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UK stock market morning note (February 15, 2013)

The FTSE 100 is called to open flat this morning as investors look ahead to the start of the two day G20 meeting where the subject of a potential currency war is set to be among the key topics in light of the yen's performance. Elsewhere, the domestic economic diary will focus on the release of UK retail sales figures and attention will then switch across to the Atlantic later this afternoon with industrial production data and the preliminary reading of the University of Michigan consumer sentiment index both due out. Commodity prices are mixed and on the foreign exchanges, both the pound and euro are slightly higher against the dollar but all are trading in a narrow range.

Company Announcements

Severn Trent IMS reports that performance in its regulated business has been 'largely as expected' and the outlook for the full year remains unchanged. For the non-regulated business, its ongoing services are expected to deliver mid single digit revenue growth with PBIT impacted by investment. Total revenue should be in line with current market expectations and the interest charge is now expected to be broadly flat year-on-year, which compares to previous guidance of slightly lower, before adjustments related to pension accounting. Net capex will now be towards the low end of the previous GBP555m to GBP565m range.

Johnson Matthey New Relationship with Anglo Platinum. It has agreed an extension to its metal supply arrangement and also entered into a separate contract to provide Anglo Platinum with market reseach services. However, there will be no ongoing market development deal between the two parties. Based upon the estimated revenue for the year to end March 2013, the full year impact will be a loss of commission income of GBP35m. 

Anglo American Full Year Results saw underlying earnings decline 54% to USD2.8bn and following one-off impairments, a loss of USD1.5bn attributable to equity shareholders. The full year dividend is raised 15% to 85 cents a share. It noted that the platinum industry is currently facing 'challenging economic conditions' and the proposed platinum restructuring aims to create a sustainable, competitive and profitable business. It added that economic indicators have improved over the last few months and in the medium term, most economies should return to more normal growth rates.