London midday: Dubai gives general boost

14th Dec 2009 12:11

London's bue chips are still posting healthy gains, helped by the decision of Abu Dhabi to bail-out Dubai, its financially embarrassed neighbour.LSE, Standard Chartered and Royal Bank of Scotland are up on the Dubai news, which should lift the cloud of possible huge bad debts hitting the sector. Standard also got a boost from an upgrade by Credit Suisse, which highlighted the low exposure to Dubai as well as the bullish trading update last week.International financial exchange Dubai Bourse has a 20.56% stake in the LSE. Banks that have lent to Dubai World, the stricken conglomerate, will also get some support from the Abu Dhabi central bank.Hotel, pub and coffee shop group Whitbread has frothed higher after saying it expects results for the current year will 'somewhat exceed the top end of market estimates' as sales rallied in the third quarter. Revenues moved forward again in the three months to end November, with total sales up 6.7% and like for like sales rising by 0.3%. In the 39 weeks of the year to date, total sales are up 4.3% and like for like sales down 1.7%.Elsewhere, Dairy Milk and Crème Egg maker Cadbury today recommended shareholders reject the bid from processed foods maker Kraft Food, which it says substantially undervalues the company. The UK confectionary giant said Kraft's offer fails to recognise the value of the group's performance to date and the benefits of completing its 'Vision into Action' plan set out in June 2007.Lloyds Banking has received overwhelming backing from investors for its £13.5bn cash call with a take-up of over 95% of the shares on offer. Analysts had expected a strong positive response as the shares were offered on a 1.34 for 1 basis at 37p each, compared to the ex-rights closing price on Friday of 56p.British Airways has provisionally agreed on the actuarial basis to calculate the deficit in its pension schemes with the trustees, putting the shortfall in the New Airways Pension Scheme at £2.7bn. "The airline and trustees will now work together to develop a recovery plan, a process which will involve the company consulting with employees and their trade unions," BA said Monday. The result of its cabin crew's strike ballot should be known at 2pm today.Distribution and outsourcing firm Bunzl has increased revenue by 11% this year so far thanks to currency exchange rates and remains on course to meet full year expectations. The UK blue chip said underlying revenue for the year to 31 December 2009 is down 1% at constant exchange rates, although that's a little better than the growth rate in the first half of 2009.Shares in PartyGaming jumped on reports of a merger on the cards with Austrian rival Bwin. A tie-up would form a £2bn online gaming giant, the reports suggested.Road and infrastructure support contractor Mouchel today confirmed that it rejected two separate takeover approaches from VT Group. The company said it believes, "these approaches to be wholly inadequate and at a level which substantially undervalues the company." Shares in support services group Spice tumbled again as it revealed a huge loss a write-off of its social housing gas business. A £42.9m write-down sent the billings group into a loss of £31.5m in the half year to October.