London pre-open: Spain downgrade to dent investor sentiment

City sources predict the FTSE 100 will open down 26 points from yesterday's close of 5,749 following Standard and Poor's downgrade of Spain, the Eurozone's fourth largest economy, to BBB-plus from A with a negative outlook. S&P said it predicts the Spanish economy will shrink and believes the government must provide further financial support to the country's banking sector. Highly acquisitive media giant WPP has had a strong start to 2012 with like-for-like revenue growth coming in ahead of expectations in the first quarter. The group, led by frontman Sir Martin Sorrell, said revenue in the three months to March 31st totalled £2,392m, up 7.6% on last year's £2,223m. Publishing giant Pearson continues to expect growth in sales and operating profits this year, having traded in line with expectations in the first quarter. The Financial Times and Penguin books publisher said sales increased by 11% at constant exchange rates to £1.16bn in the first three months of the year. The underlying sales increase was 3% while what Pearson calls the headline increase was 12%.Salamander Energy, the independent upstream oil and gas exploration and production business focused on South-East Asia, is asking its shareholders to put their hands in their pockets to accelerate its drilling programme. The company is looking to raise around $201m (net) through an underwritten rights issue of 100.7m shares, which shareholders can buy at 130p each on the basis of 13 new shares for every 20 shares held.