London pre-open: Stocks seen flat as investors mull UK GDP

(Sharecast News) - London stocks were set for a steady open on Monday as investors mulled the latest UK GDP data in what was likely to be a fairly quiet session as we head towards the Christmas break.

The FTSE 100 was called to open unchanged at 8,085.

Revised figures released by the Office for National Statistics showed the economy stagnated in the third quarter of the year, down from a previous estimate of 0.1% growth.

The ONS also revised its estimate for growth in April to June to 0.4%, down from 0.5% initially estimated.

Liz McKeown, director of economic statistics at the ONS, said: "The economy was weaker in the second and third quarters of this year than our initial estimates suggested with bars and restaurants, legal firms and advertising, in particular, performing less well.

"The household saving ratio fell a little in the latest period, though remains relatively high by historic standards. Meanwhile real household disposable income per head showed no growth."

In corporate news, Aviva said it had struck a deal to buy insurance rival Direct Line for £3.75bn.

The offer values each Direct Line Share at 275p, a premium of 73.3% to the closing price of 158.7p on 27 November.

Aviva plans to achieve annual pre-tax cost savings of at least £125m through job cuts, "economies of scale and increased efficiency".

Elsewhere, Petrofac said it had entered into a binding agreement with key financial creditors on the terms of a comprehensive restructuring "to significantly strengthen the financial position of the group" and enable it to deliver its strategy.