Gilts

Gilts tested two-month highs, tracking bunds which benefited from month-end buying and weak economic data. Both outperformed Treasuries, which were hit by a surprise gain in private sector US payrolls and the Federal Reserve’s extension of liquidity provisions. September gilt futures settled 42 ticks higher at 107.04.

Rumour of the day

Hikma Pharmaceuticals rose 30½p, or 7.8 per cent, to 420p on talk that it was attracting interest from some of Europe’s leading drug groups. No names have been linked with Hikma as yet but analysts and traders reasoned that a number of big players would be keen to get hold of the company’s fast-growing operations in the Middle East.

Deal of the day

David Tucker, a senior independent director at CSR, the Bluetooth specialist, bought 20,000 shares at 271p, lifting his total stake to 120,000. Yesterday the Cambridge-based company’s shares rose 14p, or 5.4 per cent, to 272p, after well-received first-half results on Monday, as brokers upgraded their recommendations.

Bet of the day

Royal Dutch Shell reports second-quarter earnings this morning. This week BP, its great rival, reported better than expected profits buoyed by record oil prices. How will Shell’s numbers compare? Odds of 2-1 are being offered by www.BetsForTraders.com that Shell’s share price is above £18.40 in five market days.

Tiddler to watch

Optare, the bus maker, rose 4½p, more than 18 per cent, to 29¼p after securing its largest deal to date, worth £14.25 million, to supply London General with 94 buses. Combined with other recent deals, the contract further enhances the visability of the group’s order book, with the first delivery expected this year.

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