Investing Knowledge

All eyes have been on the Bank of England and its Quarterly Inflation Report this week. The Bank reckoned inflation could rise to above 2% in the next few months. It also said the rate of inflation should ease back to around 1.6% in the medium term. The Bank's report should make next week's inflation data from the Office of National Statistics even more interesting.

The Spanish acquisition

The proposed merger of British Airways (LSE: BAY.L - news) (LSE: BAY) and Spain's Iberia (Madrid: IBLA.MC - news) has brought airlines back into the spotlight. Next week the attention turns to EasyJet (LSE: EZJ.L - news) (LSE: EZJ), which will report annual results on Tuesday. The budget airline has had to contend with the economic downturn and more recently the hike in Air Passenger Duty, which it has described as "daft tax". EasyJet is likely to post a sharp fall in profits from £123m to around £50m. It may also come under pressure from investors to follow Ryanair (Dublin: RY4.IR - news) 's (LSE: RYA) move to pay a dividend for the first time.

Dividends may also be on the agenda when Land Securities (LSE: LAND.L - news) (LSE: LAND) posts first-half results on Tuesday. The Real Estate Investment Trust is required to distribute 90% of its income to investors. This time last year, investors pocketed a dividend of 16.6p per share. But they are unlikely to see anything like that this time, with a payment of 7p per share expected by the City. Also of interest will be the level of empty office space. In June, voids were 5.1%, up from 4.6% in March. British Land (LSE: BLND.L - news) (LSE: BLND) reports interims on Tuesday.

Retail winners

Shares in ASOS (LSE: ASC.L - news) (LSE: ASC) have increased 67% this year, mirroring the performance of the FTSE General Retailers Index. The online retailer, which reports interim results on Monday, is expected to post a 47% sales jump. ASOS has also expanded aggressively abroad. Overseas sales account for around a fifth of total revenues, but they may more than double in the first six months.

It has been a tale of two halves at Burberry (LSE: BRBY), which delivers interim numbers on Tuesday. The retailing half of the business has performed well with underlying sales up 14% in the first six months. However, the wholesale half is expected to show a 23% drop in sales for the same period. Burberry has been targeting a younger clientele with the recent appointment of 19-year-old Emma Hermione Watson as the face of Burberry. It has also started a social networking website called www.artofthetrench.com to appeal to a younger generation.

Pale ale

Multinational SABMiller (LSE: SAB.L - news) (LSE: SAB) has seen a drop in beer volumes in almost all areas apart from Africa and Asia of late. Indeed, in China, volumes were up 12% this year. SABMiller, which will present first-half details on Thursday, has said its performance in Asia would have been even better if it were not for disputes over pricing in some parts of India.

Sticking to booze, brewers Fuller Smith & Turner (LSE: FSTA) and Young & Co. (LSE: YNGA) are pencilled in for results. Fuller said in July that it expects to perform at least in line with expectations for the full year. This time last year, it posted pre-tax profits of £12m, so it may be more of the same this time. Meanwhile, Young & Co is expected to post flat profits of around £11m.

Notable results and updates

Monday: ASOS, Cranswick (LSE: CWK.L - news) , Majestic Wine and Workspace GroupTuesday: Burberry, British Land, EasyJet, Enterprise Inns (LSE: ETI.L - news) and ICAP (LSE: IAP.L - news) Wednesday: Capita, Dimension Data (LSE: DDT.L - news) , Experian (LSE: EXPN.L - news) , Land Securities, Mothercare (LSE: MTC.L - news) and Rensberg SheppardsThursday: National Grid (LSE: NG.L - news) , SABMiller, Pennon, William Morrison and Young & Co.Friday: Fuller Smith & Turner

David owns shares in Land Securities.