London pre-open: Stocks set to slide after Obama speech

9th Sep 2011 07:28

London seems less than overwhelmed by President Obama's latest plans to kick-start the US economy, with the FTSE 100 set to open around 50 points down from yesterday's close of 5,340. Describing the stalling of US economic growth as a "national crisis", Obama last night unveiled his much-trailed American Jobs Act, which Obama pledged "will cut payroll taxes in half for every working American and every small business."A current pay-roll tax cut scheme is set to run out in December but the Obama administration wants to lengthen and deepen it. The US President also proposed new spending plans on school and infrastructure in an attempt to boost employment. Tullow Oil has announced that the Zaedyus exploration well (GM-ES-1), offshore French Guiana, has made an oil discovery having encountering 72 metres of net oil pay in two turbidite fans. Results of drilling, wireline logs and samples of reservoir fluids show that the well has encountered good quality reservoir sands on prognosis. Royal Dutch Shell has a 45% interest (subject to government approval) in the joint venture that owns the offshore prospect.Pubs group JD Wetherspoon saw revenue break through the billion pounds barrier in the 52 weeks to 24 July. Revenue rose 7.6% from a year earlier to £1,072m, with like-for-like sales up 2.1%. Profit before tax and exceptional items fell 5.9% to £66.8m from £71.0m last year.Car insurer Admiral Group has responded to the decision by the Ministry of Justice to impose a ban on the payment of referral fees in personal injury cases, and said it welcomes any action taken to curb the compensation culture that currently exists in the UK motor insurance market.Admiral said referral fees account for 6% of its UK car insurance profit before tax - "a small proportion of profits", it said.--jh