London pre-open: Comments from Boehner and Obama to boost FTSE

29th Nov 2012 07:29

City sources predict the FTSE 100 will open up 23 points from yesterday's close of 5,803, as the prospect of solving the problem of the looming US 'fiscal cliff' as comments from the Republican Speaker of the House and President Obama gave a strong indication that relations between the two are improving. Last night US stocks pared losses after Republican Speaker of the House John Boehner said that he was "optimistic that we can continue to work together to avert this crisis sooner rather than later." He said that Republicans were willing to put "revenue on the table" as long as it is accompanied by spending cuts.Furthermore, Obama told the public in a press conference the same day to pressure Congress to act to avert the automatic tax increases, saying: "When the American people speak loudly enough, lo and behold, Congress listens."So today I'm asking Congress to listen to the people who sent us here to serve. I'm asking Americans all across the country to make your voice heard."UK economic announcements out today include the CBI Industrial Trends Survey, Consumer Credit, Mortgage Approvals, PMI Retail and Trends in Lending. Meanwhile, across the water things are looking equally busy, with announcements expected on US Consumer Confidence, the EU Business Climate Indicator, US Initial Jobless Claims, the German Unemployment Rate, and the preliminary US GDP reading. In company news, real estate investment trust British Land has bought the 2.3-acre Canal Corridor North site in Lancaster and is in talks to acquire the adjoining land to build a canal side, mixed-use scheme across a 10-acre site. The company said that the site, which is close to the city centre, provides the "only real opportunity to significantly improve the city's retail offer," the group said.Utilities firm Pennon, which owns South West Water and waste business Viridor, said it is responding well to falling recyclate prices as it delivered half year pre-tax profit in line with expectations. Pre-tax profit rose 3.4% to £111.1m for the half year ended September 30th 2012, while revenue for the period slipped 1.4% to £633.7m.Balfour Beatty, the FTSE 250 international infrastructure group, has signed a long-term contract to manage and maintain major trunk roads in the South West of Scotland. The contract was awarded by the Scottish Ministers and has a total potential value in excess of £125m. The initial term of the contract is five years, beginning April 1st, and can be extended for another 10.