Afternoon markets: Banks buoy the FTSE

The FTSE has risen by 0.5%, or 27.8 points to 5342.92 today, buoyed by unexpectedly cheery news for banks.

Lloyds Banking Group rose by 3.4% to 53.5p after analysts Bloomberg polled said they expected a £1.6bn second half net loss, down from £6.9bn for the same period in 2008, when Lloyds reports on Friday. HSBC rose by 2.4%, to 717.8p. There was news today it may not increase chief executive Ben Geoghegan's base salary by up to 40%, to £1.5m this year. Managers at rivals Barclays, Royal Bank of Scotland and Lloyds have already shunned increases.Save and publish Cruise ship operator Carnival also rose, by 3.5% to £24.29 after announcing a 5% price increase, from March, for summer cruise...