Gilts

Gilt futures rose in line with German bunds as weak American manufacturing data and mixed retail sales helped to support bond prices. The futures ticked higher as the Bank of England continued buying ultra-long gilts, meaning that, with no significant new auctions this week, demand continued to outstrip supply.

Rumour of the day

Citigroup suspects that Vivendi, the French group, may sell its 20 per cent stake in NBC, the American broadcaster, after it outbid Telefónica, of Spain, for GVT, a Brazilian telecoms company. Citi says that Telefónica could justify a higher price, thanks to synergies, but Vivendi’s offer appears to be value destructive, which could trigger the asset sale.

Deal of the day

United Utilities has sold its 15 per cent stake in Northern Gas Network Holdings, the gas distribution company, for £86 million in cash. It has disposed of the stake to the company’s other investors, including Cheung Kong Infrastructure Holdings, SAS Trustee and Hongkong Electric. Shares in United Utilities closed 1½p lower at 471½p.

Bet of the day

Silver has come second to gold of late. It is still way off its record high of $21.30 and has added only 1.3 per cent over the past two months, compared with gold’s near-11 per cent surge. Silver closed in London at $17.74 and if it starts to play catch-up, it could have a lot further to go. Spreadex has a December contract priced at $18.18-$18.24.

Tiddler to watch

MBL rose 15p, or nearly 10 per cent, to 171p, after the DVD, Blu-ray and CD distributor signed an exclusive deal to supply Best Buy when the American retailer opens its British stores. The deal is initially for a year, with an option to extend for a further 12 months. Seymour Pierce noted the potential for upgrades when MBL reports in December.

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