On The Up: Bank of Scotland

BANKING SHARES led the market gains last week on evidence of low inflation and rebounding consumer confidence. Bank of Scotland rose 8 per cent after it said it was in talks with more US organisations to form a joint-venture agreement, undeterred by the fiasco of its scrapped partnership with TV evangelist Pat Robertson.

Scotland's second-largest bank, which is trying to shake off the public embarrassment caused by its failed link-up with Mr Robertson, said an agreement could be announced within weeks.

It also said it planned to seek partnerships for telephone and electronic banking in Europe. The bank declined to comment on whether it was in active talks with any partners in Europe.