London pre-open: Modestly firmer start expected

13th Jul 2010 07:42

A modestly firmer opening is in prospect for Footsie with little in the way of major corporate news to generate trading interest. Dealers expect the FTSE 100 index will open around 12 points higher at 5,179.Underlying revenue at luxury goods maker Burberry was up 24% in the May to June quarter. Underlying retail sales were up 15% while underlying wholesale revenue rose by 46% from a year earlier. "With double-digit sales growth in both retail and wholesale, Burberry has delivered a strong start to the year," said chief executive officer Angela Ahrendts.Northern Foods' sales fell in the first quarter as good growth in chilled foods could not offset falls in the bakery and frozen divisions. Overall, sales in the three months to end June were 1.6% lower, in line with the firm's targets in 'challenging conditions'.Engineering and project management company AMEC has won a five year master services agreement with BP Azerbaijan valued at $340m.On the subject of BP, hopes are rising that the company is near to stemming the flow of oil spilling into the Gulf of Mexico after a new 75-tonne steel cap was lowered over the damaged well late last night. Reports suggested that for a brief period shortly after the new cap was installed oil stopped leaking from the Macondo well, though it resumed soon after through a valve to relieve a pressure build-up.Specialty pharmaceuticals business BTG is enjoying continued momentum across the business with its pipeline of prospects progressing well."We look forward to selling CroFab and DigiFab from October this year, and to seeing the full financial benefits of this from next year," said chief executive officer, Louise Makin.