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Reports UK

UK stock market morning note (July 07, 2014)

July 7, 2014, Monday, 07:26 GMT | 03:26 EST | 11:56 IST | 14:26 SGT
Contributed by SVS Securities

The FTSE 100 is called to open flat this morning following the lack of direction overnight from Asia as investors look ahead to the re-opening of the US markets following the Independence Day holiday on Friday. There is no key economic news due for release today and we begin the week on a quieter note for major corporate news. Commodity prices are flat to lower and on the foreign exchanges, the dollar is slightly higher against the pound, euro and yen but all are within narrow trading ranges.

Company Announcements

Taylor Wimpey

Trading Update reports that it has performed strongly in H1 with sales rates and pricing at the upper end of its expectations. The company expects to report improvements in all of its key financial objectives with good progress made towards its medium term targets that were announced in May. It expects the H1 operating profit margin to be around 16% (H1 2013: 13.1%), and remains on track to deliver an increase of at least 300 bps in 2014. In H1 it achieved an average private net reservation rate of 0.71 per outlet per week and completed 5,766 homes, a rise of 11%. The average selling price increased to around GBP206k (H1 2013: GBP188,000) with its total order book excluding completions to date and JVs standing at GBP1.58bn. It added that it believes that market risk in the short to medium term has reduced in H1, is confident of delivering on its full year expectations and building on a solid base to deliver its medium term targets from 2015 and beyond.

Anglo American

The company has announced its intention to sell its 50% interest in Lafarge Tarmac to Lafarge for a minimum value of GBP885m in cash. This is subject to Lafarge/Holcim merger related conditions, including Lafarge Tarmac being deemed an acceptable divestment remedy by the regulators. Anglo American and Lafarge will work towards a finalising a definitive agreement in Q3 2014 and in the event of a deal, Anglo American expects to use the proceeds to pay down debt.