An unexpected billion dollar sub-prime write-down from a major bank, and how does the market react? So far, it seems to have shrugged off the news.
Swiss bank UBS announced a $10bn hit for problem loans, on top of its $3.4bn write-off earlier this year. But news that it had brought in new capital seems to have calmed investors' concerns.
So with a rather more upbeat statement from Lloyds TSB and a continuing revival among the housebuilders, the FTSE 100 is marginally ahead at the moment, up 14.6 points at 6569.5.
Lloyds added 18.5p to 506.5p after it said it was taking a £200m hit due to the credit market problems but was on track for an 11% increase in underlying profits.
Among the builders Persimmon rose 31p to 825p, and Taylor Wimpey added 7.25p to 221.75p after last week's interest rate cut and ahead of a similar move expected from the US tomorrow.
The biggest gainer of the day in the leading index so far is directories group Yell, up 5% to 415.5p as the shares reacted positively to an investor day held on Friday. Merrill Lynch repeated its buy recommendation and 520p target.
Yet more takeover talk in the mining sector. Rio Tinto showed little reaction to suggestions that US investment group Blackstone was planning to bid in tandem with the Chinese, to take on the existing BHP offer. Rio slipped 36p to £57.10, indicating some doubt as to whether this one is really a flyer.
But rival Xstrata added 8p to £36.64 on reports that Vale, the Brazilian group formerly known as CVRD, was looking at a £38bn bid. Anglo American had previously been tipped as a bidder.
Credit Suisse raised its target price on Xstrata from £38 to £40 a share, saying: "Speculation mounts of a possible bid from either Anglo American or Vale. If Vale were to bid for Xstrata, we think the most likely scenario would be an all cash offer, which would give them significantly more exposure to both copper and nickel, with significant synergies.
"The key to all of this is Glencore's 35% holding in Xstrata. A part share and cash offer would mean they could still retain a substantial holding in a larger company. Glencore could also potentially receive off take agreements for either Anglo American or Vale's production. For Vale, the major hurdle becomes using equity in the transaction."
Still on takeovers, Moss Bros jumped 19% to 44.25p as Icelandic investment group Baugur confirmed it was considering a bid.
