London open City sources predicts FTSE100 will open up 31 points from its previous close of 5,313.
Stocks to watch
Tullow Oil said it has found a significant column of excellent quality light oil when drilling the Owo-1 exploration well in the Deepwater Tano licence offshore Ghana. Results of drilling, wireline logs and samples of reservoir fluids have established Owo as a major new oil field requiring further appraisal, it added.
BP has responded to the week-end press speculation over potential changes to management (see below) and the charge for the costs of the Gulf of Mexico oil spill, saying that no final decision has been made on these matters.
Reckitt Benckiser saw net revenue rise by 10% to Ł2,061m in the second quarter of 2010. Net income improved 23% to Ł380m. Chief executive officer Bart Becht said the results were in line with the group’s full year targets. Guidance on full year performance has been left unchanged.
In the Press
Tony Hayward, the embattled BP chief executive, will collect a pay and pension package worth Ł11.8m when he falls on his sword this week. The oil company hopes that his departure will draw a line under its role in the Gulf of Mexico disaster. Five days after The Times revealed that Mr Hayward was to quit, the BP board is due to meet today in London to hammer out the terms and timing of his exit.
Many thousands of employees face lower pension payouts if high-ranking executives carry out threats to quit corporate schemes to avoid a punitive new tax measure to take effect in April, The Times has learnt. It is feared that large numbers of senior executives will choose to leave corporate pension schemes to avoid the new levy. That would leave such schemes substantially less well-funded and put future payouts at risk.
Bankers are to be forced to lend to businesses or risk losing their bonuses under plans to be outlined by Vince Cable, the Business Secretary. He will propose a “carrot and stick” approach to ensuring that banks maintain lending to struggling enterprises. The plans will be in one of two green papers on the banks and financial services being published by the Coalition today. The second paper, from the Treasury, will outline measures to strengthen regulation of the banking sector, the Telegraph reports.
Newspaper tips
Last week, Britvic said it was confident in meeting full-year expectations as it posted third quarter sales. Total revenue rose 16.2% on a year-on-year basis to Ł289.5m. Sales for the year to date are up 8.5% to Ł794.8m. There was a hint of caution in the statement. "We continue to remain cautious about consumer sentiment in our trading territories," it said. Now is the time to take profits and sell says the Sunday Telegraph.
Cluff Gold received an unsolicited offer in February but the share price has fallen back to 73p since the bid discussions ended. At this level, the Africa-focused gold miner is undervalued, with the share price taking no virtually no account of the Sierra Leone mine Baomahun's short or long-term potential. Buy says the Mail on Sunday.
The time needed for regulatory approval for Reciktt Benckiser's bid for SSL will give any rival suitors ample opportunity to come in with an offer. While this is improbable, investors should hold on just in case says the Mail on Sunday.
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