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UK stock market morning note (February 05, 2013)

The FTSE 100 is called to open flat this morning after the decline in the previous session on concerns over potential political instability in both Italy and Spain. Overnight we had domestic news from the BRC reporting that lfl retail sales rose 1.9% in January, the fastest rate in over a year and the National Institute of Economic and Social Research forecasting that the UK economy will grow by only 0.7% in 2013. Today's economic diary sees the release of UK services PMI figures followed by ISM non-manufacturing PMI in the US this afternoon. Commodity prices are generally lower, although gold is holding up and on the foreign exchanges, sterling was mixed against the dollar and euro but trading in a narrow range.

Company Announcements

Barclays Interest Rate Hedging Products (IRHP) and PPI. It has increased its provision for IRHP redress by GPB400m at Q4 2012, bringing the cumulative provision to GBP850m. It is also providing another GBP600m for PPI redress and brings the cumulative provision for this to GBP2.6bn. 

ARM Holdings Final Results saw revenue in Q4 2012 rise 19% to GBP164.2m with adjusted PBT up 16% to GBP80m. For the full year, revenue came in at GBP576.9m, a rise of 17% or USD913.1m with adjusted PBT ahead 20% at GBP276.5m. It noted that it had entered 2013 with a 'robust opportunity pipeline' for licensing and a record order backlog. It added that Q1 2013 revenues are expected to be around USD250m with dollar revenues for the full year to be at least in line with current market expectations, assuming the macro-economic situation does not deteriorate significantly.

BG Q4 and Year End Results saw full year earnings up 3% to USD4.4bn with Q4 earnings down 29% at USD1bn, mainly as a result of a USD277m tax credit in 2011. Full year production grew 3% and the dividend is raised 10% to 26.14 cents a share. It added that 2013 production outlook was for between 630 kboed and 660 kboed with QCLNG on track for first LNG in 2014.

BP Q4 and Full Year Results saw underlying replacement cost profit come in at USD4bn in the final quarter and for the full year was USD17.6bn (2011: USD21.7bn). It added that it remains on track to deliver its ten-point strategic plan. 

TalkTalk Q3 Results saw revenue fall slightly to GBP415m (GBP422m last year) due to a decline in off-net revenue, but expects to report full year results in line with its earlier guidance.