LONDON (ShareCast) - London is down sharply in early dealings, but it is not the rout forecast after heavy falls on Asian markets overnight.

Xstrata is going well on hopes that Brazilian group Vale could soon launch its well-flagged $50bn takeover bid. Other miners are lower on worries over the US economy.

Others with large US operations are also weak. Wolseley, Schroders and Taylor Wimpey all feature in the bottom ten.

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.

Away from Footsie, 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.

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.

IT services group Phoenix IT's like-for-like revenues are up by 16% on this time last year with good sales momentum seen in all divisions.

Amusement park queuing systems supplier Lo-Q has forecast profits for 2007 will rise by at least 46%. Lo-Q anticipates a pre-tax profit for the year ended 31 December 2007 marginally in excess of £500,000, it said in a trading update.

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