New York: 22:05 || London: 03:05 || Mumbai: 06:35 || Singapore: 09:05

Reports UK

UK stock market morning note (July 21, 2014)

July 21, 2014, Monday, 10:52 GMT | 05:52 EST | 14:22 IST | 16:52 SGT
Contributed by SVS Securities

The FTSE 100 is called to open flat to slightly higher this morning with the ongoing developments in the Ukraine and Gaza likely to influence investor sentiment. The Japanese market is shut for a public holiday and there is no major economic news due for release today. Commodity prices are firmer and on the foreign exchanges, the dollar is lower against the pound, euro and yen but all are within narrow trading ranges.


Company Announcements

Tesco

It has announced that Dave Lewis is to join the company as Chief Executive Officer with effect from 1 October 2014 to succeed Philip Clarke who will then step down from the Board but will continue to be available over a transition period until the end of January 2015. Dave Lewis is currently President, Personal Care at Unilever with international consumer experience, change management, business strategy, brand management and customer development expertise. He is known to many in Tesco having worked with the company over many years. Tesco also noted that current trading is 'more challenging' than it anticipated at the start of June with sales and trading profits in H1 to be now 'somewhat below expectations'. It added that the outlook for the full year will be influenced by the extent to which benefits from the investments it is making start to be seen; conditions in the overall market and any steps that may be taken during the rest of the year to further improve its customer offer.

Babcock

IMS reports that the 2014/15 financial year has started well with activity levels remaining high and trading is in line with its expectations. The bid pipeline currently stands at GBP16bn and it has around GBP3bn of contracts at the preferred bidder stage within the bid pipeline which are expected to move to the order book on contract signature during H1. The total order book has increased to GBP13.5bn which provides coverage of 74% of anticipated revenue for 2014/15, excluding the contracts currently at preferred bidder stage which it expects will be generating revenue during H2. It added that its markets in the UK and overseas remain positive and it is confident it will make strong progress during the year and that the results for 2014/15 will be in line with its expectations.

Tullow Oil

It had announced that the Norwegian Lupus exploration well (31/10-1), the first in production licence PL 507 did not encounter hydrocarbons and will now be plugged and abandoned. Tullow is operator with 60% equity (40% paying interest) with the other partners being Explora Petroleum 20%, Ithaca Energy 10% and North Energy 10%.