News

Footsie has failed to keep its head above the 4,500 mark despite expectations of a strong start on Wall Street, where the Dow Jones is forecast to open around 190 points higher.

Miners remain in demand after China announced a £375bn stimulus package to boost domestic demand in its economy as new business from global customers begins to falter.

Rio Tinto, Xstrata. BHP Billiton and Anglo American all notch up double-digit percentage gains.

South African miner Lonmin is also sharply higher despite being added to Goldman Sachs's "conviction sell" list. Goldman Sachs expects Lonmin's earnings to tail off as platinum prices remain depressed.

Multi-national bank HSBC is subdued after warning this morning that current trends point to further deterioration in trading conditions in the "near to medium term." The banking giant said third-quarter pre-tax profit was higher than in the corresponding period of 2007, although profits over the first nine months of the year were down.

Elsewhere in the sector Royal Bank of Scotland and Standard Chartered give up ground, with sentiment hit by news of Banco Santander's €7.2bn rights issue. The Spanish bank, owner of Alliance & Leicester and the Bradford & Bingley savings business, is raising funds to shore up its capital position.

Mortgage lender HBOS has rejected the efforts of two former banking executives to block the takeover by Lloyds TSB Group. Sir Peter Burt and Sir George Mathewson sent a letter over the weekend calling for the resignation of HBOS chairman, Lord Stevenson and chief executive Andy Hornby.

Property company Land Securities is friendless ahead of results this Wednesday. The Sunday Times reports that the company is expected to put its demerger plans on hold and will announce a 20% dive in its net asset value.

Retail giant Tesco is another heavyweight in the red after releasing sales figures for the 10 weeks to 1 November for its Asian operations. Like-for-like sales at its South Korean stocks are down 2% on a year earlier, after being flat in the preceding six months, while China has seen like-for-like sales growth slow to 8% from 14%. Malaysia is a bright spot, however, with like-for-like sales growth improving to 2% from 1% in the six months to 8 September.

Improved margins and lower operating costs helped telecoms group Cable and Wireless report a 26% rise in underlying pre-tax profits, though the group has postponed its planned demerger.

Drug giant AstraZeneca says data from a new study shows cholesterol-lowering drug Crestor significantly reduced heart problems. Cardiovascular events fell by a 44% compared to placebo among men and women with elevated hsCRP but low to normal cholesterol levels.

Property firm Hammerson reports its balance sheet remains strong, adding that it is in a good position to weather the current environment. However, the group does not anticipate that any major new developments will start before the end of 2009. Borrowings were £3.06bn at 30 September and cash balances were £73m to give net debt of £2.99bn.

Security firm G4S said strong trading performance in the first half of has continued adding that it is confident of delivering EPS growth in the year. The group also said actual performance has also benefited from the recent strength in the euro and the dollar.

Housebuilder and contractor Kier reports a good start to the new financial year with first quarter trading in line with expectations. "Our construction division has made a strong start to the new financial year with a high level of revenue achieved in the first quarter," Kier said, though it added markets are mixed.

Dairy foods group Dairy Crest warned adjusted profit before tax for the year to 31 March 2009 will be approximately 10% below last year. The group made the comments as it announced half year profits fell 7% to £28.4m on turnover that rose 6% to £808.2m.

Russia-focused Imperial Energy gives back some of the sharp gains made on Friday when investors may have jumped the gun on regulatory clearance for the bid from Indian company Oil and Natural Gas Corporation. ONGC said some regulatory hurdles still remain, including a ruling from Moscow that Imperial's assets are not considered strategic. ONGC is bidding 1250p for Imperial Energy.

FTSE 100 - Risers
Anglo American (AAL) 1,568.00p +16.15%
Xstrata (XTA) 1,235.00p +15.64%
Rio Tinto (RIO) 2,990.00p +14.21%
BHP Billiton (BLT) 1,147.00p +13.00%
John Wood Group (WG.) 245.00p +12.90%
London Stock Exchange Group (LSE) 666.50p +10.62%
Invensys (ISYS) 155.50p +10.44%
Lonmin (LMI) 1,197.00p +9.72%
Vedanta Resources (VED) 825.50p +8.69%
Antofagasta (ANTO) 403.75p +8.61%

FTSE 100 - Fallers
Legal & General Group (LGEN) 83.80p -50.71%
Royal Bank of Scotland Group (RBS) 62.00p -3.12%
Standard Chartered (STAN) 911.50p -3.03%
Land Securities Group (LAND) 1,078.00p -2.36%
British Land Co (BLND) 608.50p -1.93%
RSA Insurance Group (RSA) 140.50p -1.89%
Hammerson (HMSO) 686.50p -1.79%
Liberty International (LII) 645.50p -1.45%
Tesco (TSCO) 339.00p -1.22%
Kingfisher (KGF) 124.80p -0.87%