London pre-open: Stocks seen touch weaker as earnings roll in
Stocks in London were set for a marginally weaker open on Friday as investors braced for another round of earnings from the likes of RBS and Pearson.
The FTSE 100 was called to open four points lower than Thursday's close at 7,267.
On the data front, BBA mortgage approvals are at 0930 GMT. In the US, the University of Michigan consumer sentiment index is at 1500 GMT.
In corporate news, Royal Bank of Scotland reported a loss of £6.96bn for 2016, bigger than the £1.98bn loss it posted the year before, as the bank was hit by legacy issues.
RBS, which is 72% owned by the taxpayer, also said on Friday that it will not return to profit until 2018.
Micro Focus reconfirmed that it did not expect to grow revenue in its current financial year, while also noting overnight results showed HPE Software saw revenues fall but profits margins improve ahead of their agreed merger.
Micro Focus said for the full year ending 30 April revenue for the group was likely to decline by 0-2%, while noting the strengthening of the dollar had resulted in a reduction in proforma numbers from the previous year.
Standard Life’s revenue for 2016 grew “against a backdrop of volatile investment markets” as the insurer aims to increase its exposure to the Indian market through the acquisition of Max Life.
Fee based revenue rose 5% in 2016 to £1.65bn, which accounts for 95% of Standard Life’s total income, compared to the previous year, with growth channels revenue up 10% to £1.2bn and the average revenue yield maintained at 59 basis points.
Publishing company Pearson, which delivered a profit warning in January, held its dividend steady as full year pre-tax losses widened to £2.5bn from £433m in 2015.
Sales fell 8% to £4.5bn in underlying terms. Good growth in Pearson VUE, US Virtual Schools Online Program Management and Wall Street English in China was more than offset by expected declines in US and UK student assessment and US school courseware, and a much worse than expected decline in North American higher education courseware.
Bookmaker William Hill posted its final results for the year to 27 December, with group net revenue up 1% to £1.6bn.
The FTSE 250 company said its adjusted operating profit was £261.5m, in line with revised guidance, with adjusted earnings per share falling 10% to 22.3p.
Its full-year dividend was maintained at 12.5p per share, which the board said reflected the group's continued strong cash flow and its confidence in delivery of strategic priorities and future growth.