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UK stock market morning note (February 06, 2013)

The FTSE 100 is called to open flat this morning after recouping some of its gains in the previous session on better than expected corporate earnings. There is no major economic data due for release today for investors to concentrate on so the emphasis will once again be on company announcements. Overnight it was confirmed that the US cable company, Liberty Global was to buy Virgin Media in a deal said to be worth USD16bn (GBP10.3bn), which will be subject to approval by shareholders. Commodity prices are mixed in trading and on the foreign exchanges, the yen is in focus after the news that Japan's central bank governor is to step down from his post earlier than expected. The dollar, pound and euro are all better against the yen as this may bring forward a more aggressive monetary policy stance by the country's new government.

Company Announcements

Royal Bank of Scotland LIBOR Press Speculation. In response to media coverage, the bank has confirmed that it is in late stage discussions with the relevant UK and US authorities over its role in the setting of the London Interbank Offered Rate (LIBOR). It added that whilst settlements remain to be agreed, RBS expects that they will include the payment of significant penalties as well as certain other sanctions. It will update the market on this matter shortly. 

Hargreaves Lansdown Interim Results saw record revenue, profits and assets under administration. Revenue rose 24% to GBP140.3m, PBT grew 30% to GBP93.7m and total assets under administration were also ahead 30% at GBP30.4bn. The dividend is raised 24% to 6.3p a share. It added that if LIBOR rates stay low, it will see an impact in the next financial year as deposits will gradually be replaced on lower rates.