London pre-open: Stocks seen flat as investors eye inflation data
London stocks are set to open flat on Tuesday as investors look to the release of UK inflation figures.
The FTSE 100 is seen starting unchanged from Monday’s close at 6,184.
On the data calendar, UK CPI and RPI are at 0930 GMT, along with PPI and public finances.
Oanda’s Craig Erlam expects the inflation data to show price pressures remaining very subdued.
“Even the core reading is seen remaining at 1.2%, which is well below the Bank of England’s 2% target. Still, this has very gradually risen from 0.8% last summer and is likely to continue to do so at a fairly slow pace making any further monetary easing from the BoE unnecessary.
“Similarly, the start of the tightening cycle isn’t likely any time soon either, especially with the UK vote on EU membership due in three months’ time,” said Erlam.
Jimmy Choo swings to profit
Revenue and earnings were up thanks to strong demand for the luxury wares of Jimmy Choo in 2015, particularly in Asia and Japan, with the firm reporting revenue growth of 7.2% at constant currencies on Tuesday.
The FTSE 250 company’s consolidated net income increased £30.2m into the positive figures, reaching £19.4m, and adjusted EBITDA grew 1.5% to £51m.
Basic and diluted earnings per share grew to 5.1p during the calendar year, from an 11.6p loss per share in 2014.
United Utilities said underlying operating profit for 2015/16 would be in line with management expectations, albeit lower than 2014/15, reflecting new regulated price controls, an expected increase in infrastructure renewals expenditure (IRE), depreciation, employee and other operating costs, partly offset by a reduction in bad debts and regulatory fees.
IRE is expected to be around £20 million higher than last year.
Reported operating profit will be impacted by additional costs and asset impairments incurred in relation to the floods in the North of England in December 2015, although United expected these charges to be largely offset by insurance proceeds.