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News Headlines:   Uk shares are expected to climb on Monday morning, but market volume is likely to be light with the U.S. closed for the Labor Day HolidayCanary Wharf. Rival U.S. investment banks Morgan Stanley and Goldman Sachs said they were working on a joint bid for the indebted UK property firm Royal Sun Alliance Sunday newspapers reported that Britain's second-biggest general insurer is considering launching a rights issue to raise up to one billion pounds.The Sunday Times says the new shares could be offered at around 100p each, compared to Friday's close of 138-1/2p. The Sunday Express, however, said major investors could snub a two-for-three issue before it is announced at the same time as RSA's half year results, due on Thursday.

John Laing has reported a sharp fall in first-half profits and halved its dividend payout after the disposal of its Laing Homes business. They reported a profit of 5.1 million pounds for the six months down from 17.9 million pounds a year ago, which included the disposed Laing Homes unit that was sold for 297 million pounds last October.

Taylor Woodrow said it had agreed to buy rival Wilson Connolly Holdings for around 480 million pounds in cash and shares. It would pay 200 pence in cash and 0.132 new Taylor Woodrow shares for each Wilson Connolly share, valuing Wilson Connolly at around 230 pence per share, or a 10 percent premium to Friday's closing price.

Avis posted a big drop in first-half pre-tax profits on Monday and warned its full-year revenue would be between four and seven percent lower than last year. The CEO is leaving for a permanent holiday.

Calendar All GMT	United Kingdom (F)inals (I)nterim	United States (Click Flag)	Europe & World
Monday 1st September   Reporting Company Updates Financial Data	Avis Europe (I) PBT 22m exp. Highbury House (I), John Laing (I) PBT 15.3m exp. British Vita (I), Cairn Energy (I), ITNET (I), Peterhouse Group (I) Incepta (ITA). Consolidation 1 share for every 5 shares held Allied Domecq Trading Statement, Xenova (EGM 09.30 July Net Consumer Credit 1.8bn exp. 09.30 Aug Preliminary M0 Money Supply y/y 7.7% exp. 09.30 Aug CIPS Manufacturing PMI 51.3 exp. 11.00 Aug CBI Employment Trends Survey	Labour Day Holiday Markets closed	08.55 Aug German Manufacturing PMI 49.2 exp. 09.00 Aug Manufacturing PMI 49.0 exp.
Good Trading!   David@FTSEDOW.com    www.FTSEDOW.com            Pivot Calculator

Trading Thoughts Sunday 31st Aug   (Crocodile)

MondayAllied Domecq give a trading update which should settle the takeover rumours that have fuelled a rally in the drinks group's share price over the last few weeks. TuesdaySchroders Fund manager interim figures are expected to reflect a strong recovery in the markets for the second quarter after a dismal first quarter. Taylor Woodrow Investors are banking on the fact that it will finally divest its St Katherine's Dock development when it report interims on Tuesday. Also of note will be the housebuilder's outlook for UK market conditions. Meggitt post first half results, which are expected to reveal a gradual return to growth as its cost savings programme begins to deliver the goods. Analysts are expecting profits to be broadly unchanged from last year. WednesdayGallaher maker of Benson & Hedges and Mayfair, is expected to report a modest rise in first half profits as the continuing weakness in the UK market offsets currency gains. LogicaCMG unveils its interims next Wednesday, with analysts forecasting a sharp decline in profitability. The group issued a major profits warning back in March. ThursdayWilson Connolly another housebuilders announces interim results. Analysts have warned that any slip up in earnings could make the group vulnerable to a takeover approach as bidders are circling the sector. Royal & Sun Alliance will deliver interim results with analysts fearful that the group may propose a two-for-three rights issue. The group has refused to comment on rumours fuelling fears further. FridayRMC's interim results are dueand the cement company's loss-making German operation will be of interest to investors. The question remains as to whether cost cuts are working or if the group should withdraw from the business. Rank hotel and gaming group forecast to have been held back by tough trading at its Hard Rock chain and casino outlets. Analysts however are estimating a recovery for the second half, so the group's outlook will be all-important.

