London pre-open: Footsie to edge higher

17th Jun 2010 07:35

Footsie is expected to edge higher in early dealings, even as mainland European bourses slip back, with BP again in the spot light following yesterday's meeting with the US president.BP has cancelled dividends for the rest of the year and agreed to a demand from US president Obama to put $20bn in an escrow account to cover claims resulting from the oil spill in the Gulf of Mexico. The UK company will pay $3bn into the escrow account in the third quarter of 2010 and $2bn in the fourth quarter. This will by followed by payments of $1.25bn a quarter until a total of $20bn has been reached.Further details of the planned shake-up of banking regulation will be unveiled Thursday after Chancellor George Osborne promised a "new settlement between our banks and the rest of society" last night. In his maiden Mansion House speech, Osborne announced he would abolish the Financial Services Authority and give new powers to the Bank of England to help it regulate the UK financial sector.Computer gaming retailer Game Group has announced a former Vodafone man as its new chief executive officer, though he will inherit control of a company facing declining sales. The group has appointed Ian Shepherd as its new chief executive. In an update on recent trading the group said in the 19 week period to 12 June total group sales were 11.4% lower than a year earlier.