Gilts

Two-year UK government bond yields fell to their lowest on record, as a gloomy overseas economic data stoked fears over the health of the already sickly British economy. Hope for another big UK interest rate cut is rising by the day. But the weakening pound meant ten-year gilt prices underperformed their eurozone counterparts.

Rumour of the day

Since Kalahari Minerals agreed an all-paper merger with Extract Resources, a fellow Namibian miner with a key uranium discovery, Rio Tinto, which has a uranium mine nearby, has a stake in both. Rio is expected to bid once the merger completes. But Kalahari, flat at 32¾p, has been talking up the prospect that other local miners may counterbid.

Deal of the day

Robert Beeston, the chairman of Cookson Group, bought 75,000 shares at 113.66p. Shares in the maker of ceramics and electronics for foundries, up 3¼p to 106¼p, had been plunging as falling metals prices drove foundry shutdowns. It issued a profit warning on Tuesday. Analysts worry that it bought Foseco at the peak of the market.

Bet of the day

BetsForTraders is offering odds of 2-1 that the share price of Barclays will rise above 180p in five market days. It said: “The big money is betting on the share price of Barclays bank to increase during the next two weeks. This unusual pattern of betting occurs every so often and more often than not those that call it call it correctly.” Barclays rose 1.4p to 159.1.

Tiddler to watch

Novae, the Lloyd’s insurer, rose 31½p to 318p as Matthew Fosh, the chief executive, who has spent years shaking off the legacy of losses from director’s liability claims at the former SVB Holdings, reported signs of rate increases in all its underwriting segments. UBS kept a “buy” rating with a 400p target.

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