HBOS PLC is today expected to unveil a solid trading update, but investor attention is likely to focus on the company's accompanying assessment of how it will be affected by the forthcoming switch to International Financial Reporting Standards (IFRS).
So far, British banks have played down the likely impact of IFRS, intended to make company accounts more transparent and easier to compare across borders. Earlier this week, Barclays said the new rules would have a "minimal overall impact" on its pretax profit and earnings per share figures.
But analysts say HBOS, which has significant life assurance operations, could be more seriously affected. This is because IFRS rules make it more difficult to recognise future profits, a key element of insurers' income.
HBOS is scheduled to give a presentation on IFRS to analysts after its trading update.
"With on-going uncertainty regarding the impact of (IFRS), we would counsel some caution ahead of (HBOS') presentation on Dec 14," analysts at SG Equity Research wrote in a recent note to clients
Accounting issues aside, investors will be watching closely for any news on acquisition plans. HBOS, which lost out earlier this year to Spain's Banco Santander Central Hispano SA in the race to buy UK bank Abbey National, remains interested in other opportunities both within the UK and abroad, chief executive James Crosby told AFX News in September.
Earlier this month, press reports named HBOS as a possible buyer of National Australia Bank Ltd's Irish banking units, Northern Bank and National Irish Bank.
However, some analysts expect the bank to play down expectations of an imminent takeover.
"They will need to convince -- and I think they will -- that they are not dependent on acquisitions. They've still got plenty of momentum behind them," said James Leal at Teather & Greenwood.
Attention will also focus on HBOS' account of recent trading in its core UK mortgage lending and consumer banking business, where activity may have been affected by rising interest rates and a sharp slowdown in house price growth.
At its interim results in July, HBOS said it expected only a "modest" deterioration in retail credit conditions, pointing out that interest rates were likely to peak at historically low levels, and that the wider UK economy looked set to remain resilient.

HBOS TO INTRODUCE SHARE BUY BACK PROGRAMME OF UP TO 750 MLN STG IN 2005

HBOS SAYS IFRS ACCOUNTING SWITCH TO CUT HEADLINE EPS BY AROUND 3 PCT

ACAMBIS UPGRADED TO 'BUY' VS 'NEUTRAL' AT UBS
EADS AND BAE SYSTEMS STARTED AS 'EQUALWEIGHT' BY MORGAN STANLEY
ROLLS-ROYCE STARTED AS 'UNDERWEIGHT' BY MORGAN STANLEY
SHAFTESBURY CUT TO 'REDUCE' VS 'NEUTRAL' AT UBS

Leading shares are expected to open higher this morning, lifted by a strong late advance by US stocks on Wall Street last night, although caution ahead of this evening's FOMC meeting could limit gains somewhat, dealers said.

According to spread-betting firm IG Index, the FTSE 100 index is expected to open around 10 points higher at 4,746 after closing at 4,736.8 yesterday.

Struggling support services group Jarvis PLC has agreed to sell its one-third stake in Tube Lines, the consortium that manages part of the London Underground, to Star Capital for around 100 mln stg, according to a report in the Financial Times.

P Morgan said it thinks there is downside to market forecasts on Boots Group PLC, Dixons Group PLC and Marks & Spencer PLC over the coming weeks.

The US broker has cut its 2004/05 and 2005/06 EPS forecasts for Boots by 1 pct and 5 pct, respectively, on the back of higher than expected margin pressure. JP Morgan reiterated its 'underweight' stance on Boots.

For Dixons, JP Morgan has reduced its 2004/05 and 2005/06 EBIT

estimates by 14 pct and 15 pct, respectively. JP Morgan does not believe that the competitive environment has improved since Dixons flagged this issue at the the first half update.

Dixons is rated as 'underweight' by JP Morgan.

Meanwhile, JP Morgan lowered its 2004/05 and 2005/06 EPS estimates

for Marks & Spencer by 6 pct and 8 pct, respectively and cut its price target to 350 pence. However, JP Morgan maintained its 'neutral' recommendation, as it

expects share price support given the ongoing press speculation regarding a potential bid by Philip Green.

