London pre-open: Triple digit fall as market digests ICB report

The Footsie is set to dive more than 100 points at the outset as the markets get to grips with the details of the Vickers report from the Independent Commission on Banking. British banks should separate their retail banking and investment banking divisions, the government-appointed Independent Commission on Banking has said, adding that they should be given more than seven years to implement such reforms. The report was welcomed by the government, which said: "It considers it to be an impressive report and an important step towards a new banking system."Lloyds Banking Group said it was "assessing the full implications of the report and may provide a further update to the market once we have had the opportunity to review the report in detail."Associated British Foods said adjusted operating profit for the second half of its financial year, which runs to mid-September, will be in line with expectations, with full-year adjusted earnings in line with last year's result, though last year covered a 53-week, rather than a 52-week, period. Property firm Great Portland Estates has exchanged contracts to pay £120m to acquire a major 2.3 acre freehold site in the core of London's West End. Meanwhile, The Great Ropemaker Partnership, a 50:50 joint venture between Great Portland Estates and The BP Pension Fund has exchanged contracts to acquire 200 & 214 Gray's Inn Road, WC1, from an affiliate of Beacon Capital for £132.75m, reflecting a capital value of £455 per square feet. Arcontech, which provides products and services for real-time financial market data processing and trading, said sales were disappointing last year, prompting a strategic rethink. "We have decided to concentrate sales resources on our CityVision products," company chairman Richard Last said. --jh