Sorry about the date on the header. :-(

Can't change it without deleting the thread and starting again....

G.

OUTLOOK - UK data in coming week to show more evidence of slowdown in activity

LONDON (AFX) - In a week set to be dominated by the government's pre-budget report, UK data will likely fade into the background although ample evidence of a continued slowdown in activity is expected.
The week starts off with data for October consumer credit and mortgage lending. Both are predicted to show further drops in pace as record levels of debt and the interest rate hikes take their toll.
John Butler at HSBC expects the number of mortgage approvals to slump to lows not seen since 1998.
"That is arguably a return to more 'normal' levels rather than a collapse," he said.
Analysts cited data from the likes of the British Bankers Association, Building Societies Association and Council of Mortgage Lenders for their assessment.
"Indeed, the downward momentum could gather pace now that house prices have fallen and even the Bank of England has forecast further modest falls," analysts at Capital Economics.
At the same time, consumer credit is expected to drop to 1.5 bln stg in October from 1.6 bln the previous month -- largely due to the rise in borrowing costs.
The purchasing managers indices measuring activity in the manufacturing and service sectors are also due out during the week and are forecast to show falls.
The first of the two, the manufacturing sector index, scheduled for Wednesday, is seen slipping to 52.5 from 53.0 in September. The index had improved in October, but few expect a repeat.
"The risk is that October's rise was merely a consolidation after the previous sharper-than-expected drops," analysts at CALYON noted.
Yet others, however believe a modest rise is on the cards, boosted by the US economy's emergence from its 'soft patch'.
The week concludes with the service sector PMI on Friday where the median forecast of analysts polled by AFX News points to a drop to 55.6 from 56.3 in September.
The service sector has been one of the main engines for overall UK economic growth and any drop will be unwelcome.
"On balance we think that weakness in housing, retail activity and recorded softness in manufacturing could well see some softening in services and we are pencilling in a modest dip back below 56," said David Page, economist at Investec.
Also during the week some key survey data are due. The GfK's consumer confidence poll on Tuesday is expected to remain static.
Meanwhile, while the Confederation of British Industry's distributive survey for November is predicted to retreat from the recovery it showed the previous month.
But as CALYON analysts noted, the data "has lost some of its appeal given the misleading signals it sent relative to the hard data on retail sales".

ROFLMAO!

Was looking at a different date.

Morning all,

long ARM BUR CTM LAND SOF MNKS BLND RGU S&P

Mega...

MARKET EXPECTATIONS
* Belhaven Group. Arbuthnot Securities forecasts six months to September pretax profit 9.0 mln stg vs 7.7 mln; interim dividend 4.4 pence, up 10 pct
* Dawson Holdings. Altium Securities forecasts year to September pretax profit 15.1 mln stg vs 13.0 mln; total dividend 7.2 pence vs 6.9
* Enterprise Inns year to September pretax profit 222-225 mln stg
* MITIE Group. Altium Securities forecasts six months to September pretax profit 20.7 mln stg vs 18.5 mln; interim dividend 1.3 pence vs 1.1
* Severn Trent six months to September pretax profit before exceptionals 123.8 mln stg vs 136.2 mln; interim dividend 18.04 pence, up 1.5 pct

