London midday: Early gains are consolidated

The Footsie is trading sideways, holding on to gains after a bright start. Inflation data was much as expected, with the inflation rate falling below the Bank of England's 2% target for the first time since September 2007 last month.The Office for National Statistics (ONS) revealed a drop in consumer price inflation to 1.8% in June, down from 2.2% the month before. It peaked at 5.2% last SeptemberMobile phone giant Vodafone, the third largest Footsie constituent, is in the doldrums after adverse broker comment but the blue-chip index is still in the blue, largely due to the strength of miners.Swiss bank UBS has cut its recommendation on Vodafone from "buy" to "neutral" and taken a hatchet to the target price, which is now 115p, down from 150p. Morgan Stanley has also shaved its target price for Voda, from 175p to 170p, but retains its "overweight" stance, while Societe Generale, which is bearish on the stock, has also trimmed its price target by 5p to 105p.UBS is more enamoured of the mining sector, where it thinks stocks will start to make up some of the ground lost in the second quarter. Rio Tinto is its preferred stock in the sector but it also likes Vedanta. Sector heavyweight BHP Billiton is fairly valued in UBS's opinion.Defensive stalwarts are the weak spots with Diageo, BATs, Imperial Tobacco and Cadbury all lower.Engineering conglomerate Melrose is ahead on an upbeat trading statement. Trading is in line with expectations for the full year and said cash generation during the first six months of 2009 has been 'excellent'. Soft drinks maker Britvic's profits this year will beat the top end of market forecast as demand in the UK has soared with the hot weather. So strong are the numbers, Britvic brought forward today's trading update by ten days. Iron ore firm Ferrexpo produced at full capacity and traded profitably in the second quarter. Total pellet production in the second quarter rose by 21.1% compared with the previous three month period and was up by 3.8% compared to the equivalent quarter last year.Construction and regeneration group Morgan Sindall has won a £71m contract with plane maker Airbus to build a wing assembly factory. The factory is expected to be completed by October 2010.PV Crystalox Solar, which produces silicon wafers for use in solar power generation systems, is in the shade after German solar cell maker Q-Cells reported a slide in second quarter revenues and warned of gloomy prospects for the rest of the year.Flooring group Headlam continues to struggle in tough market conditions with first half sales to June down by 8.2%, a slight improvement on earlier in the year. Accountancy services group Tenon expects underlying full-year profits to be in line with forecasts and said its prospects for the next financial year are 'encouraging.' The group said excellent growth has been generated in its Recovery and related service lines, with revenue ahead by more than 30% over the prior year.Industrial chains maker Renold revealed a sharp drop in full year pre-tax profit as economic conditions in the second half of its financial year deteriorated.Bookmaker technology group Alphameric posted a first half pre-tax profit helped by bumper demand for its TurfTV joint venture and better results from Alphameric Solutions. The shares drift back, however, despite the reinstatement of an interim dividend.Metals group Delta said it enjoyed a better than expected first half but while it sees strong second half trading, it is not expected to be as good as the first.LED technology specialist Dialight gained on news that two major North American metering companies have ordered more than 100,000 combined units of its PowerPulse 200-amp disconnect/reconnect load switch with sales totalling almost $3m.FTSE 100 - RisersFresnillo (FRES) 511.00p +8.61%Lonmin (LMI) 1,051.00p +6.70%Kazakhmys (KAZ) 628.00p +6.26%Antofagasta (ANTO) 617.00p +5.11%FTSE 100 - FallersVodafone Group (VOD) 112.30p -2.35%Imperial Tobacco Group (IMT) 1,594.00p -1.60%Diageo (DGE) 865.50p -1.42%Associated British Foods (ABF) 759.00p -1.24%