London-Market Open Report

London open: Quiet start for Footsie

Footsie has opened lower despite big gains overnight in the US and Asia and also a well-received trading update from Vodafone.

Vodafone said revenue rose 9.3% in the quarter to June, helped by positive exchange rate movements and M&A activity. The group also said it is trading in line with management's outlook issued in May 2009 for the current financial year. Revenue rose from Ł9,828m to Ł10,74m in the quarter to June.

Water supplier United Utilities is on course to continue its dividend payment policy after a successful year in a challenging economic environment. The day after regulator Ofwat outlined its proposals for all the water companies’ price plans over the next five years, United said recent trading has been in line with expectations.

South African private bank Investec continues to navigate a “steady” course through the “uncertain” global environment, maintaining profitability across the group in the first quarter. Net operating income for the quarter to 30 June 2009, after expenses and minorities but before impairments on loans and advances, fell 12% from the same time last year.

National Express's main shareholder, Spain's Cosmen family, was today linked with a bid for the troubled rail and bus group in conjunction with CVC, the private equity group. The Cosmen's own 18.5% of National Express and sent a letter to the board three days ago, according to the FT this morning. Any deal would value the debt-laden transport group at more than Ł500m, the paper said.

Yell has continued its strong rally after yesterday's statement that revenue and earnings in the second quarter of 2009 were slightly ahead of guidance.

VT Group will pocket Ł250m after the defence firm agreed an extension to a couple of government support contracts. An option has been exercised to extend VT's engineering and communications framework contract with a government agency by five-years to 2015. Training and soft facilities management support agreements with the Royal Navy, run by VT’s Flagship training business, will also keep going, extended from June 2011 to December 2011 and April 2013 respectively.

Westminster Group is to build a high security perimeter ‘intruder detection system (PID)’ to protect the Nigerian Communication Satellite Ltd’s main operating base station in Nigeria.