London pre-open: Cautious start expected ahead of a busy day

20th Jun 2012 07:28

City sources are predicting a tepid start on the FTSE 100, expecting the blue-chip index to open flat at around 5,586.Investors will be keeping a close eye on developments in Europe today, with Greek leaders set to form a coalition by midday, according to reports. Meanwhile, minutes from the latest Monetary Policy Committee meeting in the UK will show how divided members were over their call to leave interest rates and the asset purchase programme unchanged.However, the focus will undoubtedly be the policy decision by the Federal Open Market Committee with markets widely hoping for the Fed to inject some sort of stimulus into the US economy.In company news, accountancy software behemoth Sage Group has acquired a controlling interest in Folhamatic Group, a provider of accounting, tax and payroll and regulatory content software in Brazil. The UK company is paying £125m for a 75% stake in the company. equating to an enterprise value for 100% of the business, including estimated net debt, of £191m. Oilfield services group Petrofac has been declared, together with its partner Schlumberger, as the selected bidder on the Pánuco integrated production service contract in Mexico. The area contains four mature onshore fields operated by Petróleos Mexicanos (PEMEX) and was discovered in early 1900s with original oil in place of around 6.8bn barrels. The fields have some 1,600 wells of which around 200 are currently producing a total of 1,500 barrels of oil per day.David Newlands is to step down as Chairman of European electrical goods retailer Kesa Electricals, to be succeeded by the group's Senior Independent Director, Alan Parker.The news came as the group slashed its dividend following a sharp decline in profits in a year in which it disposed of its Comet retail chain for just €2.In the 12 months to April 30th, adjusted profit before tax slumped to €59.0m from €102.4m the year before. With the adjustments stripped out, the group made a loss before tax of €17.0m on a reported basis, versus a profit of €85.6m the year before.BC