London midday: Eurozone hopes boost banks

28th Nov 2011 12:18

Stocks markets across Europe are racing ahead and London is no exception, with the top-share index now back above the level it closed at on Monday night. Banks are prominent among the best performers, buoyed by suggestions that progress is being made on the souped-up version of the European Financial Stability Facility (EFSF). Some reports say the Europe Union (EU) finance chiefs are discussing the possibility that the EFSF could insure the bonds of debt-ravaged countries, with guarantees of 20% to 30%. The finance ministers are set to meet in Brussels tomorrow where they will discuss rules for borrowing against the EFSF, and new parameters for intervention in Eurozone bond markets.The German Finance Minister, Wolfgang Schäuble, seemed to capture the zeitgeist in an interview with Berlin-based television station ARD. Schäuble maintained that progress must be made on providing a "decisive" answer to the need to ensure EU member states' budget discipline. The German Finance Minister suggested that treaty changes, to give the European Commission veto power over Eurozone countries' budget proposals, must be implemented and stated that "we can do that quickly and it will send an important signal to markets that the euro is, and remains, a stable currency. "We must work together to set up institutions that can secure trust in the euro. Everything that detracts from that is damaging," according to SchäubleLenders Royal Bank of Scotland, Barclays, Lloyds and Standard Chartered are all sharply higher on the prospect that their losses on European sovereign debt may not now be so severe.A SOAR POINTAlso on the upturn is troubled package tour operator Thomas Cook after it agreed a new financial lifeline with its bankers late last Friday.The 170-year-old company is said to be preparing a publicity barrage trumpeting its new-found financial stability, after bookings reportedly took a dive last week as holidaymakers thought twice about booking through the firm.The previous emergency banking deal arranged by the company on October 21st lasted just over a month before the company was forced to go cap in hand back to the bankers; both shareholders and those who have booked holidays through the company will be hoping the company has got its numbers right this time.Sector peer TUI Travel rises in sympathy, as does British Airways owner IAG.IN A HOLEMiners are firmer, with the notable exception of gold digger Randgold Resources, which has cut its production forecast for the year after running into a number a difficulties at its Tongon mine in Côte d'Ivoire. The company now expects group production for the year to drop from between 740,000 and 760,000 ounces to between 690,000 to 700,000 ounces.Meanwhile, at diversified mining leviathan BHP Billiton, there are to be changes at the top after the surprise announcement of the imminent departure of Alex Vanselow, Group Executive and Chief Financial Officer of the group. He will be succeeded by Graham Kerr, recently President of BHP Billiton's Diamonds and Speciality Products business. Mike Henry, President of Marketing, will join the Group Management Committee as Group Executive and Chief Marketing Officer, reporting to the Chief Executive Officer, Marius Kloppers.ROLLING ALONG Engineer Senior is reducing its dependence on US aeroplane maker Boeing with the acquisition of Airbus-parts supplier Weston. Based in Colne, Lancashire, but with production facilities in Thailand, Weston counts Rolls-Royce, Spirit Aerosystems (Europe) and Contour Aerospace as its biggest customers.As for Rolls-Royce itself, the company and the trustees of its pension fund have come to an arrangement with Deutsche Bank that will see the bank share the burden of pension payments should pension scheme members live longer than expected; the corollary to this is that the fund will have to make payments to Deutsche Bank if members die younger than anticipated. FTSE 100 - RisersBarclays (BARC) 164.95p +5.97%Royal Bank of Scotland Group (RBS) 19.81p +5.71%Weir Group (WEIR) 1,895.00p +5.57%Aviva (AV.) 295.50p +5.39%Vedanta Resources (VED) 975.00p +5.06%Lloyds Banking Group (LLOY) 24.33p +4.92%Kazakhmys (KAZ) 844.50p +4.91%Schroders (SDR) 1,261.00p +4.65%IMI (IMI) 750.00p +4.60%Standard Chartered (STAN) 1,329.00p +4.36%FTSE 100 - FallersRandgold Resources Ltd. (RRS) 6,420.00p -5.24%FTSE 250 - RisersThomas Cook Group (TCG) 24.00p +33.19%Kenmare Resources (KMR) 34.47p +7.95%Ferrexpo (FXPO) 276.70p +7.50%Logica (LOG) 75.25p +6.66%Dixons Retail (DXNS) 10.92p +6.33%EnQuest (ENQ) 90.90p +6.13%International Personal Finance (IPF) 180.10p +5.88%Cable & Wireless Worldwide (CW.) 15.75p +5.85%Talvivaara Mining Company (TALV) 213.30p +5.70%Henderson Group (HGG) 107.80p +5.69%FTSE 250 - FallersDe La Rue (DLAR) 915.00p -2.24%Fidessa Group (FDSA) 1,538.00p -2.10%Electra Private Equity (ELTA) 1,395.00p -1.55%Dignity (DTY) 807.00p -0.68%JD Sports Fashion (JD.) 709.50p -0.49%Anglo Pacific Group (APF) 273.40p -0.44%Restaurant Group (RTN) 283.80p -0.42%Booker Group (BOK) 74.75p -0.40%Galliford Try (GFRD) 470.10p -0.40%Savills (SVS) 283.80p -0.39%