London pre-open: Buying spree predicted

14th Oct 2009 07:39

Forecast-busting third quarter results from Intel overnight look set to inject some life into proceedings today, with futures prices indicating big gains for London.The leading index is expected to add more than 50 points at the start of play following an optimistic outlook from the world's largest chipmaker. US futures suggest the Dow will add at least 80 points later."Intel's strong third-quarter results underscore that computing is essential to people's lives, proving the importance of technology innovation in leading an economic recovery," said Intel's chief executive Paul Otellini."This momentum in the current economic climate, plus our product leadership, gives us confidence about our business prospects going forward."Over here, miner Rio Tinto has been busy. It set a new record for iron ore production in its third quarter with shipments to China still high despite the row over the arrest and detainment of four its employees on spying charges. "We are seeing early signs of a recovery in some of our key markets, although we remain cautious about the near term outlook," chief executive Tom Albanese said.Fashion group Burberry reported a better-than-expected 5% rise in second quarter sales thanks to a good performance in Europe and Asia. Total sales rose to £343m compared with £328m last time, though sales were down 5% at constant exchange rates. Retail sales rose 27% to £163m, or 16% on a constant currency basis, with comparable store sales up 5%.But Pub group Punch Taverns slumped into an annual loss of over £400m as it took a £663m charge for write-downs on the value of its pub estate. Even before the write-down, profits for the year to 22 August fell from £262m to £160m on revenues down from £1.56bn to £1.44bn. After one-offs there was a loss of £405m against a loss of £80m.Defence giant BAE Systems has traded in line with expectations since its half year results were published at the end of July, it revealed Wednesday. It also said it would deal with any issues that arise from the Serious Fraud Office's (SFO) investigations into allegations of bribery " at the appropriate time and, if necessary, in court".A weaker sterling will benefit the full-year numbers and operating cash inflow in the second half year should be stronger than in the first. Information services company Experian reported a 1% rise in half year sales and said it remains on track to at least maintain margins, grow profits at constant currency and deliver strong cash flow conversion.