UK Company Headlines: (Source: Reuters/DJ Newswires):

• WPP nudges full-year outlook higher
• Colt Group Q1 revenue +5%
• AZ Electronic Materials first quarter revenue -4%, FY outlook unchanged
• Pearson expects sales, profit growth this year
• Xcite looking at options to fund second part of oil project
• Ultra Electronics Jan-to-date trading in line with its expectations
• Salamander Energy rights issue to raise $201m
• Aegis Q1 organic revenue +8.1%
•  Imagination Tech licenses PowerVR graphics to Sunplus

Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 called to open -20pts after US posted closed the day higher inn what was a largely quiet day (bar all the corporate results) and despite some disappointing macro data (Eurozone confidence, US Jobless). Markets still being buoyed by Fed Chairman Bernanke keeping the QE doorstop in place, and some strong US pending Home sales data (although these have yet to translate into completions). Dutch political instability looks to have been reduced with the caretaker government submitting a budget cut austerity ‘plan’ in time for Monday’s European deadline.

Overnight, Asian markets hit by S&P’s downgrade of Spain (second this year) from A to BB+ and warning that a recession is likely to deepen by the end of the year, adding to this week’s existing peripheral European fears. The Bank of Japan also expanded the size of its asset purchase program from 30 to 40 trillion yen in an effort to pull the economy out of deflation. The move was expected and the Yen has not moved much.

Main event to close the week will be this afternoon’s preliminary Q1 US GDP figure. Like the UK, will it have slowed more than expected? Will this add to the weight of concerns regarding the global recovery?

Morning Press Selection:

• Monti hits at eurozone austerity push – FT.com – http://on.ft.com/KeS16N
• Crisis dealt blow to Europe’s integration – FT.com – http://on.ft.com/JCNtMD
• The great middle class power grab – FT.com – http://on.ft.com/KfuJ1m
• Groupthink swaying Fed decisions – FT.com – http://on.ft.com/IJ0lOd
• Barclays/Deutsche – FT.com – http://on.ft.com/Im0tWs
• Debt fears return as ECB funds are used up – FT.com – http://on.ft.com/IeOuLf

Overnight Macro Data: (Source: Reuters/DJ Newswires)

• UK                    GFK Consumer Confidence Survey                 Worse
• China               MNI April Business Conditions Survey            Better
• Germany         GFK Consumer Confidence Survey                 Worse