Looking at the chart we have the FTSE one year uptrend still broken through resistance on the 3 year downtrend shown in red. Despite a fall in the markets towards the end of the week the current uptrend has not yet been broken but we are on support in that channel. The previous 5 times it has hit this support computer buying programs have entered to cause a sharp bounce higher. If that support fails we could be looking far a fast sharp drop back down into the 3 year downtrend with a possible medium term drop to the longer term support at 3500! As I did last week I will stay with the uptrend channel and look for a continuation to higher levels but if that 1 year support fails watch out! Wishing you all the best for the week ahead and look forward to your thoughts! David

David@FTSEDOW.COM  www.FTSEDOW.com    All the above comments are purely a personal opinion and no investment advice is intended.  Please do your own research.

All  Times GMT

United Kingdom

F)inals (I)nterim

United States

(Click Flag)

Europe & World

Monday

1st September

Reporting

Company Updates

Financial Data

Avis Europe (I) PBT 22m exp. Highbury House (I), John Laing (I) PBT 15.3m exp. British Vita (I), Cairn Energy (I), ITNET (I), Peterhouse Group (I)

Incepta (ITA). Consolidation 1 share for every 5 shares held Allied Domecq Trading Statement, Xenova (EGM

09.30 July Net Consumer Credit 1.8bn exp. 09.30 Aug Preliminary M0 Money Supply y/y 7.7% exp. 09.30 Aug CIPS Manufacturing PMI 51.3 exp. 11.00 Aug CBI Employment Trends Survey

Labour Day Holiday

Markets closed

Tuesday

BBA Group (I) PBT 62m exp. Brambles Industries (F) PBT 291m exp. Schroders (I) PBT 25m exp.

Antofagasta (I), Arena Leisure (I), Brammer (I), Britannic Group (I),

Communisis, Computacenter (I), Dechra Pharmaceuticals (F), Dicom Group (F), Lambert Howarth Group (I), Lavendon Group (I),

Marlborough Stirling (I), Mears Group (I), Meggitt (I), Molins (I), Taylor Woodrow (I), Tibbett & Britten (I), Wireless Group (I)Whitbread Trading Statement

09.30 Aug CIPS Construction Industry PMI 10.30 EEF Quarterly Trends Survey

Auto Sales Aug, Truck Sales Aug  

Paddy Power (I)

11.00 July PPI m/m 0.2% exp. 11.00 July Unemployment Rate 8.9% exp.

Wednesday

Associated British Ports (I) PBT 69m exp. Regent Inns (F), Savills (I), Serco Group (I), SIG (I), Signet Group (I), Cambridge Antibody (I), Charter, Clarkson (I), Costain Group (I),

Delta (I), Devro (I), Gallaher Group (I), Heywood Williams (I), James Beattie (I), Isotron (F), LogicCMG (I), Lookers (I), Melrose Resources (I),

Somerfield AGM & Q1 Trading Update, Quintain (AGM),

British Airways Aug Traffic Figures

09.30 Aug Services PMI 56.0 exp. 11.00 July CBI Distributive Trades 20% exp.

08.55 Aug German Services PMI 49.0 exp. 09.00 Aug Services PMI 51.0 exp.

10.00 June Retail Trade m/m 0.5% exp.

Ex Dividend: Beale (1.95), Brewin Dolphin (1), Cattles (3.95), EMI Group (6), First Technology (6.1), Glanbia (EUR 0.021), Greggs (25.5),

Hilton Group (3.4), International Greetings (4.45), Low & Bonar (1.5), Metal Bulletin (1.9), Mitie Group (1.1), Mouchel Group (1.45), Oxford Instruments (6),

Peel Holdings (10.2), Persimmon (7), ROK Property Solutions (1.75), Radstone Technology (2), Reckitt Benckiser (14), Royalblue Group (1.85),

