Tuesday preview: Central bank speakers, Ferguson in focus

Central bank speakers will be in the spotlight on Tuesday, with Bank of England chief economist, Andrew Haldane, scheduled to chair a session at the Rebuilding Macroeconomics Annual Conference on "Bringing Psychology and Social Sciences into Macroeconomics", at 0945 BST, in London.

On the other side of the Pond meanwhile, Fed vicechairman, Randal Quarles was due to testify before the Senate banking committee at 1900 BST, followed roughly three hours afterwards by his boss, Jerome Powell, at a conference hosted by the National Association for Business Economics.

Overnight meanwhile, the Reserve Bank of Australia was expected to announce its decision to stay put on interest rates.

In the corporate space, analysts at Numis were expecting plumbing and heating products wholesaler Ferguson to post a 12.4% jump in half-year profits to $1,507m, on the back of continued improvement in the company's gross margins, although organic growth was seen slowing from the third quarter due to the increasingly difficult comparisons with a year ago.

They were also upbeat on the outlook for the company's dividend payout, although in their opinion investors hoping for another special return may have gotten ahead of themselves.

"Investors are also likely to focus on scope for further shareholder returns following the $1bn special dividend in the year, and while we believe it may be too early for management to announce another special return, there remains scope for double-digit dividend increase growth and significant returns going forward in our view given strength of balance sheet and lack of major acquisition targets," Numis's Howard Seymour said in a research note sent to clients.

"Overall, we believe Ferguson remains a good way to play US outlook given quality of management and operations, and with market outperformance plus scope for shareholder returns should be able to maintain TSR of c10-12% going forward which remains attractive."

Tuesday October 02

INTERIMS

Inspiration Healthcare Group

INTERIM DIVIDEND PAYMENT DATE

Aggreko, Rathbone Brothers

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Producer Price Index (EU) (10:00)

GMS

Vernalis plc

FINALS

Avacta Group, Baillie Gifford Japan Trust, Ferguson, Revolution Bars Group, SCS Group

UK ECONOMIC ANNOUNCEMENTS

PMI Construction (09:30)