Gilts

Gilts jumped, pushing yields to their lowest in four months, as weak economic data bolstered the market’s safe-haven appeal and prompted investors to bet on cuts in interest rates. The September gilt future was 89 ticks higher at 109.86, having hit a contract high of 110.01, as it played catchup with bunds, which rallied on Monday.

Rumour of the day

Shares in Elan, the Irish drugmaker, rose by nearly 14 per cent, or €1.25, to €10.28 amid relief that Tysabri, its multiple sclerosis drug, looks set to stay on the market, albeit with a revised safety warning, and speculation that it is close to selling its drug delivery unit, which could fetch as much as $1.4 billion (£762 million).

Deal of the day

Erik Penser, a nonexecutive director of Newbury Racecourse, bought 8,500 shares in the group at £11.50 each, raising his holding to 695,599 shares, or a 21.86 per cent stake. The group said that it had swung to an interim profit as turnover rose, but added that trading had been challenging, with attendances and sponsorship under pressure.

Bet of the day

Taylor Nelson Sofres, the market research group that is attempting to fend off the attentions of WPP, reports interim results today. Will the figures be enough to convince shareholders to keep faith and resist the offer from Sir Martin Sorrell’s group? Shares rose ¼p to 268¾p, while WorldSpreads offers a September spread of 269.1p271.9p.

Tiddler to watch

Shares in African Eagle Resources, the mineral exploration group, rose more than 17 per cent, or 0.63p, to 4¼p after it received positive early nickel assay results from drilling at its Dutwa gold and base metals project in Tanzania. Mark Parker, managing director, said that grades were comparable with big nickel laterite deposits worldwide.

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