London pre-open: G20 meeting outcome weighs on FTSE

27th Feb 2012 07:30

City sources predict the FTSE 100 will open down 25 points from yesterday's close of 5,935, after a G20 meeting failed to alleviate concerns over the economic crisis in Europe. The meeting, which took place in Mexico City, ended without the G20 leaders reaching a consensus on the region's mounting debt crisis, with Germany reportedly reluctant to pile more money into the European bailout fund.In company news, following weeks of speculation, Vedanta Resources has confirmed that it will be merging its Indian iron ore and copper divisions, Sesa Goa and Sterlite, respectively, to create a new multi-metal mining giant - Sesa Sterlite. The combination is expected to create India's natural resources "champion" and is anticipated to be the world's seventh-largest global diversified natural resources major on an EBITDA (earnings before interest, tax , depreciation and amortisation) basis.Pearson, publisher of Penguin books and the Financial Times, says it expects revenues from digital and services businesses to exceed turnover from traditional businesses in 2012. The group saw sales climb to £5,862m in 2011 from £5,663m in 2010, below the market consensus forecast of £5,919m. Statutory profit before tax jumped 72% to £1,155m from £670m the year before. Adjusted earnings per share climbed 12% to 86.5p, ahead of the consensus forecast of 84.48p, from 77.5p in 2011. The full year dividend is bumped up 9% to 42.0p from 38.7p in 2010; the market had been expecting a more generous pay-out of 42.45p. The court hearing regarding the Macondo oil well explosion which was due to start on Monday, February 27th has been delayed by one week. The delay is to allow more time for UK integrated oil company BP and the Plaintiffs' Steering Committee (PSC) more time to continue settlement discussions and attempt to reach an agreement. The company statement said BP and the PSC are working to reach agreement to fairly compensate people and businesses affected by the Deepwater Horizon accident and oil spill.