London pre-open: Small rise expected in early trading

1st Feb 2012 07:23

City sources predict the FTSE 100 will open up 5 points from yesterday's close of 5,682, taking its lead from small gains made in Asia on the back of better-than-expected manufacturing data in China. The two Anglo-Australian giants of the mining sector, Rio Tinto and BHP Billiton, have been doing a spot of trading that will see Rio gain majority control of South African miner Richards Bay Minerals. Rio is to acquire BHP Billiton's 37% stake in the South African mineral sands mining and processing operation, taking its holding up to 76%. The final consideration for the acquisition will be determined through a previously agreed valuation process.Inter-dealer broker ICAP is to prune back staffing levels in less profitable areas of the business, as a result of which pre-tax profits for the year to the end of March will be at the upper end of the current range of analyst forecasts. Analysts' forecasts of pre-tax profits currently range from £336m to £358m.Imperial Tobacco has seen reported stick equivalent volumes fall 7% in the three months to December 31st, due to the trading difficulties in Syria, Spain, USA and Ukraine. Tobacco net revenues fell by 1%. However, on an underlying basis, which excludes the impacts of these countries, underlying stick equivalent volumes fell 1% but underlying tobacco net revenues rose 3% reflecting strengthening price/mix, the firm said.