London pre-open: Stocks seen flat as investors eye central bank meetings

London stocks were expected to open flat on Monday as investors eye meetings this week from the Federal Reserve and the Bank of Japan.

The FTSE 100 was set to open up just two points from Friday’s close at 6,732.

“While there is no expectation of action from the FOMC later this week the same cannot be said of the Bank of Japan,” said CMC Markets’ Michael Hewson.

“Japanese policymakers have been wrestling with a sclerotic economy for years now and with interest rates already in negative territory speculation has been rising that the next step could be direct monetisation in the form of “helicopter money.

“This still remains a risky next step simply because it’s never been done before and while Bank of Japan Governor Kuroda has gone to great lengths to rule it out, he also ruled out the prospect of negative rates three days before implementing them, hugely damaging his credibility in the process.”

The FOMC rate announcement is on Wednesday, while the Bank of Japan’s announcement is on Friday.

On Monday’s economic calendar, UK CBI industrial trends are at 1100 BST.

On the corporate front, Hammerson posted its half-year report for the six months to 30 June on Monday, with net rental income improving 5.1% to £167.7m during the period, or 2.1% on a like-for-like basis.

The FTSE 100 firm reported profit including valuation changes of £162.5m, a drop of 50.2%, with adjusted profit increasing 6% over the same period last year to £112.6m.

Adjusted earnings per share were up 5.1% to 14.3p, and the board announced an interim dividend of 10.1p, up 6.3% on the first half of 2015.

“I am pleased to deliver another set of solid results for this half year with good operational metrics and EPS growth,” said Hammerson chief executive David Atkins.

“Looking forward, we have confidence in the resilience of our business model, which will underpin our ability to deliver robust income returns during and beyond this period of political and economic uncertainty in the UK.”

Rank Group and 888 Holdings have begun talks about joining forces to make a £3bn takeover approach for struggling high street bookmaker William Hill.

No formal approach has yet been made for William Hill, which last week axed chief executive James Henderson, but over the weekend the company said it received "a highly preliminary approach" that did not include proposals on price, timing, terms, form of consideration or transaction structure.

Greencore has acquired The Sandwich factory from Cranswick for up to £15m, which will be funded from existing debt facilities.

The company said on Monday that the deal is expected to be neutral to earnings in full-year 2016 and modestly accretive thereafter.

Chief executive officer Patrick Coveney said: “This acquisition makes strong strategic sense for Greencore, given our ongoing focus on the food to go market. The Sandwich Factory will extend our reach into customer channels in which we are currently under represented, notably convenience stores and the travel sector, and will also bring new product types into the Greencore portfolio.”