London pre-open: FTSE to get boost from Asia ahead of Autumn Statement

5th Dec 2012 07:27

City sources predict the FTSE 100 will open up 21 points from yesterday's close of 5,869, boosted by a strong performance in Asia overnight. The expected rise also comes ahead of the Chancellor's Autumn Statement, and he appears to be set to announce a five billion pound investment in transport, schools, and science projects. In the much-trailed statement, the Chancellor will say this investment is to be funded in part by departmental savings over the next two-and-a-half years. Whitehall departments will be asked to cut day-to-day spending by 1% - around £950m - in 2013/14 and 2% - about £2.5bn - in 2014/15. Most of these savings will come from cuts to back office functions, a government spokesman said. Osborne will also update Parliament on the nation's finances, with expectations high that figures from Office for Budget Responsibility will show growth forecasts pared back. Also on the cards today are the UK PMI Serivces reading, the BRC Shop Price Index, Official Reserves data, while international announcements include EU Retail Sales and US Crude Oil Inventories and Goods Orders. In company news, supermarket titan Tesco has announced that it is considering a sale of its loss-making US division, Fresh & Easy, as it revealed that the frontman of the unit, Tim Mason, will leave the company after 30 years' service. To accompany the group's third-quarter trading statement, in which it revealed a decline in like-for-like (LFL) sales in the domestic UK market, Tesco Chief Executive Officer Philip Clarke said that he would be conducting a strategic review of Fresh & Easy.Jim Ryan, the co-Chief Executive Officer of bwin.party, has announced his plans to retire from the role and return to Canada with his family. He will retire on January 15th, and on the same date his fellow co-CEO will assume the new role of Group CEO. FTSE 250 transport company Stagecoach said like-for-like revenue grew 5.9 per cent in the half year to October and expects revenue growth in the second half to be 'relatively modest'. Total operating profit, before intangible asset expenses and exceptional items, for the six months to October 31st climbed 33.7% to £142m while revenue for the period increased to £1.403bn from £1.293bn in 2011.Meanwhile, when he last looked at Anite, back in early July, Tempus suggested taking some profits on shares that had risen by 40% since he tipped them at the start of the year. The shares have, indeed, done little since, but halfway figures from the company, which makes most of its money from providing software to test telecoms networks and handsets, should prompt a reappraisal he believes. Analysts were shifting up their forecasts for the year and the shares are on about 17 times' earnings. Those new forecasts look too cautious to the columnist, saying "the shares should have further to go, although this might have to wait for the new year".