London close: Footsie drifts lower ahead of Greek vote

4th Nov 2011 17:00

Things were going relatively swimmingly in London, until US jobs data prompted some investors to bank profits ahead of this evening's vote-of-confidence vote in the Greek parliament. The vote could be 'make-or-break' for prime minister George Papandreou. Many leading politicians in Greece have called for him to resign, after he decided to hold a referendum on the nation's latest bailout, which was subsequently scrapped: "I repeat I am not interested in being re-elected but just in saving the country," he said in Parliament.RESULTS ROUND-UPIt was an unusually busy Friday for results. Big news today was the third quarter results from Royal Bank of Scotland (RBS), which made a profit before tax of £2,004m in the third quarter of 2011. This compares to a £1,560m loss at the same point in 2010. Nomura said that there were "no negative surprises" and the figures came broadly in line with its forecasts. "The strengthening of the balance sheet has continued. Against the currently volatile operating environment this may prompt some positive relief," the broker said. This positive relief could be seen in the share price on Friday, which jumped early on. The worst performer of the day was International Airlines Group, which agreed in principle to buy the UK-based airline from Deutsche Lufthansa. The price has not been revealed. The deal, which is subject to due diligence and regulatory clearances, is expected to be completed in the first quarter of next year. The airline said revenue in the third quarter of 2011 rose 2.2% to €4,490m from €4,392m the year before. Passenger revenue was up 2.9% year-on-year, while cargo revenue was up 0.3%. "Our revenue is up 2.2 per cent in the quarter driven primarily by volume. However, high fuel costs continue to have a significant impact on our business. This quarter fuel costs are up 23.7 per cent, compared to last year, while non- fuel costs are flat," revealed IAG's chief executive, Willie Walsh.Millenium & Copthorne Hotels, which owns and manages over 100 hotels globally, saw a sharp drop in its share price this morning following a warning over future revenues. Third-quarter figures from Lancashire Holdings were rosy, with the insurance broker admitting it got off fairly lightly in the Atlantic wind season. Profit before tax retreated to $79.0m from $107.6m last year, but that did not stop the board from recommending a special dividend payment of 80 cents, although, in the circumstances, it was understandable that this failed to match the $1.40 special dividend announced with the third-quarter results last year.ANGLO-AMERICAN GETS THE BEERS INIn a deal rich in historical significance, mining giant Anglo-American has acquired a controlling stake in the diamond producer De Beers for $5.1bn from the Oppenheimer family. The acquisition of the 40% stake takes Anglo's holding well above the 50% mark.Elsewhere in the mining sector, Xstrata was down in the dumps after it revealed it is to sell $3bn worth of bonds, which it plans to use to repay debt and for general corporate purposes.FTSE 100 - RisersARM Holdings (ARM) 645.00p +7.14%Essar Energy (ESSR) 312.10p +1.89%Ashmore Group (ASHM) 335.60p +1.88%Land Securities Group (LAND) 691.00p +1.77%Antofagasta (ANTO) 1,211.00p +1.76%Morrison (Wm) Supermarkets (MRW) 312.20p +1.66%Kazakhmys (KAZ) 951.00p +1.60%Imperial Tobacco Group (IMT) 2,286.00p +1.60%Marks & Spencer Group (MKS) 323.50p +1.41%Aggreko (AGK) 1,787.00p +1.30%FTSE 100 - FallersInternational Consolidated Airlines Group SA (IAG) 156.90p -6.83%ICAP (IAP) 350.40p -4.89%Inmarsat (ISAT) 463.10p -3.42%Man Group (EMG) 140.00p -3.25%SSE (SSE) 1,314.00p -3.17%InterContinental Hotels Group (IHG) 1,087.00p -3.12%Xstrata (XTA) 1,002.00p -2.86%Kingfisher (KGF) 262.50p -2.78%Cairn Energy (CNE) 291.90p -2.70%Legal & General Group (LGEN) 105.70p -2.49%FTSE 250 - RisersGem Diamonds Ltd. (DI) (GEMD) 220.00p +6.85%New World Resources A Shares (NWR) 513.00p +5.77%Lancashire Holdings (LRE) 740.00p +4.23%Salamander Energy (SMDR) 204.50p +4.07%BTG (BGC) 285.40p +4.05%Phoenix Group Holdings (DI) (PHNX) 517.00p +4.02%RPS Group (RPS) 189.10p +3.79%FTSE 250 - FallersAfren (AFR) 81.90p -5.92%International Personal Finance (IPF) 225.00p -5.74%Ocado Group (OCDO) 88.25p -4.70%Home Retail Group (HOME) 91.00p -4.41%Talvivaara Mining Company (TALV) 226.90p -4.10%Thomas Cook Group (TCG) 47.67p -3.95%Heritage Oil (HOIL) 205.20p -3.62%--jh