News

There is no shortage of corporate new flow this morning for investors to digest as London blue-chips add to yesterday's gains.

Kazakhstan-focused mining company Kazakhmys is the best performing blue-chip after it reported a rise in third quarter metals production but said it was likely to reduce capital expenditure after recent price falls.

Elsewhere in the sector Lonmin said the short term outlook for platinum and other PGM prices look challenging as it announced lower fourth quarter production figures.

Engine maker Rolls-Royce cruises higher after it said current trading remains in line with market expectations, while the order book has continued to grow with a further £5bn of new orders received since 30 June.

Soaring oil prices helped oil giant Royal Dutch Shell report a better-than-expected 71% jump in third quarter earnings. Third quarter CCS earnings rose to $10,903m in the quarter compared with $6,392m the same period a year ago. Nevertheless, the shares are among the few heavyweight to lose ground this morning. Shell is joined in the do-house by rival BP but oilfield services groups Petrofac and Wood Group are wanted.

Insurer Standard Life is another stock in the red. This morning it claimed to have produced a solid performance in the first nine months of 2008, despite the market turbulence, but warned markets remain difficult. Total net flows across its Worldwide life and pensions operations were 2% lower at £2.3bn, with growth in its international operations offsetting the continued difficult market conditions in the UK.

British America Tobacco's share price revival has run out of puff. The tobacco company said there has been no impact on the cigarette manufacturer from the global economic situation as it saw profits for the third quarter rise. Pre-tax profit for the period increased to £992m from £847m previously with all regions contributing.

Bank Lloyds TSB revealed the permanent appointment of a finance director and announced the executive management team that will lead the group after the acquisition of HBOS. Lloyds has appointed Tim Tookey, who is currently the acting finance director, with immediate effect. As announced previously, Sir Victor Blank will be chairman and Eric Daniels will be chief executive of the enlarged Lloyds-HBOS group.

Anglo Dutch consumer group Unilever said third quarter underlying sales rose 8.3%, at the top end of analyst forecasts, and expects 2008 sales growth, excluding acquisitions and currency movements, to be "well in excess" of 3-5%.

Advertising group WPP reported third quarter revenue growth short of expectations and said it expected 2009 to be a 'very tough' year given the current state of the global economy.

Drug giant GlaxoSmithKline is to increase its focus on the search for therapies for hepatitis C with the acquisition of biopharmaceutical and diagnostics firm Genelabs Technologies for about $57m.

Heavy hints from the Chancellor of the Exchequer that he would like the UK to follow the US in announcing a base rate cut is bolstering demand for housebuilders, with Barratt Developments and Bellway both notching up double-digit percentage gains.

Ultra Electronics announced that Paul Dean will become the defence firm's new finance director when David Jeffcoat retires at the group's AGM in April 2009.

Telecoms billing software firm Intec Telecom said it has decided to terminate all offer discussion.

Car dealer Lookers reported 'challenging trading' in September and said the outlook for the remainder of the year is similar. Noting that the Society of Motor Manufacturers & Traders reported a 21% downturn in the national new car market, Lookers said it had experienced a similar decline.