London pre-open: Minimal gain expected in opening trade

15th Feb 2013 07:38

City sources predict the FTSE 100 will open up a couple of points from yesterday's close of 6,327, following on from a mixed, but largely unchanged end to Thursday's session in the US. Thursday's big news Stateside was, of course, the announcement that business titan Warren Buffett plans to buy-out food giant Heinz. The Dow Jones closed lower, while the S&P 500 and the Nasdaq ended in positive territory. In US economic news, initial weekly unemployment claims were much better-than-expected. On today's agenda are UK internet retail sales, retail sales, and the unemployment rate, while abroad announcements include Germany's wholesale price index, US industrial production and the University of Michigan's preliminary reading on investor confidence for the month of February. In company news, Anglo American was whacked by $4.6bn of impairments in 2012, while underlying earnings took a hit from falling commodity prices, ongoing cost pressures and a loss-making platinum business. The company swung into the red in the 12 months to December 31st, recording a loss before tax of $239m, compared with a profit of $10,782m the year before.Speciality chemicals group Johnson Matthey has agreed an extension of its metal supply deal with Anglo American Platinum and entered into a new contract, under which it will provide Anglo Platinum with platinum group metal market research services. However, the new agreement will result in a change to fourth quarter revenue, meaning the full year impact on the group will be a loss of commission income of £35m. Independent News & Media (INM) is seeking the removal of Brett Chenoweth as Director and Chief Executive Officer of APN News & Media, in which INM holds a 28.95% shareholding. A release issued by INM reported that INM had "lost confidence in Mr Chenoweth's ability to implement the strategic initiatives necessary to reposition APN for the more challenged media landscape that has emerged in Australiasia".