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UK stock market morning note (January 23, 2013)

The FTSE 100 is called to open higher this morning helped by a late surge on Wall Street with good earnings updates posted after the close. Investors are now looking ahead to the publication of the latest domestic unemployment data and Bank of England MPC meeting minutes. These follow a speech last night from the Bank of England Governor who reiterated that targeting inflation still had merit adding that UK growth in Q4 2012 will almost certainly have been weaker than Q3. Today also sees the Prime Minister finally deliver his speech on the UK and its relationship with Europe, and in advanced extracts will promise an in-out referendum on continued membership of the EU by the end of 2017. However, this is dependent on the Conversatives winning the next general election in 2015. Commodity prices are flat to lower with sterling mixed against both the dollar and the euro but within narrow trading ranges. Read more >>>

Company Announcements

Unilever Final Results saw net profit rise 7% to EUR4.9bn on turnover ahead 10.5% at EUR51.3bn. The core operating margin grew 30bps to 13.8% with the gross margin up 10bps. Emerging markets underlying sales growth was 11.4% and now represents 55% of turnover. It added markets will remain challenging, with intense competition and volatile commodity prices. However, it remains focused on achieving another year of profitable volume growth ahead of the market, steady and sustainable core operating margin improvement and strong cashflow.

Close Brothers Trading Statement reports that it expects to achieve a good result for H1 with the strong performance in Banking continuing and Asset Management's progress ongoing, although trading volumes in Securities remains subdued. It added that it was well positioned for the remainder of the 2013 financial year with Banking seeing solid growth prospects and Asset Management on track to move into profit. However, challenging trading conditions continue to impact Winterflood's performance but it remains well positioned for any market recovery.

BHP Billiton Production Report notes that Q2 iron production rose 3% on the year and annual Australian iron ore output is on track to reach 183m tonnes with quarterly petroleum volumes ahead 3% on the year.