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UK stock market morning note (January 07, 2013)

The FTSE 100 is called to open flat to slightly lower this morning ahead of a busy week of corporate trading updates although the economic diary begins on a quiet note with no major data due for release today. Overnight we had news that global regulators would give banks four more years and increased flexibility to build up cash buffers. The coalition government will publish its mid-term review today with plans for the second part of its term including building more homes, investment in transport and pension reform. However, the Prime Minister acknowledged that the UK economy faces another tough year and emphasized the importance of the Bank of England in keeping interest rates low. Commodity prices are mixed and on the foreign exchanges, both the pound and euro are lower against the dollar.
 

Company Announcements

Morrison Trading Statement confirms weekend press reports of a challenging Christmas period and in the 6 weeks to 30 December total sales ex fuel were down 0.9% with LFL sales falling 2.5%. It noted that notwithstanding these difficult market conditions, which it expects to continue through 2013, its sales performance was disappointing. It added that it expects that its full year performance will be 'broadly in line with its expectations'.

Balfour Beatty Contract. It has been awarded a GBP321m M25 motorway upgrade contract in a joint venture with Skanska UK. Work will begin this month and is scheduled to complete by February 2015.