FTSE 100 preview: Shares lower; BA flies higher

By Reuters
Updated: 02:50 EDT, 13 November 2009

The FTSE 100 is seen opening 10-12 points lower on Friday, according to financial bookmakers, following overnight weakness on Wall Street and in Asia.

Friday feeling: News from US will set the pace.

The UK blue chip index closed up 9.75 points, or 0.2%, at 5,276.50 on Thursday, it's highest close since Oct. 19, as British Airways soared with investors cheered as a merger with Iberia looked imminent, while gains were also powered by strength in banks.

No domestic data is due for release on Friday, so investors' attention will be drawn across the Atlantic.

September US international trade figures are due, as are import/export prices for October. These will be followed by November's University of Michigan consumer sentiment data.

BA and Spain's Iberia announced on Thursday a preliminary agreement for a $7bn merger to create the world's third-largest airline by revenue.

Lloyds Banking Group has more than £700m of debts and investments tied up in Kenmore Property, the Times newspaper reported on Friday.

Transport Secretary Lord Adonis will take control of the National Express East Coast franchise at one minute to midnight today in order to stop the company retaining the right to extend its East Anglia franchise for three years from April 2011, reported The Daily Telegraph.

Balfour Beatty construction is to acquire Spawmaxwell Co.

There will be updates today from Rexam, Tullett Prebon, Electrocomponents, Chaucer Holdings and Independent News & Media.