London pre-open: Stocks seen up as investors mull borrowing data

(Sharecast News) - London stocks were set to rise at the open on Wednesday following a positive close on Wall Street, as investors mull the latest UK borrowing figures. The FTSE 100 was called to open 22 points higher at 7,392.

Figures released earlier by the Office for National Statistics showed that public sector borrowing rose to £22bn in November, up £13.9bn on the same month last year and marking the highest November figure since monthly records began in 1993. Economists were expecting a borrowing figure of £13bn.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "Public borrowing was boosted in November by the government's energy and cost of living interventions, the decision to reverse April's National Insurance hike, and high inflation.

"The Energy Bills Support Scheme cost the government £1.9bn in November, while the Energy Price Guarantee was the main driver of a £4.7bn year-over-year rise in subsidies. In addition, social assistance payments were £3.3bn higher than a year ago, reflecting the payment of the second cost of living grants to working-age benefit recipients."

In corporate news, Ferrexpo said it was now receiving sufficient levels of power to bring one iron ore pelletiser line in central Ukraine back into operation, allowing it to meet the requirements of existing customer contracts.

As a result of interruptions and continued instability within the state-owned electricity network during the fourth quarter of 2022, around 0.3 million tonnes of pellets have been produced to date in the period. Total pellet production for 2022 is expected to be approximately 5.9-6.0 million tonnes.

Elsewhere, full-year revenues are set to jump at Bunzl, the packaging and materials specialist said, bolstered by high inflation and acquisitions.

Updating on full-year trading, the blue chip said group revenues were expected to increase by 17% year-on-year, or by 10% at constant exchange rates. The group adjusted operating margin was also expected to be "slightly ahead" of prior guidance.