London midday: Footsie slips into the red

The FTSE 100 swung between gains and losses on Wednesday morning as investors kept their eye on developments in the Eurozone. By midday, the blue chip index was slightly in the red, with some disappointing manufacturing data weighing on sentiment.GREECE, EUROZONE MANUFACTURING, US FEDThe decision to hold a referendum on Greece's latest bail-out took the markets by surprise yesterday with major benchmark indices across Europe registering losses of anywhere between 3% and 7%. Despite calls for prime minister George Papandreou to cancel the vote, the cabinet agreed to back the decision early Wednesday morning. The prime minister will meet with French president Nicolas Sarkozy and German Chancellor Angela Merkel in Cannes this afternoon ahead of tomorrow's G-20 summit. Sarkozy said that Papandreou's decision was a surprise for all of Europe and that the rescue plan was the only solution to the Greek debt problems However, attention has moved from the eastern end of the continent to the western end, with reports suggesting that the European Financial Stability Fund (EFSF) has postponed the issue of a €3bn bond to fund Ireland's bail-out, because of volatile market conditions. One of the lead managers of the issue said the bond is expected to be prices over the next two weeks. Meanwhile, a survey measuring conditions in the Eurozone manufacturing sector fell to its lowest level in 27 months in October, as the European economic slowdown continues. The Purchasing Manager's Index (PMI) for the manufacturing sector compiled by Markit Economics showed a reading of 47.1 last month, compared with estimates of 47.3 and September's reading of 48.5. One particularly worrying result was seen in Germany, with the PMI coming in at 49.1, from 50.3 the month before. This was the lowest reading for the nation since July 2009 and its first reading below the 50 mark in some 25 months. The German statistics bureau also revealed today that the jobless rate rose from 6.9% to 7%, the first increase in over two years.Also, the Federal Open Market Committee (FOMC), the policy making committee of the US central bank, is expected in many circles to announce a further loosening of monetary policy this afternoon after its two-day meeting. RANDGOLD LEADS MINERS HIGHERAfrica-focused gold miner Randgold Resources surged higher after profits for the third quarter jumped by 336% on last year to $122.9m, helped by the sale of 31,646 ounces of previously held gold on hand at Tongon. Nevertheless, after excluding this, profits were still up 29% compared with the second quarter. Mining peers Fresnillo and Kazakhmys were also higher.Next, the fashion retailer, continued to rise after delivering what Prime Markets called an "exceptional performance" in the third quarter. The group saw a 3.3% increase in group sales in the third quarter compared to the same period of 2010. "We remain confident that we will see no further increase in selling prices in the first half of the year. Early indications are that this trend will continue into the second half of 2012," the company said. Meanwhile, Lloyds continued to faller lower after announcing that its chief executive officer, Antonio Horta-Osorio, is taking a leave of absence for health reasons, according to the Financial Times. The board is set to discuss interim measures later today. Inmarsat, the satellite communications firm, jumped after seeing revenues rise 17.9% in the third quarter compared to the same period of 2010. Logica took a tumble on the FTSE 250 after the IT services provider cut its operating margin guidance for the full year. The firm said, "Achieving better levels of utilisation in the Benelux before the year end will remain a challenge and progress in Sweden has been slower than expected. While we anticipate further progress in these areas through the fourth quarter, we are also seeing pockets of market softness." BCFTSE 100 - RisersRandgold Resources Ltd. (RRS) 7,165.00p +6.38%Fresnillo (FRES) 1,737.00p +4.89%Next (NXT) 2,681.00p +4.85%Burberry Group (BRBY) 1,326.00p +4.16%Wolseley (WOS) 1,812.00p +4.08%Inmarsat (ISAT) 465.30p +4.00%Man Group (EMG) 141.10p +3.75%International Consolidated Airlines Group SA (IAG) 160.30p +3.62%Glencore International (GLEN) 428.85p +2.97%Johnson Matthey (JMAT) 1,842.00p +2.91%FTSE 100 - FallersLloyds Banking Group (LLOY) 29.10p -4.78%GlaxoSmithKline (GSK) 1,342.50p -2.61%ICAP (IAP) 377.70p -2.55%Standard Chartered (STAN) 1,402.00p -2.54%Royal Dutch Shell 'B' (RDSB) 2,179.50p -2.29%Imperial Tobacco Group (IMT) 2,228.00p -2.07%Royal Dutch Shell 'A' (RDSA) 2,135.00p -2.00%Ashmore Group (ASHM) 325.40p -1.81%Diageo (DGE) 1,273.50p -1.81%AstraZeneca (AZN) 2,913.00p -1.59%