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Reports UK

UK stock market morning note (July 11, 2014)

July 11, 2014, Friday, 07:18 GMT | 03:18 EST | 11:48 IST | 14:18 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning although gains may be limited as investors await further developments at the Portuguese bank Espirito Santo following the suspension in trading its shares yesterday, raising concerns over the eurozone financial sector. There is no major economic news due for release today as we look to end the week on a quieter note for major corporate news as well. Commodity prices are flat and on the foreign exchanges, the euro is weaker against both the pound and dollar in response to the situation in Portugual.

Company Announcements

Imperial Tobacco

The company notes the recent speculation concerning a potential transaction involving Reynolds American Inc. and Lorillard Inc. It has now confirmed it is in talks with these parties to evaluate a possible acquisition of certain assets and brands owned by both parties. However, it added it would only go ahead with a deal if it met its strict transaction criteria, but there was no certainty as to whether terms can be agreed or whether any deal will take place. A further announcement will be made if and when appropriate.


Q1 IMS for the period to end June 2014 reports that total revenue growth was 4% at actual exchange rates, 3% at constant rates of exchange and organic revenue growth unchanged year-on-year. It had previously highlighted a number of one-off headwinds in Q1, noting that whilst it continues to expect growth in H1 to be constrained by these one-off factors, it expects a return to more normal levels of organic revenue growth as the H2 progresses. It added that it still expects to at least maintain margins for the year, deliver growth in EPS and to exceed a 90% cashflow conversion.