Gilts

Gilts rose after Charles Bean, the Bank of England deputy governor, said that more quantitative easing might be needed. Speaking at the start of a UK tour to explain the bank’s programme, he said that withdrawing stimulus too early risked nipping any recovery in the bud. The September gilt future settled 63 ticks higher at 118.40.

Rumour of the day

British Airways rose 6.6p to 126.6p after reports in Spain suggested that the flag carrier was ready to accept a merger deal with nearly 50-50 ownership with Iberia. In exchange for BA taking a smaller stake than originally envisaged, it is believed the Spanish airline would be prepared to shoulder its share of a shortfall in BA’s pension fund.

Deal of the day

HSBC Infrastructure fell ¼p to 110¼p despite the investment group issuing another 700,000 shares at a premium to its net asset value. The company has raised more than £17 million in share issues since its full-year results in late May in order to satisfy demand from institutions. It is using some of the money to pay down debt.

Bet of the day

After topping $70 a barrel in June, oil prices were below $60 a barrel yesterday, briefly touching their lowest level in almost two months, on concerns about the state of the global economy. With regulators also looking to stamp out speculators, will prices fall further? Spreadex has an August-based contract with a spread of $59.53-$59.61.

Tiddler to watch

Hutchison China MediTech rose 8½p to 66p after the China-focused healthcare group revealed upbeat results from the Phase-II trial of its Crohn’s disease drug. Findings showed great efficiency and fewer side-effects than existing treatments. Panmure said that the results might help the group to find a licensing partner.

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