London afternoon: Stocks dive deeper

Expectations of a triple-digit fall on the Dow Jones index when Wall Street opens has added to London's woes. As in London, US investors are concerned that China's economy is not likely to grow at the rate previously anticipated. US based research group the Conference Board said overnight that its China leading economic index rose just 0.3% in April, a sharp revision down from its preliminary estimate of a 1.7% rise. Miners are worst hit in London, especially Xstrata, Rio Tinto, Vedanta, Lonmin and ENRC. Things are only marginally less bad among oil stocks where Tullow Oil and oilfield services firms Petrofac and AMEC are under pressure. In the circumstances, the share price decline of BP does not look so drastic. The beleaguered oil giant said its attempts to clean up the oil spill in the Gulf of Mexico may be hampered by tropical storm Alex. The storm has already prompted some companies to evacuate workers from some offshore rigs in the Gulf.JPMorgan has floated the idea of US oil behemoth Exxon Mobil bidding for its crippled UK rival and thinks an offer of 473p per BP share might win support.US companies are interested in UK assets judging from Emerson's 375p per share or £1bn bid for Chloride this morning. It trumps an agreed 325p offer from ABB by 15%. ABB is considering its position. The prospect of a bid from the US is also shoring up the share price of drugs titan AstraZeneca. Credit ratings agency Standard & Poor's has named Astra, along with infrastructure contractor Balfour Beatty and UK defence firm BAE Systems as companies on the radar of cash rich US companies seeking to take advantage of the strong $/£ exchange rate.Balfour Beatty has been named as a preferred bidder by Oldham Council for the council's Building Schools for the Future (BSF) programme in a deal that could be worth up to £175m.Outsourcing specialist Serco remains on course to meet guidance given in May, although it gave no clue as to the possible impact of spending cuts announced in last week's Budget. "We remain on track to deliver our financial guidance for 2010, which is for continued strong organic revenue growth and further progress this year towards our 2012 margin guidance," it said in a statement.Bus and train group National Express expects first half pre-tax profits to show good progress after trading was in line with forecasts through the second quarter. Revenue trends have been resilient, whilst progress on cost saving programmes and delivery of a stronger operational focus across the business has accelerated, it added.Things are on the up at floor coverings retailer Carpetright though not the share price even though revenue and profits both improved last year. Total group revenue in the 52 weeks to 1 May 2010 rose 7.0% to £516.6m from £482.8m the year before. Profit before tax came in at the lower end of expectations and the market has been spooked by the management's decision to double the full year dividend to 8p; before Christmas Carpetright was suggesting the divi could be tripled to 12p but the decision to hold some cash back suggests that things are expected to be tougher than previously expected. KBC Peel Hunt is sticking with its "hold" recommendation but has lashed the price target for Carpetright from 1,000p to 700p. With housing transactions remaining subdued, Stevenson thinks "recovery will take time".Asia focused oil explorer Salamander Energy has abandoned the Tom Su Lua-1X exploration well in the Vinh Chau Graben system, offshore southern Vietnam, as a dry hole.Catlin plans to form a reinsurance company in Switzerland to expand the European-based reinsurance business underwritten by the Bermuda-based group. The group has applied to the Swiss Financial Market Supervisory Authority (FINMA) to establish Catlin Re Switzerland, to be headquartered in Zurich.A weaker than expected flu season will mean first half underlying revenues at in vitro diagnostics firm Axis-Shield rising by just 2%.Womenswear clothing retailer Jacques Vert bounced back into the black last year and to celebrate the company is proposing a dividend for the first time since 1995. Profit before tax was £5.12m compared to a loss of £2.86m the year before.The share price of Infrastrata, the company formerly known as Portland Gas, ballooned after it said it is setting up a number of joint ventures with US energy company eCORP so the two can co-operate on gas storage. The US company will fund a number of Infrastrata's projects in the UK, Northern Ireland and continental Europe in return for equity stakes.Guildford-based fuel cell developer AFC Energy said it has successfully deployed an alkaline fuel cell system at Linc energy's underground coal gasification (UGC) demonstration facility in Chinchilla, Australia. So far as AFC is aware, this is the first time that a hydrogen fuel cell has been deployed with UGC and the company is hailing it as a major step towards the opportunity of combining UCG and alkaline fuels cells as a breakthrough technology for cleaner coal worldwide.