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Reports UK

UK stock market morning note (August 29, 2014)

August 29, 2014, Friday, 08:53 GMT | 03:53 EST | 12:23 IST | 14:53 SGT
Contributed by SVS Securities

The FTSE 100 is called to open flat to slightly higher this morning with better US data countered by the situation in the Ukraine again. Overnight we had domestic economic data out from GfK reporting that its UK consumer confidence index rose slightly in August to +1 (-2), which was better than expected on the back of the improvement in the economy. The main economic diary events today now focus on the US with the release of the Chicago PMI figures and the revised University of Michigan consumer sentiment index. Commodity prices are mixed and on the foreign exchanges, the dollar is slightly higher against the pound, euro and yen but all are within narrow trading ranges ahead of these data releases.


Company Announcements

Tesco

Trading Statement notes that the combination of challenging trading conditions and ongoing investment in its customer offer has continued to impact its expected financial performance. It now expects trading profit for 2014/15 to be in the range of GBP2.4bn-GBP2.5bn with trading profit for the 6 months ending 23 August 2014 expected to be in the region of GBP1.1bn. Dave Lewis will now join as Chief Executive a month earlier on 1 September and will review all aspects of the company's operations with Phil Clarke stepping down from the Board the same day. Reflecting the Board's current expectations, it anticipates setting the interim dividend at 1.16p, a reduction of 75% from last year and implementing futher cuts in capex. For the current financial year, capex will now be no more than GBP2.1bn, a decline of GBP0.4bn than originally planned. It added that further details on trading will be provided in its Interims which are scheduled for release on 1 October 2014.

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