London pre-open: Asian fears to prompt early sell-off

21st Nov 2011 07:20

City sources are expecting the FTSE 100 to open down 42 points this morning from Friday's close of 5,363, as fears over the global economy are fueled by worrying news from Singapore and Japan. Japan's Ministry of Finance revealed that exports fell by an annual rate of 3.7% last month, the first decline in three months, as shipments to China, the US and Europe weakened. Furthermore, with imports rising 18% due to increased energy prices, the nation registered a deficit of 2.738bn yen.Singapore's government expect that the nation could grow by just 1-3% in 2012, down from the 5%-expected growth in 2011.Meanwhile, Spain has voted the centre-right Popular Party to power hoping that party leader Mariano Yajoy will be able to bring an end to the country's mammoth debt troubles. "There will be no enemies for me other than unemployment, the deficit, excessive debt and economic stagnation," Rajoy said.In company news, energy giant Centrica has signed an agreement with Statoil ASA for the supply of 50bn cubic metres of gas to the UK. Centrica will also buy a package of producing and development oil and gas assets in the Norwegian sector of the North Sea for $1.525bn (£0.965bn), which is expected to increase its production by 34,000 barrels of oil equivalents per day.Educational publisher Pearson has agreed to buy US-listed Global Education and Technology Group, which provides test preparation services in China for students who are learning English, for $155 in cash. "Through organic investment and complementary acquisitions, we're learning a lot about the very significant growth opportunities we see in China and about the value of combining our content and technology with high-quality school networks," said John Fallon, the chief executive of Pearson's International education business.Capital Shopping Centres (CSC) has put in place a £375m revolving credit facility, replacing an existing undrawn facility of £248m which is due to expire in June 2013. The new facility reduces its all-in rate by 25-50 basis points compared to the previous facility. "The new facility provides us with considerable flexibility over the next five years, potentially seven, and underpins our robust financing position," said finance director Matthew Roberts.BC