London pre-open: Lower start expected

22nd Jul 2010 07:35

Footsie is expected to open lower following falls on Wall Street overnight.Outsourcing giant Capita said pressures on public spending may affect growth in the short term but it is confident its ability to deliver cost efficiencies will stand it in good stead. "There is buoyant demand for outsourcing across both the private and public sectors, with the most active markets in our strong bid pipeline remaining local government and life and pensions," said Paul Pindar, chief executive of Capita.Tate & Lyle said it has made a sound start to the year and continues to anticipate progress in the current full year. However, despite some improvement in demand, industrial starch margins are expected to remain at lower levels and the group continues to see little near term improvement in US ethanol markets.Imperial Tobacco said cigarette volumes for the nine months to June were down 4.3% as a result of market declines in Spain, USA, Russia and Ukraine being only partly offset by gains in Central Europe. Overall, the group's financial performance for the financial year to 30 September remains in line with expectations.