London pre-open: Fed's pledge is shot in the arm to equities

10th Aug 2011 07:53

The US Federal Reserve last night pledged to freeze short-term US interest rates for two years and opened the door to more quantitative easing, in an attempt to restore confidence to battered markets.It seems to have done the trick on this side of the pond where City traders expect the Footsie to open around 70 points up from last night's close.Operating profits at savings, investments and pensions firm Standard Life jumped 44% in the first half while the company undergoes its "three-year transformation". On an International Financial Reporting Standards (IFRS) basis, operating pre-tax profit from continuing operations climbed from £182m to £262m in the six months ended 30 June, while fee-based revenue increased 14% from £535m to £611m. TUI Travel said it is on track to meet full-year expectations after operating profits surged in the group's third quarter. The package tour firm saw a 13% increase in revenue and a 57% increase in operating profit for its third quarter (to June 30) compared to 2010, when the effects of the Icelandic volcano ash cloud were disrupting travel plans across Europe.US bank Capital One has been confirmed as the buyer of HSBC's card and retail services business in the US. The deal, some details of which leaked out over the week-end, will see HSBC sell the businesses at an 8.75% premium to gross customer loan balances, resulting in a consideration of $32.7bn based on 30 June 2011 figures.--jh