27th Feb 2015 07:35
LONDON (Alliance News) - London markets are set to open slightly lower Friday, with the focus on another slew of scheduled company announcements, including full-year results from British Airways-owner IAG and Lloyds Banking Group, which has announced a return to dividend list for the first time since the financial crisis.
IG futures indicate the FTSE 100 to open 5 points lower at 6,944.2. The index closed up 0.2% at 6,949.73 on Thursday.
The German Import Price Index came in early Friday slightly better-than-expected for the month of January. The data dropped by 0.8% month-on-month, a touch above the sliding of 1% expected by economists, after a previous reading of a drop of 1.7%. Year-on-year, data showed a slid by 4.4%, above a drop by 4.6% estimated by economists, but below the previous reading of a sliding of 3.7%.
Lloyds Banking Group made a return to the dividend list for the first time since the financial crisis, as the state-backed lender reported strong profit growth at both a statutory and underlying level.
In a statement Friday, Lloyds said it made a GBP1.8 billion pretax profit in 2014, compared with a GBP415 million pretax profit in the prior year, bolstered by stronger net interest income more than offsetting a decline in other income, lower underlying costs and a drop in impairments. Lloyds said it is paying a dividend of 0.75 pence per share for 2014, amounting to GBP535 million.
IAG reported strong growth in 2014 operating profit as fuel costs fell and its Spanish airline Iberia swung to a profit, and said it expects further strong profit growth in 2015.
The parent company of British Airways and Spanish airlines Iberia and Vueling, which is also trying to acquire Irish flag carrier Aer Lingus PLC, reported a closely-watched operating profit excluding exceptional items of EUR1.39 billion for 2014, up from EUR770 million a year earlier, as revenue rose 8.0% to EUR20.17 billion. Its net profit rose to EUR1.00 billion, from just EUR147 million in 2013.
Publisher Pearson raised its dividend for 2014 as it posted earnings per share slightly ahead of its previous guidance, and announced that it will appoint Coram Williams, currently chief financial officer of its book publishing joint venture Penguin Random House, as its new chief financial officer.
Barclays is set to more than double its provision to cover allegations of foreign exchange market manipulation when it reports annual results next week, Sky News reported on Friday.
According to the report, Barclays' current GBP500 million provision over the forex rigging scandal will be increased as a settlement with a number of US authorities draws nearer. Citing insiders, the report said that a settlement involving the Department of Justice, the New York State Department of Financial Services could arrive as early as the end of March.
The Royal Bank of Scotland Group's Coutts private banking business is being investigated by German authorities over allegations of aiding client tax evasion, Sky News reported on Thursday. Sky said Coutts has confirmed the investigation is focusing on its Swiss operation and was concentrating on both the wealth business and on current and former employees.
Wall Street ended mixed Thursday. The DJIA closed down 0.1%, the S&P 500 ended down 0.2% and the Nasdaq Composite outperformed, up 0.4%.
In Asia on Friday, the Japanese Nikkei 225 closed up 0.1%, and the Hang Seng trades up 0.1%. The Shanghai Composite is trading up 0.2%.
Brent crude is quoted at around USD60.91 a barrel early Friday, and US benchmark West Texas Intermediate is quoted at USD49.02 a barrel. Gold is quoted early Friday at USD1,210.20 an ounce.
Also Friday morning, Old Mutual, UBM, Berendsen, IMI, William Hill, Intu Properties, Rightmove, Restaurant Group and Rentokil Initial have reported full-year results. Waterman Group issued half-year results, while Harvey Nash Group released a trading update.
Still in the economic calendar Friday, the German Consumer Price Index is at 1300 GMT, while French Consumer spending and Produces Prices are at 0745 GMT. In the US, fourth quarter GDP price index flash reading is at 1330 GMT, Chicago Purchasing Managers' Index is at 1445 GMT, and Pending homes sales is at 1500 GMT.
By Daniel Ruiz; [email protected]
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