LAST PRE-CHRISTMAS CRACKER FOR CITY
Now the excitement of Gordon Brown's pre-Budget report is over, the City is beginning to wind down as it prepares for an extended Christmas lull.

Tuesday's inflation data stands out amongst the economic news. The European Union-approved Consumer Prices Index, or CPI, replaces the retail price index as the official measure.

The Chancellor has confirmed a new inflation target of 2% under the CPI.

Meanwhile, he has admitted he will have to borrow 37bn in 2003-04 10bn more than last April's estimate so public sector finances data for November will come under close scrutiny on Thursday.

The revision was no surprise. The total for the six months April to October is already 21.1bn almost double the 10.7bn for the same period last year.

November last year proved a bad month, with a net borrowing figure of 6.7bn.

All agreed on rate reprieve?

There was only one dissenting voice when the Bank of England's monetary policy committee raised interest rates by a quarter point in November.

This month's decision to hold at 3.75% was no surprise, so Wednesday's minutes of the December 3-4 meeting should show a fair degree of unanimity again.

Analysts believe February could be the earliest a further hike will occur, as consumer confidence is fragile.

Meanwhile, monthly mortgage lending figures continue to break new records. But November's survey from the Council of Mortgage Lenders, out on Thursday, will show if the quarter point rise did anything to cool demand.

The CML said gross lending was 27.5bn in October, up 8% on the month, but added fixed rate mortgages were less in demand.

HBOS and Hanson to dominate

The City is about to get its last batch of company results to digest until the Christmas trading reports season kicks off in mid-January.

Banking giant HBOS, created from the Bank of Scotland's union with Halifax, heads the modest list with a trading update on Thursday.

As the UK's biggest mortgage lender, HBOS is likely to report strong first-half growth has been maintained.

A trading update is also due from another FTSE 100 stalwart Hanson, which reports on Wednesday.

The heavy building materials group had a dismal first-half, with pre-tax profits down by 17%, but predicted the rest of the year would be stronger.

However, a weak US dollar was one of the main factors impacting on earnings, and the currency's decline has picked up speed since the summer.

Software developer Misys also offers an update on Wednesday. Dependant on IT spending by banks, the group has warned of tough times ahead in key markets.

Retailer Carpetright issues first-half results on Tuesday. Back in October it reported two months of searing summer temperatures had dented sales growth.

Homestyle Group, owner of the Harveys furnishings chain, follows on Wednesday with interims and may fare better.

MONDAY December 15

Finals: Windsor.

Interims: Eckoh Technologies, Mulberry.

Trading update: Inchcape, Lloyds TSB.

TUESDAY December 16

Finals: Image Scan Holdings, Slimma.

Interims: Carpetright.

Trading update: HBOS, Pearson.

Consumer price indices (Nov), RICS housing survey.

WEDNESDAY December 17

Finals: Baggeridge Brick, Raft International.

Interims: Homestyle Group, Kleeneze, Scipher, Stonemartin, Teather & Greenwood, Vantis.

Trading update: Hanson, Misys.

Unemployment (Nov), average earnings (Aug-Oct). Bank of England monetary policy committee minutes of December 3-4 meeting.

THURSDAY December 18

Finals: Leeds Group.

Interims: London Clubs International.

Trading update: United Business Media.

Council of Mortgage Lenders mortgage lending survey; public sector finances (Nov).

FRIDAY December 19

Interims: Bede (Q3), Ensor Holdings, IWP International.

Trading update: SMG.