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Reports UK

UK stock market morning note (May 28, 2014)

May 28, 2014, Wednesday, 07:49 GMT | 03:49 EST | 12:19 IST | 14:49 SGT
Contributed by SVS Securities

The FTSE 100 is called to open flat this morning despite the positive overnight performances on Wall Street and in Asia with the index close to its 14 year high. The economic diary today focuses on the UK with the release of the CBI distributive trade survey. Commodity prices are trading in a narrow range and on the foreign exchanges, the pound is slightly firmer against the dollar and euro with the major currencies also range bound.


Company Announcements

GlaxoSmithKline

The company has confirmed that the Serious Fraud Office (SFO) has opened a formal criminal investigation into its commercial practices. The company added that it is committed to operating its business to the highest ethical standards and will co-operate fully with the SFO.

Serco

The company has been selected by Transport Scotland to manage the new 15 year franchise for the Caledonian Sleeper service which is to be operated separately from the main ScotRail franchise. Serco will assume responsibility for the new franchise from April 2015. Total revenue to the company over the 15 year period is estimated at up to GBP800m, of which GBP180m will be in franchise payments. A gain share agreement is also included to incentivise performance improvements. There will be GBP100m invested in new rolling stock which will be leased to Serco by Beacon Rail, with the new fleet expected to be introduced by the summer of 2018.

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