London pre-open: Stocks to nudge up ahead of borrowing data
London stocks were set to tick just a few points higher at the open on Tuesday as investors eye borrowing figures and look ahead to the Budget.
The FTSE 100 was expected to open three points higher at 7,392.
On the data front, public sector net borrowing is at 0930 GMT, while Inflation Report hearings are at 1100 GMT, along with the CBI industrial trends survey.
CMC Markets analyst Michael Hewson said: "Last month the budget deficit fell to its lowest level in September since 2007, as higher VAT receipts helped boost receipts during the summer months. Today’s October public sector borrowing numbers are expected to show a modest increase from September’s £5.3bn to £6.6bn, which while still better than a year ago takes the overall debt ever closer to the £2trn level.
"Today is also likely to be instructive in terms of the overall discussion over the Bank of England’s recent decision to raise rates later this morning when the following MPC members testify to the Treasury Select Committee of MPs in respect of the recent November inflation report, with Governor Carney managing to give this one a miss.
"In particular we’ll look to get to fully understand the reasoning of external members Messrs Gertjan Vlieghe, Michael Saunders and Ian McCafferty as to their reasons for reversing last year’s base rate cut, while we already know why Deputy Governor Jon Cunliffe dissented from the overall decision, due to concerns about the lack of wage growth."
In corporate news, home improvement retailer Kingfisher showed improved like-for-like sales in the third quarter as management kept a lid on disruption from turnaround plans.
Group total sales rose 3.0% in the three months to 31 October, although removing the benefit from currency changes and store openings, meant LFL sales were down 0.5%, which was up from the 1.3% decline in the first half.
EasyJet's annual profit fell as chief executive Carolyn McCall prepared to leave the budget airline after seven years in charge.
Pre-tax profit for the year to the end of September fell 17% to £408m from £494m, weighed down by a £101m reduction caused by currency swings. Excluding currency movements pre-tax profit was £509m.
Catering group Compass posted a rise in full-year profit as revenue grew thanks in part to a solid performance in North America. In the year to the end of September, statutory pre-tax profit rose 18.1% to £1.6m on revenue of £22.9bn, up 3.8% from the previous year.
Intertek Group reported a 9.8% improvement in group revenue for the year-to-date on Tuesday, to £2.3bn, or 3% at constant exchange rates. The company said it saw solid organic revenue growth of 1.9% at constant currencies in the period from 1 January to 31 October, with products contributing 5.5% growth and the trade division adding 4%, while resources slipped 10.3%.
Babcock International saw its underlying revenue rise £146m to £2.64bn, or 6% in its first half, while underlying profit before tax was ahead £11m or 5% at £239.5m. The company said underlying earnings per share for the six months to 30 September were up 4% o 38.7p, with the board confirming a 5.4% uplift in the interim dividend to 6.85p.