Gilts
British gilts and interest rate futures rose yesterday as fears of further financial sector losses boosted safe-haven assets and after a hefty US interest rate cut in the previous session. The March long gilt future gained 65 ticks to 110.54, while yields on ten-year benchmark government bonds rose by seven basis points to 4.47 per cent.
Rumour of the day
Stagecoach Theatre Arts, operator of performing arts schools for children, was steady at 49p after strong results. It is thought that research house Hardman & Co is set to raise profit forecasts. Stagecoach alumni include Jamie Bell, the Billy Elliot star, and Emma Watson, who played Hermione Grainger in the Harry Potter films.
Deal of the day
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Bob Auckland, finance director of Offshore Hydrocarbon Mapping, bought 22,500 shares for his pension plan, giving him 40,000. The shares plunged from 175p last week after it warned of not having enough orders for its electromagnetic mapping technology to keep its two ships and crews busy exploring the sea floor. They closed up 2p at 96½p yesterday.
Bet of the day
With BNP Paribas declaring an interest in buying Soci?t? G?n?rale, Ladbrokes is offering odds of 5-4 that it will win control, with evens that the troubled French bank will remain independent. Cr?dit Agricole is at 9-4, Credit Suisse 4-1 and Barclays 6-1. The bookie believes a domestic takeover has more chance than a foreign one.
Tiddler to watch
Prodesse Investment, the specialist investor in government bonds, gained 11¾p to 434½p after the Fed cut rates on Wednesday. Lower interest rates mean a higher dividend since it borrows at the Fed rate and income is earned from interest on bonds bought when rates were at higher levels. It pays out 100 per cent of earnings as dividends.