German repo rate watch

After last week's turmoil on equity markets, in part sparked by speculation over interest rates moves at meetings of the Bundesbank and the Federal Reserve's open market committee, the prospect of a move in the key German money market rate as early as tomorrow will hold the attention of markets worldwide this week.

The central bank had announced terms of security repurchase, or repo, tenders twice a month following its regular council meetings, but formally announced last Thursday that it would give up that practice, announcing repo terms every Tuesday instead.

The rate, which has been unchanged at 3 per cent for the past year, is under increased pressure following the higher-than-expected rise in import prices announced on Friday. The figures did little to ease concern about the prospects for inflation in the German economy.

The bank may chose to switch from the current fixed rate tender to a variable one and may even combine the two in forthcoming repo auctions.

Irish Permanent

As the largest mortgage provider in the State, Irish Permanent should continue to show the fruits of the current building boom in interim results out tomorrow. On the basis of the 16.6 per cent growth in mortgage lending nationally in the year to the end of June, Davy has pencilled in six-month pre-tax profits of £26.8 million, up 15 per cent on the figure for the same period last year, with earnings per share of 18.6p, up almost 17 per cent.

UK housing

Further clues on the state of the British housing market will come tomorrow when Hambro Countrywide, Britain's largest estate agency, publishes its interim results.

The company indicated its confidence in the market by buying John D Wood, the estate agency operating in London and the south-east, for £11.9 million sterling.

With house prices rising between 7 per cent and 10 per cent - depending on who you believe - the market will be looking for improvements on last year's pre-tax profit of £10.5 million, itself a turnaround from 1995's £5.82 million loss.

Monday

A.G.M.: Jurys Hotel, Templeton Emerging Markets.

Indicators: US existing home sales (Jul); German cost of living (Aug); French consumer prices (Jul).

Others: August bank holiday in Britain.

Tuesday

Results: BSR Astec (H1), Clydeport (H1), Eclipse Blinds (H1), Epic Multimedia, Hambro Countrywide (H1), Irish Permanent (H1), Sanderson Bramall Motor Group (H1).

A.G.M.: Amer Group (e.g.m.), Ashok Leyland, Aspen Group (e.g.m.), Chrysalis Group (e.g.m.), Drings of Bath, Dunedin Enterprise, Euromoney Publications (e.g.m.), Falcon Holdings.

Indicators: Irish balance of international payments (Q1); US durable goods orders (Jul) and consumer confidence (Jul).

Others: German Bundesbank makes an announcement on the security repurchase, or repo, rate

Wednesday

Results: Beales Hunter, Cakebread (H1), RoBey & Co (H1), Domnick Hunter (H1), Isotron, Jos Holdings, Kalon Group (H1), Keller Group (H1), WH Smith Group, Topps Tiles, Ugland International Holdings (H1).

A.G.M.: Aberforth Split Level, Ashquay Group (e.g.m.), Bath Press Group, Faupel Trading, Govett Global Smaller (e.g.m.), Helical Bar, Kalamazoo Computer Group, London Insurance Market, Martin Currie Euro, Sutton Harbour Holdings.

Indicators: British trade in goods (Jun); German repo auction and current account (Jun).

Others: Irish Fruit of the Loom executives' hearing due in the High Court.

Thursday

Results: Arnotts (H1), Dawsongroup (H1), Inveresk (H1), Irish Continental (H1), Kingspan Group (H1), Ladbroke Group (H1), MacFarlane Group (H1), Provident Financial (H1), Readymix (H1), Reckitt & Colman (H1), Rolls Royce (H1), Slough Estates (H1), Technoplast Industries (H1), T&N (Q2), Visual Action (H1).

A.G.M.: Atlantic Telecom, Pembertons Group, Scottish & Newcastle, Somic.

Indicators: US real GDP (Q2) and held wanted index (Jul).

Friday

Results: Baillie Gifford (H1), Photo-Me International, Thomson Clive Investments (H1), UK Safety (H1).

A.G.M.: Berkeley Group, GEI International, Ivory & Sime Isis, Peterhead Group, Richards, Zergo Holdings.

Indicators: Irish industrial production (May) and retail sales (Jun); US personal income/spending data (Jul), new home sales (Aug), Michigan Sentiment survey (Aug) and Chicago purchasing managers' index (Aug); Japanese consumer price index (Jul) and job ratio (Jul); French unemployment (Jul); Italian GDP (Q2).