London pre-open: Cautious start ahead of US data

3rd Feb 2012 07:25

City sources predict the FTSE 100 will open down around 9 points from yesterday's close of 5,796, ahead of Friday's non-farm payrolls data, the first major US economic indicator relating to the month of January. Telecoms giant BT saw revenue fall 5% in the third quarter, while profits jumped 48%. "We have delivered another quarter of growth in profits and cash flow despite the economic headwinds," said Chief Executive Ian Livingston. Revenue totalled £4,774m in the three months to December 31st, down from £5,038m the year before. However, pre-tax profits rose from £531m last year to £652m.Bid speculation seems to permanently surround financial software provider Misys of late and it appears that there is no smoke without fire, as the group has confirmed it is in talks with a suitor. The group said it is in preliminary discussions with Temenos Group, a Swiss provider of banking software, regarding a possible strategic combination to be effected by way of an all share merger.Admiral is extending its existing UK car insurance reinsurance partnerships with Hannover Re, Mapfre Re, New Re and Swiss Re until 2014. Fuller, Smith & Turner, the pubs group which lost out to Greene King last year in a bid battle for the Capital Pub Company, is beefing up its estate with the purchase of 15 freehold tenanted pubs from rival Enterprise Inns. Fuller's is paying £22.9m in cash for pubs which in aggregate generated operating profits of £1.7m in the year to September 30th, 2011. The acquisition is expected to immediately enhance earnings.