CFD Morning Report Tue 29 May 2012
FTSE 100 called higher at the outset
Market News and Views
The FTSE 100 is called to open higher this morning but the euro zone and in particular Greece and Spain again remain in focus with Spanish 10 year bond yields yesterday briefly going through the 6.5% barrier. On the domestic economic front, we have the CBI Distributive Trade survey data out which will be followed this afternoon in the US with consumer confidence figures (see below). Commodity prices are generally mixed in trading and on the foreign exchanges, sterling was down against the dollar but up against the euro, although within narrow ranges.
Today's Company announcements
BG Comgas Sale. It has signed a definitive agreement with Cosan for the sale of its 60.1% holding in Comgas for US1.7bn cash which will reduce debt on BG's Balance Sheet by some USD1.1bn. The transaction, which is subject to regulatory approval, is likely to complete by the end of 2012. In addition, BG and Cosan have agreed to co-operate on evaluating and developing gas supply options in Brazil when the deal has completed.
Wolseley IMS reports that trading profit in Q3 rose 10.3% to GBP139m on revenue up 4.7% at GBP3.06bn and 3.8% ahead on a lfl basis. Net debt now stands at GBP277m and noted that headcount continues to be tightly controlled, particularly where markets are deteriorating. It added that in light of tough markets in Europe, as stated at the H1 stage, it may incur further restructuring charges in Q4 though these are unlikely to be material in the context of the full year results.
Pennon Preliminary Results saw PBT up 6.4% to GBP200.5m on revenue of GBP1.23bn. The full year dividend is raised 7.6% to 26.52p a share and added that it remained cautious near term about the prospect for a recovery for recyclables in its Viridor recycling division, although its strong PPP pipeline underpins its expected long-term profit momentum from 2013/14 onwards.
|LME copper 3MO $
||CBI Realised Sales
||CB Consumer Confidence
COUNTRY: United Kingdom
PUBLISHED: 29 May 12