London pre-open: Chinese GDP data to boost buying early on

17th Jan 2012 07:25

Investors are expected to shrug off the downgrade of the EFSF on Tuesday after Chinese GDP data came in better than expected. City sources see the FTSE 100 opening up 50 points from yesterday's close of 5,657.Last night, Standard & Poor's cut the 'AAA' long-term credit rating of the European Financial Stability Facility (EFSF) to 'AA+'. "Following the lowering of the ratings on France and Austria, the rated long-term debt instruments already issued by the EFSF are no longer fully supported by guarantees from the EFSF guarantor members rated 'AAA' by Standard & Poor's," the statement read.Providing a lift was fourth quarter gross domestic product (GDP) data from China, easing fears of a hard landing. The economy expanded by 8.9% year-on-year, less than the 9.1% rise seen in the third quarter but well ahead of the 8.6% forecast.Iconic British luxury brand Burberry has reported a 21% underlying growth in total revenue in the three months to December 31st (fiscal third quarter), a significant slowdown from the 30% underlying growth seen in the first half. Revenues totalled £574m in the period, up from £480m in the third quarter the year before. Credit checking firm Experian said organic revenue growth in the final three months of 2011 was 7% at constant exchange rates, and expects to replicate that sort of year-on-year growth in the first three months of 2012.Nationalised lender Royal Bank of Scotland (RBS) is to sell its aviation capital business to Sumitomo Mitsui Banking for around $7.3bn (£4.7bn). Future order commitments of $3.7bn (£2.4bn) will transfer with the business. The risk weighted assets associated with the Aviation Capital business are $2.5bn, (£1.6bn), the company said.