Gilts

Gilts rose as weekend comments from Alistair Darling and bleak economic surveys reinforced worries about the health of the economy and raised hopes of rate cuts this year. The December long gilt future settled 14 ticks higher at 112.07 and yields on two-year gilts were seven basis points lower at 4.43 per cent.

Rumour of the day

Mediterranean Oil & Gas, the AIM-listed exploration and production group, rose 10p to 100p amid talk of stake-building. In early trading, a mystery investor bought nearly 1.4 million shares in the group, enough to make them one of its largest investors. A drilling update on its Ombrina project in the Adriatic Sea is due in the coming weeks.

Deal of the day

Hugh Bevan, a non-executive director of FoaMasters International, a China-based maker of foam for shoes, bedding and furnishing, has bought 70,000 shares at 24p. The shares rose 1p to 21½p despite a fall in interim pretax profit to $1.8 million (£1 million). The group, which supplies Ikea and Nike, said that it remained cautiously optimistic.

Bet of the day

With fresh reports of job cuts in the Square Mile, could Hays, the recruitment group, have a positive outlook as it reports annual results this morning? Analysts are confident of strong figures but are slightly wary of forecast earnings. Shares closed 1¼p lower at 94¼p yesterday, while the September spread from WorldSpreads is 94.3p-95.0p.

Tiddler to watch

ANT, which makes software used in television set-top boxes, TVs and other digital media devices, rose 2p to 34½p after reporting a 61 per cent rise in first-half sales. The group said that it had a strong pipeline of licensing opportunities in the second half of the year and that it stood to benefit from the growth in demand of digital media.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive