UK inflation measured by the Consumer Prices Index (CPI) remained steady in July at 1.8% from the previous month, Office for National Statistics figures show.

Friends Provident's board has recommended shareholders accept the latest acquisition offer from Resolution.

In the US, the largest stocks began a retreat after weeks of gains with the benchmark Dow Jones down 19.34 points to 9,350.73 in early exchanges.

The FTSE 100 has fallen sharply in opening exchanges following reports Lloyds may tap shareholders for funds to reduce the cost of participating in the Government's toxic asset scheme.

On Wall Street, markets were slightly up after a turbulent start to trading after some positive jobs data was released.

Aviva has made a profit of over £700m in the first half of the year but has slashed its dividend to just 9p.

Standard Life's underlying profits before tax fell 86% over the past year, though its dividend has been increased.

US shares gained as investors took heart from better-than-expected US GDP numbers showing the pace of economic decline is slowing.

London's FTSE 100 index stalled this morning after reaching its highest point for almost seven months on Thursday.

On Wall Street, shares surged forward in early trading on the back of positive earnings reports for a number of big-name companies across the world.