Digger,all market information is very welcome.Thanks

OUTLOOK UK smoking ban major talking point as pub groups report figures

LONDON (AFX) - The threat of a nationwide smoking ban in public places and its impact on the pubs industry will be a major talking point next week with three of the UK's largest pub group's -- Enterprise Inns PLC, Mitchells & Butlers PLC and Wolverhampton & Dudley Breweries PLC - all poised to announce trading results.
The government's recent White Paper set out proposals to ban smoking in pubs and other establishments that prepare food, by the end of 2008. However, those premises not selling food will be exempt from the ban, although smoking in the bar area will be prohibited. The proposals prompted a major sell-off in pub company shares as some industry watchers predicted a 7.0-8.0 pct fall in trade and a decline in operating profits.
Enterprise Inns -- with full year results on Tuesday -- is thought to be least affected by the ban as its tenanted estate, which focuses on beer rather than food, is likely to be exempt from the ban. But Mitchells & Butlers -- with preliminary results on Wednesday -- could be one of the hardest hit as its estate has a higher proportion of food sales. It operates the Harvester, All Bar One and O'Neills high street brands.
However, analysts are largely working in the dark as to how a ban could really impact performance with only anecdotal evidence from Ireland -- where a ban in pubs and clubs came into force earlier this year -- and local observation providing any clues as to how on-trade volumes have been affected.
Even so, some put the initial fall-off in trade at over 15 pct. In Scotland, which recently announced an all-out ban by 2006, analysts reckon trade will fall by around 7.5 pct.
While a smoking ban in England and Wales will hit trade, analysts reckon the impact will not be as great as either Ireland or Scotland.
Arbuthnot Securities reckons the annualised decline in sales over the first twelve months of the ban could be around 5 pct, while the 2008 deadline will give the pub groups plenty of time to position themselves financially to absorb any short-term impact on trading.
Meanwhile, Enterprise Inns full year results on Tuesday will include a full six months contribution from the now wholly-owned Unique pubs chain and analysts look for pretax profits of about 222-225 mln stg for the twelve months to Sept 2004.
The group indicated in a recent update that trading was "comfortably in line" with expectations, with operating profit per pub up by 8 pct. Stockbroker Williams de Broe is looking for profits of 222.3 mln stg and earnings of 45.9 pence a share. Arbuthnot has pencilled in profits of 221.8 mln stg. A rise in the total dividend from 8.6 to 10.7 pence a share is also anticipated.
Mitchells & Butlers, which runs about 2,000 managed pubs, reports its preliminary results on Wednesday.
Analysts expect pretax profits of about 178-180 mln stg for the year to Sept 2004, compared to a pro forma figure of 199 mln stg last time.
A recent trading update pointed to a 6 pct rise in same-outlet like-for-like sales and the group indicated that the results would be towards the top-end of expectations. A rise in the total dividend to around 9.5 pence a share is anticipated, compared to last time's pro forma 5.65 pence payment.
However, the group is facing increasing cost pressures -- minimum wage increases and rising energy costs -- while the prospect of a nationwide smoking ban is a real and serious threat to the company. Arburthnot Securities reckons that based on its mid-case scenario of a 5 pct decline in sales in the first year of a ban, profits could fall by as much as 26 pct due to the high fixed-costs of running a managed pubs chain.
In the meantime, Arbuthnot expects pretax profits for 2003-04 of 178.8 mln stg, which would give earnings of 21.8 pence a share.
Wolverhampton & Dudley Breweries results on Friday are expected to show the benefit of strong trading over the summer months.
In a pre-close trading update, the company said its Pathfinder Pubs saw like-for-like sales growth in its invested pubs estate increase from 2.8 pct in the first half to 3.6 pct in the second, giving a growth rate for the full year of 3.2 pct.
Like-for-like sales in The Union Pub Company were 4.3 pct ahead of last year for the same 52-week period.
Arbuthnot Securities looks for full year pretax profits of 76 mln stg, compared to last year's reported figure of 73.1 mln stg. A rise in the total dividend from 32.1 to around 35.3 pence a share is also anticipated.
Apart from the figures, analysts will be hoping an independent revaluation of the group's pub assets will throw up a surplus and allow the board to return cash to shareholders or make acquisitions. The group has already indicated that the net increase in asset value is expected to be over 160 mln stg -- an average uplift of 25 pct since the last valuation in 1999.

