London pre-open: Sharp falls expected

14th Jul 2011 07:46

London's blue-chip shares are set to open sharply lower, with traders taking note of the late swoon on Wall Street yesterday which saw early gains pared.City traders think the Footsie will open around 50 points down from last night's close of 5,906.House builder Barratt Developments confirmed its return to profitability, saying it expects to deliver a full-year profit before tax and exceptional items of around £40m, compared to a loss the year before of £33.0m. Sports shop chain Sports Direct International posted a sharp rise in revenues in the year to 24 April, despite the tough economic climate. Total sales climbed to £1.6bn from £1.45bn the previous year. Underlying pre-tax profits, which do not include foreign exchange gains and losses, exceptional costs and profits or losses on sales of investments, rose to £135.5m from £102.1m.The revolving door on the board room at Mitchells & Butlers is spinning again, with Simon Burke calling time on his stint as chairman of the pubs group after less than six months in the hot seat. Bob Ivell has been appointed as interim non-executive Chairman - the sixth chairman the company has had in the last three years.