London open City sources predict FTSE 100 will open 30 points up from yesterday's close of 5,028.
Stocks to watch
Financial software provider Misys is to return more than $1bn to shareholders after selling the majority of its stake in its Allscripts subsidiary. The sale of shares by Misys will enable Allscripts to proceed with its planned merger with US healthcare information technology firm Eclipsys.
Online clothes retailer ASOS reported a whopping 44% increase in full year pre-tax profit while revenue surged 35% as UK and International online demand accelerated. "The widely predicted slowdown in consumer spending, specifically amongst the younger customer groups did not materialise and the Internet continued its strong growth as a retail channel," said chairman Lord Waheed Alli.
Tullow Oil has found oil at its Mahogany-5 appraisal well immediately to the southeast of the Jubilee field offshore Ghana, making it four out of five strikes in the region.
In the Press
Norway has banned new deepwater oil drilling in the North Sea amid in a sign that panic over BP's Gulf of Mexico spill is spreading. Britain yesterday ruled out a moratorium "for the moment" on deep water exploration, but Norway, its North Sea neighbour, said it had sufficient concerns to halt all new drilling until a full inquiry is conducted into the cause of BP's leak, the Telegraph reports.
Benefits, tax credits and public sector pensions have been formally earmarked for potential cuts for the first time under Government plans to avert a Greek-style debt crisis, the Chancellor has disclosed.George Osborne said these areas would be "comprehensively" scrutinised as he singled them out for special attention in the forthcoming spending review, the Telegaph reports.
European Union finance ministers have pledged to pursue plans for a levy on banks, in spite of disagreement over what to do with the proceeds and the decision by the world’s richest nations to drop plans for a global tax. “The EU has to be proactive in following this up,” said Elena Salgado, Spanish finance minister, after chairing a meeting of EU ministers in Luxembourg on Tuesday. Michel Barnier, EU internal market commissioner, said he was not abandoning the idea of using money raised by a levy on the banking industry to establish an EU-wide network of domestic funds that could be used to resolve financial problems at individual banks in the future. “We will persist in this matter,” said Mr Barnier, the FT reports.
Newspaper tips Tesco faces challenges in the current market. Sales growth in the UK is unlikely to be spectacular and the improvement in its global operations will be slow and steady, tied into the economic recovery. Also, Fresh 'n' Easy in the US is yet to make a profit. However, retiring chief executive Sir Terry Leahy believes that the global recovery will be bedded in by the time he leaves next year. Recent falls have created an opportunity for long-term investors in this quality play. The shares are still a buy says the Telegraph.
Events have not been kind to WH Smith. The expected pick-up in the travel business has not materialised thanks to a certain inconvenient volcanic eruption. That was responsible for a 4% fall in same-store sales at WH Smith Travel. It's not time to head for the exit yet but only a hold says the Independent.
When a television audience of billions watches the World Cup kick-off in Johannesburg on Friday, Aggreko can take part of the credit. The Glasgow-based company will supply the 300 temporary generators, 500km of cabling and 360 staff that will power the event’s outside broadcast facilities and enable live images to be sent around the world. At Ł14.07, Aggreko’s shares — up 144 per cent year-on-year — look expensive, at 19 times 2010 earnings. But they always do. Buy on weakness says the Times.
US close
Wall Street staged a decent rebound as concerns about the global economy were offset by reassuring noises from the Federal Reserve chairman Ben Bernanke, who said he did not expect the US economy to experience a double-dip recession.
Dow Jones closed 109 points higher at 9,926. Nasdaq shed 6 at 2,167 but the S&P 500 added 10 at 1,060.
In an interview broadcast on ABC News Bernanke said he expected the US economy would continue to recover, though growth would not be particularly vibrant. “We've seen consumers coming back. We've seen firms spending more. There are some signs the private sector is picking up the baton and moving the economy forward,” Bernanke said.
Mining companies Newmont, Freeport McMoran and Cliffs Natural Resources were all higher on recovering metals prices.
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