Mega I try to keep it short ,but always seems a great deal around

London shares outlook - unsettled on lack of earnings news, direction from NY

LONDON (AFX) - The FTSE 100 is set for an unsettled open, as investors search for direction ahead of a quiet day of blue chip earnings results and following an uninspiring session on Wall Street on Friday, dealers said.
Spread betting group IG Index is anticipating an 8 point fall in the FTSE 100 index at the open, after an 11.9 point decline on Friday to 4,741.5.
In the US, the major indexes finished the post-holiday, abbreviated Friday session not far from where they started.
The DJIA finished the day up 1.92 points at 10,522.23, while the Nasdaq Coqosite slipped 0.57 points to 2,101.97.
Intel, down 1.7 pct, was the biggest decliner on the Dow, after the Semiconductor Industry Association said consumer electronics sales in the fourth quarter are expected to be about even with those of this year's third quarter, as high energy prices are holding back discretionary spending.
In Asia today, Japan's Nikkei 225 index ended the day up 144.14 points at 10,977.89, while the Hang Seng finished the morning session 197.83 points higher at 14,092.86.
Focus will still be on the US dollar today, after steep falls in the currency versus the euro last week. The greenback firmed against the euro in Asia, with the European currency easing to 1.3248 dollars in late morning trade.
When asked about pressure to change the yuan's peg to the dollar, Chinese Premier Wen Jiabao criticised the US for not taking measures to halt the slide in the dollar and insisted that China will not revalue the yuan under pressure.
Meanwhile, crude oil futures fell in Asia. At 3.00 am, light sweet crude oil for January delivery on the New York Mercantile Exchange was 0.17 usd lower at 49.27 usd a barrel, down from its close of 49.44 usd in New York Wednesday.
Back in London, the week is set to be dominated by the government's pre-budget report on Thursday.
The week starts off with data for October consumer credit and mortgage lending. Both are predicted to show further drops in pace as record levels of debt and the interest rate hikes take their toll.
John Butler at HSBC expects the number of mortgage approvals to slump to lows not seen since 1998.
"That is arguably a return to more 'normal' levels rather than a collapse," he said.
Consumer credit is expected to drop to 1.5 bln stg in October from 1.6 bln the previous month -- largely due to the rise in borrowing costs.
The purchasing managers indices measuring activity in the manufacturing and service sectors are also due out during the week and are forecast to show falls.
In corporate news, utility stocks will be the main focus this morning, as Ofgem is due to publish its final proposals for the electricity distribution price review.
UBS expects the allowed return for electricity suppliers to be close to the mid-point of the 4.02-5.0 pct range used in the draft proposals.
The broker highlighted that companies have been arguing for an allowed return above the top end of the range, closer to the 5.1 pct used by Ofwat.
UBS cautioned that it anticipates a modestly adverse market reaction if the allowed return is not materially above the 4.6 pct used in the draft.
Still in the utility sector, Severn Trent will report first half numbers today.
Dresdner Kleinwort Wasserstein thinks the interims are likely to be slightly weaker due to the well-flagged 30-35 mln stg pension cost for the full year.
Dresdner forecasts profit before tax and goodwill of 139 mln stg, down 8 pct year-on-year. The broker is also looking for pre-deferred tax ESP of 31.3 pence and a dividend per share of 18.2 pence -- an increase of 2.5 pct on last year's payout.
Management will have to address the claims that the company over-stated bad debts in order to succeed in its 2002 IDoK -- an interim price determination -- application.
Meanwhile, the threat of a nationwide smoking ban in public places and its impact on the pubs industry will be a major talking point this week with three of the UK's largest pub group's -- Enterprise Inns PLC, Mitchells & Butlers PLC and Wolverhampton & Dudley Breweries PLC - all poised to announce full-year results.
Among the small cap pub groups, Belhaven Group is due to release interim numbers this morning. According to Arbuthnot, the pubs group should report another set of strong results, with pubs the main growth driver, supported by steady growth in brewing and drinks distribution.
Arbuthnot forecasts interim group pretax profits of 9.0 mln stg for the six months ended September 2005, up from 7.7 mln. A 10 pct hike in the payout to 4.4 pence would be covered by EPS of 22.2 pence against 21.0.
Also reporting interim results will be Mitie Group.
The first half numbers will reflect the impact of some keenly priced local authority contracts and Altium looks for 6 pct EBITA growth to 7.5 mln stg.
Overall, Altium forecasts group pretax profits of 20.7 mln stg for the six months to end-September 2004, up from 18.5 mln, for EPS of 4.1 pence against 3.6, and a payout of 1.3 pence from 1.1.
Full year results are on the agenda at Dawson Holdings. Altium is looking for 2004 pretax profits of 15.1 mln stg against 13.0 mln. A 7.2 pence dividend total, up from 6.9, would be covered by EPS of 15.5 pence against 13.3.
Intec Telecom Systems will release full-year numbers today, which Baird Equities thinks should show further evidence of acceleration in organic growth.
Baird believes that given the new business momentum in the third quarter and contracts signed in the fourth quarter, Intec's results for the year should at least be in line with expectations.
Baird expects pretax profits of 6.4 mln stg, up from 5.4 mln, for EPS of 2.3 pence against 2.2.
Topps Tiles will report full year numbers, having said in October that it expects to make pretax profit of about 33.5 mln stg. Analysts expect the dividend to go up to around 6.6 pence from 5.5, payable from EPS of nearly 11 pence against 9.
Many M&A stories featured in the weekend press. According to the Sunday Telegraph, Xstrata will this week unveil a 3 bln stg hostile offer for WMC Resources after the Australian copper and uranium mining company rejected an earlier friendly approach. However, the Sunday Times claimed Rio Tinto is considering making a rival offer. According to The Observer, HSBC is ready to swoop on Korea First Bank in a 2 bln stg deal, putting it head to head with US rival Citigroup in one of the fastest-growing markets in south-east Asia.
Novar is to launch a two-week drive to tie up a white-knight bidder for the group before the Christmas season begins claimed The Business. Novar has reportedly decided to drop its initial defence plan of breaking up the group and selling it as separate businesses.
Finally, The Mail of Sunday reported that Marks & Spencer is secretly making moves to sell up to half of its poorly performing Siqly Food convenience stores - a decision that could cost the troubled retailer millions of pounds.

