London pre-open: Shares set to rise

17th Jul 2009 07:32

London's blue chips are expected to gain in early dealings on Friday with sentiment likely to get a boost from better than expected numbers from IBM and internet giant Google in the US overnight. Traders expect Footsie to open 30 points higher.British Airways has launched a £300m convertible debt issue to shore up its balance sheet. The airline also announced that its unaudited results for the first quarter are expected to show revenue of about £1.98bn and an operating loss of around £100m, which it said is slightly better than market forecasts. As at 30 June, BA had approximately £1.25bn of cash and general facilities of around £130m. Telecoms group Cable & Wireless said in the first quarter of 2009/10, its two businesses continue to make progress despite the more challenging economic backdrop. EBITDA guidance for the group is unchanged from May, approximately £1,025m based on an exchange rate of US$1.50 to £1.001. Engineer Invensys said based on its current views of the markets and exchange rates it continues to expect the group will achieve an improvement in performance in the current year. Order intake in the first quarter of the financial year was up 17% at actual exchange rates and was flat at constant exchange rates. Lower drinks revenue has hit dance club operator Luminar so far this year, despite a modest increase in the number of people out clubbing. Trading for the period improved slightly since May, Luminar said. Hikma Pharmaceuticals has signed a licensing agreement for the anti-histamine Bilastine with Spain's Faes Farma for the Middle East & North Africa (MENA) region.