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UK stock market morning note (March 13, 2013)

The FTSE 100 is called to open lower this morning with the worse than expected domestic data in the previous session seen as impacting upon investor sentiment and ex-dividend factors taking off nearly 11 points from the index. Today's economic diary is focused on the release of US retail sales data due out at lunchtime. Commodity prices are mixed in trading and on the foreign exchanges, the pound is up against both the dollar and the euro with the weaker than expected UK data seen as increasing the expectation of more monetary easing from the Bank of England.


Company Announcements

Royal Bank of Scotland Direct Line Insurance Stake. It announced after the market had closed yesterday that it was to sell down a further 15.3% in Direct Line via a placing with institutional investors. Post the sale of this proposed tranche, Royal Bank of Scotland will hold 49.99% of Direct Line.  

G4S Preliminary Results saw PBITA excluding the Olympics contract up 6% to GBP516m with PBT falling to GBP175m (2011: GBP257m) on underlying turnover ahead over 8% at GBP7.29bn. The Olympic Games contract loss amounted to GBP70m and related costs of GBP18m saw an exceptional loss of GBP88m. The total dividend is raised 5% to 8.96p. It added that its broad customer base and GBP3.5bn per annum contract pipeline provided it with confidence in the outlook. G4S also separately announced the appointment of a new CFO with effect from 1 May 2013.

Thomas Cook Growth Strategy. It has announced a new profitable growth strategy noting that it has indentified a further GBP50m of cost cutting measures bringing its total profit improvement actions thus far to GBP350m. It added that trading continues to be robust with summer trading progressing well at improved margins and the outlook for the full year remains encouraging.