FTSE flat as Europe concerns linger - Reuters

* FTSE up to 0.1 %

* Banks fall as S & P warns of future problems in Europe

* Vodafone sheaths on India Essar deal

(London, July 4 Reuters) - to Britain's top share index made little progress Monday as a warning by rating agency S & P on the potential problems in the euro weighed on banks in particular area and took steam index recent sharp rally.

Index of blue chip of London in the face of 6.08 or 0.1%, to 5,995.84 points.

The index posted its best weekly percentage gain in nearly a year, 5.1 per cent last week, after the Greece approved an austerity plan that will pave the way to a slice of new Rescue Fund.

However the euro debt crisis is far from completion and ratings agency S & P provided a stark reminder to investors of the challenges that still faces the region.

S & P warned the Greece would probably be in default if he followed a debt rollover plan pushed by French banks, deepen the pain of a rescue that a European official said would cost jobs and sovereignty of Athens.

The uncertainty has prevented the benchmark FTSE 100 UK for the accounting of the greater gains with investors happy lock profits in banks, which led the gathering of the latter.

Integrated and minor oil sectors consolidate recent gains as some risks too decreased appetite.

"There is an element of profit taking which crept in a S & P comments will be cooked by investors and pris taken into consideration, said Keith Bowman, analyst actions to Hargreaves Lansdown."

VODAFONE RELIEF

Heavyweight Vodafone, up to 0.4%, loaned to the momentum after announcement agreement awaited redeem its Indian partner their mobile joint venture Essar 5.46 billion, putting an end to a very tense relationship.

Credit Switzerland said that he sees scope for a resumption of the performance of the European sector of telecommunications on 2Q results period, stressing its part superior UK chooses as BT Group, Vodafone and Inmarsat.

Software firm autonomy added 1.2% after the Espirito Santo Investment Bank published an optimistic note on the firm saying that he still saw scope for upside targets of the synergy of the acquisition of Iron Mountain digital assets while investors remain skeptical on its warning of profit.

Aggreko temporary power provider was 1 per cent after Citigroup raised its forecast revenue of the company.

The FTSE load delay around 6,000, analysts said the attention of investors will soon turn to the season in the second quarter earnings to the United States.

"The General view of the fund managers we talked to, is that struck equity assessments their depressions in June, said Lothar Mentel, investment officer head to investments of Octopus, which manages the 2.5 billion pounds (4 billion dollars).".

"Earnings positive reporting season and therefore a third-quarter rebound in global economic activity should see equities are more gains."

In the short term however, volumes have should be light Monday that the fairness of the United States market is closed for independence day.

On the domestic macroeconomic plan, construction of CIPS/Markit June UK PMI, will be published at 0830 GMT.

The main objective this week should be the decision of interest rate of the latest Bank of England, due Thursday, although the British monetary policy should once again without change. (Editing by Sophie Walker)

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