Gilts

Gilts rose after surveys showed record falls in house prices and retail sales, as well as comments from David Blanchflower, the Bank of England MPC member, that a substantial fall in interest rates was needed to stop the economy heading into a deep and prolonged slump. The December gilt future settled 11 ticks higher at 111.86.

Rumour of the day

RSA Insurance was among the FTSE 100’s top risers, up 8.3p to 154.1p, on renewed market speculation of bid interest from Zurich Financial Services. The stock was also buoyed by comments from Swiss Life that it had not ruled out more acquisitions. Rumour has it that bids are being prepared by more than one party at a price of about 200p.

Deal of the day

HSBC is to raise its stake in Techcombank, the Vietnamese bank, to 20 per cent, in a deal worth about $77 million (£42 million). HSBC is the first foreign bank to hold 20 per cent of a Vietnamese bank, after winning approval from the State Bank and Nguyen Tan Dung, the Prime Minister, to exceed the foreign ownership cap of 15 per cent.

Bet of the day

Bradford & Bingley reports its annual results today. The numbers are unlikely to make pretty reading but its rights issue has been completed. Can Richard Pym, the new chief executive, nurse the beleaguered lender back to full health? Cantor Index offers a September contract-related spread of 51.5p-52p.

Tiddler to watch

Geong International, the Chinese content management software group, rose 3p to 56p after a bullish trading update. Earlier this week the group met Boris Johnson, the Mayor of London, as part of his drive to promote Chinese companies doing business in the capital. The group is expected to open a London office.

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