Scottish & Southern Energy (24.5), Slough Estates (5.8), Stagecoach Group (1.8), Tops Estates (2.7), Reg Vardy (9.95), VP Plc (3), Wagon (5)

Thursday

Diageo (F) PBT 2120m exp. International Power (I) PBT 91.6m exp. Royal & Sun Alliance (I) PBT 356m exp. Amlin (I), Arriva (I), Ask Central (I), Axis-Shield (I), Davis Service Group (I), Easynet Group (I), Eidos (F), Intercare Group (I), Intertek Group (I),

Mowlem (I), Rathbone Brothers (I), Tullow Oil (I), Wilson Connolly (I)

00.01 Aug BRC Shop Price Index 12.00 BOE Rate Announcement

Cap Gemini (I), Pinault-Printemp (I), Suez (I)

08.55 Aug German Unemployment 10k exp. 11.00 July German Preliminary BBK

          Factory Orders m/m 0.4% exp.

12.45 ECB Rate Announcement

Friday

Rank Group (I) PBT 77.1m exp. RMC Group (I) PBT 7.4m exp. Aga Foodservice (I), Go-Ahead Group (F), Highway Insurance Holdings (I),

JD Wetherspoon (F), Marshalls (I), Swan Hill Group (I)

EasyJet Aug Traffic Figures

13.30 Aug Non-Farm Payrolls 15k exp.

Average Workweek, Hourly Earnings Aug Unemployment Rate Aug

11.00 July German Preliminary Industrial

         Production m/m 0.8% exp.

Monday

8th September

Candover Investments (I), Dream Direct Group (I), IMI (I), Informa Group (I), British Polythene (I), Concurrent Technologies (I), Forth Ports (I), William Hill (I), Roxboro Group (I), TT electronics (I), Taylor Nelson Sofres (I), Travis Perkins (I),

Nestor Healthcare Group (I) 600 Group (AGM) Aug PPI (0830 GMT) Aug industrial/manufacturing output (0830 GMT) Aug BRC retail sales report (1700 GMT) National Institute of Economic and Social Research

     monthly GDP estimate (1200 GMT)

Abbot Group (I), Aegis (I), Bloomsbury Publishing (I), Bond International Software (I), Brandon Hire (I), Dmatek (I), Ennstone (I), Gyrus (I), iTouch (I), Kidde (I), Mersey Docks & Harbour (I), Premier Farnell (I), Retail Decisions (I), Spectris (I), Spirent (I), Staffware (I), WSP Group (I), UNITE Group (I),  Wyevale Garden Centres (I), Alumasc (F), Avingtrans (F), Thorntons (F),

Aegis Group(I), PZ Cussons (F)

Artisan (UK) AGM, Black Rock Oil & Gas AGM Jacques Vert AGM, Reliance Security AGM

Wholesale Inventories

Carillion (I), Densitron Technologies (I), Flying Brands (I), Independent News (I), Psion (I), Spring Group (I), UK Coal (I), Whatman (I), A & J Mucklow Group (F), Hays (F), Woolworths (I)Bidtimes AGM, Dixons AGM, Topnotch EGM Matrix Venture AGM, Reliance Security AGM Singer & Frielander Aim AGM, Stanley Leisure AGMUK DMO announces results of 2036 gilt auction

BAE Systems (I), Geest (I), SMG (I), Yule & Catto (I) National Express (I), Spirax-Sarco Engineering (I), Tikit Group (I), Trafficmaster (I), McBride (F), Galliford Try (F),

Sunday News 31st August        

Headlines: Brown set for new tax bombshell:  A leaked Treasury letter reveals that the chancellor is preparing to put the brakes on spending, underlining a crisis in the public finances that is likely to lead to tax rises (Sunday Times)

Royal & Sun Alliance will this week launch one of the largest rights issues of the year when it asks shareholders for about 900m. Andy Haste, chief executive of Royal & Sun Alliance (RSA), is expected to unveil the plans with the companys half-year results on Thursday.