BOC DOWNGRADED TO 'UNDERWEIGHT' FROM 'NEUTRAL' AT JP MORGAN

STOCKWATCH Bunzl started with 'underperform' rating, 400p target at CSFB

REXAM DOWNGRADED TO 'HOLD' FROM 'BUY' BY DEUTSCHE BANK

MARKETS
Tokyo: Nikkei 225 10,977.89, up 144.14
Hang Seng midday 14,092.86, up 197.83

BREAKING NEWS - MONDAY
* BOOTS is having second thoughts about selling sex toys, prompting supplier
SSL to open talks with other stores - FT
* GLAXOSMITHKLINE tells Tony Blair to press G8 for patents reform - Independent
* American flu jabs give GLAXOSMITHKLINE a shot in the arm - Telegraph
* CHIME COMMUNICATIONS walks away from merger talks - Telegraph
* LASTMINUTE.COM chief hints that more job cuts are possible - Guardian
* KINGSTON COMMUNICATIONS to restore dividend payments - Telegraph
* Canary Wharf's board considers Docklands offer - FT
* Germany's Aldi plans 500 mln stg stores push in UK - FT
* E*trade to launch futures platform - FT
* Gordon Brown to boost crackdown on corporate tax avoidance - FT
* Chancellor Gordon Brown defiant as CBI warns of 7 bln stg hole in tax
revenues - Independent
* Contractors urge Chancellor to tackle PFI delays - Times
* Betting chains poised to enter race for National Lottery - Daily Express
* Firms' pensions rejig could cost the Treasury 1 bln stg a year - Times
* Spending on internet advertising set to soar: Zeneith-Optomedia report - FT

