London pre-open: US gloom is contagious

11th Aug 2010 07:29

London is set to lose more ground Wednesday after last night's disappointing assessment of the US economy by Federal Reserve policymakers.Futures prices currently indicate a 30-point drop for the FTSE 100.Hot on the heels of TUI Travel's slump yesterday, package tour operator Thomas Cook has warned that full-year profits will be at the low end of forecasts due to softer UK bookings and the weak euro. "As we enter the final quarter, it is apparent that trading in the UK business is softer than expected and, at current rates, the recent weakening of the euro will have an adverse impact on translation of our euro-based earnings," said chief executive Manny Fontenla-Novoa.Standard Life has increased half-year profit in line with forecasts as a big increase in net inflows boosted assets administration by 5% since the end of 2009 to £179.1bn. IFRS operating profit before tax from continuing operations rose 10% to £182m and European Embedded Value (EEV) profit grew 11% to £364m. Net inflows soared 71% to a record £5.3bn.First half profits rose at support services group and building contractor Balfour Beatty despite lower revenues at its core construction businesses. Pre-tax profits rose to £81m from £65m in the half year to June on revenues of £4.6bn, up from £4.39bn as US acquisition Parsons Brinckerhoff kicked in strongly. Underlying profits before one-off restructuring charges rose to £141m from £107m. Construction revenues fell fastest in the US, where revenue declined 22% following the drop in the order book last year.