RAMSEY CROOKALL

11th July Afternoon Report

The FTSE 100 is remaining on the soft side, with British Sky Broadcasting the biggest faller on the index, down 5.3%, amid doubts over whether the News Corp deal will go through. Banking stocks are hit the hardest on worries over Italy's finances. Investors look cautiously to the EU-wide stress test results at the end of the week. Barclays is down 2.3% and Royal Bank of Scotland down 2.8%. No major domestic or European data is due Monday, so eyes turn to the Fed's meeting minutes after tonight’s close.

International Power opened strongly to lead the risers after responding to the proposed climate change plan in Australia. Under the proposed plan to reduce CO2 emissions by 2020 to 5% below 200, "brown-coal fired power generation will be eligible for carbon credits for the first five years starting July 2012, with a one off cash payment for the first year followed by annual credits until 30 June 2017," the firm said.

Mining giant Rio Tinto, however, has opened lower after voicing its disappointment over Australia's carbon tax proposal of A$23 a tonne on the 500 heaviest emitters as of 1 July 2012, joining the sector's warning that the plan would hinder investment and jobs growth in the nation's mining industry.

Hong Kong infrastructure group Cheung Kong has made a non-binding indicative proposal to bid for UK water and waste management group Northumbrian Water, offering 465p cash per share plus the right to retain the recently declared net final dividend of 9.57p. Northumbrian rose higher in early trading.

Egypt-focused gold miner Centamin Egypt was in the red after making a £7.48m offer for PLUS-quoted miner Sheba Exploration.

Managed services provider Redstone was firmer after it said it almost halved full year pre-tax losses as it continues with its restructuring programme.

THE FTSE 100  at 12:00               Down                13           @    5976

THE DOW JONES closed                Down                62           @    12657                                 NASDAQ COMP closed                   Down                12           @    2859                                                       Exchange Rates GBP – USD           1.5960 GBP - EURO          1.1305