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Reports UK

UK stock market morning note (February 03, 2014)

February 3, 2014, Monday, 11:35 GMT | 06:35 EST | 16:05 IST | 18:35 SGT
Contributed by SVS Securities

The FTSE 100 is called to open lower this morning as investors begin the new month in cautious mood. Today's economic diary sees the release of domestic manufacturing PMI data followed in the US this afternoon with its ISM manufacturing PMI figures. Commodity prices are mixed and on the foreign exchanges, the pound is slightly lower against both the dollar and the euro.
 
Company Announcements
 
Smith & Nephew Acquisition. It is strengthening its global sports medicine business through an agreement to acquire ArthroCare for USD1.7bn. The deal is anticipated to close in mid-2014 with the purchase price being funded from Smith & Nephew's debt facilities and cash balances.  
 
Lloyds Banking Group 2013 Update. It has provided an update on progress and expects to report an underlying profit of GBP6.2bn for 2013, ahead of analyst consensus expectations and a small statutory PBT for the year. In Q4 2013, it took a further provision of GBP1.8bn for legacy PPI  business and another GBP130m relating to the sale of interest rate hedging products to SMEs'. It also confirmed that the PRA will consider its applications to make dividend payments and it expects to apply to the regulator in H2 2014 to restart dividend payments at a 'modest level'. It added that preparatory work for a possible future sale of shares in the bank to the public has started.