London open: Footsie makes steady start

29th Jun 2009 08:32

London's blue chips have made a steady start with banks pushing on and insurers making gains. Lloyds and Barclays are both ahead with the new government paper on regulation of the sector likely soon and expected to see a defeat for the ideas of Bank of England governor Mervyn King.Outsource giant Serco said it remains on track to deliver on its 2009 guidance and continues to see significant opportunities in the current challenging economic environment. Vodafone is steady despite reports it is poised to buy the T-Mobile business in the UK if it can get it past the regulatory authorities. National Express is another on the up after a reprot this morning it has received a bid from rival FirstGroup, though again regulatory issues could prove a handicap to any tie-up. Hovis to Branston Pickle maker Premier Foods's trading this year has continued on track, with sales of bread especially described as excellent. The heavily indebted group, which raised £379m through a cash call in March, said sales in May and June were in line with the trends in the first four months of 2009. Aero-engine developer Rolls-Royce has bought a 33% holding in ODIM, a provider of specialist marine handling systems to the offshore oil and gas industry. Rolls-Royce is paying NOK 700 (£66m) cash to Aker Solutions for 15.5m ordinary shares in ODIM, equivalent to NOK 45 per share.Informa warned that half-year organic revenues at its Events and Training unit will be 'considerably' lower as the group continued to reduce volume to protect profitability in the face of weak demand. Despite this, the high variable cost base will mean that the impact on adjusted operating profit margin will be limited.The stock market recovery since March has boosted the fourth quarter performance of investment management firm Hargreaves Lansdown, which now expects full-year results to be ahead of market expectations. Defence group Cobham has landed a big contract to provide communication systems to the US Army. A Cobham-Northrop Grumman team (NGCI) has been selected to provide the VIS-X Vehicular Intercommunication System Expanded for the US Army's Communications and Electronics Command (CECOM). Online fashion retailer Asos produced another year of eye-popping growth, with sales doubling and profits up 93%, though it cautioned its rate of growth could be starting to slow.