London pre-open: FTSE 100 boosted by China (and Greece)

20th Feb 2012 07:23

City sources predict the FTSE 100 will open up around 42 points from Friday's close of 5,905, following Friday's news that the People´s Bank of China is to cut its legal reserve ratio requirement for large banks by half a percentage point. As well, different reports out over the weekend are making for a better news-flow around Greece. More specifically, there seems to be some official support now for the idea of increasing the size of the European Stability Mechanism (ESM). As well, China and Japan may be more willing to participate in an increase of the funds which are put at the disposal of the International Monetary Fund. SEGRO, the FTSE 250 European industrial property firm, has offloaded a portfolio of five "non-core" UK industrial estates to Ignis Asset Management for £80.2m. The sales represents a net initial yield of 6.3%, 7% including the benefit of rent top-ups and guarantees.Mining titan Rio Tinto is splashing out $478m on the creation of the world's first automated long distance heavy haul rail network, which will service its Pilbara asset in Australia. The first driverless train will be launched in 2014, with the "AutoHaul" automated train programme scheduled for completion a year later, the company announced. A Kier joint venture with BAM Nuttall has been given the task by energy company EDF Energy of doing site preparation work for the Hinkley Point C nuclear power station in Somerset. The contract is worth in excess of £100m to the joint venture. NR