London pre-open: FTSE to drop lower as Cypriot crisis rumbles on

City sources predict the FTSE 100 will open down 21 points from yesterday's close of 4,389, tracking declines seen in the US overnight as investors await further news on Cyprus. US stocks fell the most they had in almost a month on Thursday, as weaker-than-expected data out from the Eurozone and concerns over the economy of Cyprus weighed heavily. Declines were seen across the board, with a disappointing quarter at Oracle Corp pushing the Nasdaq firmly lower. Troubled economy Cyprus has been told by the European Central Bank that it must find a way to raise £5.8bn to qualify for financing support from the European Union. The Bank has warned that it would cut off emergency liquidity for Cypriot banks on Monday unless a deal was reached to shore up the country's ailing banks. Today Germany's economic activity is expected to show little change when Munich's Ifo Institute releases its business climate index results for March on Friday. Barclays said it anticipates the index, an indicator for business activity in the country's economy, to reflect a consolidation of past gains and moderate growth. "The assessment of the current situation may improve somewhat further, while expectations of future business activity could moderate slightly," the bank said in a statement. The country is also releasing its IFO Current Assessment and Expectations data. In UK company news, property group British Land has exchanged agreements with The Kennel Club confirming terms to relocate and develop a new headquarters for the Club in Clarges Street, facilitating the company's plans to redevelop the entire site to create a landmark mixed use scheme. Since British Land's purchase of the Clarges Estate in November last year it has worked to relocate the proposed new club and amend and improve the original scheme. A revised planning application for the improved scheme is being submitted shortly with consent expected later this year.FTSE 100 oil and gas producer BP intends to carry out a share repurchase programme with a total value of eight billion dollars following the completion on March 21st of the sale of BP's 50% interest in TNK-BP to Russian oil company Rosneft. Bob Dudley, BP Group Chief Executive, said: "BP is moving on to the next phase of its business in Russia, becoming the largest private shareholder in Rosneft, Russia's leading oil company. In the process we have also released cash, equivalent to at least six years of BP's anticipated future dividends from TNK-BP. Euromoney Institutional Investor has reported that trading since the end of January has continued to be in line with its expectations, but warned that due to the on-going difficulties in the Eurozone total revenues for the half year ended March 31st are expected to show a headline decrease of around one per cent compared to the same period in 2012. This is primarily due to a decline in non-subscription revenues, which are expected to have decreased due to timing differences on events. NR