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Reports UK

UK stock market morning note (December 16, 2013)

December 16, 2013, Monday, 09:33 GMT | 04:33 EST | 14:03 IST | 16:33 SGT
Contributed by SVS Securities

The FTSE 100 is called to open lower this morning with investors now focusing on the outcome of the US Federal Reserve meeting this week and the possible start of its long awaited tapering. Overnight we had economic news out of China with the HSBC flash manufacturing PMI data coming in at 50.5, just above the key 50 expansion level mark. Domestic data also out overnight from Rightmove showed that the average asking price for properties advertised for sale on its website were down 1.9% in December compared to November but were 5.4% higher than at the end of 2012. Rightmove added that it expects the UK average home asking price to increase by 8% in 2014. Today's economic diary sees a speech this afternoon from the ECB President Mario Draghi and US industrial production data. Commodity prices are flat to lower and on the foreign exchanges, both the pound and euro are higher against the dollar but trading within narrow ranges.

Company Announcements

Aggreko Trading Update reports that it expects full year results are likely to be slightly ahead of expectations with 2013 revenues on an underlying basis to be around 3% higher and trading profit at similar levels to the prior year. It now expects fleet capex to be around GBP215m in 2013 and about GBP155m in H1 2014. Strong cash generation is expected to cut net debt by around GBP200m over the previous year, with it likely to be below GBP400m at the year end. It noted that it had been selected as the provider of temporary power for both the 2014 FIFA World Cup and the Glasgow 2014 Commonwealth Games.

Carillion Royal Liverpool University Hospital PPP. It has announced that it has today achieved financial close on the GBP335m project. Work on the site is due to start early in 2014 with completion scheduled for 2017. The company will invest some GBP15.5m of equity in the project alongside Scottish Widows Investment Partnership who will invest a similar amount, and expects to generate GBP200m of revenue from its investment over the 30 year life of the concession contract.