News

Footsie is still under after the Dow Jones closed below 8,000 for the first time in over five years, with more bad news on the job front from Rolls-Royce and AstraZeneca adding to the unease.

Rolls-Royce said it will axe around 4% of its workforce in 2009, with 140 likely to go at the engine maker's assembly and test facility in Derby.

"While it is too early to be specific about the precise implications for the number and location of job reductions, the group's current assessment is that in 2009 it will be necessary to implement job reductions across the various sectors and functions of around 1,500 to 2,000 on a worldwide basis, including the reduction announced today," said the group.

Pharmaceuticals giant AstraZeneca has put a temporary block on sales of a rival's generic version of Astra's Pulmicort Repsules asthma treatment.

Miners are also weak on worries over the US economy following a curt in its output forecast from the US Federal Reserve yesterday. Concern that the US car makers may not get a bail-out from the US government is also unsettling metal markets. Vedanta and car auto catalyst specialist Johnson Matthey are weak spots.

Royal Bank of Scotland is the top riser ahead of the vote on its new fund raising next week. Reports suggest chairman Tom McKillop will apologise to investors at the meeting for the near collapse of the bank.

HBOS is going well after Lloyds TSB shareholders approved the merger of the pair yesterday.

Car and bicycle parts retailer Halfords boosted profit by 3% during the first six months, but like for like sales fell 1.1% and have slowed further since the end of the half-year.

Babycare retailer Mothercare saw group pre-tax profit more than double at the interim stage thanks to rapid growth overseas and in the direct sales channel.

Daily Mail and General Trust saw underlying profit drop 9%, but the newspaper group plunged into the red on a statutory basis and admitted the short term outlook remains difficult.

Power provider National Grid is trading in line with expectations and is "well positioned to deliver low risk, organic growth."

Spread better IG Group expects to report a 21% rise in first half pre-tax profits but said that it has seen a rise in doubtful debts during October.

Military decoy producer Chemring said earnings for the year remain in line with expectations, adding that it is confident that its prospects for 2009 are 'excellent'. The group's order book now stands at £409m, up 26% since October 2007.

Temporary power solutions provider Aggreko has been wheeling and dealing, selling one company and buying another.

Supply chain solutions provider Wincanton has agreed to merge its chilled consolidation activities in the UK with Culina Logistics with effect from 28 March 2009.

Oilfield services company Petrofac has completed the refit of the Northern Producer floating production installation within its target schedule.

Electronic payment services group PayPoint has grown interim profits by 6% and traded in line with expectations since the end of September.

Pub group and real ale brewer Young and Co's Brewery said like for like sales on a same outlet basis fell over 3% during September and October and doesn't expect conditions to improve in the short term.