oilex Ltd., Plant Impact, Regenersis
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
Chancellor Statement (09:30)
FINAL DIVIDEND PAYMENT DATE
AIREA, Galliford Try, SCS Group