London open: Modest start after yesterday's party

5th Nov 2010 09:00

Footsie has posted more gains but some of yesterday's euphoria has worn off after a mixed day so far for the banks.Part-nationalised bank Royal Bank of Scotland saw a 10% increase in its core operating profit in the third quarter over the preceding one. Core operating profit, excluding fair value of own debt (FVOD), climbed to £1,732m. The company took an £858m charge in respect of FVOD.HSBC, meanwhile, warned the pace of growth in emerging markets is slowing and recovery from recession may take longer than in previous downturns. "Our latest data from emerging markets points to a slowdown in the rate of recovery and the likelihood of some bumps in the road ahead," the banking giant said.Oil giant Shell has agreed to sell stakes in six Gulf of Mexico oil and gas fields for $450m (£280m) as it seeks to invest in 'more promising' growth opportunities. It is selling the Tahoe, Southeast Tahoe, Droshky, Marlin and Dorado fields and a Gulf of Mexico producing shelf property to W&T Energy for $450m.A good performance from its orthopaedics business helped wound care and artificial joint maker Smith & Nephew over the past three months. Revenues in the quarter to September rose by 4% to $941m, compared to $915m in the same period last year. Pre-tax profits rose to $201m from $173m while trading profit in the quarter was $215m, representing underlying growth of 4%.Mobile phone retailer Carphone Warehouse is to start paying a dividend after raising its full year earnings forecast on the back of a strong performance from its US operations. It is raising its full-year earnings per share estimate to 13.5p to 14p from a previous range of 11.5p to 11.9p and said it intends to move to a regular dividend policy with a target of about 4.5p a share to be paid in August 2011. Rentokil has cut its forecast for cost savings this year after more losses and a deteriorating trading picture at its courier arm City Link. The services group kept its earnings guidance for the year unchanged, though, after a strong quarter for its rat catching division. Funeral home operator Dignity said its businesses continued to perform in line with expectations in the third quarter of 2010. The company saw a 5.8% increase in revenue to £145.2m for the first 39 weeks of the year from £137.3m in the corresponding period of 2009.