Morning all.

Shares in Allied Domecq PLC and Pernod Ricard SA have been downgraded to 'hold' from 'buy' at Deutsche Bank, dealers said.

In a note to clients on the beverages sector, the German broker said that for the first time since 1999, it was turning more cautious on the spirits sector after a significant re-rating of the industry, hence the downgrade on Allied and Pernod.

Deutsche Bank reduced its estimates for the spirits industry by 2-4 pct to account for recent US dollar weakness and cut its stance on the sector to 'neutral'.

In contrast, Deutsche Bank argued that the brewing sector 'offers investors the scope to participate in buoyant economic conditions in many emerging markets this year'.

It said it recommends an 'overweight' position in the sub-sector and remains positive on InBev and Scottish & Newcastle PLC, as the likelihood of earnings upgrades in 2005 'should ensure their continued outperformance'.

At 8.15 am, shares in Allied Domecq lost 2 pence to 501 and Pernod Ricard dropped 0.7 eur to 113.5, while shares in InBev were up 0.08 eur at 28.98 eur, and Scottish & Newcastle was unchanged at 433 pence.

Shares in Diageo PLC fell in early trade after Dresdner Kleinwort Wasserstein downgraded its rating on the stock to 'hold' from 'add' after a strong run, dealers said.

STOCKWATCH RWE, Centrica upgraded, Scottish & Southern downgraded by WestLB

Good morning all. BARC doing well this morning. Wells Fargo rumours??

Morning all,

Lots to read - all very useful and interesting, thanks all.

Looks like you scared them all off for the day Little Woman? And they are not in the T Rooms either!!!!

Yes - it seems to becoming a habit of mine! :-)