FTSE 100 up on opening

The FTSE 100 jumped on opening on news of US mortgage bail outs and a bid for Alliance & Leicester.

The index was up 1.72 per cent to 5,352.10 at 9:51 BST – however only putting it at the level seen on Friday before a closing fall.

While financials saw a lot of action, the biggest gain of the day went to ITV.

ITV was up 8.36 per cent after the Endemol boss told the FT he would not rule out a bid for the broadcaster and discussions over which firm would buy Sky's 17.9 per cent stake continue.

Lloyds TSB was up 7.17 per cent and Standard Chartered rose 5.44 per cent.

Packaging firm Rexam rose 5.84 per cent and cruise operator Carnival was up 5.36 per cent.

Outside the FTSE 100 Alliance & Leicester was up 49.94 per cent to 328.75 after the mortgage lender revealed it was in takeover talks, while Bradford & Bingley rose 29.47 per cent.

Only three falls were recorded in the FTSE 100 – with Pearson down 0.94 per cent, Reed Elsevier falling 0.74 per cent and BG Group slipping 0.62 per cent.