G4S leads FTSE lower

The FTSE 100 was led down by security giant G4S in early trading as the company's failure to fulfil an Olympic security contract continued to take its toll.

G4S retreated by more than eight per cent this morning as chief executive Nick Buckles came under increasing pressure over the fiasco.

The world's second-largest private sector employer said it would cover any additional costs related to the contract, estimated to be at least £50m.

Buckles, who has been with G4S for 27 years, will appear before an influential parliamentary select committee this week to explain why his company has failed to deliver the 10,400 security guards it was contracted to do, forcing the government to call up 3,500 extra military personnel as protection.

The second biggest loser on the blue chip index was miner Randgold Resources which dipped by 2.3 per cent.

National Grid, which today launched an attack on the energy regulator over its plans to put limits on how much it can charge for gas and electricity, was off by more than two per cent.

Luxury retailer Burberry - which last week reported slowing sales growth - was down by 2.3 per cent.

Software company Sage was dented by two per cent after issuing an update saying that it was trading in line. However it warned that the impact of the Eurozone's woes on business.

In banking Barclays was down 1.5 per cent while Jerry del Missier, who as chief operating officer had been in a key position when the bank was rigging Libor rates, will be grilled by MPs.

Lloyds nudged down by 0.7 per cent with RBS bucking the downward trend with a 0.1 per cent gain.

The highest climber on the FTSE 100 was insurance buyout specialist Resolution which gained 2.8 per cent.

Engineer Smiths Group nudged up by 1.8 per cent after it received an upgrade to buy from Berenberg bank.

BA owner International Consolidated Airlines Group advanced by 1.2 per cent.

In Asia the Nikkei and Hang Seng closed with marginal gains.

Across the Atlantic later June US retail sales data is due for release.