Downgrading the stock to an outright "sell" recommendation from "underperform", Panmure argued that the hot weather would impact sales negatively and push raw material prices higher for the group.At last month's annual general meeting NF's management complained that rising raw material prices would impact on group profits Since then things seem to have got worse. The group talked of a continued improvement in its US market.Lloyds TSB retreated 14p to 430p after a downgrade from Credit Suisse First Boston. Better than expected results from French rival Publicis also helped sentiment towards WPP. These included Barclays, down 12.75p to 478.75p, Shell, off 9.25p to 400.25p, Royal Bank of Scotland, 38p lower to 1,626p, and BP, 4.75p leaner at 434p.WPP rose 7.5p to 540p as it emerged that one of the group's units will handle the promotion of AstraZeneca's cholesterol lowering drug Crestor, which yesterday received approval from the US Food and Drug Administration. This optimism was spoiled by a negative start to trading on Wall Street. Also weighing on the index was the fact that a number of heavyweight stocks went ex-dividend yesterday.

At the end of January, Tom Hunter failed with his 85p a share bid for the group after getting the cold shoulder from the retailer's management team. Under takeover rules he was precluded from tabling another bid for six months, however this period has now lapsed leaving him free to return with a new offer.His January move on HofF is believed to have had the backing of Baugur. An alternative scenario could see Baugur itself putting together an offer for the HofF with the backing of private equity. In March, John Coleman, the group's chief executive, admitted to having received approaches from a number of interested financial buyers.

As with Tom Hunter's offer he is said to have rebuffed them on valuation grounds.The FTSE 100 index fell 4.9p points to 4,180.7p, having trading above the psychologically important 4,200 level at one point during the day. If you believe the latest chatter among stock market gossips, a bid for House of Fraser is back on the agenda. They will try to nudge central banking institutions to hold down short-term rates and maybe finance themselves more at the shorter end.Investors will resent this. Central banks will fight to retain their authority and their independence. But governments will need independent banks to continue to persuade investors to lend on reasonable terms.So it is all going to be much tougher.