London pre-open: Weak start expected

29th Jun 2010 07:46

London is set to follow US and Asian markets lower, with traders predicting the Footsie blue-chip index will open around 57 points lower at 5,115.Outsourcing specialist Serco remains on course to meet guidance given in May, although it gave no clue as to the possible impact of spending cuts announced in last week's Budget. "We remain on track to deliver our financial guidance for 2010, which is for continued strong organic revenue growth and further progress this year towards our 2012 margin guidance," it said in a statement.Bus and train group National Express expects first half pre-tax profits to show good progress after trading was in line with forecasts through the second quarter. Revenue trends have been resilient, whilst progress on cost saving programmes and delivery of a stronger operational focus across the business has accelerated, it added.Things are on the up at floor coverings retailer Carpetright with revenue and profits both improved last year. Total group revenue in the 52 weeks to 1 May 2010 rose 7.0% to £516.6m from £482.8m the year before. The inclusion of Sleepright for its first full year contributed 2.0% of this increase.Infrastructure contractor Balfour Beatty has been named as a preferred bidder by Oldham Council for the council's Building Schools for the Future (BSF) programme. The contract could be worth up to £175m.Asia focused oil explorer Salamander Energy has abandoned the Tom Su Lua-1X exploration well in the Vinh Chau Graben system, offshore southern Vietnam, as a dry hole.Catlin plans to form a reinsurance company in Switzerland to expand the European-based reinsurance business underwritten by the Bermuda-based group. The group has applied to the Swiss Financial Market Supervisory Authority (FINMA) to establish Catlin Re Switzerland, to be headquartered in Zurich.A weaker than expected flu season will mean first half underlying revenues at in vitro diagnostics firm Axis-Shield rising by just 2%.