London open: Stocks slip after Bernanke caution

Shares are in the red after the US Federal Reserve's more cautious stance last night on the growth prospects of the world's biggest economy.Asset manager The Carlyle Group is to buy roadside assistance provider RAC from insurance giant Aviva, a riser today, for one billion pounds. The transaction values RAC, the UK's second largest driver-membership scheme provider, at 17 times 2010 net earnings, Aviva said.Recycled packaging firm DS Smith is in demand after it overcame a sharp rise in input costs to grow pre-tax profits by 86% last year. Profit before tax in the year to 30 April rose to £102.2m from £55.0m the year before, on sales that rose 19.5% to £2,474.5m from £2,070.6m. With the effects of the recent acquisition of Otor stripped out, sales rose 10.0% year-on-year.Train and bus operator Go-Ahead is in the fast lane after saying it expects to post a full-year profit ahead of expectations as high petrol prices and tough economic conditions prompt drivers to abandon their cars in favour of public transport.Currys and PC World owner Dixons is down after it saw underlying profit before tax dip to £85.3m in the year to end-April from £90.0m the year before. The group said it is increasing market share across most of its markets and sectors, especially in the UK and the Nordic countries.Military decoy flare and mine detection firm Chemring is under heavy attack even after it managed to post a sharp rise in sales and profits in the half-year to 30 April despite constraints on military spending in Britain and the US. Revenues climbed by 29% from the previous year to £329.8m, while underlying pre-tax profits were up by 17% at £49.6m. Software group Micro Focus is in the red after the company's underlying earnings coming in below the guidance range issued at the time of the company's February profits warning. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $158.7m in the year to 30 April, down 8.4% from the $173.3m achieved the year before. The group had indicated in February that underlying earnings would be in a range running from $159m to $167m. FTSE 100 - RisersSainsbury (J) (SBRY) 329.10p +0.98%Aviva (AV.) 433.30p +0.96%British Sky Broadcasting Group (BSY) 836.50p +0.72%Compass Group (CPG) 598.50p +0.50%BP (BP.) 446.05p +0.18%Shire Plc (SHP) 1,850.00p +0.16%HSBC Holdings (HSBA) 605.90p +0.05%GlaxoSmithKline (GSK) 1,281.50p +0.04%Randgold Resources Ltd. (RRS) 4,930.00p +0.04%Smiths Group (SMIN) 1,107.00p 0.00%FTSE 100 - FallersLloyds Banking Group (LLOY) 45.72p -2.73%Royal Bank of Scotland Group (RBS) 37.62p -2.66%Barclays (BARC) 247.10p -2.06%Vedanta Resources (VED) 1,927.00p -2.03%Man Group (EMG) 237.20p -1.90%Inmarsat (ISAT) 571.00p -1.81%Severn Trent (SVT) 1,378.00p -1.43%Centrica (CNA) 322.70p -1.38%Prudential (PRU) 700.50p -1.34%Carnival (CCL) 2,287.00p -1.34%FTSE 250 - RisersDS Smith (SMDS) 223.90p +4.82%Carpetright (CPR) 711.50p +2.15%Daejan Holdings (DJAN) 2,800.00p +1.82%Euromoney Institutional Investor (ERM) 645.00p +1.34%Henderson Group (HGG) 146.80p +1.17%Misys (MSY) 414.90p +1.10%Keller Group (KLR) 451.40p +0.94%Grainger (GRI) 122.70p +0.90%Stagecoach Group (SGC) 247.40p +0.65%Kenmare Resources (KMR) 53.80p +0.56%FTSE 250 - FallersChemring Group (CHG) 570.50p -10.44%Imagination Technologies Group (IMG) 398.30p -3.91%Micro Focus International Plc (MCRO) 343.00p -3.11%Ocado Group (OCDO) 189.30p -3.02%Halma (HLMA) 390.90p -2.25%Dixons Retail (DXNS) 16.16p -2.24%St. Modwen Properties (SMP) 180.00p -2.17%Barratt Developments (BDEV) 108.20p -2.17%Redrow (RDW) 115.10p -1.96%Unite Group (UTG) 209.90p -1.82%