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UK stock market morning note (February 13, 2013)

The FTSE 100 is called to open lower this morning as investors await the release of the latest Bank of England inflation report and accompanying speech from the Governor. This is also against the backdrop of the G7 statement yesterday on currencies, which failed to prevent fluctuations in exchange rates on concerns over a potential currency war. Overnight the CBI downgraded its UK GDP economic forecast from 1.4% to 1% this year citing ongoing uncertainty over the global economy. However, the CBI maintained its 2% growth estimate for 2014. The other major economic item for investors to look out for will be US retail sales which are due for release at lunchtime. Commodity prices are mixed and on the foreign exchanges, the pound is up slightly against both the euro and the dollar ahead of the UK inflation report.

Company Announcements

Tullow Oil Full Year 2012 Results saw PBT up 4% at USD1.12bn on revenue ahead 2% at USD2.34bn with the total dividend maintained at 12p a share. It noted that following successful and cost effective well remediation, the Jubilee field was now producing around 110,000 bopd and an exit rate in excess of 120,000 bopd is expected for 2013. A forty plus E&A well campaign is planned for 2013, with high impact wells expected in Kenya, Ethiopia, Mauritania, Mozambique, Norway, French Guiana and Cote d'Ivoire.

Telecity Final Results saw adjusted EBITDA up 22% at GBP129.5m on revenue ahead 18% at GBP283m. A total dividend of 7.5p is proposed with available customer power up 26.5%. It added that it had entered 2013 with a strong recurring revenue base and available capacity in all of its key locations and looked forward to another strong operating and financial performance in 2013.

Reckitt Benckiser Full Year Results saw reported net income rise 5% to GBP1.83bn on revenue ahead 1% at GBP9.56bn. The total dividend is raised 7% to 134p adding that it approached 2013 with the confidence that it had the right strategic focus. It noted that it aims for its health and hygiene categories to account for 72% of its revenue with emerging markets 50% by 2015, a year earlier than expected.