London pre-open: Flat start expected

13th Jan 2011 07:36

Not much is expected to change in early deals here despite gains in the US overnight and the Far East this morning.Markets worldwide have benefited from more positive noises coming out of Europe the past few days, with news of Portugal's successful bond auction yesterday well-received.Tesco's international business was the star of the show in the run up to Christmas, as the snow and ice meant UK like for like sales were weaker than expected and lagged rivals. Like for like sales in the UK for the six weeks to 8 January were up just 0.6% - about half the figure analysts had predicted - and total sales grew 4.2%.Group sales rose 7.6% during the period, with international sales up 14.2%. Asia leapt 24.2%, led by China and Thailand.Bike and car parts seller Halfords saw the fall-off in like for like (LFL) sales accelerate in the final quarter of 2010 in its retail estate, and the group now expects full year profits will be at the lower end of market expectations. In the 13 weeks to 31 December retail revenues fell by 6.6% on a LFL basis, taking the decline in the final 39 weeks of 2010 to 5.2%. Guidance that full year gross margins will be broadly flat has been maintained. Estimated average production for Premier Oil declined in 2010 as the oil and gas producer saw increased maintenance activity in the North Sea, particularly in the second half of the year. Estimated average production for the full year was 42.8 thousand barrels of oil equivalent per day (kboepd), down from 44.2 kboepd in 2009. Group production for the current year is expected to be in the range of 45,000 to 50,000 barrels of oil equivalent per day.Electrical retailer Dixons said wintery weather ahead of Christmas kept some shoppers away, but saw strong trading from Boxing day as customers stocked up on 3D TVs and other must have gadgets ahead of the January VAT rise. The owner of Currys and PC World said sales in the 12 weeks to January 8 were down by 1% from the same period the previous year, or by 2% on a like-for-like basis, excluding the impact of new stores.