Shares rose in London this morning, continuing yesterday's late rebound, with Royal Bank of Scotland (RBS), Barclays and Lloyds Banking Group leading the way.
The FTSE 100 Index climbed 72.35 points (1.88%) to 3,849.43 within minutes of opening, buoyed by the news Lloyds and RBS were expected to agree to boost lending to businesses and households in return for the taxpayer effectively insuring £500bn of their toxic assets.
Shares in RBS rose despite news Chancellor Alistair Darling had urged former boss Sir Fred Goodwin to give up his £650,000 - threatening legal action if he fails.
With optimism that an agreement can be reached, Lloyds' price rose 10% to 63.4, while RBS saw an increase of 22%, taking its price to 28.40. Barclays was up 5.9p at 111.5p
AstraZeneca - the UK's second-biggest drugmaker - saw its price fall 0.5% in early trading. Fellow pharmaceutical firm GlaxoSmithkline's price dropped 0.27% to 1,091.00, despite reporting 8.1% year-on-year growth earlier in the week.
Scottish & Southern Energy saw its price fall 0.54% to 1,102.00 after some unrest in the sector following rival British Gas' poor financial results. Scottish & Southern Energy's decision to cut its energy rates did little to encourage investors.Investment Week
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