Gilts

The December long gilt future fell 20p to £113.89 amid fears that a taxpayer bank bailout might raise government debt and require more gilt issuance in the years ahead. The fall came despite growing expectations of a half a percentage point cut in interest rates tomorrow. The yield on ten-year bonds was flat at 4.23 per cent.

Rumour of the day

Ladbrokes fell 5¾p to 158p as Evolution noted that the bookmaker had guaranteed up to £1.2 billion of hotel leases when it sold Hilton Hotels – thus Ladbrokes would be liable if Hilton Hotels Corporation (HHC) were to default. HHC was bought by Blackstone last year on borrowed money at the top of the market and hotel revenues are falling.

Deal of the day

Emma Thomas, the Woolworths company secretary, made a maiden investment of 273,973 shares at 3.65p each. However, the retailer’s shares fell another 9 per cent, or 0.31p, to 3.05p amid growing fears over its cashflows as credit insurers raise premiums, and concerns that Baugur, the Icelandic shareholder, may be forced to liquidate its stake.

Bet of the day

With 80 days to go until Christmas, ChoiceOdds, the financial betting firm, is offering prices on where various markets will be on Christmas Eve. It offers 7-2 that the FTSE will close below 4,000 points on December 24, 3-1 that the Dow Jones industrial average will be below 9,000 and 4-1 that the Dax will go into the festive break under 4,500.

Tiddler to watch

AMZ Holdings was flat at 125p, despite the leisure group signing its first gaming development in the Philippines, where it wants to convert an hotel on Palawan Island into an hotel and casino, which diversifies the group’s potential earnings. The management hopes that Taiwan will approve gaming on the Penghu Islands.

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