MONDAY PRESS COMMENT
FT
Lex Column: US Treasuries (Treasures are clearly not cheap, That does not make them a one-way bet although a catalyst will be required for a significant
shift); TELECOM ITALIA (Proving a deal was at near current prices it could
benefit both TELECOM ITALIA MOBILE and TELECOM ITALIA); Equity Research
(DEUTSCHE BANK may not have a choice. It needs to cut costs and research is an
obvious target. That suggests its peers may not rush to copy Deutsche's
experiment - unless of course it works)

Independent
Small Talk: 121MEDIA (AIM flotation before Christmas should value company at
between 20-30 mln stg if fund managers are attracted); DEBT FREE DIRECT (Watch
out for news); CRESTON (results today will show progress with the integration
of CML Research); BANK RESTAURANTS (might just be a tasty morsel from the
stock market undercard); MONKLEIGH (about to do its second deal since floating
on AIM in July); GLOBAL GAMING CORP. (the plan is to inject a sports
betting company into the cash shell, with widespread expectations such a deal
will value the shares at 12 pence each); ATI OIL (first Ofex company to have
been spun out of an AIM firm starts trading today)

Times
Rumour of the day: CHIME COMMUNICATIONS/INCEPTA (Held extensive merger talks
but have failed to reach agreement. However the prospect of a deal is not dead
and talks are set to restart next year) -- Smaller Stock to Watch:
ANGLO-PACIFIC

Morning all.

STOCKWATCH Severn Trent reiterated 'neutral' at CSFB post-H1

LONDON (AFX) - Shares in Severn Trent PLC were reiterated a 'neutral' at CSFB after the utility group posted slightly better-than-expected interim numbers, dealers said.
In a note to clients, the broker said headline EBITA was down 2.2 pct to 229.3 mln stg, against its own estimate of 224 mln, while pretax profit fell 6.5 pct to 141.3 mln, compared with a consensus estimate of 138 mln.
The fall in year-on-year profit was due to the inclusion of a 15.1 mln stg increase in pension costs, which is expected to impact full-year results by
32 mln, the broker added.

Morning punters!

ARK - partnership with TTC
http://www.uk-wire.com/cgi-bin/articles/20041129070000Z7139.html

NTP - manufacturing partner for lead product
http://www.uk-wire.com/cgi-bin/articles/200411290700077265F.html

CWV - poor trading update, which was in the chart
http://www.uk-wire.com/cgi-bin/articles/200411290700097306F.html

ITH - in bed with Porsche - classy! ;-) Chart says it leaked? ;-))
http://www.uk-wire.com/cgi-bin/articles/200411290700097297F.html

COL - acquisition
http://www.uk-wire.com/cgi-bin/articles/200411290700197332F.html

PRE - disappointing drilling update?
http://www.uk-wire.com/cgi-bin/articles/200411290700287353F.html

KIE - nice AGM statement
http://www.uk-wire.com/cgi-bin/articles/200411290700307355F.html

HNR/ROC/PMO - disappointing drilling update from Mauritania?
http://www.uk-wire.com/cgi-bin/articles/200411290701407406F.html

TLW - looks good in Banglabesh
http://www.uk-wire.com/cgi-bin/articles/200411290700437396F.html

CCT - dispute settled in its favour = exceptional profit!!
http://www.uk-wire.com/cgi-bin/articles/200411290700447403F.html

UKC - not the best trading update?
http://www.uk-wire.com/cgi-bin/articles/200411290700447404F.html

CHW - possible merger with ITA off
http://www.uk-wire.com/cgi-bin/articles/200411290700447401F.html

HYC - interims seem way ahead of FY forcasts.
http://www.uk-wire.com/cgi-bin/articles/200411290700047063F.html

BTSM - nice interims. I'm long!!
http://www.uk-wire.com/cgi-bin/articles/200411290700057169F.html

TOPS - fair discount to NAV
http://www.uk-wire.com/cgi-bin/articles/200411290700127315F.html

DWN - in line FY
http://www.uk-wire.com/cgi-bin/articles/200411290700127314F.html

ASC - decent set of interims, but price has flown this year
http://www.uk-wire.com/cgi-bin/articles/200411290700167324F.html

MTO - interims inline
http://www.uk-wire.com/cgi-bin/articles/200411290700147320F.html

DGG - interims look OK
http://www.uk-wire.com/cgi-bin/articles/200411290700157323F.html

ILX - chart been poor, but interims seem to be pointing to a turn. Hmm
http://www.uk-wire.com/cgi-bin/articles/200411290700267347F.html

Well, that's all folks. I've probably missed something, but such is life!

