Late rally after mixed start2007-02-23 17:39:57

Lloyds TSB gave up 21 to 592 - the retail banking giant reporting an 8% rise in underlying profits to £3.71 billion - in line with market expectations. But investors were concerned that the modest growth largely came through cost cutting.

On the plus side, Britain's fifth largest bank said retail bad debts fell to £606 million in H2 against £632 million in H1.

WPP gained 12.50 to 779.50 - the advertising and marketing outfit beating City expectations with a 14.5% rise in full year profit to £766.3 million - this on the back of a 10% uplift in revenues to £5.9 billion.

Owner of the Young & Rubicam and JWT ad agencies, WPP said it expects worldwide advertising and marketing services spending to rise by at least 4% this year - in large part due to the US Presidential elections and the Beijing Olympics in 2008.

London Stock Exchangeadded 4 to 1300 - the stock exchange announcing a strategic partnership with its Tokyo rival - the two exchanges saying they'll work together to share technology information and possibly develop new products.

The partnership is similar to a recently concluded deal between the Tokyo and New York Stock exchanges that will see senior members from both exchanges begin discussions on areas of co-operation.

DSG international added 1 to 178.75 - the electrical retailer announcing a strategic review of its French operations that includes the possible closure of 11 PC City stores.

The review is being conducted against a backdrop of an increasingly difficult market environment in which scale in terms of store numbers can't be achieved due to a competitive property market, coupled with promotional restrictions.

If the 11 stores do eventually go computer sales in France will be conducted through the Group's e-commerce division.

The review is expected to be completed by this July.

Tate & Lyle hardened 1 to 586 - a report in the Times claiming that French starch producer, Roquette Freres and French sugar producer, Tereos, have teamed up to mount a joint bid for Tate's European starch business.

Analysts suggest that the sugar producer's Food and Industrial Ingredients, Europe unit could fetch around £600 million.

Davis Service Group

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2007-02-23 17:39:57 © Moneyextra.com