Gilts
Gilts fell after a sharp jump in inflation fuelled expectations that the Bank of England may raise interest rates sooner than thought. Short-dated gilt yields leapt by as much as 12 basis points, the long-gilt future shed a full point in price and the yield spread between ten-year gilts and bunds hit its highest level in more than two years.
Rumour of the day
Shares in Earthport sank 2¼p to 12½p as rumours spread through the City that the international money transfer business was in financial difficulties. The speculation suggested that James Bergman, its chief executive, had resigned and that the group was on the brink of failure, although no specific details emerged. Earthport could not be reached for comment.
Deal of the day
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Computacenter eased 1p to 304p despite Microscope, a trade paper, reporting that the group had signed a five-year product supply deal with BP, the oil group. Computacenter will become one of BP’s Global Reseller Partners and supply all its kit in Europe starting next month. The company had hinted at a big deal in its latest trading update.
Bet of the day
City analysts seem to think that William Hill, down ½p at 185½p, weathered a storm of punter-friendly results at the start of the Premier League season, but will the recent snow, which cancelled race meetings across the country, be an issue when the bookie gives a trading update today? ShortsandLongs.com has a rolling spread of 183.7p-184.6p.
Tiddler to watch
Red24 rose 0.38p to 7.62p after the security group signed a three-year deal to provide a North American-based assurance company with kidnap and ransom consulting services. The group looks set for a busy 2010 and will advise Hogg Robinson on security at this summer’s football World Cup finals in South Africa.