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UK stock market morning note (February 07, 2013)

The FTSE 100 is called to open flat to slightly lower this morning as markets focus on domestic and European matters with a full economic diary. It kicks off with UK manufacturing and industrial production plus trade balance figures, incoming Bank of England Governor Mark Carney's first appearance in front of the Treasury Select Committee and day 1 of the European Economic Summit. This is followed at midday by the Bank of England interest rate statement which is expected to leave the rate unchanged, the ECB meeting outcome and press conference together with the latest US weekly jobless claims. Any comments from the ECB President will be noted with interest against the backdrop of the ongoing European political tensions. Commodity prices are mixed but trading within narrow ranges and on the foreign exchanges, sterling is up slightly against the dollar and down against the euro ahead of this raft of news.

Company Announcements

Compass IMS reports that it has had a good Q1 with organic revenue growth of nearly 6%. Organic growth in North America was particularly strong but the environment in Europe remains difficult, as expected, and its cost reduction plans on track. In Fast Growing & Emerging, it has continued to see strong levels of demand. It added that expectations for the full year remain positive and unchanged, and in the longer term is positive on the structural growth opportunities in both food and support services globally. It also separately announced that its Chairman, Sir Roy Gardner is to step down from the board in February 2014 and a search has started to find his successor.

Burberry Board Changes. The CFO, Stacey Cartwright is to step down to pursue new interests at the AGM in July 2013. She will be succeeded by Carol Fairweather who has been with the company for 6 years. In addition, John Smith is to become COO with effect from the 4 March 2013, having been a Non-Executive Director since December 2009.

ICAP IMS reports that Q3 revenue was down 13% on the corresponding period a year ago but activity levels in January improved across the business, including a 17% yoy rise in electronic broking volumes. Its cost saving programme remains on track and consequently it expects PBT for the year to end March 2013 to be within the current analyst range of GBP280m to GBP305m. It added that it was well positioned for the opportunities that regulatory changes in the market landscape will bring.

Vodafone IMS reports that Q3 revenue fell 2% to GBP11.39bn, due to 'very difficult market conditions' across Europe, but was ahead of market expectations. It also reaffirmed its annual guidance for adjusted operating profit and free cashflow of GBP11.1bn to GBP11.9bn and GBP5.3bn to GBP5.8bn respectively.