Have a good day/week.

London shares near highs midmorning; financials up as dollar firms

LONDON (AFX) - UK blue chips remained stronger in solid midmorning trade, hovering near session highs supported by solid gains in financial issues as the US dollar managed a rally after recent declines, dealers said.
At 10.04 am, the FTSE 100 index was 46.4 points higher at 4,788.1, just below the session peak of 4,791.0 having dipped back to 4,739.5 at open.
The broader FTSE indices were more modestly higher.
Volume was fair with 388 mln shares changing hands in 38,180 deals.
Today's UK data provided more evidence of slowing consumer credit and mortgage lending as the Bank of England's recent rises in borrowing costs take their toll.
UK net new consumer credit in October fell for the second month running to reach 1.549 bln stg from 1.624 bln the previous month. The reading was in line with predictions but is still the lowest since April this year.
Strength in financial issues provided the main fuel for blue chips in London midmorning, with hedge funds provider Man Group a good performer, up 25 pence to 1,489, while Old Mutual topped the FTSE 100 risers, ahead 2-1/2 pence at 131.
Bank stocks rallied as well, with Barclays rebounding 9 pence higher to 552 after a dismal performance last week, helped by a target upgrade to 550 pence by JP Morgan.
Other banks were also higher -- Lloyds TSB shares rose 7-1/2 pence higher to 430-1/4, and HSBC gained 13 pence at 904-1/2 aided by strong gains today in Hong Kong.
Away from financials, pharma stocks rebounded as well after being hit last week by the US dollar decline -- GlaxoSmithKline rose 13 pence higher to 1,133 aided by share buy-backs, and AstraZeneca was up 22 at 2,102 helped by news of European approval for a heart drug, Atacand.
And mining issues also benefited from the firmer dollar, with commodity prices higher as a result -- Anglo-American added 19 pence at 1,293, Xstrata gained 4 pence at 942, and Rio Tinto firmed 19 pence at 1,559 amid talk the group could counter-bid Xstrata's hosile offer for Australia's WMC.
Utility stocks stayed in focus after the regulator Ofgem announced that electricity distribution companies will be allowed a 1 pct real, or inflation-adjusted, increase in charges from April 2005.
The allowed increase in charges was in line with expectations, and there was relief that the regulator did not impose stricter guidelines.
In reaction, Scottish Power shares rose 3-3/4 pence higher to 396-1/4, while Scottish & Southern Energy took on 5 pence at 823 pence higher at 819.
Meanwhile water blue chips Severn Trent rallied from initial falls, gaining 1-1/2 pence at 895 as fears over accounting irregularities were countered by the firm's slightly better-than-expected interim results.
Severn Trent posted profit before tax and exceptional items of 126.2 mln stg, down from 136.2 mln stg last time out, but near the top of the 118-128.4 mln stg market range.
There were few blue chip fallers left by midmorning.
Rentokil Initial shares topped the fallers list, down 1-3/4 pence to 152-3/4 ahead of an update due tomorrow, with Citigroup Smith Barney -- repeating its 'sell' rating -- expecting a further deterioration in trading at teh support services firm.
Elsewhere, negative broker comment pulled Dixons shares down 0-1/2 pence to 148-3/4, with Lehman downgrading its stance on the electricals retailer to 'underweight' from 'equal-weight' in a cautious pre-Christmas sector review.
Rexam also suffered, losing 1-1/4 pence at 460 after Deutsche Bank downgraded its rating for the beverage can maker to 'hold' from 'buy' following a strong run by its share price.
There were more weak performers on the second line.
Premier Oil headed the FTSE 250 fallers list, shedding 30 pence to 576 after news that tests on its Merou-1 well offshore Mauritania indicate it is not commercial.
In response, Merrill Lynch stuck to its 'sell' stance, noting Premier has drilled 3 exploration wells in Mauritania, two of which have not been a commercial success.
Elsewhere, Kidde shares shed 6 pence at 150 after the Observer newspaper claimed that United Technologies has decided to walk away from a bid for the firm after the UK group refused access to its books.
There was a buzz around SSL International on reports that Boots is pulling out of a deal in which it would sell a range of SSL's sex toys in its stores.
SSL shares lost 9-1/4 pence at 288-1/4.
Meanwhile shares in MITIE Group fell back 1-3/4 pence to 155-1/2 as a slide in margins at its building and supports services operations offset a 22 pct rise in interim profits and an upbeat outlook.
In response, Investec reduced its stance on the group to 'hold' from 'buy'.
And pubs group Mitchells & Butler shed 4 pence at 297 after being cut to 'hold' from 'buy' by Citigroup Smith Barney on valuation grounds ahead of the group's full-year results due this Wednesday.
But among the midcap gainers, EMI Group shares took on were 4-1/4 pence higher ar 248-1/4 as Citigroup Smith Barney turned buyer on the music group.
The broker argued recent first half results mitigated concerns over 2004/05 earnings, with the group predicting a high level of confidence in profitability and sales given strong growth in October and November.
And Novar shares rose 4-1/4 pence higher to to 164-3/4 amid weekend press reports suggesting Melrose Resources will launch its bid for the firm this week.

