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Reports UK

UK stock market morning note (May 13, 2014)

May 13, 2014, Tuesday, 08:08 GMT | 03:08 EST | 12:38 IST | 15:08 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning following the overnight record highs by the Dow and S&P indices led by technology and financial stocks in the US with Asian markets also advancing despite the ongoing situation in the Ukraine. Overnight we had domestic economic news from the BRC reporting that retail sales rose 4.2% on a lfl basis with total sales ahead 5.7% in April due to the Easter effect, although even for accounting the seasonal impact, sales growth for the 12 months to April 2014 was 2.8%. The economic diary today also sees the release of US retail sales data at lunchtime. Commodity prices are flat to lower and on the foreign exchanges, the major currencies are continuing to trade in narrow bands.

Company Announcements

London Stock Exchange

The company notes recent press speculation and has confirmed that it is evaluating the merits of a potential transaction involving Russell Investments, the stock index and asset management business and is engaged in discussions with Northwestern Mutual Life Insurance Company, its parent company. It noted that discussions remain ongoing and there is no certainty that a transaction will be forthcoming. It added that if there was to be a deal, this would be part-funded through an equity raise.

TUI Travel

Interim Results see the operating loss come in at GBP298m on revenue 4% lower at GBP5.19bn with a LBT of GBP369m. It noted demand continuing to grow for its unique holidays and has seen strong growth in online bookings. It added that it was pleased with Summer 2014 trading, against strong comparatives, and remains confident of delivering 7%-10% growth in underlying operating profit during the year on a constant currency basis.

Stock Market Forum