FTSE remains on front foot

London's leading shares have moved back into positive territory as the benchmark FTSE 100 Index rebounded from yesterday's seven-week low.

By mid-morning, the Footsie had climbed 8.9 points to 4151.6 with fresh economic news on the other side of the Atlantic poised to further influence shares later in the day.

Leading the blue chip risers was hedge fund manager Man Group, which climbed 1.75p higher to 1325p after unveiling a trading statement ahead of City estimates, boosting the FTSE 100-listed firm by 2%.

Elsewhere, supermarket retailers were on the rise, with takeover target Safeway leading the pack with a 6p gain to 288.5p. Close behind were potential suitor William Morrison, which gained 2.5p to 218.25p and market leader Tesco, which lifted 3p to 242.5p.

British Airways escaped the predicted heat over a proposed tie-up between rivals Air France and KLM. Its shares soared 5.5p higher to 174p.

Energy giant Scottish Power dipped 2.25p to 353.75p despite unveiling a new board member in the shape of Judi Johansen, president of its US subsidiary PacifiCorp.

And outside the top flight, Capital Radio announced its own new signing - Johnny Vaughan, who is poised to takeover from veteran broadcaster Chris Tarrant. Despite the news, shares slipped 5p to 492.5p.

Much of the second tier attention continued to be focused on Manchester United, after it said annual pre-tax profits had risen 22% thanks to more cash from sponsorships and a strong season of league and cup success.

Shares in the club, which have soared in recent weeks on takeover speculation, lost an early penny gain to stand 3p lower at 197p.