The FTSE 100 Index ended a see-saw session in positive territory today, despite gloomy Bank of England inflation forecasts hitting hopes of interest rate cuts.

The London market was weighed down by weaker banks today after the sector made its latest cash call and expectations for lower interest rates were dashed.

A raft of broker upgrades helped power the FTSE 100 Index today, building on market cheer from yesterday’s Bank of England interest rate decision.

UK bus and rail operator FirstGroup is today understood to be preparing a £1.5bn (€2.2m) takeover of Laidlaw, owner of trans American bus company Greyhound.