Good morning all from a nice sunny North Wales. Nice to see the Banks recover a bit this morning.

STOCKWATCH Lloyds TSB in demand as Merrill Lynch warms to stock

LONDON (AFX) - Shares in Lloyds TSB Group PLC were higher in late morning trade amid positive comments from Merrill Lynch, dealers said.
In a note to clients, the US broker noted that although Lloyds TSB has been a serial underperformer and is generally unloved by the market due to earnings fears and capital concerns, it is hard to see much downside without a backdrop of a market rout.
Merrill said it thinks the current valuation of Lloyds TSB makes the stock interesting from a yield perspective, particularly in an environment which makes overall market progress sluggish.
Overall, the US broker added that although it is retaining its 'neutral' recommendation on the stock, it is comforted by recent market trends which suggest the downgrade cycle of the recent past may be over.
By 11.20 am Lloyds TSB shares were up 7-3/4 pence to 430-1/2.

London shares - midday features

FTSE 100 risers
Reuters 396-3/4 up 7-1/2
Merrill sees Instinet take-out value at 6.50-7.30 usd a share
Lloyds TSB 430-1/4 up 7-1/2
Merrill positive
HSBC 903-1/2 up 13
US dollar rebounds; UBS 'buy
Barclays 550 up 7
Rebound; JP Morgan ups target to 550 pence
Rio Tinto 1,560 up 20
Investec raises commodity price estimates
Old Mutual 130-3/4 up 2-1/4
Insurers rally
Anglo American 1,287 up 14
Investec raises commodity price forecasts
SABMiller 889 up 10-1/2
Rand stronger; sector consolidation talk

FTSE 100 fallers
Rentokil 150-3/4 down 3-3/4
Citigroup negative ahead of trading update tomorrow; rates 'sell'
Dixons 146-3/4 down 2-1/2
Lehman cuts to 'underweight
Rexam 458-3/4 down 2-1/2
Deutsche cuts to 'hold' from 'buy'
Severn Trent 892-1/2 down 1
Good H1 figs offset by accounting worries

