London pre-open: Flat start expected for FTSE

City sources predict the FTSE 100 will open unchanged from yesterday's close of 5,782. BAE Systems surged before the close of trade on Wednesday after it confirmed rumours that it is in talks with European aerospace giant EADS regarding a 'possible combination'. Small gains were seen in the US overnight, but the reaction to the new iPhone was notably low-key, with shares marginally firmer in after-hours trading. US stocks had been up considerably higher earlier in the session, but confidence fell somewhat as thought turned to the upcoming Federal Reserve decision on potential further economic stimulus, which is due out later today. Retailer Next said growth in its online business and the opening of new stores offset a drop in like-for-like sales in the first half. The firm also maintained its outlook for the year despite noting rocky August and September trading. In the first half revenue was up 4.8% to £1.64bn and underlying profit was up 10.2% to £251m. Profits at company's retail arm crept ahead by 0.2% to £122.7m, which included a fall in like-for-like sales of £18m. New profitable space added £14m.Construction group Kier has described its full year results as 'solid' and in line with expectations.Underlying pre-tax profits of £70.0m in the year to June 30th were up 2% on the previous year's £68.9m and a shade ahead of market expectations of £69.7m. Underlying earnings per share (EPS) of 156.8p were up 6% from the previous year's 148.4p, as the group enjoyed a 6% reduction in its effective tax rate. Analysts following the company had pencilled in 147.91p for EPS.The day after the much ballyhooed release of Apple's iPhone5, chip designer Imagination Technologies released a well-timed trading update in which it revealed its business momentum has continued in the new financial year. "Our partners' product launches in the second half of the last financial year, together with shipments starting for a number of customers for the first time this year, have both contributed to strong growth in unit shipment volumes," the group said in its interim management statement.