The Week Ahead: Whoever's in No 10, spread bet firms will be election winners

Thursday's general election will be taken seriously in the City. After all, there is serious money to be made.

Thursday's general election will be taken seriously in the City. After all, there is serious money to be made.

Spread betting firms are offering various ways to separate traders from their cash, including predicting seats won, the percentage of the vote taken by the three parties and turnout. They can even play Election Cricket at Cantor Index, betting on how many Labour seats will be declared on the BBC before 10 Conservative seats have been announced.

Money-spinning ploys aside, most appear to have decided a Labour victory is likely. So should the public agree, the result will have little immediate impact on the City. The long-term focus is on what the Chancellor will or will not do as Labour's probable third term gets underway. In particular, with most of the high street sending out worrying signals about consumer spending, potential tax rises are the main issue of debate.

For the time being, though - or more accurately until Thursday - such conjecture remains just that. And even in a politically themed short week (markets are shut tomorrow for the May Day bank holiday), a number of corporate announcements will be made for the City to be getting on with.

One of the biggest names addressing investors is Unilever. The Anglo-Dutch company has been through the mill of late: a dire run of results eventually led to a shake-up of management, including the appointment of its first chief executive, Patrick Cescau, although it remains a dual-listed stock.

These first-quarter numbers are likely to show a decline in earnings, as trading conditions across Europe remain tough. The company has taken action to increase sales, but they are still expected to be subdued, and the higher marketing costs will take their toll on margins. Mr Cescau has already refused to provide long-term guidance, and that is unlikely to change.

Most analysts are also unsure about how the IFRS accounting changes will impact. As Investec noted recently: "It's more Grand National than Ascot Gold Cup, with any degree of success down to good fortune with liberal sprinklings of compensating error."

Another big name addressing the market is BSkyB. The young James Murdoch is investing millions in marketing and set-top box subsidies in an aggressive attempt to up subscribers. At the interims, he revealed the group should hit eight million by the end of the year. Investors will want reassurance that this remains the case at this third-quarter stage, and that subscriber and profits' growth are also on track.

The average subscriber acquisition cost, however, has risen as a result of Mr Murdoch's strategy. Programming costs will also be in the spotlight, as will the marketing campaign.

Also publishing numbers is British American Tobacco, which stood accused last week of lying about its social responsibility record, claims strongly denied by the firm. Its briefing this week should show another steady quarter and a small increase in profits.

Away from results, and two companies are set for a showdown with investors at annual general meetings. The Association of British Insurers has issued an "amber" warning to members about Reckitt Benckiser. They are concerned about how the consumer giant measures executive performance criteria, which makes it easier for executives to receive the maximum amount of bonuses. The group's Bart Becht is one of the best-paid blue chip bosses, receiving £4.2m in salary, bonuses and options last year.

At French Connection's AGM, any update on trading will be closely scrutinised. But the retailer is not only battling tardy consumers - its own shareholders are turning on it and chairman and chief executive, Stephen Marks. The founder, who owns 42 per cent, has been accused of writing his own pay cheques and employment terms as well as controlling the board's most important executive functions.

As a result, Research Recommendations Electronic Voting, controlled by the powerful National Association of Pensions and the US governance group ISS, is advising shareholders to vote against the retailer's remuneration report and accounts. The ABI is similarly worried, having issued a "red" alert. So it should be a tense day for Mr Marks, quite aside from whatever state the actual business is in.

Other companies worth watching out for include BAE Systems and Rolls-Royce, which should hold far calmer AGMs; British Airways, which publishes traffic data for April; and results from HMV, Smith & Nephew and Aberdeen Asset Management.

With a full calendar of City and political news keeping traders busy at home, some of the bigger economic announcements are left to the Americans. Not least of which will be the latest decision by the Federal Reserve on interest rates, with most pencilling in a quarter point rise. The first- quarter earnings season also continues, with news from Time Warner, the scandal-ridden Marsh & McLennan and Berkshire Hathaway, the investment vehicle of legendary investor Warren Buffett.

CALENDAR

Tomorrow 2

UK: Results: Bank holiday, none scheduled.

Tuesday 3

UK: Results: (interim) Aberdeen Asset Management.

Wednesday 4

UK: Results: (final) Blueheath Holdings, Matalan, TTP Communications; (first quarter) British American Tobacco, De Vere Group, Numis Corp; (third quarter) BSkyB.

Thursday 5

UK: Results: (Q1) ICI, Rangold Resources, Smith & Nephew; (second quarter) CSR.

Friday 6

UK: Results: (Q1) Unilever.