Financial News

LONDON (ShareCast) - Under siege miner Anglo American (LSE: AAL.L - news) , the subject of an unwelcome merger approach from Switzerland-based peer Xstrata (LSE: XTA.L - news) , will have pulled out all the stops to make its first half results look as impressive as possible.

Xstrata has said that the proposed "merger of equals" would generate $1bn per annum of pre-tax synergies but Anglo American countered that it has already set in train a plan to make "substantial savings" while claiming a merger would have an adverse impact on its operations.

Those cost savings are expected to be in the region of $2bn but it would not be surprising to see that number bumped up in Friday's announcement.

Analysts are predicting an operating profit of $1.94bn, down from $6.18bn in the first half of last year when the commodity price boom was in full swing.

Market consensus for earnings per share is $0.81, down from $2.90 a year earlier.

Elsewhere in the sector Indian refiner and miner Vedanta releases its first quarter production results for fiscal 2009/10. Airline British Airways (LSE: BAY.L - news) is expected to announces losses of around £100m in the first quarter of its new financial year. The company is leaving no stone unturned in its quest to return to profitability; earlier this week it said short-haul passengers will have to do without the customary free meal as the airline seeks to slash costs by £22m.

The upmarket airline is taking a leaf out of the book of no-frills rivals such as Ryanair (Dublin: RY4.IR - news) and easyJet both of which reported results this week which indicated the industry is going through tough times. Ryanair warned full year profits will be at the low end of previous estimates while easyJet warned that economic conditions remain uncertain.

Rentokil Initial (LSE: 647054.L - news) has long since expended its activities beyond pest control but seems destined to be forever referred to in the City as "rat-catcher Rentokil".

It's the company's parcels delivery business, City Link, which has been the proverbial can of worms over the last year or two, prompting the company to issue four profit warnings in a nine-month span from December 2007 to August 2008.

Management believes it is turning the City Link business around while first quarter pre-tax profits, announced in May, came in ahead of expectations at £21.6m. though some analysts suggested performance was flattered by the strength of the euro.

On the economic front the GfK/NOP consumer confidence index will be released shortly after midnight and is expected to show another gradual improvement in sentiment, lifting the index to a 15-month high.

Economic forecasting unit HIS Global Insight predicts the index will climb to -24 in July from -25 in June, -27 in May and -37 in January. "Nevertheless, the consumer confidence index will still be substantially below the long-term (34-year) average of -7. The all-time low of -39 occurred in July 2008," said Dr. Howard Archer, the firm's chief UK and European economist.

INTERIMS Anglo American, Jardine Lloyds Thompson, Keller Group, Rank Group (LSE: 514313.L - news) , Rentokil Initial, United Business Media

INTERIM DIVIDEND PAYMENT DATE Chrysalis VCT (LSE: CYS.L - news) , Fountains (LSE: FNT.L - news) , Octopus Phoenix VCT (LSE: OPHX.L - news) , Octopus Titan VCT 1 (LSE: OTV1.L - news) , Octopus Titan VCT 2 (LSE: OTV2.L - news) , Paragon Group Of Companies, Pennine AIM VCT 5 (LSE: PNV5.L - news)

QUARTERLIES British Airways

QUARTERLY PAYMENT DATE Aberdeen Development Capital (LSE: AVC.L - news) , Carador EUR Shares, Mercantile Inv Trust, New Star Financial Opportunities Ltd., Schroder Income Growth Fund, Torchmark Corp (NYSE: TMK - news)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS Chicago PMI (US) (14:45) Employment Cost Index (US) (15:00) Personal Consumption Expenditures (US) (13:30)

EGMS China Medical System Holdings, Zeehan Zinc (LSE: ZZL.L - news)

AGMS Albion Protected VCT, Alecto Energy (LSE: ALO.L - news) , Diamond Circle Capital, Evergreen Securities, Futuragene (LSE: FGN.L - news) , Hertford International, Irvine Energy (LSE: IVE.L - news) , Montanaro UK Smaller Companies Investment Trust, Netplay TV (LSE: NPT.L - news) , Pantheon Leisure (LSE: PLEI.L - news) , Phoenix IT Group (LSE: PNX.L - news) , Plastics Capital (LSE: PLA.L - news) , ReneSola (LSE: SOLA.L - news) , SABMiller (LSE: SAB.L - news) , SDI Group (LSE: SDIG.L - news) , Tai Zi Capital (LSE: TAZ.L - news) , Upstream Marketing and Communications Inc. (DI), Westside Acquisitions (LSE: WST.L - news)

TRADING ANNOUNCEMENTS London Capital Group, Vedanta

FINAL DIVIDEND PAYMENT DATE Aberdeen All Asia Inv Trust, Albion Venture Capital Trust, Alliance Trust, Aveva Group (LSE: AVV.L - news) , BlueStar SecuTech (LSE: BSST.L - news) , De La Rue (LSE: DLAR.L - news) , Downing Protected VCT VI, Downing Protected VCT VII, F&C Commercial Property Trust Ltd., Glasgow Income Trust, Kiotech International (LSE: KIO.L - news) , MS International (LSE: 396990.L - news) , New City Energy, Norman Hay (LSE: HNN.L - news) , Octopus Apollo VCT 1, Octopus Apollo VCT 2, Schroder UK Growth Fund, Severn Trent (LSE: SVT.L - news) , Shires Income (LSE: SHRS.L - news) , Tate & Lyle, Tawa (LSE: TAW.L - news) , Velosi