London pre-open: Flat start expected for FTSE

City sources predict the FTSE 100 will open unchanged from Friday's close of 5,787 after stocks soared significantly higher at the end of last week as a result of US non-farm payrolls data released by the Department of Labor.Investors will today be looking for new direction from both UK retail sales data to be released by the British Retail Consortium and new car registrations. As well, Lloyds Bank´s index of job prospects rose to -51 in July from -53 in June. In paralllel, the Confederation of British Industry´s (CBI) gauge of confidence at small- and medium-sized companies fell to -13 in July from 22 in April due to "challenging domestic conditions" and "uncertainty" in the Eurozone.Overseas, the People´s Bank of China (PBoC) has issued a statement saying that, "in the second half, we must continue to reinforce fine-tuning and pre-emptive adjustment in monetary policy and improve credit policy to support the development of the real economy." Meantime, and in Europe, on Friday ratings agency Standard&Poor´s downgraded 15 of Italy´s largest lenders. Greece and the Troika, on the other hand, are reported to have made progress over the weekend, agreeing on renewed efforts by Athens to meet its targets. Of particular interest, reports that Royal Dutch Shell has been shifting funds out of the Eurozone periphery. All of the above comes against a backdrop of mixed comments out of European equity strategists following the rally seen last Friday. No data are scheduled for release Stateside today. The continued growth in the use of the Internet is boosting demand for TeleCity's services. The data centre group saw first half profit before tax climb to £40.1m from £33.9m the year before on the back of a 22.4% increase in revenue to £137.3m from £112.2. The group's maiden interim dividend has been set at 2.5p. Upstream exploration and production group Heritage Oil saw losses widen significantly in the six months to June 30th, although it is waiting to complete a 'transformational' acquisition in Nigeria before production really ramps up. Losses from continuing operations surged 415% from $9.7m to $50.0m during the period. However, the adjusted loss from continuing operations was just $6.7m (first half of 2011: $6.9m) is certain non-cash and one-off items are excluded. FTSE 250 insurance firm Catlin Group jumped back into the black in the first half of 2012 as premiums rose and its London hub sprang back into life. The company posted pre-tax profits of $231m in the six months to the end of June, compared to a loss of £201m the year before. The Bermuda-based firm reported a combined ratio of 86% with a record $443m in net underwriting contribution. NR Castelnau Group