London pre-open: Stocks seen lower after US, Asian losses

(Sharecast News) - London stocks were set to fall at the open on Wednesday following downbeat sessions in the US and Asia, and after the International Monetary Fund criticised the UK government's tax plan. The FTSE 100 was called to open down around 40 points at 6,945.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said "the pound remains under decent selling pressure as Bank of England officials are pushing the can down a very steep road, saying that it's more appropriate to wait five weeks before taking action".

"Meanwhile, the IMF now warns the UK that they do not recommend splashing untargeted fiscal money while inflation remains elevated in the world, and in the UK. They emphasize that it is important that fiscal policy doesn't work at cross purposes to monetary policy," she added.

In corporate news, luxury fashion brand Burberry said that chief creative officer Riccardo Tisci will be stepping down at the end of the month.

Tisci has decided to leave after almost five years, during which he spearheaded Burberry's creative transformation.

Burberry said that under his creative leadership, the company "re-energised its brand image, introducing a new visual identity and reviving the Thomas Burberry Monogram".

Tisci will be succeeded by Daniel Lee, who will join the group on 3 October. Burberry said that Lee - an award-winning designer - will be based at the company headquarters in London and report to chief executive Jonathan Akeroyd.

Elsewhere, manufacturing firm Spirax-Sarco Engineering has agreed to buy US custom electric thermal solutions specialist Durex International in a deal valued at $342.2m.

Spirax-Sarco said it will acquire the group on a cash and debt free basis, with the transaction to be financed through acquisition bank facilities. The FTSE 250 group added that the addition of Durex will be accretive to earnings in 2023.