London midday: BP bounces back

11th Jun 2010 12:27

Though miners and banks are in the doldrums the market is making headway and, unusually, the advance is being led by BP. The oil giant yesterday reported the amount of oil it is capturing from the Gulf of Mexico leak has risen to 15,800 barrels per day, but as fast as it is improving the rate at which it is collecting the oil, so the estimate of how much is leaking is also climbing. The latest upward revision indicates that the well is leaking to up to 30,000 barrels a day according to the US Geological Survey.On the financial front, UK fund managers are now telling US president Obama to back off in his verbal attacks on the company, while David Cameron will talk to the US president abut the situation next week.Meanwhile embattled BP chief executive Tony Hayward told the Wall Street Journal that "all options" are being considered regarding the dividend.In economic news, manufacturing output unexpectedly fell in April, suggesting that the economic recovery is struggling to gain momentum. Figures from the Office of National Statistics show a 0.4% fall in manufacturing production in April. Analysts hade been expecting a 0.5% rise after a 2.2% rise in March.Reed Elsevier was one of the morning's bright spots after Morgan Stanley upgraded the publishing group to "overweight" from "equal weight". Home Retail, meanwhile, claws back some of yesterday's losses even though Citigroup has reacted to the retailer's disappointing figures on Thursday by slicing its target price for the stock.BHP Billiton chairman Jac Nasser has written to shareholders to restate the mining giant's opposition to the new super tax on the mining industry proposed by the Australian government. He said meetings with government representatives since the controversial plan was first announced on 2 May have been about how the tax would be brought in, not about its "major design features (and flaws)". Nickel and zinc miner Talvivaara Mining has got its second production line up and running at its metal recovery plant. The production line is currently operating well and will be ramping up towards its full capacity during the upcoming months, the company said.Underwriters are a strong sector after Brit Insurance last night rejected a £10 per share indicative takeover approach from US private equity firm Apollo saying it significantly undervalued the group. Rivals Catlin and Amlin are up in sympathy.Pub group and brewer Fuller's is cheering even before the World Cup starts. The London-based group posted record profits last year as its managed pubs and hotels pushed forward with its brewing business also going well. Profits in the year to March jumped 86% to £26.8m, with underlying profits 17% ahead at £26.6m - well ahead of market forecasts. Bury St. Edmund's based brewer and pubs group Greene King meanwhile has bought four freehold pub restaurants from cash constrained competitor Punch Taverns for £5.3m. The pubs which are located in "highly attractive, food-led, destination sites in Aberdeen, Northampton and Nottingham," Greene King said.Real estate investment trust Hammerson has bought a long leasehold on Leadenhall Court, a City of London office building, for £65m including transaction costs. The building is fully let until March 2014. Passing rents are £7.16m per annum reflecting an initial yield of 11%.FTSE 100 - RisersBP (BP.) 392.00p +7.25%Home Retail Group (HOME) 236.60p +3.64%Reed Elsevier (REL) 498.70p +3.14%Cable & Wireless Worldwide (CW.) 87.50p +2.94%British Airways (BAY) 200.30p +2.82%International Power (IPR) 307.70p +2.43%London Stock Exchange Group (LSE) 615.00p +2.41%InterContinental Hotels Group (IHG) 1,167.00p +2.28%TUI Travel (TT.) 225.30p +2.22%Thomas Cook Group (TCG) 201.20p +2.13%FTSE 100 - FallersStandard Chartered (STAN) 1,614.50p -2.09%Aggreko (AGK) 1,445.00p -1.90%Lloyds Banking Group (LLOY) 54.93p -1.75%Royal Bank of Scotland Group (RBS) 42.54p -1.44%Invensys (ISYS) 275.10p -1.43%Antofagasta (ANTO) 860.00p -1.38%Old Mutual (OML) 108.90p -1.09%SABMiller (SAB) 1,936.00p -0.97%British Land Co (BLND) 454.00p -0.92%Amec (AMEC) 815.50p -0.73%