London pre-open: Sharp decline expected on Greek woes

14th May 2012 07:28

City sources predict the FTSE 100 will open down 51 points from Friday's close of 5,576, despite strong gains in Asia over China's decision to lower the reserve requirements for banks by 50 basis points. Investors are likely to continue feeling concerned over events in Greece, where it is currently looking likely that another election will be held as last ditch attempts to form a government have thus far proved unsuccessful. Mining giant Polymetal International has sold its Veduga gold deposit in the Krasnoyarsk region of Russia for $20m. The deal with Canadian firm Polygon Gold also sees Polymetal receive 750 shares in the former, taking its stake in the company to 81.8%.HSBC, which styles itself as the world's local bank, is to become a bit less local in parts of Latin America following the agreed sale of its operations in Colombia, Peru, Uruguay and Paraguay. HSBC is selling the businesses for $400m in cash to the Colombian banking entity controlled by the Gilinski Group, Banco GNB Sudameri. The sales of the businesses in Colombia and Peru are expected to complete in the fourth quarter of 2012 and the sales of the businesses in Uruguay and Paraguay are expected to complete in the first quarter of 2013.Outsourcing specialist Serco says it is on track to meet its 2012 full-year expectations, but has warned that its first-half performance will reflect the challenging environment in the US. The firm has been awarded £3.9bn of contracts in the year-to-date, comprising signed contracts valued at £2.9bn and preferred bidder appointments valued at £1.0bn.