Better than expected results from Bank of America have just been released, and have given the market a lift. The bank, the second largest in the US in terms of assets, said profits had fallen in the second quarter by 41%. But that was more than analysts had been predicting, given the credit crunch and sub-prime write-offs.
So Dow Jones futures are now predicting a 59-point gain at the open, which has pushed the FTSE 100 38.4 points higher to 5414.8.
Elsewhere property group Minerva has jumped 51p to 123p after Dubai group Limitless made a 160p a share cash offer.
And security technology business Detica, which announced a possible takeover after the market closed on Friday, is 92.5p better at 395.5p. BAE Systems is tipped as one bidder, along with Finmeccanica, Raytheon or L-3.
Landsbanki analyst Kevin Ashton said: "With less attractive businesses such as Xansa being acquired for 26-times earnings and the stock having traded above 400p last year, we suspect any bid would have to be over 400p, in the region of 425p."
