LONDON (ShareCast) - London is set for a tough start, with traders pencilling in heavy falls for Footsie when dealings begin amid gloomy comments about the health of the global economy over the weekend.

Company news is also light today. Toy train maker Hornby continued to experience “significant” growth in the UK during the run up to Christmas, it said Monday, although Europe improved less than expected. “European demand was also strong and sales increased significantly, although to a slightly lesser extent than expected, due to delays in the rate of new product introductions,” it said.

Diageo has entered into an agreement to acquire Rosenblum Cellars for $105m. The acquisition represents a unique opportunity to own a highly rated Zinfandel brand and will be economic profit positive during the fourth full year of ownership, the spirits group said.

Floorings group James Halstead's first half turnover, on a like for like basis, has grown by at least 13% against the prior year comparative. Both UK turnover and international sales are ahead with Central European sales being particularly positive. The weakness of sterling has improved several key market margins and has, to a significant extent, lessened the effects of raw material and energy cost increases, it added.

Ceramics group Portmeirion reports it traded strongly in 2007. Sales continued to grow and revenue and profits are expected to be in line with management expectations. "2007 was another year of growth for Portmeirion. This was in part driven by the continued popularity of our well established classic ranges as well as the success of our new ranges such as Sophie Conran and Pimpernel," Dick Steele, non-executive chairman commented.

Cairn India, which is 69% owned by London-listed Cairn Energy, may do better than most on a report in the FT that it is close to securing approval to begin work on the pipeline to transport oil from its vast Rajasthan fields.

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