Financial News

LONDON (ShareCast) - Banks dominate the day as investors try to get their heads around the sheer size of the sums being pumped into Royal Bank of Scotland (LSE: RBS.L - news) and Lloyds.

Lloyds is the best performer on hopes that once it is clear of the government's asset protection scheme it might be able to make something of its disatrous acquisition of HBOS. But no price has been set yet for its £13.5bn right issue plan.

Royal Bank of Scotland looks even more like a nationalised bank than it did before. It will get £25.5bn from the government through a B share issue, with a further £8bn ready just in case that isn't enough. Its insurance arm and and several other businesses will be sold.

Best performer is Legal & General (3166.KL - news) it said worldwide new business was down in the first nine months of 2009 but there are signs of confidence returning to the economy.

Worldwide new business in the first nine months of 2008 was down 7% to £1,058m from £1,137m in the corresponding period of 2008. Funds under management stood at £311bn at the end of the reporting period, representing net inflows of £12.2bn in the year to date.

FTSE 100 - Risers Legal & General Group (LGEN) 78.20p +1.43% Lloyds Banking Group (LSE: LLOY.L - news) (LLOY) 85.88p +1.04% Sainsbury (J) (SBRY) 329.10p +0.64% Serco Group (LSE: SRP.L - news) (SRP) 510.00p +0.59% Smiths Group (LSE: SMIN.L - news) (SMIN) 914.50p +0.55% Cobham (COB) 221.10p +0.23% Reed Elsevier (LSE: REL.L - news) (REL) 470.40p +0.15% Morrison (Wm) Supermarkets (MRW) 283.40p +0.14% Cadbury (LSE: CBRY.L - news) (CBRY) 782.00p +0.13% Inmarsat (LSE: ISAT.L - news) (ISAT) 568.50p +0.09%

FTSE 100 - Fallers Royal Bank of Scotland Group (RBS) 34.78p -10.00% Old Mutual (LSE: OML.L - news) (OML) 104.80p -4.29% Invensys (LSE: ISYS.L - news) (ISYS) 282.90p -3.94% SEGRO (LSE: GBB1YFN97.L - news) (SGRO) 328.60p -3.92% Xstrata (XTA) 888.00p -3.64% Aviva (AV.) 375.00p -3.62% Tullow Oil (LSE: TLW.L - news) (TLW) 1,145.00p -3.62% Eurasian Natural Resources (ENRC) 848.00p -3.53% ICAP (LSE: IAP.L - news) (IAP) 391.30p -3.45% Burberry Group (LSE: BRBY.L - news) (BRBY) 526.50p -3.39%