LONDON (ShareCast) - London staged a remarkable turnaround Thursday, rallying 200 points from mid-afternoon lows, in line with Wall Street, while miners rallied and banks narrowed losses.

Talk that US firm Best Buy is lining up a 420p a share bid for Carphone Warehouse had the mobile phone retailer on top of the pile.

The leading index had taken a pounding for much of the day as Friends Provident slumped after it put its F&C Asset Management and Lombard up for sale as part of a strategic review that will also cut £40m of costs and about 600 jobs.

It reported a drop in 2007 underlying pre-tax profit on a European Embedded Value basis to £300m, from £509m in 2006, due to a persistency charge of £160m. But extra costs will slash this by a further £280m, leaving a profit of just £20m. Prudential and Old Mutual fell in sympathy.

F&C Asset Management said it has not received any takeover approaches from potential bidders yet. Assets under management at December were £103.6bn compared with £103.5bn at the end of September and £104.1bn a year ago.

But Barclays fought back from a loss of over 6% to end with a slim deficit as buyers returned late on. Royal Bank of Scotland, HBOS and Lloyds TSB also shrugged off persistent worries about the financial sector.

Stronger metal prices buoyed Anglo American, while BHP Billiton and Rio Tinto were up on talk that BHP could launch an increased offer for Rio. Xstrata and Kazakhmys also found friends.

Cruises giant Carnival steamed ahead as oil prices skidded lower on stronger than expected US oil supply data and fears an economic slowdown will hurt demand. New York crude fell around $2.50 to less than $90 a barrel.

Meanwhile, mobile phone giant Vodafone comfortably beat forecast of third quarter revenue growth, with total revenues up 15.8% to £9.2bn, and organic growth of 4.4%. But a failure to raise guidance had the shares lower.

Oil major Royal Dutch Shell said fourth quarter 2007 earnings, on a current cost of supplies (CCS) basis, jumped 11% to $6.7bn. On a full year basis, CCS earnings were $27.6bn, a new record for a European company, versus $25.4bn previously.

Power supplier National Grid said its financial performance from October to January was in line with its expectations. There will be a one-off increase of 15% in the dividend for the current financial year, with an increase of 8% a year targeted until March 2012.

Energy firm Scottish and Southern Energy said it aims to deliver at least 4% annual dividend growth in the next thee years

Reduced demand for AstraZeneca’s ulcer treatment Nexium and restructuring and synergy costs led to a 13% drop in fourth quarter pre-tax profits. Pre-tax profit fell to $1.8bn in the fourth quarter compared to $2.1bn last year on sales up 14% to $8.1bn.

Oil and gas explorer Cairn Energy saw gross operation production for 2007 fall against last year, though average realised per barrel of oil equivalent rose.

Further down, publishing and events firm Euromoney Institutional Investor said there has been some signs of slowing in advertising and sponsorship sales, exacerbated by the recent credit crisis.

Support services group Mouchel remains on track to deliver performance in line with expectations for the full year and said its longer term outlook remains favourable.

High street newsagent chain WH Smith has unveiled a £90m cash return to shareholders alongside a solid trading statement for the Christmas period.

Furniture retailer Land of Leather reported a 15.4% fall in like for like sales orders in the 23 days to 27 January.

• News Channel