London pre-open: FTSE 100 to take lead from US

8th Feb 2012 07:35

City sources predict the FTSE 100 will open up 13 points from yesterday's close of 5,890, taking its cue from the Dow Jones industrial average, which last night closed at its highest level since May 2008, as hopes rose that Greece is close to agreeing austerity measures.Mining giant BHP Billiton's underlying earnings before interest and tax (EBIT) rose 5.8% to $15.69bn in the six months to the end of December from $14.83bn the year before. The performance was ahead of market expectations of $15.5bn. However, the bottom line figure at $9.94bn was down 5.5% from the previous year's attributable profit of $10.52bn, and was below market expectations of net profit after tax of $10bn.Cillit Bang maker Reckitt Benckiser said it exceeded its full year targets in 2011, as it announced a strategy for 'continued out-performance'. Net revenue in 2011 rose to £9.49bn from £8.45bn the year before and just a tad higher than market expectations of £9.45bn. Profit before tax climbed to £2.38bn from £2.14bn in 2010; the market had pencilled in a figure of £2.40bn. After a strategic review, the company is sticking with its focus on its 'power brands' but is augmenting this with an increased emphasis on 16 'power markets', most of which are emerging markets.Mining giant Rio Tinto has committed a further $3.4bn to the expansion of its Pilbara iron ore operations in western Australia. Some $2.2bn will be invested to extend the life of the Nammuldi iron ore mine, which is expected to increase production capacity in Pilbara to 283m tonnes a year (Mt/a) by the second half of 2013.