Safeway directors plan for bid failures, they are drawing up contingency plans in case Wm Morrison, its smaller rival, ends up being the only company allowed to bid for it.

House prices in Britain jumped at their fastest rate in three months in August. The news eases concern that the market might be set for any kind of sharp slowdown in the months ahead. . Tom Singh, founder of women's fashion chain New Look, is to table a 650 million pound offer for the company this week, the Sunday Telegraph & Reuters reports. Scottish & Southern Energy's bid for Midlands Electricity could come under threat this week as bondholders are set to refuse to back the deal, Sunday newspapers have reported.

Astra Zeneca after one of the biggest patent expiries in pharmaceutical history, is this week expected to make positive announcements about the medicines it is relying on for future sales

Mitchells & Butlers is set to return more than 400m to shareholders in October after they dropped out of the auction for the 2.5 billion Scottish & Newcastle pub estate on Friday, freeing it to start returning cash to investors. The pub group has yet to decide how to make the payment. Options include a special dividend or a share buyback.

Sunday Times:

Sharewatch: Alltracel Pharmaceuticals A Share in the Boardroom: CD Bramall Agenda: William Lewis: RSA will repent at leisure if Haste doesnt act Sharewatch: Devro Sizzling sausages Ryanair Holdings Irish Agenda: Air France attempts to outmanoeuvre Ryanair on routes Share of the Week: Schroders BAE Systems plots digital war

Safeway far from in the bag Boots Bidders are back at Bradford & Bingley

Sunday Telegraph

Wilde breathes life into Rentokil Scottish and Southern Energy Midlands anyone? Reckitt Benckiser polished performer Cadbury Schweppes Establishment fights for its rights as developers circle Dolphin Square

EMI prepares to outflank Bertelsmann in bid to buy Warner Music Cadbury Schweppes consortium offers 200m for Dolphin Square

Shareholders in Rentokil Initial, the pest control-to-toilet cleaning business have had a bumpy ride over the last couple of years but last week James Wilde, newly appointed chief executive, announced upbeat interim results with profits up 7.4%. So far Wilde appears to have impressed the City and, despite the recent lift in the share price to 210p, we think they have a lot further to go. It has been two-and-a-half hard years for Acal, the distributor of telecoms equipment and information technology components. Full year results announced in June saw profits slip 6% but the picture is not all gloom. Acal pleased investors by increasing its dividend* and has also managed to make higher gross* margins. Shares are not cheap at 597 1/2p but are worth snapping up in the hope that trading has stabilised. Linx Printing Technologies makes continuous ink-jet printers which are used to put bar codes on billions of packages, bottles and jars. The small Cambridgeshire company has done particularly well in the Asia Pacific region and a new distribution system offers hope for the situation in the US. With analysts predicting a rise in profits, buy at 323 1/2p. One of technology integration and IT solutions company Morse's strengths is that it continues to provide services for clients after the initial system is installed. But as a European partner for a handful of US computer giants, it came as no surprise when Morse admitted on Friday that its sales had slumped. From being just in profit last year it was now facing a loss but, at 142 1/2p, worth buying now for recovery.

Royal and Sun investors braced for 1bn rights issue Trinity Mirror MP eyes Irish papers Carlton, Granada Venture capitalist takeover of ITV 'a disaster' Collins Stewart Tullett boss secretly taped 'blackmail' approach

Eidos Lara's a game girl, but she's lost the plot

Diageo A City diet of cigarettes and alcohol

Russian targets 10 per cent of Corus

Scotland on Sunday

Royal Bank's new school will be bad for business Kingsbridge in talks over sale of Scottish arm Royal Bank's latest statement 30m sees Aberdeen save EFM brand Restructured Aberdeen Asset Management split cap trust shows signs of recovery Pick-up in sales likely to be too late to cheer Diageo's annual results

Aggreko New prince of power generation

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