London's FTSE 100 index opened around 0.6% higher on Tuesday, up by around 51 points to 8,198. The market welcomed the prospect of further economic growth despite GDP figures flatlining in April due to wet weather. Production output dropped by 0.9% in the month, down from a growth of 0.2% in March, with manufacturing as the key driving force after it suffered a 1.4% decline. Construction output shrank by 1.4% in what was its third consecutive monthly fall but was helped slightly by services rising by 0.2%, marking the fourth straight month of rises [f2c21edf].
Rentokil is making a significant contribution to the FTSE 100's rise this morning after it was revealed that billionaire fund manager and activist investor Nelson Peltz had developed a stake in the company. Shares in the Crawley-based group surged more than 13.5% to 470p after Peltz's investment firm Trian Fund Management said it had opened a "significant position" in the company, placing it as one of the top ten largest shareholders [f2c21edf].