London's blue chips have confounded predictions of a weak start and made an encouraging start despite the huge rights issue unveiled by life insurer Prudential. Much of the news from the Pru was leaked beforehand, but an 11-for 2 rights issue still represents an eye-watering amount of new shares in issue especially as a number of shareholders still seem far from convinced that using the £14.5bn being raised to buy AIA in Asia is a good idea.
Currencies will be in focus after the trouble for the euro last week, but the rise and rise of gold is helping RandGold Resources, which is today's best performer so far.
BP is also up on reports it may have stopped some of the Gulf oil leak. BP said some 151,000 barrels (6.3m gallons) of oily liquid have been recovered so far.
Hedge fund manager Man Group has agreed to buy New York-listed rival GLG Partners for $1.6bn. Man will pay $4.50 a share in cash to public stockholders of GLG, representing a premium of around 55% to Friday's closing price. The combined group would have about $63bn of funds under management. The deal is expected to be earnings accretive in the financial year ending in 2012 and earnings neutral in the financial year ending in 2011.
No-frills airline Easyjet is sharply lower after the boardroom discontent that has been simmering for months burst out of Friday. Founder Sir Stelios Haji-Ioannou and his associate Bob Rothenberg have resigned from the airline's board in order to change the strategy of the business.
Builders merchant Travis Perkins is pleased with progress during the first four months of 2010 and says current trading is ahead of management expectations.
Storage group Big Yellow swung into the black for the full-year and said it has seen an improving level of demand since spring last year. The group made a profit before tax for the year to 31 March of £10.2m compared to a loss of £71.5m before. Record volumes and higher cream prices in the second half have produced a “very satisfactory” set of full-year results at Scottish dairy group Robert Wiseman. Turnover rose 4.5% to £886.2m and sales volumes leapt 9.1% to a record 1.77 billion litres, sending profit before tax up 60% to £49.2m, boosted by cream prices and a £1.9m cut in the OFT’s price-fixing fine.
Services group Mitie revealed a 17% rise in annual pre-tax profit, increased its dividend and says it is confident on delivering sustainable profitable growth. Profit rose to £91.7m for the year ended 31 March 2010 from £78.4m the year before. Revenue for the year increased 13% to £1.720bn
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