The Week Ahead: Strong Finnish - Nokia ends on a high

After the flurry of updates from the UK high street, this week the focus shifts away from the retail sector and, indeed, the country. Results from UK companies are thin on the ground but the fourth-quarter reporting season continues unabated on the other side of the Atlantic, and several big names are scheduled to post numbers on the Continent, including Nokia.

The Finnish mobile phone giant unveils fourth-quarter figures on Thursday and analysts are expecting good news. Earlier this month, Nokia said fourth-quarter revenues and profits had beaten forecasts, boosted in part by a pick-up in handset sales in December. Although at €8.8bn (£6.1bn) sales are a fraction above last year's level, the result is a significant improvement on Nokia's initial gloomy prediction of a fall in revenues. Most are predicting that sales of handsets for the new financial year will be up to 5 per cent higher than in the previous 12 months. This, though modest, proves growth has not entirely deserted the much-maligned sector.

Other well-known names reporting include L'Oréal - which is expected to report a 7.5 per cent increase in annual sales, excluding currency effects - and luxury brand LVMH, home to Moët & Chandon champagne, Louis Vuitton luggage and Christian Dior-designed clothes.

So far, the news from the luxury industry has been promising. The UK's Burberry brand recently reported a 12 per cent jump in third-quarter sales, while Gucci reported its first profit increase for three quarters at the end of last year. LVMH is expected to report a 2.9 per cent spurt, although with the impact of currencies, sales will actually be down around 5.5 per cent at €2bn.

Also on the Continent, pharmaceutical company Novartis will face renewed questions from shareholders over its 33 per cent stake in Swiss rival Roche when it reports final results on Thursday. Chief executive Daniel Vasella has made plain his desire to merge with the smaller firm, worth around £49bn.

In the US, traders are in the middle of a long weekend, with markets closed tomorrow for Martin Luther King Day. But announcements will still be crammed into the other four days. Those reporting include Microsoft, IBM, Ford, General Motors, Johnson & Johnson, Post-it Note manufacturer 3M and Citigroup. All will be closely watched for better conditions in the world's biggest economy. As Nomura global strategist Anais Faraj points out: "The next two weeks will offer a clear test of the sustainability argument. Investors will be eagerly awaiting the '04 guidance from bellwether stocks."

Back home, there will be full-year numbers from news and information group Reuters, which has been battling against some dire trading over the last two years. Last week Reuters cheered the City with the suggestion of a halt in the decline. The shares had their biggest jump for nearly four years after it revealed core revenues were falling at a slower rate and fewer customers were cancelling subscriptions. Analysts will be hoping for more of the same on Thursday.

Other announcements include new business figures from insurer Prudential, which is close to selling its majority stake in Egg bank, probably to MBNA.

It may seem as if there is just the one northern football club out there at the moment, but be assured there are others. No definite date has been set for the full-year figures, but Birmingham City intends to get them out this week. They are unlikely to make for glorious reading. The first-half figures were solid, but the second half includes the close season and a number of players have been acquired, so the picture for the year is likely to be weakened. Tottenham Hotspur will also go before shareholders to seek approval for its planned £15m placing, which chairman Daniel Levy is launching to raise funds to buy players. Rumours about the London club's new manager abound but an announcement is unlikely to be forthcoming.

Overall, with big corporate announ-cements restricted to the US and mainland Europe, the UK focus will be economic news. A very busy week includes minutes from the Bank of England's recent interest rate decision; December inflation data; figures for public finances and mortgage lending; the initial estimate for fourth-quarter GDP (it will be revised twice before a final figure is agreed); last month's retail sales; and a snapshot of the manufacturing sector via the CBI Industrial Trends Survey. And if, after all that, economists do not have a clear idea of how the UK is faring - and when the next interest rate hike will be - it is unlikely they ever will.