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AB Foods will need to work out new guidance for Britain’s Plan B Covid restrictions

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UK gross domestic product data will also be released, showing how the economy was bouncing back

Associated British Foods PLC (LSE:ABF) said last month it was expecting “significant progress” in group adjusted operating profit and adjusted earnings per share as Primark rebounds strongly.

Management previously predicted the group would claw back an estimated £2bn of sales lost due to store closures last financial year if there were no more COVID-19 restrictions introduced.

But the day ahead of its annual general meeting, shares in the retailer and grocery group were down as investors calculated the potential effects of the UK government’s new Covid guidance in the wake of the emergence of the omicron variant.

This, and whether recent supply chain issues might also have pushed the group off track, will be the focus on Friday as it addresses shareholders at its AGM.

Macro news

UK gross domestic product data for October should show the UK economy still in bounce-back mode, with economists expecting year-on-year growth of 5.2%, down from 5.3% in the previous month.

Month-on-month, the increase is expected to be 0.5% after October’s 0.6% jump.

Industrial production is tipped to rise 0.2% from September’s level after falling 0.4% the month before.

Is the inflation genie out of the bottle?

If he/she/it is not fully out, there are certainly wisps of evidence that a bottle exit is imminent with the core US inflation rate in October running at 4.6% and expected to rise to 4.7% in November.

The month-on-month increase is expected to be 0.8%, down slightly from October’s 0.6% hike.

Major announcements expected on Friday 10 December

Finals: Nexus Infrastructure PLC 

Interims: Frasers PLC, SDCL Energy Efficiency Income Trust PLC , Yellowcake PLC

AGMs: Associated British Foods PLC (LSE:ABF) (Associated British Foods PLC (LSE:ABF)), UP Global Sourcing Holdings PLC (LSE:UPGS) (UP Global Sourcing Holdings PLC (LSE:UPGS)). 

Economic announcements: Balance of Trade (UK), Gross Domestic Product (UK), Index of Services (UK), Industrial Production (UK), Manufacturing Production (UK), Consumer Price Index (US) 



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