London pre-open: Another step back for Footsie

28th Jan 2011 07:40

Weakness in the Far East and a close below 12,000 in the US last night are set to point London lower in early action.S&P's decision to cut its credit rating for Japan and some poor company results hurt the Nikkei Friday, while mixed results and disappointing data capped gains on Wall Street. It could also be a bad day for Amazon. The online retailer warned on operating profits after Thursday's close.The FTSE 100 is seen down around 9 points at the start of play.Over here, pubs owner and ale brewer Marston's said profitability was in line with expectations in the 16 weeks to 22 January. Its managed pubs division grew like for like (LFL) sales by 2.1%. LFL sales for the six weeks to 8 January were flat. Panmure Gordon had predicted growth of 1% for the eight weeks to 22 January. LFL profits at the tenanted and leased pub division are estimated to be down 1% year on year, an improvement on the 4% decline seen in fiscal 2010. There were few problems with snow in December for London-based pub owner and brewer Fuller's. Like for like sales in the core Managed Pubs and Hotels business grew by 3.7% over the 10 weeks to 22 January, bringing the like for like sales growth for the 43 weeks to 3.5%. "January has started with the VAT increase and further tax rises, including the damaging duty escalator, and Government spending cuts are set to follow. Despite this we are confident that we will meet our expectations for the full financial year," the firm said.With French bidder Oberthur now firmly dispatched, banknotes and passports printer De La Rue can concentrate on the serious job of running a business, and it remains optimistic after trading in line with expectations since September. The company, which has been fighting off its rival for the past few months and this week rejected a 935p-a-share offer, says full-year volumes at the currency division will be about 6 billion printed banknotes and 10,000 tonnes of banknote paper. "The board remains confident that the group's outlook for the financial year is in line with its previous expectations," the firm said.