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UK stock market morning note (January 31, 2013)

The FTSE 100 is called to open lower this morning after the weakness in the US and Asian markets following worse than expected US GDP data and the US Federal Reserve statement to maintain its bond buying programme. Overnight we had domestic data showing that UK consumer confidence improved slightly in January with the headline balance coming in at -26 (-29) according to GfK. Nationwide also reported that UK house prices rose by 0.5% in the month although they were unchanged compared to a year ago. Today's economic diary remains focused on US data with the latest weekly jobless claims, personal spending and the Chicago PMI all due for release later. Commodity prices are flat to slightly higher and on the foreign exchanges, the pound is up marginally against both the dollar and the euro although all the major currencies are trading within narrow ranges.

Company Announcements

BSkyB Interim Results show that adjusted operating profit rose 8% to GBP647m on revenue ahead 5% at GBP3.53bn. The interim dividend is raised 20% to 11p a share with 88,000 new customers added in Q2 taking its total base to 10.74m and ARPU rose GBP24 year-on-year to GBP568. It added that it expects the consumer environment to remain challenging, but the business was in good shape to continue to deliver for customers and shareholders.

Diageo Interim Results report organic net sales growth of 5% to GBP6.04bn with organic operating profit before exceptionals ahead 9% at GBP2.03bn. Faster growing markets are now 42% of net sales, delivering organic net sales growth of 14% and operating profit growth of 21%. The dividend is raised 9% to 18.10p with 70 basis points of organic gross margin improvement seen. It added that these results reflected the global strength of its brands, US leadership in the spirits market and its rising presence in the fastest growing markets of the world.   

SSE IMS reports that it is on track to deliver a rise in the dividend and adjusted PBT for the year to end March 2013, with an increase of at least 2% more than RPI inflation in the full year dividend to around 84p and growth of between 4%-5% in adjusted PBT. It added that ongoing uncertainty with regard to electricity market reform is having an ongoing impact on investment decision-making.

AstraZeneca Q4/Final Results saw net profit in the 3 months to end December up slightly to USD1.5bn on sales down 15% at constant exchange rates. It noted that it expected a 'mid to high single digit percentage decline in revenue for 2013' with the results reflecting 'significant patent expiry' and tough market conditions globally'.

Shell Q4/Full Year Results saw a 13% rise in profit for Q4 to USD7.29bn helped by higher refining margins despite increased exploration and production costs.