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News Headlines:    The FTSE 100 is expected to rise at the opening to play catch up with Wall Street, which continued to race ahead after London's close

Eurotunnel said its loss was EUR22 million, compared with EUR138 million last year. As a result of the continuation of these difficult market conditions, the company is now unlikely to achieve the full year revenues needed to cover interest charges from cash-flow. However, as market conditions improve the shuttle revenue growth should pick up again as in the past.

Prudential looks set to cut its dividend for the first time since 1914 in a move which is expected to save the most famous name in British insurance about 200 million each year.Smiths Group: said it was selling its polymers division for 495 million pounds to Swedish engineer Trelleborg

Mitchells & Butlers Britain's biggest managed pubs company is ready to mount a joint bid with Whitbread for Scottish and Newcastle pubs and hotels business,

Corus has secured the final backing of its lead banks, ABN AMRO, Credit Suisse First Boston and HSBC for a new refinancing packageBritish Airways will hold crisis talks with unions in an effort to end unplanned industrial action,

Calendar All GMT	United Kingdom (F)inals (I)nterim	United States (Click Flag)	Europe & World
Mon 21st July Reports / Data	Eurotunnel (I), St Modwen Properties (I) Woolworth 11.00 UK BCC Q2 Economic Survey	Texas Instruments (Q2) 15.00 US June Leading Indicator 0.1% exp.	11.00 EMU May Euro-Zone Trade Balance
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Sunday News 20th July         Sunday Express

S&N to raise Centerpulse bid -- paper  - M&B seen bidding for rival pub business - RBS reported considering offer for U.S. bank - Reuters

BT said to be rejected for government contract - BT Group has been struck off the list of firms competing for a government IT project worth 4 billion pounds,

Interest rates have now bottomed unless house prices collapse, according to a study by The Ernst and Young - Reuters

Prime Minister Tony Blair has told Japanese business leaders that euro entry is essential to Britain's future and that he is working hard to ensure the economics were right to go in.

Sunday Times:

Ireland: Eircom plans new assault on mobile market HBOS expansion plans behind $1bn buyout Centrica, Business Digest Royal Bank of Scotland, Meridien's survival in the balance Scottish and Newcastle, Pub company reneges on 400m pledge Glocer sweeps away the gloom from Reuters Royal Bank of Scotland, Permira poised to pounce Mitchells & Butlers Pub company reneges on 400m pledge BAE 'told MoD about shortfall' Royal Bank of Scotland considers move for 3bn Philadelphia bank

Sharewatch: HBOS

Britain's biggest managed pubs company, Mitchells & Butlers, is poised to mount a joint bid with Whitbread for Scottish and Newcastle's pubs and hotels business

The Royal Bank of Scotland is considering an offer for Philadelphia-based Sovereign Bancorp as it continues on its U.S. acquisition spree

High Street retail bellwether Marks & Spencer rudely awakened shareholders last week when a downbeat trading statement reduced the shares 7.1% in a day to 311 1/4p. News that first-quarter clothing sales were not growing as quickly as hoped spooked the City and M&S's 'bull-in-chief', Deutsche Bank, downgraded its rating to 'hold'. M&S still trades on a fairly hefty valuation, with a price/earnings ratio of 15.3 not far behind sector darling Tesco at 15.4.

Sunday Telegraph

Northern Rock, Rocky times ahead Cadbury eschews the fat Safe way for Sainsbury London Stock Exchange 'Our customers will end up paying for this'

MyTravel nears deal Wildcat strikes cost BA 20m

Medical devices firm Smith & Nephew is poised to raise its bid for Swiss orthopaedics group, Centerpulse AG, to trump a rival offer from Zimmer

Hotel and gaming business Hilton Group is an excellent recovery play. It has a widely-respected management and can look forward to continued growth from its Ladbrokes unit, which could be worth up to 1.9bn on its own.

A way forward for the group could be to merge with rival Intercontinental, while Hilton's existing hotels will benefit from any business travel recovery as the US and European economies improve. The shares are significantly undervalued and the group trades on a forward earnings multiple of 13 times, compared to 17 times for Intercontinental. Buy. Small but well-run rail operator GB Railways, which runs Anglia Railways, Hull Trains and GB Railfreight, is shortlisted to win several rail franchises. Last week, FirstGroup offered 250p a share for GB, an extra 200p if GB wins Greater Anglia and 50p more if it wins a further franchise. Investors who bought shares in June would now sit on a 67% profit. Sell.

National Grid faces corruption inquiry BSkyB Transco EC calls foul on Sky's 1bn live football deal

Sainsbury a nation of shopkeepers, meet the first family Sainsbury's strategy just won't check out Manchester United, Sir Alex sees the bigger picture

BT snubbed over 4bn IT project

Reuters GroupThe Week Ahead: BT Group Pink elephants can't halt the jobs stampede as UK plc outsources to India The Week Ahead: Cable and Wireless, Shell Transport

Scotland on Sunday

Drugs giants find generic competition a bitter pill to swallow GlaxoSmithKline find generic competition a bitter pill to swallow Legal & General

Celtic Resources to launch credit card for US fans Stagecoach Group Havelock Europa has high hopes of gaining contracts Manchester United, Celtic to launch credit card for US fans MyTravel Group Business news in brief

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