London open: Blue chips struggle

26th Jan 2010 08:49

Footsie has fallen again in early dealing with miners again under pressure on worries about overheating in China and the possibility its government will slam the economic brakes on.The big mining names are all lower this morning. Rio Tinto, Anglo American and Lonmin are the worst affected, but falls are widespread.There is little to offset the mining sector weakness. Power groups International Power and National Grid are higher, as is airline British Airways but the rises for all three are small.Severn Trent says the decline in consumption by non-residential customers tailed off in the fourth quarter. The company estimates that the cutback in consumption will now result in a year on year fall in revenue of around £5m to £10m in the current financial year, compared to its previous estimate of a £15m to £20m fall.Business management software provider Sage Group has seen no sign of a market recovery yet as it posted an in-line trading update.Soap manufacturer PZ Cussons managed to post a sharp rise in profits despite flat revenues in the year to November 30. Pre-tax profits climbed by 28% to £44.7m from £34.8m the previous year as revenues edged up to £369.9m from £367.2m.Healthy banknote demand has meant a strong few months for De La Rue despite tough trading conditions for its cash processing arm. Mezzanine finance provider Intermediate Capital has seen a 'material' improvement in prospects for realising its investments with the recent pick-up in equity and bond markets and is now lending again.In one of the year's more off the wall announcements toy maker Character Group has said it is to launch a collection of official Michael Jackson dolls later this year. Two figures based on the singer, who died in controversial circumstances in June 2009, will be launched in August with another two designs set to be unleashed in time for Christmas. FTSE 250 oil company JKX Oil & Gas is to raise £37.8m through a share placing. The company is increasing its issued ordinary share capital base by about 9.1% through the issue of 14.26m shares at 265p each. Struggling global payments provider Earthport is trying to grab itself a lifeline with a placing of up to 7m shares at 12.5p to raise £875,000. Directors are subscribing for 1.88m shares.