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UPDATE 1-UK Stocks-Factors to watch on Wednesday July 25
July 25, 2012 / 7:05 AM / 5 years ago

UPDATE 1-UK Stocks-Factors to watch on Wednesday July 25

(Adds further company news)

* Britain’s FTSE 100 index is seen opening down 16-19 points, or 0.4 percent on Wednesday, according to financial bookmakers, extending recent sharp falls into a fourth straight session and tracking declines on Wall Street and in Asia as worries Spain may need a full debt bailout dog markets. For more on the factors affecting European stocks, please click on

* The UK blue chip index closed down 34.64 points, or 0.6 percent at 5,499.23 on Tuesday, ending below 5,500 for the first time since June 28, with financial stocks knocked by concerns over exposure to euro zone debt, exacerbated by fears Greece would struggle to meet the terms of its aid package.

* U.S. tech giant Apple Inc saw its second-quarter results fall short of Wall Street’s lofty expectations as a sagging European economy and a pause in iPhone sales ahead of the release of a new version saw revenues slip from the previous quarter.

Apple shares fell more than 5 percent in late trade on Wall Street, and Apple’s suppliers also felt the pain in Asia as shares in LG Display , Toshiba and Hon Hai sank between 5 and 7 percent.

* ARM HOLDINGS - The British chip designer beat market expectations for the second-quarter after demand for its low power chips in smartphones and tablets continued to outstrip the industry, providing a firm foundation against growing signs of weakening consumer demand. [ID: nASM0003CK]

* GLAXOSMITHKLINE - The drugmaker will post second-quarter results at 1100 GMT.

* BT - The telecoms provider had to rely on deep cost cuts in the first quarter to lift core earnings 2 percent after tough conditions in southern Europe and the financial sector hit overall revenues.

* BRITISH AMERICAN TOBACCO - BAT said it expects good earnings growth this year despite the strong pound holding back its performance at the half-year after the world’s No.2 cigarette maker gained from price rises and strong emerging markets.

* CAPITA - The British outsourcing group posted a 10 percent rise in first half profit, boosted by another acquisition spree, and said a buoyant sales market gave it confidence for a strong 2012 and beyond.

* EASYJET - The British budget airline posted a 10.5 percent rise in third-quarter revenues, boosted by strong demand for beach holidays due to the poor weather in northern Europe.

* LANCASHIRE - The British insurer said its quarterly profit fell by a third, weighed by bigger-than-expected claims relating to the Costa Concordia shipwreck and weaker investment returns.

* DAILY MAIL & GENERAL - The newspaper publisher said revenue for the third quarter rose 3 percent on last year to 509 million pounds on a reported basis, with the group seeing a return to underlying growth at Associated Newspapers, and the full-year outlook is unchanged.

* EUROMONEY INSTITUTIONAL INVESTOR - The publishing group said market conditions have become tougher since the start of June and weaker markets may have an impact on the fourth quarter if they continue, with revenue visibility for September limited.

* COOKSON GROUP - The engineering materials group reported a first-half pretax profit of 93.5 million pounds, down from 119.7 million pounds a year earlier, and said the strategic review it announced on May 17 is proceeding as planned, with the board expecting to update shareholders on its outcome before the year-end.

* MARSTON‘S - The Queen’s Diamond Jubilee holiday and other festivities boosted sales growth at the brewer and pub firm the company said on Wednesday, as it reported a 2.2 percent rise in third-quarter sales at its managed pubs.

* RENISHAW - The British engineering company reported a 5 percent rise in full-year profit helped by strong demand for its precision measuring products across its markets.

* THEO FENNELL - The jeweller said its like for like retail sales were ahead 3 percent in the first 12 weeks of the current financial year, and said it is on track to significantly reduce its losses at the half year stage as it reported a full-year loss on ordinary activities before taxation and exceptional items of 1.21 million pounds in turnover of 12.38 million pounds.

* YELL GROUP - The phone directories company said it was considering options that may result in a dilution of existing shareholders’ interests, as part of a capital structure review.

* IQE - The group said it expects to report first-half revenues of approximately 34 million pounds and an EBITDA of approximately 4 million pounds, with net debt at less than 8 million pounds, and it remains confident of meeting its full year expectations.

* ABCAM - The antibodies group said it anticipates that profit before tax will be slightly ahead of expectations, as it reported revenue growth for the year of approximately 17.0 percent.

* E2V TECHNOLOGIES - The firm said expectations for its full-year trading performance remain unchanged although the trading performance for the first three months of the year has been slightly below expectations, with the group anticipating a stronger second half performance compared to the first half, reflecting conversion of key strategic orders from its solid order pipeline.

* HSBC - UK Trade Minister Stephen Green said he “regrets” the compliance failings of HSBC in relation to alleged money-laundering when he was chairman there, but said he had no plans to quit.

* BP - The oil major failed to pay attention to major areas of potential danger on its oil rigs, according to a new report into the Deepwater Horizon explosion that killed 11 people and unleashed America’s worst oil spill, the Guardian said.

* VODAFONE - The mobile phone firm bucked the anti-executive pay trends of the so-called Shareholder Spring after more investors voted in favour of its remuneration policies at this year’s annual meeting than in 2011, the Daily Telegraph said.

* China’s economy is set for a soft landing even as global headwinds increase, the International Monetary Fund said in a report on Wednesday that urged further reform and currency appreciation to rebalance growth and reduce risks.

* China’s economic growth will likely pick up in the second half of 2012 as a raft of policies rolled out to boost economic activity gain traction, the country’s Ministry of Industry and Information Technology said on Wednesday.

* Britain tipped into a second recession within four years at the end of last year, and second-quarter GDP data due at 0830 GMT is forecast to show a further contraction of 0.2 percent, on top of the 0.3 percent decline at the start of the year.

* July’s Confederation of British industry (CBI) trends-orders survey is due at 1000 GMT.

* Across the Atlantic, weekly U.S. mortgage and refinancing indexes will be released at 1100 GMT, with June U.S. new home sales data due at 1400 GMT.

* Only one FTSE 100 stock -- Scottish & Southern Energy -- will trade without entitlement to its latest dividend on Wednesday, with the ex-dividend move knocking 2.09 points off the FTSE 100 index.


> Financial Times

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