The week ahead in business and finance

Monday January 18

AGMs: Aquarius Platinum, Polo Resources, eServGlobal

TUESDAY JANUARY 19

In the face of a commodity price crunch a number of investment banks warned last week BHP Billiton may be forced to half its dividend after it announced a $7.2bn writedown on its US shale operations. Ahead of tomorrow’s production report, David Butler, of Barclays, said: “BHP is at a crossroads for its progressive dividends”, adding a dividend cut will be “inevitable”.

China-led malaise triggered shares in the company to touch a ten-year low last week, and after a torrid week, investors are bracing themselves for a disappointing set of production data - however, there will be little in the way of capital expenditure figures, with a decision on its dividend expected at its half-year results in February. Analysts in the City are not optimistic about the international miner’s financial situation, with Barclays stating it is “generating virtually no earnings”.

Interim Result: IG Group

Final Result: Unilever

AGM: Axis Bank

Trading updates: Cairn Energy, BHP Billiton, Acacia Mining, Clinigen, Evraz, Synety Group

Economics: Consumer Price Index (GER), Balance of Payments (EU), Current Account (EU), ZEW Survey (EU), Consumer Price Index (UK), Producer Price Index (UK), Retail Price Index (UK)

Wednesday January 20

In the 20 weeks to January 16, the key Christmas trading period, retailer WH Smith is expected to continued uptick in sales of books when it publishes its trading update on Wednesday. Analysts at Nomura said: “We expect WH Smith to report a continuation of trends seen in the latter part of 2015, namely an ongoing improvement in the physical book market supporting a less negative high street trend.” WH Smith’s stores at airports and train stations are expected to outpace its high-street shops during the festive season.

In October, the books, newspaper and stationery retailer recorded a 1pc rise in full-year sales and pre-tax profit jumped 8pc to £121m. This year management anticipate growth for UK air passenger numbers will be in the mid-to-high single digits range, boosting its travel business. However, despite the optimism, the retailer is expected to be hurt this year by the introduction of the national living wage in April which could cost it between £2 and £3m a year.

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After a disappointing set of half-year results, animal care firm Pets at Home is expected to return to better health when it posts its third-quarter trading statement on Wednesday. Shares in the animal care firm suffered their worst one-day fall at the end of October when results for the six months to October came in short of expectations. Revenue grew at a rate of 6pc, while like-for-like sales rose 1.8pc during the six-month period. However, a month later, management said they remained confident in their long-term outlook for the pet retail market.

In the third quarter, sales are expected to jump by 7.7pc when health and hygiene should make up a smaller proportion of the group and it is expected to increase the rate at which it is opening new stores, vets and grooming centres. This year the company has set a target of opening as many as 25 Pets at Home stores, five barkers, up to 60 grooming salons and more than 50 veterinary practices. As a result of its confident outlook, it is anticipated trading will be in line with market expectations.

Interim Result: Tungsten Corporation

Final Result: Redx Pharma

AGMs: Diploma, Golden Lane Housing, Lowland Investment Company, Majedie Investments

Trading updates: Pets At Home, Wetherspoon (J D), WH Smith

Economics: Producer Price Index (GER), ZEW Survey (GER), MBA Mortgage Applications (US), Consumer Price Index (US), Housing Starts (US), Crude Oil Inventories (US), Claimant Count Rate (UK), Unemployment Rate (UK)

Thursday January 21

Another positive trading update is expected from postal service Royal Mail on Thursday, when it publishes its third quarter figures, following stellar half-year results. In the first six months to October, the group’s earnings came in ahead of expectations, when it rose by 4.2pc. The British postal firm, which celebrates 500 years in business this year, is expected to slash its operating costs for its UK letters and parcels business by 1pc this year, which boost the profitability of its domestic business.

Earlier this month, Cantor Fitzgerald hiked the FTSE 100 stock’s rating as it believes Royal Mail has made “good progress cutting costs, lifting productivity and introducing new products.” Despite the challenging environment, the group, which was privatised in 2013, is expected to deliver higher growth than its postal peers in the coming years. However, Royal Mail still needs to modernise its operations to win a greater market share in online-shipping driven parcels.

Interim Result: NCC Group

Final Result: Safestore Holdings

AGMs: Easyhotel, Stride Gaming, Cardiff Property

Trading updates: St James's Place, Moneysupermarket.com, SABMiller, Royal Mail, Halfords, British Land, Land Securities, Laird

Economics: Consumer Price Index (EU), Harmonised Index of Consumer Prices (EU), ECB Interest Rate (EU), Continuing Claims (US), Initial Jobless Claims (US), RICS Housing Market Survey (UK)

Friday January 22

Workspace Group took advantage of another redevelopment opportunity in its third quarter, when it was granted planning permission to replace existing buildings at Marshgate industrial estate in Stratford with a mix of townhouses, apartments and a business centre in December. This is set to enhance the value of Workspace’s portfolio, as it continues to rollout its portfolio of refurbishment and development in the fringes of central London.

With sustained growth in the market, thanks to rental uplifts, the group is set to post a positive third quarter trading statement on Friday. In November, half-year adjusted trading profit leapt 65pc to £20.4m and this trend is set to continue in the last quarter. Jamie Hopkins, the chief executive, told shareholders two months ago that the group has a “strong pipeline of projects coming through”. For the year, the market expects operating profit to hit £54.6m, and sales of £88.5m.

AGMs: Tracsis, Character Group

Trading updates: Computacenter, Workspace Group, Close Brothers, Record

Economics: PMI Construction (GER), Existing Home Sales (US), Leading Indicators (US), Internet Retail Sales (UK), Public Sector Finances (UK), Retail Sales (UK)