London pre-open: Prepare for sell-off

17th May 2010 07:27

Major concerns about Europe's debt crisis look like spilling over into another week, with London set to reflect Friday's big losses on Wall Street and more selling in Asia this morning. City experts predict the FTSE 100 will start the session down 63 at about 5,200.It's not only equities that are in trouble. The US dollar index is at its highest since March 2009, while the euro now trades at its worst level against the greenback since April 2006.In company news, life insurer Prudential has finally launched its delayed rights issue to finance the $35.5bn acquisition of AIG's Asian businesses (AIA), with the new shares priced at an 80% discount to the market price when the deal was originally announced. The terms of the £14.5bn rights are 11 new shares for every two at 104p. In a separate trading statement, Pru said current businesses enjoyed their best quarter ever in the three months to March. New business sales rose 27% to £807m and operating profits 26% to £427m.Storage group Big Yellow swung into the black for the full-year and said it has seen an improving level of demand since spring last year. The group made a profit before tax for the year to 31 March of £10.2m compared to a loss of £71.5m before, thanks to the increase in the valuation of its open stores coupled with the improved recurring profit offset by the write down of assets in the course of development. Record volumes and higher cream prices in the second half have produced a "very satisfactory" set of full-year results at Scottish dairy group Robert Wiseman. Turnover rose 4.5% to £886.2m and sales volumes leapt 9.1% to a record 1.77 billion litres, sending profit before tax up 60% to £49.2m, boosted by cream prices and a £1.9m cut in the OFT's price-fixing fine. Chairman Alan Wiseman is standing down after July's AGM, leaving brother Robert, the current CEO, to take on the role of executive chairman.Services group Mitie revealed a 17% rise in annual pre-tax profit, increased its dividend and says it is confident on delivering sustainable profitable growth. Profit rose to £91.7m for the year ended 31 March 2010 from £78.4m the year before. Revenue for the year increased 13% to £1.720bn. "Our prospects for growth are very strong and we will benefit from the full year effect of both the Dalkia FM and EPS acquisitions in this year's results, along with the related synergies," Mitie said in a company statement.