If you’re reading this in the northern hemisphere – and subscribe to the meteorological definition of the season – the good news is that we’re fast approaching spring. And just like the promise of warmer and longer days (not to mention daffodils for St David’s Day on Wednesday), there are some reasons to cheer amid the diary gloom.
But first, that’s really depressing. Few need to be reminded of the conflict in Ukraine, but it is worth noting – and not necessarily the rest of the media – that Monday marks the ninth anniversary of the pro-Russian uprising in Crimea that led to the annexation of the peninsula. If you want some ideas on how to move forward, I would recommend this Weekend essay on what the Cold War taught us about containing Russia.
Also on Monday, British households will get some clarity (and possibly some good news) about their fuel bills when Ofgem updates its energy price cap for the coming quarter. Average annual UK domestic costs are expected to rise by £500 to £3,000 (lower than Ofgem’s headline figure, thanks to the government’s Energy Price Guarantee), and confidence is growing that this upper limit will be frozen after heavy lobbying from campaigners.
The insight is mixed with another troubling British story: the rise of attacks. A surprise drop in public sector borrowing has brought hope for a resolution to many payment disputes, but the situation remains complex.
Some acts due this week have been put on hold in order to negotiate a settlement, while others (such as the TSSA rail union) have agreed to a deal. But we start Monday with more walkouts and the threat of fresh disputes as the deadline for a ballot between NHS consultants and rail workers ends on Monday and Tuesday.
So what’s the shameless good news? Well, for astronauts the only way is up. NASA’s SpaceX Crew-6 mission to the International Space Station will launch from the Kennedy Space Center in Florida on Monday morning local time. You can follow the event live on the agency’s website.
Company
Salesforce’s core problem is a lack of attention to profit margins at the expense of growth © Robert Galbraith / Reuters
One near future is profit.
One to watch will be Salesforce Wednesday as an activist investor circle. The core problem has been the lack of attention to profit margins at the expense of growth – Wall Street has complained about this for years, but the growth of software companies is always enough to fend off naysayers. Unfortunately for co-founder and chief executive Marc Benioff, growth has taken down (see the chart below) leaving people exposed – and cutting jobs, while significant, so far not far enough.
Full year results from Serco it was supposed to arrive last Thursday, but the KPMG auditors’ request for more time means it will now come out on Tuesday. Investors and analysts will be listening carefully to newly appointed chief executive Mark Irwin if he announces a change in direction for outsourcing.
Rival Capita, which reported two days later, has shed its non-core business to raise cash, so watch out for updates on that.
This week also sees the annual gathering of mobile telecommunications industry executives and tech enthusiasts in Barcelona for the MWC trade show, giving executives the chance to comment on the future direction of the wireless networking world and companies to launch new digital toys.
Economic data
It was a quieter week for economic data reports with inflation and gross domestic product updating the most common items. Another purchasing managers’ index report, this time for manufacturing, will add to international comparisons of economic performance, although it is of less use to UK performance watchers than last week’s services PMI data.
Minutes of the last European Central Bank monetary policy committee meeting and US and eurozone consumer confidence figures may help provide some indication of future interest rate movements on either side of the Atlantic.
Read next week’s calendar in full here.