London pre-open: Stocks set for slide as global rout continues

5th Aug 2011 07:39

The top share index is set for triple-digit falls and then some in early dealings as worries over the global economic situation continue to grip markets.US benchmarks suffered their worst one-day decline since the financial crisis of 2008/09 as investors reflected their concerns over the global economic outlook. Quite fittingly given the ongoing rout, exposure to Greek government bonds and a charge for mis-selling of Payment Protection Insurance (PPI) sent Royal Bank of Scotland into the red in the second quarter. The part-nationalised bank posted an attributable loss of £897m in the quarter to 30 June, against a profit of £257m in the same period the previous year. It was hit by a £850m charge for PPI claims and £733m provision related to Greek government bonds.First half profits at insurance titan Prudential jumped by a quarter to top expectations, driven by strong growth in Asia. Operating profit, on an International Financial Reporting Standards (IFRS) basis, rose 25% from £0.85bn to £1.06bn, ahead of expectations of £0.96bn.Software provider Logica reported a 5% rise in interim revenues in the six months to 30 June but pre-tax profits were lower after its exposure to the squeezed public sector pushed it to an underlying loss in the Benelux countries.Full-year revenue growth is expected to be at a similar level to the first half, but margin improvement now depends on progress in Benelux, the company said.Housebuilding company Bellway saw a slight improvement in operations in the year to 31 July. The group has legally completed 4,922 homes, an increase of 7.1% compared with the previous year's total of 4,595, while the average selling price of homes sold has increased by 7.2% from £163,175 to around £175,000.