FTSE slips into the red

Corus and Vodafone were two of the biggest risers in the FTSE 100 Index following positive news for investors in both companies today.

Vodafone rose almost 2% after strong quarterly customer numbers, while Corus was ahead 7% in reaction to a lucrative overnight bidding battle.

The twin boost proved insufficient to lift the wider market, which remained cautious ahead of tonight’s US Federal Reserve decision on interest rates.

By mid-morning, the Footsie stood 16.2 points lower at 6225.8.

Vodafone’s move – up 2.75p at 149.75p – came after customer numbers passed the 200 million mark and the company reported improved trends in the UK.

Meanwhile, Corus investors were counting further gains after an auction run last night by the Takeover Panel saw Tata Steel fend off rival CSN with an offer of 608p a share, equivalent to £5.75bn (€8.6bn). The stock, which stood at 200p less than two years ago, was up 38p at 601p.

Shares in broadcaster BSkyB were less certain as analysts said new customer figures for the second quarter were slightly lower than expectations. The stock recovered as the session wore on to stand 1.5p higher at 546.5p.

The biggest fall of the session came from Friends Provident after it emerged that subsidiary F&C would cut is dividend level and reduce its operating margins by 30% in 2007. The pensions side of Friends did well in a third quarter trading statement, but analysts remained cautious about levels of profitability as shares slid 9.25p to 216.64p, a drop of 4%.

The rest of the insurance sector was hit, with Legal & General down 3p at 153.75p and Norwich Union owner Aviva off 10p at 822p.

Outside the top flight, Britvic shares held firm – up 0.25p at 299p – after the drinks firm said it had outperformed its market but warned its carbonates division would remain under pressure from healthier lifestyle trends.