Bank and Diageo help move FTSE up

The FTSE 100 Index made an early move into positive territory today shrugging off fears of a lower opening.

Drinks giant Diageo and banking group Bradford & Bingley were among those on the move as the blue chip index gained 8 points sitting at 4081.6 after an hour of trading.

Media speculation that Bradford & Bingley could be the next target in the recent spate of acquisition activity put it on top of the Footsie risers board with shares gaining 11.5p at 321.75p.

And Diageo put on 14.5p at 651.5p as a mixed trading update encountered a positive reception from investors.

The group, whose brands include Guinness and Smirnoff, warned that tough trading conditions looked likely to continue but said that growth of organic operating profits in the second half of its financial year would exceed the 6% seen in the first six months.

Meanwhile drugs giant AstraZeneca made an uncertain start to the session ahead of a long-awaited announcement from the US Food and Drug Administration on its cholesterol drug Crestor expected later today.

After fluctuating between positive and negative ground, shares were up 2p at 2495p an hour into the session.

FTSE 250 newcomer electricals group Kesa made some progress, up 4.5p at 192.5p, while rival Dixons also gained ground in the top flight – up 1.25p at 130.75p.