London open: Blue chips slip lower

London's top stocks have opened lower with the focus on the latest earnings reports and GDP data due out in the US later today.

Ash clouds from Iceland and strike action caused losses to grow at British Airways during a tough first quarter, although the airline still expects to break-even for the year.

Losses before tax jumped to £164m in the three months ended 30 June from £148m a year ago as revenue fell by £46m, or 2.3%, to £1.94bn. Passenger revenue dropped 3.4% on capacity down 11.2%. BA blamed "additional finance costs and the impact of non cash foreign exchange movements" for its higher pre-tax loss.

BA is one of the top risers, despite the losses. Utilities are also going well after EDF sold its UK electricity grid operation to a consortium headed by Hong Kong billionaire Li Ka-Shing for £5.8bn. Severn Trent, National Grid and United Utilities are all ahead.

Anglo American's interim results came in slightly below analyst forecasts but the mining giant said it remains confident about its prospects. The group also announced that it reinstated its dividend payments with an interim dividend of 25c per share.

Revenue came to $15.02bn in the six months ended 30 June compared with $11.13bn last time, while EBITDA rose to $5.41bn from 2.99bn previously. Operating profit more than doubled to $4.36bn. The figures missed Panmure Gordon's forecasts. The broker predicted first half revenue of $16.15bn, EBITDA of $5.94bn and operating profit of $4.93bn.

Rentokil is to merge its pest control and washrooms businesses to cope with 'increasing price pressures', especially in Europe. Profits in the half year to June rose from £8.2m to £30.9m, with underlying profits up 37% to £77m. Revenues fell though, by 2.3% to £1.23bn.

Paper and packaging group Mondi confirmed underlying operating profit for the first half of 2010 will be considerably higher than last year.

Media conglomerate UBM is on track to meet expectations for the full year despite a decline in profit before tax at the half-way stage. Pre-tax profit for the six months ended 30 June fell to £58.1m from £59.5m, but was down 8% at £61.9m before exceptional items. Revenue was little changed at £434.3m. Adjusted operating profit rose 6% to £83.2m.