London afternoon: US GDP data jolts Footsie into life

Leading equities stormed higher after US second quarter gross domestic product (GDP) was revised upwards to show a 1.7% quarterly increase. Although this represented a slow-down from the 3.7% gain in the first quarter economists had not been expecting any improvement on the previous estimated gain, and investors were happy to buy on the back of the slight improvement. Not all blue-chips are out of the red, however. Inter-dealer broker ICAP is lower after it said earnings would be hit by debt refinancing costs. The company said that current profit forecasts from the investment analyst community for the year to March 2011, which range from £333m to £357m, appear 'reasonable' assuming steady exchange rates.Compass Group has headed south even after the contract caterer upped its sales growth guidance again after a strong fourth quarter. Having said in late July that organic sales growth this year would be around 2.5% the company now thinks it will be closer to 3%, including the impact of acquisitions.Another company upping its sales guidance is Analysts ITE. The exhibitions group said it enjoyed strong trading in the fourth quarter and expects revenue for the year to end-September to be around £112m, down from last year's £117m, but comfortably ahead of market expectations of £108.4m.Persistent bid rumours buoy the share price of high fashion group Burberry, with the suggestion being that the company could fall into foreign hands when bid of around 1350p a share is forthcoming.Shares in Aggreko are a hot property at the moment, also. The temporary power and temperature control provider has been contracted to provide temporary power generation services for the 2010 Asian Games and Asian Para Games in a deal that is expected to be worth $30m.Increased profits from its cheese products have underpinned an improvement in trading at dairy goods firm Dairy Crest. The company said trading in the six months to the end of September has been in line with management expectations and ahead of last year.KBC Peel Hunt is recommending holding the shares in the wake of yesterday's announcement that German food group Müller has upped its stake to 3.04%. "The shares look up with events on a fundamental basis, although the interest from Mueller is likely to provide upwards momentum in the short term," Peel Hunt said.Sugar and sweetener firm Tate & Lyle said it expects its encouraging start to the year to continue in spite of higher corn costs. In the speciality food ingredients division, growth in speciality sweeteners and starches has remained steady, while sucralose volumes have been robust, though at lower selling prices, the company said.Private equity house 3i spent much more money on investments and sold far less during the five months to the end of August, it revealed ahead of meetings with analysts and investors. The blue chip firm made investments of £257m during the period, up from £155m last year when the financial crisis was still raging. Buyouts accounted for £236m and growth capital £21m.Rolls-Royce chief executive Sir John Rose will retire from the company at the end of March 2011. He will be succeeded by John Rishton, currently chief executive of the Dutch retail group Royal Ahold. John Rishton has been a non-executive director of Rolls-Royce since 2007 and chairs the Audit Committee. The shares have fallen.Scottish chip designer Wolfson Microelectronics is buzzing on reports emanating from Asia that the fifth generation of Apple's much-lauded iPhone and the next iteration of the same company's tablet computer, the iPad, will continue to use Wolfson's audio chip designs. Shares in Homeserve are lower after the home emergency business even after it said it expects profits for the first half of the year to be ahead of the same period the previous year and in line with expectations.Property developer St. Modwen Properties said while the outlook for commercial property remains uncertain, trading at the group is not deteriorating. The company has made significant progress in all areas of the business, following its return to profit at the half year stage.Sticking with the property sector, property investment firm Quintain Estates said strong progress has been made in the last six months towards its key milestones for the financial year. In a trading update for the six months to 30 September 2010 the social housing and regeneration specialist said it is confident of further delivery during the current calendar year.