London open: Heading lower again

5th May 2010 08:47

Footsie has turned sharply after a steady opening half-hour as a number of gloomy comments about consumer spending have hit sentiment already shaky following yesterday's heavy falls on global markets. Next expects profits this year to be at the top end of market forecasts after sales in the first three months to April were strong, though it is still very cautious on the outlook for consumer spending.Budget pub chain JD Wetherspoon is slightly more cautious about the consumer outlook after seeing a 0.8% dip in like-for-like sales in the 13 weeks to April 25. That was sharper than the 0.2% fall in sales seen over the 39 weeks to 25 April. Total sales were up by 3.6% during the 13-week period, short of the 4% rise over the 39 weeks.Insurer Legal & General increased sales by 2% during the first quarter and by 18% over the previous three months and says it's on track to deliver £600m of cash in 2010. Worldwide new business on an annual premium equivalent (APE) basis rose to £388m in the three months to 31 March from £382m a year earlier and £330m in the fourth quarter of 2009.Insurer Prudential, meanwhile, has had to postpone publication of its prospectus detailing the terms of its $20bn rights issue to fund the $35.5bn acquisition of AIG's Asian (AIA) businesses. The UK firm was due to release its timetable today, but it's still in discussions with the City regulator about the takeover, especially the capital position of the enlarged group under the Insurance Groups Directive (IGD). Miner Xstrata saw higher production in all of its main commodity businesses in the first three months of 2010. Ferrochrome production rose by more than 300%, coal production increased by 9% to 21.7m tonnes and mined copper production was 3% higher.Better control of costs enabled accountancy software giant Sage to post a healthy rise in interim profits, though sales fell again albeit a slower rate than this time last year.Software group Logica saw some positive trends during the first quarter, but still expects revenues to fall "modestly" in the first half and remain steady for the full year. Property website Rightmove said it is confident of meeting its improved expectations after a strong start to 2010.