London pre-open: Slight fall in store for FTSE

2nd May 2012 07:37

City sources predict the FTSE 100 will open up five points from yesterday's close of 5,812, paring some of Tuesday's gains following Chinese PMI data, which came in below expectations. Standard Chartered bank said its broad geographic base once again helped it secure a strong start to the year with 'high single digit income growth' in the first quarter. However, it said that Income growth had been hit by the continued strength of the US dollar against Asian currencies in the first three months of 2012. The bank said that double digit income growth in Hong Kong, Malaysia, Indonesia, China and the Americas, UK and Europe region has more than compensated for the impact of subdued domestic business sentiment in India.Fashion chain Next is sticking with full year guidance given in March after first quarter sales showed a small year-on-year improvement, helped by contributions from new stores. Sales, excluding value added tax (VAT), for the bricks and mortar retail estate fell 3.9% in the 13 weeks to April 28th from a year earlier, but the Directory division - catalogue and Internet sales - rode to the rescue with sales growth of 11.8%. Total sales over the period were up 1.4%, of which net sales from new space accounted for 2.9% of total sales growth.Global banking titan HSBC has completed the sale of its US card and retail services business to American card and banking group Capital One Financial Corporation. The acquisition, first agreed back in August of 2011, was subject to various conditions including governmental and regulatory approvals; it closed on May 1st. Under the terms of the transaction, HSBC received a cash consideration of $31.1bn, including $2.5bn based on a premium of 8.75% over the gross customer loan balances at March 31st 2012.NR