Shares revival set to be tested by rate decision

THE strength of a revival in Britain’s leading shares will be tested next week by the release of key interest rate decisions and a strategic review by Cable & Wireless, the stock that has spearheaded this year’s rally.

Telecoms group C&W is this year's best-performing blue chip stock with a 120% rally. It is due to deliver a strategic review alongside full-year results on Wednesday, and many investors expect to hear news on the sale or closure of its problem businesses to justify the leap in its share price.

Results from health and beauty retailer Boots and airports operator BAA will also come under scrutiny as Britain's FTSE 100 share index attempts to hold above the pivotal 4,000-point level. The index has failed to hold above 4,000 on two previous rises above that pivotal level this month.