Update 0 rows affected

I created a new system db. And I am trying to copy a live db into a test db.

The backup and restore went fine. Then I went into sql management studio right click on the new system db and clicked new query.

Then I type update company set databasename='New db' where databasename='old db'

Then I click execute.

Oddly, as soon as I type a single quote, it turns red and so does the name of the db.

When I execute the results are 0 rows affected.

Help?