FTSE 250 risers
Investec 1,512 up 45
Strong rand
Invensys 17-3/4 up 3/4
Vague bid speculation
Novar 162-3/4 up 2-1/4
Seeks white knight
EMI 248-1/2 up 4-3/4
Citigroup upgrades to 'buy'
Big Food Group 88-3/4 up 1-1/4
Bid hopes
easyJet 185 up 1
Recent results; ongoing bid hopes
Paladin Resources 181-3/4 up 1-3/4
Joint venture gets UK govt approval for Brechin Field development

FTSE 250 fallers
Premier Oil 574-1/4 down 31-1/2
Mauritania drill results disappoint
Kidde 151 down 5
Fear UTC will pull bid
SSL International 288-1/2 down 9
Fears Boots may cancel sex toy deal
Jardine Lloyd Thomson 357-1/2 down 8-1/2
Negative broker comment after profit warning last week
Mitie Group 154 down 3-1/4
Margins slip; cut to 'hold' at Investec
Mitchells & Butlers 298-1/2 down 2-1/2
Downgraded to 'hold' from 'buy' at Citigroup Smith Barney
Electrocomponents 295 down 3
Started with 'underperform', 260p target at CSFB
Arla Foods 55-3/4 down 3/4
Interim results tomorrow
Woolworths 44-1/4 down 3/4
Concern over Christmas trading
GWR 224-1/2 down 3-1/2
Weak sector sentiment
De La Rue 330-3/4 down 6-1/2
Results due Friday
Lastminute.com 99-1/2 down 1-1/2
Negative weekend press comment
Carphone Warehouse 163-3/4 down 2-1/4
Worry over Christmas trading
Tullow Oil 147-1/2 down 2-3/4
Bangladesh gas find fails to inspire

Other risers
Central African Mining 6.00 up 1.50
'Sell the shares when they get to 13 pence' - Sunday Telegraph
GeneMedix 13-1/4 up 2
Wins US patent for monomeric analogues of human insulin
Caspian Holdings 225 up 37-1/2
Co identifies 7 new wells in Zhengeldy fields
ZincOx Resources 72-1/2 up 8-1/2
Positive study on Aliaga zinc oxide recycling project
Formjet 4.50 up 0.38
Chairman and CEO Lyndon Chapman buys 100,000 shares
Charteris 31 up 2-1/2
Co says made good start to new FY, confident of meeting expectations
Tecteon 3.37 up 0.25
Co delivers business telephony product to telecom equipment manufacturer
ARC International 33 up 2-1/4
Inks deals with Broadcom and TTPCom
Archipelago Resources 29-1/2 up 2
Co seeks debt finance, placing for Toka Tindung gold project
African Eagle Resources 29-1/4 up 1-3/4
Upbeat licence news
Dawson Holdings 166-1/2 up 8
FY results please
Belhaven 428-1/2 up 7-1/2
Record interims

Other fallers
CMS WebView 2.00 down 1.37
Starts business strategic review
Pan Andean 17 down 8
Reduced gas reserves estimate
UK Coal 140 down 28-1/2 pence
Provisions warning; William de Broe cuts to 'sell'
London & Boston Investments 5.37 down 0.63
Capital reduction plans announced last Friday
World TV 1.25 down 0.12
Co says underperformed in 3 mths to Sept but EBITDA positive in Oct
Courts Suspended at 1-1/4
Shares suspended as lenders reject waivers for covenant breaches
Caledonian Resources 6.00 down 0.50
Raises 1.35 mln stg via placing of 23 mln shares at 4.5 pence each
Hardman Resources 79 down 6-1/2
Disappointing drilling report
ASOS 76-1/2 down 5-1/2
Interims fail to impress

Greystone, Have sent you email.

This week's great Thoughters article by -Gold Dog- is now published above.

Sincere apologies to the pooch and to you all for the delay which appears to have been caused by my over-zealous application of e-mail filters. :-(

It is a really good read that I'm sure you will enjoy.

G.

Thanks Greystone. There is a pint of your fav tipple on the bar in the Tea rooms for you when ever you want it.
:-)