London pre-open: Pause for breath anticipated

22nd Dec 2010 07:35

It looks like stocks will take a breather after yesterday's rally to a new 2½-year high, although the early retreat isn't expected to go far.The FTSE 100 is expected to drop around 8 points when trading gets underway, according to current futures prices.In company news, British Land and Oxford Properties, the real-estate arm of Ontario Municipal Employees Retirement System (Omers) pension fund, have put pen to paper and signed contracts for a 50:50 joint venture to develop a new skyscraper in the heart of the City. The company, which mothballed the project during the recession, said the 736 ft (224m) 'Cheesegrater' is already generating strong interest from insurance and financial companies, and professional and corporate business sectors. It wil cost £340m and should be finished by the middle of 2014.Underwriter Catlin has raised the amount it expects to lose due to the New Zealand earthquake in September by US$10m (£6.5m) to $45m. The company said it was making the announcement 'in view of the increased interest in this event by the investment community.' The earthquake, which was in the Christchurch area, was estimated to have damaged about two thirds of the 160,000 homes there. Construction and engineering group Costain has emerged as one of the companies that made an approach to support services group Mouchel earlier this month. Costain says it approached Mouchel's board on 2 December, with a view to making an all-share offer valuing Mouchel at 105.8p. The offer was rejected and talks have ended.