London midday: No rally for FTSE 100 despite Bundestag vote

29th Sep 2011 12:16

London has failed to join European bourses higher following the passing through the German Bundestag of plans to expand the European Financial Stability Fund (EFSF). There were just 85 votes against the idea of expanding the Eurozone's bailout fund, while 523 members of Germany's parliament voted in favour. The yes vote was widely expected, though it is not clear whether chancellor Angela Merkel suffered the humiliation of relying on opposition votes to secure a favourable outcome.In economic news, the rate of growth in money supply slowed down in the month of August, increasing by £0.5bn, compared to an average monthly increase of £1.2bn in the previous six months, according to the latest data out from the Bank of England.Total lending to individuals in Great Britain increased by £1.0bn in August (0.1% on month, 0.9% on year), below the 6 month average of £1.2bn, according to the latest data from the Bank of England.Miners are under pressure amid weak metals prices on concerns over the effect of the Eurozone crisis on global growth. Ferrexpo is a notable faller after Credit Suisse initiated coverage on the iron ore producer with an "underperform" rating, saying it sees strong growth from the sector but pointing to the strong performance of Ferrexpo's share price lately. It has a 380p target price on the stock.Turning to company updates, sweeteners group Tate & Lyle is in demand after saying it expects to perform in line with expectations over the full year after a strong performance in the six months to 30 September. In the speciality food ingredients division, corn-based speciality sweetener and starch volumes grew in line with the market, the firm said.Struggling package tour firm Thomas Cook takes off after saying summer booking trends in its key markets have remained largely in line with expectations since it last updated the market at the beginning of August, but September has "been a more challenging month," especially for its French business. Underlying operating profit is expected to be broadly in line with market expectations. The company said it is suspending future dividend payments as it seeks to rebuild its balance sheet.Inter-dealer broker ICAP said revenue in the first half of its financial year was marginally ahead of the corresponding period of last year, giving it no cause to amend full-year expectations outlined at the time of his Annual General Meeting in July. Market traders might as well buckle up and prepare for a bumpy ride for the rest of the year if Michael Spencer, ICAP's group chief executive, is correct, as he predicts the recent high levels of volatility in financial markets will continue for the rest of the year. Educational software supplier RM has warned that full year results will fall short of expectations after the usually strong seasonal uplift in the second half failed to materialise. RM said that in previous years, about 60% of revenues were generated in the second half of the year. Shares in Airsprung jumped after the bed and sofa maker announced that Portnard, the holding company of investor Andrew Perloff, had bought nearly 30% of Airsprung's shares, taking its stake to 42.3% and triggering a mandatory offer. The shares were bought at 27p a time, which is the price of the mandatory offer.FTSE 100 - RisersTate & Lyle (TATE) 639.00p +4.33%Smiths Group (SMIN) 989.00p +2.01%Rexam (REX) 316.60p +1.25%Wolseley (WOS) 1,520.00p +1.20%Hargreaves Lansdown (HL.) 463.50p +1.20%Capital Shopping Centres Group (CSCG) 330.50p +1.10%Cairn Energy (CNE) 278.80p +0.83%Unilever (ULVR) 2,016.00p +0.65%Morrison (Wm) Supermarkets (MRW) 286.80p +0.53%Imperial Tobacco Group (IMT) 2,172.00p +0.51%FTSE 100 - FallersMan Group (EMG) 172.70p -4.06%Burberry Group (BRBY) 1,267.00p -3.21%Aggreko (AGK) 1,691.00p -3.09%Xstrata (XTA) 852.20p -3.05%Antofagasta (ANTO) 960.00p -3.03%Fresnillo (FRES) 1,537.00p -3.03%BP (BP.) 390.00p -2.48%Rio Tinto (RIO) 2,986.50p -2.31%Vedanta Resources (VED) 1,127.00p -2.09%Marks & Spencer Group (MKS) 323.70p -1.91%FTSE 250 - RisersThomas Cook Group (TCG) 38.82p +5.17%Yule Catto & Co (YULC) 162.40p +3.90%Afren (AFR) 92.55p +1.48%SThree (STHR) 228.70p +1.37%Laird (LRD) 137.80p +1.32%Wood Group (John) (WG.) 546.00p +1.30%Perform Group (PER) 210.50p +1.20%BlueCrest AllBlue Fund Ltd. GBP Shares (BABS) 171.00p +1.12%TalkTalk Telecom Group (TALK) 128.20p +1.10%Pace (PIC) 101.60p +1.09%FTSE 250 - FallersFerrexpo (FXPO) 278.00p -4.14%Micro Focus International Plc (MCRO) 327.70p -4.04%Rank Group (RNK) 115.50p -3.91%Hochschild Mining (HOC) 434.50p -3.66%Elementis (ELM) 124.70p -3.56%Debenhams (DEB) 56.90p -3.56%Tullett Prebon (TLPR) 340.60p -3.24%Ashtead Group (AHT) 137.90p -3.16%Kesa Electricals (KESA) 83.55p -3.02%Lancashire Holdings (LRE) 711.50p -3.00%