Date: Tuesday 27 Nov 2012
LONDON (ShareCast) - City sources predict the FTSE 100 will open up 29 points from yesterday's close of 5,787, after a deal was struck overnight to rescue the struggling economy of Greece.
Under the deal, Greece will now be given until 2020 to reduce its debt-to-GDP ratio to 124%, while maturities on the debt have also been extended. The economy will be able to draw-down the next loan instalment, worth a total of 43.7bn euros.
According to Mario Draghi, the President of the European Central Bank, the deal “will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece”.
Meanwhile, announcements on today's agenda include UK GDP (output, income & expenditure) and the UK Index of Services, as well as the US Consumer Confidence, Durable Goods Orders and the US House Price Index.
In company news, utilities giant Severn Trent broadly met forecasts in the first half and said it also expects to deliver full-year results in line with expectations. The company announced that group turnover rose 3.6% to £917.7m in the six months to September 30th, from £886m the same period the year before. Charles Stanley had forecast a 4% increase in revenues to £920m. Meanwhile, underlying profit before tax came rose from £155m to £157.5m, up 1.6% year-on-year and in line with Charles Stanley's £157m estimate.
Speciality chemicals producer AZ Electronic Materials has entered into licensing and sponsored research agreements with William Marsh Rice University in Texas, giving AZ exclusive worldwide rights to several patent families covering the preparation methods and application of graphene nanoribbons (GNRs). GNRs are a type of carbon material which is increasingly used within the electronics industry, particularly where cost efficiency and improved technical performance characteristics are key factors in the development of transparent and flexible electronics and advanced optical devices.
Soft drinks firm Britvic said progress made with its carbonates brands was overshadowed by its Fruit Shoot recall along with the cold and wetter than usual British summer. Pre-tax profit fell 19.7% to £84.4m for the 52 weeks ended September 30th 2012 while revenue slipped 2.6% to £1.256bn. Costs associated with the Fruit Shoot recall of £16.9m.
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