London pre-open: FTSE to track US and Asia stocks higher

22nd Nov 2012 07:26

City sources predict the FTSE 100 will open up 27 points from yesterday's close of 5,752, tracking gains in the US as sentiment was lifted in the afternoon following reports of a ceasefire deal in the Gaza Strip, announced by US Secretary of State Hillary Clinton and Egyptian Foreign Minister Mohamed Amr. Sentiment was also given a boost in Asia after the first increase in manufacturing output in China was reported in over a year. Announcement out today include the EU Consumer Confidence Indicator and the UK CBI Industrial Trends Surveys. In company news, SABMiller, one of the world's largest brewers, managed to beat analysts' sales forecasts in the fist half as its hiked its interim dividend by 12%. The company reported revenue of $17,476m in the six months to the end of September, up 11% on $15,688m reported the year before, and better than the $16,940m that Charles Stanley was expecting. However, while SABMiller said that it grew volumes and revenues across most regions during the period, it did admit to a moderation of growth in some emerging markets.Reckitt Benckiser Group has signed a definitive merger agreement with healthy snack maker Schiff Nutrition International. If Schiff's shareholders agree to the deal, they will tender their shares to Reckitt's previously announced cash offer of $42.00 per share, valuing Schiff at $1.4bn. The offer expires on December 14th. Reckitt will pay the consideration with cash and existing credit facilities. The transaction is expected to be immediately accretive to earnings on an adjusted basis.Global insurer RSA said it had appointed financial services stalwart Martin Scicluna as its new Chairman. He will join the board on January 1st 2013 and succeeds John Napier, who is stepping down at the end of the year after a decade in the post. Scicluna spent over 30 years at Deloitte where he was Chairman from 1995 to 2007 and is currently Chairman of Great Portland Estates and Chairman of the Audit committee and a Non-Executive Director of Lloyd's Banking Group.Close Brothers, the FTSE 250 specialist financial services firm, said it has made a solid start to its financial year though it did highlight a 'challenging' environment in its Securities division. "Overall the group remains well positioned for the remainder of the financial year," Close Brothers said.