London Report: Weakness in the shares of several market heavyweights drove London's blue-chip index lower yesterday.

The FTSE 100 finished 0.7 per cent lower at 4,468.5, while the mid-cap FTSE 250 closed marginally down at 6,163 ahead of the publication today of the minutes of the last interest rate meeting at the Bank of England. Trading volume was 2.8 billion.

BT Group, in high demand last week, slipped 2 per cent to 192p on reports of negative comments from Lehman Brothers.The American bank reiterated that profit should be taken with BT shares at present levels.

Vodafone, the world's largest mobile network, continued to be plagued by worries about stiffer competition. The shares fell 2.2 per cent to a seven-month low of 122¾p as investors pondered the possibility of a price war to match the discounts which 3, Hutchison Whampoa's UK network, is offering new customers.

Shell was 1 per cent weaker at 407½p following a recommendation downgrade by UBS from "buy" to "neutral".

Several banks came under pressure following a report from Merrill Lynch that said changes to accounting rules may hurt profits, reducing restated 2003 earnings for Royal Bank of Scotland and Lloyds TSB by 7 per cent and 8 per cent respectively and by 3 per cent at Barclays. RBS fell by 1.3 per cent to £16.34, Lloyds TSB was off 0.6 per cent at 433¼p and Barclays shed 1 per cent to 483¼p.

The Euro 2004 football competition has helped lift Umbro, the sportswear manufacturer and maker of the England football team kit. Its shares added 6 per cent to 115p on prospects of a significant sales boost.

Enterprise Inns, the tenanted pub company, was up 0.1 per cent at 552½p. England's qualification to the knockout stages ensured its bars were packed. JD Wetherspoon, on the other hand, fell 1.1 per cent to 281½p because it has fewer screens in its pubs.

Proactive Sports, the AIM-listed sports agent which has England striker Wayne Rooney on its books, rose 11.3 per cent to 8.6p following the player's goals against Croatia in the European Championship.

Hopes of consolidation lifted the radio sector. GWR rose 4 per cent to 262p as talk revived of a tie-up with Capital Radio, 1.4 per cent to the good at 497p. Scottish Radio was also 1.4 per cent firmer at 900p. At a Capital Radio seminar, media buyers said they would be open to consolidation if it resulted in a market that was segmented, with one group owning multiple formats. - (Financial Times Service)