10:13GMT 31Oct2008-Vectura higher on 6 mln stg milestone payment

Shares in Vectura Group Plc rise 6.5 percent to 45 pence after it receives a 6 million pound milestone payment from pharmaceuticals group Boehringer Ingelheim for work undertaken on the development of a new inhalation device.
"Although the terms of the original deal were never disclosed, the payments received to date have now reached about 37.5 million euros and are set to rise further as more molecules are developed for the device," says Charles Stanley's Franc Gregori. "Our 71p price target is conservative and, in our view, easily achievable."
Stockbroker FinnCap says that for each individual drug that Boehringer elects to develop in the inhaler, it estimates Vectura may receive up to 22.0 million euros in milestone payments and a royalty of up to 5.0 percent of sales. It reiterated its "buy" recommendation for the shares.
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09:59GMT 31Oct2008-HSBC falls after Goldman cuts to "sell"

Shares in HSBC fall 4.8 percent, making them among the top losers on the FTSE 100, after Goldman Sachs downgrades Europe's biggest bank to "sell" from "neutral" and slashes its price target to 650 pence from 950 pence.
The broker says in a report on Euoropean banks that recent actions by policymakers across the globe has eroded the outperformance of HSBC, which has relatively strong liquidity and capital position.
"Our fundamental view on the sector is that the focus will move from liquidity concerns to on balance sheet lenders as the credit cycle deteriorates, which is where our key concern exists for HSBC. If the market continues to focus on franchise strength and ignores underlying earnings trends, then HSBC is likely to continue to outperform," Goldman says.

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09:54GMT 31Oct2008-BT plunges on profit warning

BT's shares plunge 24.1 percent to 107.1 pence, making it the worst FTSE 100 performer, as the telecoms group warns it will miss earnings forecasts for its second quarter due to a poor performance at its Global Services unit. The boss of the division, Francois Barrault, has resigned.
Societe Generale analyst Saeed Baradar says: "Except the pension fund, which was the main area of concern, the stock has just seen its engine of growth (Global Services division) go into contraction, and its earnings and cash-flow are set to deteriorate."
"It is now hard to see any bottom for the stock."
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09:46GMT 31Oct2008-ASMI sinks after ING cuts price target

Shares in ASM International drop 8.8 percent to 7.8 euros after ING cuts its price target to 8 euros from 14 due to poor third-quarter results and a smaller chance of the Dutch semiconductor equipment maker being broken up.
"The lower target puts pressure on the shares. Volumes are low, making the fall stronger," says a trader at Keijser Capital.
Due to the credit crisis and chip market downturn it is less likely a bid of up to $800 million from U.S. rival Applied Materials and private equity firm Francisco Partners for some ASMI operations will go through, ING analyst Marcel Achterberg says in a note.

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09:30GMT 31Oct2008-London Scottish down; fails to raise fresh capital

Shares in London Scottish Bank slide over 14 percent as the company says after Thursday's close that it has been unable to raise the new regulatory capital as required by the medium term revolving credit facility entered into by the company's debt purchase and collection subsidiary, Robinson Way & Company.
In addition, the company is required to effect the sale of the London Scottish Bank Group or Robinson Way & Company by June 30, 2009.
Stockbroker Daniel Stewart calls the news "extremely disappointing", and notes that for years, Robinson Way has been the "jewel in the crown."

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08:54GMT 31Oct2008-Office2Office rises on update, Altium "buy"

Shares in Office2Office, a business supplies and managed services company, climb 7 percent after what is seen as a reassuring update, prompting Altium Securities to repeat its core 12-month "buy" recommendation.
Altium says the update was positive as the group performed in line with expectations.
The broker says the increasingly disinflationary environment on raw materials will help the company, as will further efficiency gains it is already flagging.
As a result, Altium retains its forecasts but reduces its target price to 140 pence from 170 pence, in line with changes in the support services per group, while it repeats its "neutral" 6-month trading recommendation.
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08:47GMT 31Oct2008-Entertainment Rights falls after H1 results

Shares in Entertainment Rights fall 5.3 percent after interim results statement, in which the company says negotiations regarding content and music publishing rights in the U.S. could result in a further EBITDA reduction of 10 million pounds in the current year.
Altium Securities cuts its recommendation to "sell", from "hold".
The broker says the likely 10 million pounds drop in EBITDA would result in an EBITDA figure of about 16.5 million pounds based on its current forecasts, "further jeopardising the group's financial position and banking arrangements."
"Worryingly there is also no news of concrete asset disposals this morning despite the fact that the group's principal bank has had to grant a short-term covenant waiver and provide additional short-term funding," Altium says.
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08:39GMT 31Oct2008-Blacks Leisure jumps on cost cuts, sales rise

Shares in Blacks Leisure rise 13.6 percent to 34 pence after the British outdoor clothing and footwear retailer says second half trading has started well with its Outdoor business -- 260 Millets stores and 110 Blacks stores -- delivering like-for-like sales growth of 4.5 percent in the two months to Oct. 29.
The group also exceeds its annual cost savings target of 3 million pounds by cutting 5.6 million pounds of costs in the first half alone.
"The current trading statement on Outdoor is better than we expect for the second half ... Cost reductions exceeded our expectations," said Altium analyst David Stoddart.
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08:33GMT 31Oct2008-Southern Cross soars as gets refinancing

Care home operator Southern Cross soars 47 percent after it announces that it has successfully concluded a refinancing with its banking syndicate.
"The market was generally of the view that the refinancing would not succeed and they would have to resort to existing shareholders. I expect it to be up 35-40 pct this morning," says Brewin's Sahill Shan.
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