Gilts

Yields on two-year gilts fell to their lowest in at least 30 years yesterday as investors ramped up bets on a sharp fall in UK interest rates. Borrowing costs are heading lower across the world as policymakers attempt to shore up struggling economies. The December long gilt future was one tick lower at 112.41.

Rumour of the day

Gossip that Carphone Warehouse and Best Buy, its partner, might bid for DSG International, up 2p at 32p, or Kesa, up 9¼p to 69¼p, seems wide of the mark, at least until after what is likely to be a bruising Christmas. Carphone rose 7p to 128p amid talk that Charles Dunstone, its founder, might be tempted to sell its TalkTalk arm to Vodafone or BT.

Deal of the day

Mike Lawrie, chief executive of Misys, the healthcare and banking software group that recently merged with its US rival Allscripts, bought 70,000 Nasdaq-listed shares in the merged Allscripts-Misys Healthcare Solutions. The shares, previously hit by fears about declining bank demand and growing competition in healthcare, rose 6¾p to 118½p.

Bet of the day

Unilever’s extensive exposure to emerging markets is expected to act as a cushion when it issues third-quarter results today. The group, up 13p to £13.43, is expected to report a 63 per cent rise in pretax profits to €2.24 billion (£1.76 billion), Its comments on input costs will be closely watched. WorldSpreads has a December spread at £13.526-£13.590.

Tiddler to watch

Could rubbish be sexy? It was a question analysts at Edison asked yesterday and it may be so in the case of Straight, the provider of water butts and composters. The group, flat at 33½p, could benefit from environmental legislation unaffected by the downturn and is looking to expand into new regions and products.

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