While the market is certainly buoyant the rate of house-price inflation is beginning to level off said spokesman Ian Perry

“While the market is certainly buoyant, the rate of house-price inflation is beginning to level off,” said spokesman Ian Perry.Taken together, these point to rates being kept on hold at least this month. Michael Saunders, of Salomon Smith Barney, said: “It looks as if the MPC will leave rates on hold next week, but the rate pause probably will only last until April.”The key NAPM index in the United States painted a similar picture. Prices paid by manufacturers – a measure of potential inflationary pressures – rose for the third month running to its highest level since April 1995.The price index grew to 74.1 in February, up from 72.6. Analysts said it showed no let-up in the high-powered US economy. The Federal Reserve’s rate-setting committee next meets on 21 March and is widely expected to raise rates by a quarter percentage point to 6 per cent.. Cambridge Antibody Technology saw its shares vault to a record high yesterday as investors applauded its move to tap the vast potential of research into human genes. Cambridge Antibody Technology saw its shares vault to a record high yesterday as investors applauded its move to tap the vast potential of research into human genes.
CAT said Human Genome Sciences Inc (HGSI) of the US, which is mapping out the building blocks of human life, had taken a 6 per cent stake in the company at 2,075p a share, or $55m.

The two companies will now work together, marrying CAT’s drug-making technology to the database of information being developed by HGSI.John Aston, the finance director of Cambridge Antibody, said: “Drug discovery is a statistical game and genomics research provides a very large number of potential leads to target our drugs at.”CAT shares soared 58 per cent to 3,725p, boosting its market capitalisation to £1.02bn. Under the 10-year deal, the American company will also pay $12m to CAT in licensing fees.Erling Refsum, an analyst with Nomura Securities, said: “After today, CAT is definitely in the US league.” He said that in the US, similar companies have market values of several billion dollars.The agreement with HGSI gives CAT the rights to develop products on its own, and it will take royalties from those developed by HGSI. The UK company will use its technology to target a broad range of diseases, including cancer.Craig Rosen, HGSI executive vice-president, said: “I am delighted that we can combine HGSI’s deep expertise and knowledge of genomics, with CAT’s cutting-edge human antibody technology.”CAT also said yesterday that it would announce details of a fundraising in the near future to fund its drug-development costs. Mr Aston said that the products coming out of yesterday’s alliance would take at least seven years to come to market.Mr Aston said: “There is growing excitement about genomics, and HGSI are at the forefront of that research.

There is also growing excitement about antibody drugs and these are already available for conditions such as breast cancer.”Analysts said that the big prize from genomics could be new classes of drugs which address the underlying genetic causes of disease rather than the symptoms.A recent study by PricewaterhouseCoopers predictedhuman genome research could produce 5,000 new biological targets for medicines in the next few years.Analysts said that the market yesterday was reacting to both the $67m cash injection to CAT, and the share of profits that would flow in the future from the drugs developed through the alliance.CAT, which is based in Melbourn, 10 miles south of Cambridge, was formed in 1990 and listed on the stock market in 1997. Key shareholders include the Medical Research Council and 3i, the private equity firm.The news of the CAT deal boosted the shares of other small pharmaceutical technology companies yesterday. Cantab Pharmaceuticals jumped 1,362.5p to 3,725p, Oxford Assymmetry rose 29p to 525p, Scotia Holdings was up 30p to 192.5p and SR Pharma ended 42.5p higher at 479p.. A war of words erupted yesterday as Courtaulds Textiles, the Marks & Spencer supplier targeted by US company Sara Lee, unveiled plans to return at least £50m to shareholders as part of its defence against the hostile 100p a share offer. A war of words erupted yesterday as Courtaulds Textiles, the Marks & Spencer supplier targeted by US company Sara Lee, unveiled plans to return at least £50m to shareholders as part of its defence against the hostile 100p a share offer.
Courtaulds said it was proposing to divest four of its non-core businesses, including Lyle & Scott, the sportswear maker, and George Rech, the clothing brand The two units have a combined net asset value of about £10m. Courtaulds’ remaining furnishings business, which comprises Christy towels and Zorbit nursery products, will also be sold, as previously announced.

The company will then buy back shares for up to 175p each.A spokesman for Sara Lee, the Wonderbra to sponge cake maker, said Courtaulds’ defence strategy was “as neat a way of committing commercial suicide as I have seen.” He added: “This is robbing Peter to pay Paul.”Colin Dyer, Courtauld’s chief executive, retorted: “I don’t care to respond to those rather poorly thought-out statements from Sara Lee.”Mr Dyer once again urged shareholders to reject the US group’s offer, which values the company at £104m. Courtaulds contends that the cash offer is worth 95.2p, as it says that Sara Lee intends to retain the 4.8p dividend.A textile analyst said the UK firm’s defence was “not a knock-out blow, but it is a good start.” He still expected Sara Lee to raise its bid.Courtaulds shares ended 11.5p firmer at 137p.. Bradford & Bingley said yesterday that its plans for a £3bn stock market float were on track for December, despite the collapse in mortgage bank values that has led some to question whether the listing should be delayed. Bradford & Bingley said yesterday that its plans for a £3bn stock market float were on track for December, despite the collapse in mortgage bank values that has led some to question whether the listing should be delayed.
Chris Rodrigues, the chief executive, said that if board members were advised, closer to the float date, that members’ £1,000 windfalls were unlikely to be realised, a postponement would be considered.

But he insisted the timetable was proceeding on schedule at this point.After the society’s annual meeting next month, a transfer document setting out the terms of the flotation will be issued in May or June asking the society’s 3 million members to approve the scheme at a special meeting in mid-July.”We have a management team which is not focused on the status quo The world is changing. It is world where the traditional clearing bank or bancassurance model is not where we want to be We are in the business which threatens that model…. We have seen the enemy and it is us,” he said.Mr Rodrigues said that figures out yesterday, showing profits up 44 per cent before tax and exceptionals to £184.4m last year, would underscore the message to the City that B&B is not just another “me-too” mortgage bank.. Internet investment frenzy intensified last night as the flotation value of Lastminute seemed likely to surpass £450m, a 50 per cent premium to the £316m mid-price published in the company’s prospectus earlier yesterday. Internet investment frenzy intensified last night as the flotation value of Lastminute seemed likely to surpass £450m, a 50 per cent premium to the £316m mid-price published in the company’s prospectus earlier yesterday.
Already a top internet brand along with Freeserve, Lastminute yesterday unveiled plans to raise £62m through a global offer of 33 million new shares with a mid-price of 210p. Over 1.1 million registered Lastminute subscribers will be eligible to buy shares in the initial public offer (IPO).