News

The overnight rally by Asian markets had London in good heart at the outset, with prices powering ahead, helped by a spate of generally positive upbeat announcements on the company news front.

Insurer Aviva is the best performing blue-chip after reporting a "robust" performance during the nine months to 30 September, with life new business sales up 3% on last year to £29.05bn. The stock is expected by Credit Suisse to out-perform. Elsewhere in the sector positive broker comment lifts Admiral Group, rated "overweight" by Morgan Stanley, but Legal & General falls back.

Asia-focused bank Standard Chartered also boasts a double-digit percentage gain after it reported strong progress during the third quarter and said it remains confident despite slower economic growth in the continent. Asian economies remain resilient with economic growth rates well above those in the West, Standard Chartered said.

Higher production and soaring oil prices helped oil giant BP post a 148% rise in replacement cost profit in the third quarter to $10bn. BP said higher output came in spite of operational upsets, including hurricane damage in the Gulf of Mexico and interruptions to output from its Caspian fields. "

Oil explorer BG Group agreed to buy Australian firm Queensland Gas Company (QGC), valuing the firm at around £2.2bn. BG will pay AUD$5.75 per share, an 80% premium on the closing price on Friday, for the shares it does not hold in the group. It already owns 9.9% QGC.

Oil and oil-related stocks such as Cairn Energy and Petrofac are higher, but miners are mixed; Xstrata, Rio Tinto and BHP Billiton all advance but ENRC, Kazakhmys and Lonmin retreat.

Assets under management fell 12% in the three months ended 30 September at fund manager Schroders, which warned that asset management revenues will "inevitably" fall further. The firm expects the challenging background to persist through most of 2009, although it is reducing its cost base which will partially offset the slide in revenue.

Carpet and flooring specialist Carpetright said management have become more cautious about expectations for the full year as trading continues to be poor. The group said trading in October has been above the year to date trend but it was still weak overall.

Microchip designer ARM Holdings posted record quarterly revenue during the three months to 30 September and said it sees fourth quarter dollar revenues at least in line with expectations.

Bus and rail firm Arriva said the outlook for 2008 continues to be positive with revenue and earnings growth for the year being anticipated in line with management expectations.

British biotechnology firm Summit Corporation watched interim pre-tax losses increase to £7.9m from £4.3m in 2007.

Bermuda based insurance company Hardy Underwriting said results for the full year so far are promising despite claims from hurricanes Ike and Gustav. The combined estimate of ultimate claims for Ike and Gustav, after reinsurance and reinstatement premiums, is $23m.

Aquarius Platinum said negative metal price revenue adjustments resulted in the South Africa-focused miner to post net losses in the quarter. For the quarter to 30 September 2008, revenue was $106m after being hit by the impact of negative $71.9m sales adjustments due to significantly weaker PGM prices.

Higher platinum production at Sylvania Resources in the three months to September 30 failed to offset a sharp downturn in prices for the precious metal.