4:30 PM London – The UK stocks decline after disappointing U.S. GDP data and a drop in consumer confidence, fifth monthly decline in a row in July. The financial regulator is ready to expand its authority that covers board remuneration. France based EDF agreed to sell its UK electricity network for $9 billion.

The Irish Central Bank notes euro-zone recovery will be at a gradual pace.

In London, FTSE 100 Index traded lower 11.12 or 0.19% to 5,303.35 and the pound edged lower to close at $1.5612.

Consumer confidence in the UK fell for the fifth consecutive month in July with consumers wary of the outlook for the economy and their personal finances, according to the results of a survey released today.

The consumer confidence index dropped to-22 in July from -19 in June according to the Market research firm GfK NOP with three of the five components deteriorating. The sub-index measuring general economic situation over the next 12 months slid to -25 in July from -12 in the preceding month.

Britain''s Financial Services Authority is planning to update its remuneration code and bring over 2,500 firms under the bounds of the code in order to achieve international alignment.

The financial watchdog said that it will revisit the code to take on board remuneration rules required by the Capital Requirements Directive and the Financial Services Act 2010.

Under the proposed rules, at least 40% of a bonus must be deferred over a period of at least three years and at least 60% must be deferred when the bonus is above 500,000 pounds. Furthermore, at least 50% of any variable remuneration components must be made in shares, share-linked instruments or other equivalent non-cash instruments of the firm.

The euro area recovery is expected to continue but at a more gradual pace than anticipated earlier, according to the quarterly bulletin released by the Irish central bank today.

The Irish central bank said the euro-zone recovery is also expected to remain somewhat uneven. It noted that there are already indications that growth may moderate somewhat in the second half of this year.

A consortium controlled by Hong Kong billionaire Li Ka-Shing agreed to buy the UK electricity networks of French power group EDF Energy Plc for £5.78 billion or HK$ 69.99 billion. In terms of the U.S. dollar, the offer price is $9 billion.

The consortium comprises Cheung Kong Infrastructure Holdings Ltd. and Hongkong Electric Holdings Ltd. in which CKI holds a 38.87% stake. Li Ka Shing Foundation Limited and Li Ka Shing (Overseas) Foundation are also part of the consortium.

The offer is to acquire a group of companies engaged in the distribution of electricity in the UK from EDF and CSW Investments.

The proposed transaction is subject to the approval of CKI shareholders and HEH independent shareholders. It is also conditional upon the approval of the Commission of European Union. The vendors will be paid break fees of £100 million or HK$ 1.21 billion if the shareholder approval conditions are not satisfied and £50 million or HK$ 606 million if the competition condition is not met.

EDF Energy is owned by Electricite de France, one of the largest producers of electricity in the world. The French state owns 85% of EDF.

Gainers & Losers

British Airways plc gained 1.34% to 218.90 pence after the international scheduled airline said revenue for the first quarter declined 2.0% to £1.94 billion from £1.98 billion a year ago quarter. Loss before tax for the quarter widened to £164 million from £148 million in the prior year quarter.

Investec plc declined 1.95% to 497.10 pence after the asset manager and bank reported a slight increase in first-quarter attributable earnings.

Standard Chartered Plc rose 0.03% to 1,861.50 pence after the financial services provider said Standard Chartered Bank would invest $500 million as a cornerstone investor in Agricultural Bank of China Ltd.''s H-Share Initial Public Offering in Hong Kong.