News

The market is mixed, but gains on index heavyweights in the oil and mining sector push the FTSE 100 higher.

Prudential leads the risers on rumours that the insurance company is considering selling a 20% stake to a sovereign wealth fund to bankroll a bid for part of AIG, its stricken American rival. The story has laid to rest last week's concerns about funding pressures, but those fears linger on for others in the insurance sector, with Standard Life and RSA the two biggest fallers among blue-chips this morning.

Also in the doldrums is Cable and Wireless on reports that it has postponed plans for a demerger until next year because of the turmoil in financial markets. The telecoms provider had been expected to announce it would split its UK arm from international operations on November 10, when it unveils half-year results.

The price of crude oil continues to steadily recover on expectations of a reduction in output by OPEC, the Organisation of Petroleum Exporting Countries. Oil producers BG Group, Cairn Energy, Royal Dutch Shell and BP all respond positively to the trend by heavy fuel user Carnival the cruise operator, sinks lower.

Higher copper prices boost miners including International Ferro Metals and Rio Tinto.

Reports that the private-equity giant CVC has teamed up with Swiss Re, the world's largest reinsurance group, to make a bid for the insurance arm of Royal Bank of Scotland (RBS) has boosted the cash-strapped Scottish bank. The reported bid would value the RBS division, which includes the household names Direct Line and Churchill, at more than £6bn.

Standard Chartered edges higher despite UBS slashing its price target for the bank from 1750p to 1100p on expectations of slower growth. UBS projects weakening demand in Taiwan and Hong Kong for the bank's wealth management services. US broker Merrill Lynch has also cut its price target for Standard Chartered, from 1980p to 1153p.

William Hill jumps after the bookmaker announced an internet partnership and said it saw total gross win rise by 9% in the 15 weeks ended 14 October, which it said was a "good" performance albeit against weak comparatives in the prior year. Cumulative gross wins have increased by 5% in the year to date. The group has also formed a partnership with the online gaming software provider Playtech to create a leading European online gaming and sports betting business. Ladbrokes rises in sympathy.

Lloyds insurer Amlin's estimated claims from Hurricanes Gustav and Ike are $285m, net of reinsurance and reinstatement premiums, cutting forecasts for profit after tax in 2008 by about £45m. The first estimate of claims incurred from this year's hurricane season so far comprises $137m for Syndicate 2001 and $148m for Amlin Bermuda. Amlin reckons the market insured loss for Hurricane Ike will be in excess of $16bn. Its investment return for the nine months to the end of September was 0.4% on average investments of £2.6bn.

Sports Direct, the discount sports retailer owned by current Newcastle United chairman Mike Ashley, has admitted paying £3.4m for 11.9m shares in distressed rival JJB Sports at 28.5p each on Friday. The firm also said it holds long-only contracts for difference (CFD) in respect of 42.9m JJB shares at an average price of 29.05p and has a maximum exposure under these CFDs is £12.46m. Friday's purchase came two days after JJB confirmed it had received an approach for two of its shoe shop chains, Qube and the Original Shoe Company.

Financial trading software specialist Fidessa is cautious over prospects for 2009 despite good progress across all regions with business in line with management's expectations this year.

Shopfitter Styles & Wood has warned lower margins will mean the group only breaking even this year. Revenue for the year ending 31 December 2008 is anticipated to be in line with expectations.

Engineer Senior remains confident about the future despite a looming recession as adjusted profit before tax, and free cash flow came in "slightly" ahead of expectations during the third quarter. Bosses don't expect the strike by Boeing's machinists, who walked out at the start of September, to have any adverse impact on Senior's performance in 2008 if a return to work is agreed before early November.

Radio group UBC Media expects turnover to be 15% lower than the same time a year before as advertising revenues continue to fall.

Car dealer Inchcape is still rolling downhill after Friday's profit warning. Citigroup responded to Friday's gloomy statement by cutting its price target by almost two-thirds, from 300p to 110p, though it keeps it buy recommendation on the stock.

Asset based lender Davenham announced at 4.30pm last Friday that it does not expect to be profitable in the current financial year. It is cutting its workforce by 20% and recommends the withdrawal of its final dividend. In the "interests of clarity", the company re-published the announcement this morning, prompting a loss of around three-quarters of the market capitalisation of the company.

Aga Rangemaster has gone off the boil after the cooker and kitchen appliances maker said operating profit in the second half will be lower than the first half due to the poor trading conditions.