London pre-open: Flat start expected after yesterday's sell-off

15th Dec 2011 07:24

The FTSE 100 index is expected to open just a few points higher, following yesterday's mass sell-off which saw London's blue chip lose an average of 2.25% each. City sources predict the Footise will open up 7 points from yesterday's close of 5,367.Likely to be weighing on investors minds will be some gloomy comments from economists Legal & General Investment Management (LGIM). They warn that the UK is headed for a recession next year, contracting by 0.4% due to an even deeper recession in the Eurozone.Adding to the downbeat mood, the HSBC's Chinese Purchasing Managers' Index (PMI) fell to 49 in December, above November's 47.7 reading but still below the key 50 level - anything under this indicates a contraction.  In company news, media giant WPP has acquired a majority stake in Singaporean digital marketing agency Qais Consulting for an undisclosed sum. "This investment continues WPP's strategy of developing its networks in fast growing and important markets and sectors and strengthening its capabilities in digital media." Qais will join WPP's digital marketing agency VML and will be renamed VML Qais.FTSE 250 sports retailer Sports Direct reported an 8.4% rise in group revenues in the first half ended 23 October, from £819.9m to £888.6m, helped by a massive 85% jump in online sales. Pre-tax profit nudged 0.3% higher while the gross margin declined by 110 basis points. ""This strong performance yet again demonstrates the success of our unique and resilient business model, and was delivered against both a tough FIFA World Cup comparison last year and an especially fragile consumer environment," said chief executive Dave Forsey.In an extremely short statement, fund manager Henderson has announced that underlying profits are expected to be between £155m and £159m in the year ended 31 December, more than 50% up on last year's figure of £100.7m. Within this, performance fees are predicted to be £11m in the second half.BC