News

Footsie is sitting just above the zero mark, helped by a strong performance by banks after Barclays has announced plans to raise £4.5bn at only a modest discount to the current share price.

A group of Middle East and Far East investors are backing the deal with existing shareholders also able to give the bank some more cash, at 282p a time, if they want to. Other banks are up in line, with Royal Bank of Scotland and HBOS also doing well.

Rexam is doing well after Credit Suisse raised its rating on the can maker to 'outperform' from 'neutral' in anticipation of a return to growth following a sluggish two years.

In commodities, oil stocks are doing well in line with higher crude prices, but miners are lower led by Xstrata as metal prices fall. Anglo American, Rio Tinto, Lonmin, BHP Billiton and Kazakhmys are also among the 10 heaviest fallers.

Bradford & Bingley, the embattled mortgage bank, is also going well on a report it is close to agreeing to open its books to Resolution. The Times says executives in the buy-to-let lender will convene a board meeting in the coming days at which they will grant Resolution due diligence on the same terms as TPG, the American buyout firm. The mortgage lender was also boosted by Morgan Stanley upgrading the bank to 'equal-weight' from 'under-weight'.It also lifted its price target on the stock by 50% to 75p.

Pub groups have rallied after Punch brought forward its trading update to last night. Punch said its balance sheet is strong, business performance is in line with expectations and it remains confident of meeting full-year profit expectations. Enterprise Inns and Mitchells & Butlers are both up in sympathy.

Bus and train group Stagecoach upped its full year dividend by 32% after good performances in both its core divisions helped it lift underlying profits to £174.4m from £162m in the year to April. Pre-tax profits fell to £167m from £184m. Revenues over the year rose 17% to £1,76bn. Stagecoach added it had made a good start to the new financial year.

Kesa Electical fell back after JP Morgan cut its price target on the electrical retailer to 200p from 240p, but kept its 'overweight' rating on the stock, following Tuesday's results.

Car dealer Inchcape reports total sales for the five months to May were up 6.3% in sterling terms and in line with the same period last year in constant currency. Like-for-like sales in constant currency were 1.4% ahead of the prior year. Pre-tax profit for the first five months was up 9% in sterling terms and in line with the same period last year, albeit with the UK and European markets experiencing a slower May after a buoyant April.

Engineering consultant WS Atkins lifted full year profits by 31% to £91.9m from £70.1m on revenues up by 11% to £1.31bn. " Our markets remain strong and as the group continues to improve its services we are confident that the group will achieve further good progress in the year," it added.

Powered access platform specialist Lavendon reports revenues for the five months ending 31 May 2008 have increased by 37% compared to the same period last year, with operating margins continuing to improve. "The group continues to trade in line with our expectations," it added.

Flomerics's hopes for a white knight to see off a bid from Mentor have taken a dent as US firm Autodesk decided against making a rival offer.