London open: Dull start for Footsie

26th Nov 2009 08:35

London's blue chips have opened lower despite relief among water investors over the final price settings for the next five years.Water companies will have to cut bills in real terms between 2010 and 2015, the water regulator Ofwat said, though not by as much as it previously proposed. Ofwat said average annual bills will have to fall by £3 to £340 between 2010 and 2015, but this was less than originally indicated.Severn Trent, United Utilities, Northumbrian Water and Pennon are all well up on the news. Currys and PC World owner DSG International reported a drop in first half like for like sales but said it has seen improving trends in a number of its businesses, particularly in recent weeks. Like-for-like sales were down 4% in the 24 weeks ended 17 October, but were up 1% in the last 8 weeks of the half year.Pub owner Mitchells & Butlers has made a good start to its new financial year, but worries about the strength of consumer confidence and possible tax rises after next year's General Election. Pre-tax profit fell 24% in the year ended 26 September 2009 to £134m on revenue up 2.6% to £1.96bn.Newspaper publisher Daily Mail slumped deeper into the red last year as more write-downs knocked its figures, but underlying profits also took a tumble as its UK local papers suffered in the recession. Adjusted profits in the year to September fell by 23% to £201m on revenues of £2.1bn, down from £2.3bn. London Stock Exchange is still suffering after yesterday's trading update that showed new competitors making steady inroads into its market share.The Department of Transport has decided not to extend the National Express East Anglia franchise beyond its normal termination date of March 2011. National Express said it had expected the decision after it handed back control over the loss-making East Coast mainline rail franchise to the government last month.A bumper Halloween enabled cards and gifts retailer Clinton Cards to lift like for like sales for the 16 weeks to 22 November by 3.9%, an increase on the early part of the period. Halloween went "exceptionally well", Clinton said.