London pre-open: Stocks to track gains in Asia and US

5th Mar 2013 07:27

City sources predict the FTSE 100 will open up 25 points from yesterday's close of 6,346, tracking gains seen in Asia and the US overnight, the latter on the back of dovish comments out of some Fed speakers. Speaking at the National Association of Business Economists (NABE) Spring conference US Federal Reserve Vice-President Janet Yellen admitted that there are costs associated with the current lax monetary policy which need to be watched. "Isufficiently forceful action to achieve our dual mandate also entails costs and risks," she said. Hence, at the present time, the central banker views the balance of risks, "as still calling for a highly accommodative monetary policy to support a stronger recovery and more-rapid growth in employment". In UK company news, revenue fell seven per cent at FTSE 100-listed mining giant Xstrata in the year ended December 31st. In its annual results the company reported revenue of $31.6bn, down from $33.9bn one year earlier. Basic earnings per share, excluding exceptionals, declined from $1.97 to $1.24 year-on-year. Perform Group, which distributes sports content across connected digital platforms, has acquired Voetbalzone, the top ranking independent sports site in the Netherlands, for an initial consideration of two million euro. The group will pay an additional contingent consideration of up to 10.5m euro, depending on the EBITDA of the business for 2013-15. Meggitt, an international company specialising in high performance components and sub-systems for aerospace, defence and energy markets, has been selected to provide a package of thermal management products for certain types of LEAP engine for Snecma (Safran). The $175m deal includes the delivery of fuel oil heat exchangers which perform at extremely high temperatures, helping to optimise engine efficiency and lowering fuel consumption.