London midday: Shares dive but Thomas Cook takes off

3rd Aug 2011 12:01

Stocks are deep in the red this morning as economic worries continue on both sides of the Atlantic.Despite yesterday's deal on the US deficit-cutting plan, analysts are concerned that the ratings agencies may be sharpening their knives, with weak economic figures contributing to fears the world's biggest economy may lose its top rating.Italian Prime Minister Silvio Berlusconi is due to address the Italian parliament today on the economic situation in Italy. According to Italian press reports, Berlusconi might signal an intention to balance the budget earlier than the previously announced target date of 2014. Turning to company news, some stocks are defying the gloom. Struggling travel operator Thomas Cook takes off after it said its chief executive officer Manny Fontenla-Novoa will step down immediately and appointed deputy head Sam Weihagen to temporarily take charge of the company.Investors can see much to cheer in results from Rexam. The world's largest beverage can maker reported sparkling first half profits as better than expected demand for beverage cans in Europe offset the weakness in its plastic packaging unit. For the first-half of the year, total sales were flat at £2.49bn. For the period, organic operating profit for the beverage can segment rose 12%, whereas operating profit for the plastic packaging business fell 2%. In London, Standard Chartered, the bank focused on emerging markets, is going well after it topped market expectations with record first half profits for the ninth successive year. High street retailer Next is flat after announcing that total sales rose 3.2% in the first half of the year, as strong growth in Directory offset a moderate decline in Retail, but rival Marks & Spencer is a top riser in the FTSE 100.Oil exploration group Cairn Energy is unwanted after a disappointing update on progress in its drilling campaign offshore Greenland. Despite the initial promising analysis in the South Ungavva area, the LF7-1 exploration well has not met its target.Evolution Group soared nearly 10% after the wealth management firm said it had received a preliminary approach for the company, but did not disclose the suitor's name. Evolution Group said discussions with the potential buyer are in the "very early stage" and added that it is "far from certain that it will ultimately result in an offer being made." FTSE 100 - RisersRexam (REX) 375.00p +5.99%Marks & Spencer Group (MKS) 344.10p +2.53%Lonmin (LMI) 1,235.00p +2.40%Barclays (BARC) 221.25p +2.08%Severn Trent (SVT) 1,480.00p +2.00%United Utilities Group (UU.) 602.00p +1.86%Admiral Group (ADM) 1,530.00p +1.80%Scottish & Southern Energy (SSE) 1,313.00p +1.78%Vodafone Group (VOD) 171.85p +1.72%Fresnillo (FRES) 1,840.00p +1.49%FTSE 100 - FallersCairn Energy (CNE) 336.50p -4.59%Schroders (SDR) 1,571.00p -3.97%SABMiller (SAB) 2,188.00p -3.85%ARM Holdings (ARM) 551.00p -3.33%Royal Dutch Shell 'B' (RDSB) 2,155.00p -2.97%Schroders (Non-Voting) (SDRC) 1,298.00p -2.92%Glencore International (GLEN) 445.35p -2.86%Royal Dutch Shell 'A' (RDSA) 2,153.50p -2.82%Reckitt Benckiser Group (RB.) 3,306.00p -2.59%Inmarsat (ISAT) 494.00p -2.56%FTSE 250 - RisersDixons Retail (DXNS) 14.07p +5.71%African Barrick Gold (ABG) 517.50p +5.05%Thomas Cook Group (TCG) 63.85p +5.02%Petropavlovsk (POG) 786.50p +4.52%Tullett Prebon (TLPR) 370.70p +4.48%Halfords Group (HFD) 314.40p +3.42%Meggitt (MGGT) 386.70p +2.76%Fidessa Group (FDSA) 1,718.00p +2.02%Rotork (ROR) 1,727.00p +1.89%Cookson Group (CKSN) 608.00p +1.84%FTSE 250 - FallersKofax (KFX) 307.90p -5.84%Kenmare Resources (KMR) 52.00p -4.15%Imagination Technologies Group (IMG) 369.90p -3.92%EnQuest (ENQ) 116.90p -3.55%Morgan Crucible Co (MGCR) 301.70p -3.39%Misys (MSY) 368.40p -3.31%Gem Diamonds Ltd. (DI) (GEMD) 205.30p -3.25%Beazley (BEZ) 123.40p -3.22%Euromoney Institutional Investor (ERM) 649.50p -3.20%Bodycote (BOY) 354.20p -3.17%