London open: Down as banks await fate

8th Jul 2009 09:00

Footsie has slipped in early dealings after a three-digit fall on Wall Street last night.Miners are going well despite the fall on Wall St overnight led by Rio Tinto, BHP Billiton and Antofagasta.Banks will be in focus later on when Chancellor Alistair Darling unveils the government's White Paper on financial regualtion. Analysts are already suggesting not to expect much to be in it.Oil stocks are weak as the price of crude retreats on fears the US economy may be turning down again. Tullow Oil is the worst hit. An update today stated that it expects annual production to average 58,000 barrels of oil equivalent per day (boepd) following a 16% drop in output during the first half. Support services group Carillion remains on track to deliver 'materially enhanced' earnings for the full year after good performances across its divisions.The support services division continues to make the largest contribution to operating profit, the firm said.Oil and gas firm Melrose Resources is proceeding as expected at its oil and gas fields in Egypt, although recent government elections have held things up in Bulgaria. Production averaged approximately 16,000 barrels of oil equivalent per day (boepd) on a net entitlement basis versus current guidance of 15,700 boepd.Struggling private equity group 3i halved its debt in the three months to June, largely due to its £732m rights issue. Realisation proceeds outweighed new investment as it stopped putting money into its portfolio companies. Net debt at end June was £961m, compared with £1.91bn at March 2009.