As for the other retailers, JP Morgan rated Signet PLC and Kingfisher PLC as 'overweight; with GUS PLC and Carphone Warehouse PLC as 'underweight'.

MARKETS
FTSE 100 4,736.8, up 42.8
DJIA 10638.32 up, 95.10
Nasdaq Comp 2,148.50, up 20.43
S&P 500 1,198.68, up 0.68
Nikkei closed at 10,915.58, up 126.33
Hang Seng midday: 13,991.44, up 105.28
Gold 439.20 usd (435.0 usd)
Oil - Brent Jan 37.84 usd (37.38 usd)

BREAKING NEWS
* CJD patient 'no longer terminally ill' - Daily Telegraph
* Oil rises as Saudi output cuts go ahead - FT
* UK govt in secret 1 bln stg deal with BAE Sytems to insure Saudi arms contract - Guardian
* UK financial watchdog ready to enforce changes in insurance regulation - FT
* Haji-Ionnou brothers to net 88 mln stg from Stelmar stake - FT
* Denmark's Danske Bank is buying two Irish banks from National Australia for 1.45 bln eur - Wall Street Journal
* Labour in revolt against 'living wills' law - Daily Telegraph
* Tories will back ID card Bill- Daily Telegraph
* BBC viewing figures fall to all-time low - Independent
* New plan for 1 mln to buy homes splits Labour - Times

PRESS COMMENT
FT
THE LEX COLUMN: LSE'S rejection of Deutsche Boerse's offer appear a negotiating tactic, Euronext could well enter the fray and promise greater cost savings - EADS earnings momentum hits a brick wall, true significance of dollar may be strategic: weak dollar and merger ambitions with THALES could leave shareholders out of the cockpit, may be time to bail out - SIEMENS remains in denial; should get rid of mobile handset business; continues to look attractive vs peers

Independent
THE INVESTMENT COLUMN: LLOYDS TSB (Chief shows he's no Scrooge; buy); AGGREGATE INDUSTRIES (can be modest long-term growth stock; buy); ECKOH (avoid)

Times
TEMPUS: LLOYDS TSB (buy for yield, but keep eye on housing market); PHOTO-ME (buy, but long-term prospects blurry); NOVAR (sell)

Guardian
JJB SPORTS (one of first retailers to go on full sale before Christmas, suggesting it is struggling to clear out old stock); NEXT (concerns over 'no discounting before Christmas policy); ASTRAZENECA (Crestor jitters; Bernstein notes negative FDA data on side-effects)

Telegraph
QUESTOR: CENTRICA (risks outweigh potential rewards); SHIRE PHARMA (not attractive at this level); INCHCAPE (hold)

Express
WHO'S DEALING: BITS CORPORATION (non-exec director Levy sold 160,000 shares at 6.6p each, leaving him with 408,000 shares or 0.92 pct of capital) - SHARE WHISPER MKM Group (H1 results due today expected to show 80 pct rise in turnover vs last year, with similar boost in profits) - BROKER'S VIEW: URBIUM (Panmure Gordon turned to 'buy' vs 'hold' yesterday with 650p price target on positive trading in London, shares cheap vs peers)

Daily Mail
RETAIL DECISION (buying began after promotion to FTSE All Share and FTSE Small Cap indices; tracker funds will be looking to hold 10 pct of its share capital); RD (good chance that group will re-enter the techMARK-100 this week)

Shares in Vodafone Group PLC were cut to 'in-line' from 'outperform' at Goldman Sachs, dealers said.

In a note to clients, the broker said it believes the mobile phone group will outperform the market but not the European telecoms sector over the next 12 months.

It added it does not anticipate material earnings upgrades in the next six months and believes that Vodafone's advantages in its advanced preparation for 3G will take longer than that time frame to become evident.

But Goldman said Vodafone remains its top pick of the larger caps in the sector in the UK and its strong cash distribution is attractive and provides downside support.

Morning punters!

AVG - v. good trading update? Forward PE 6?
http://www.uk-wire.com/cgi-bin/articles/20041214070000P9E7E.html

AVM - expands in Indonesia
http://www.uk-wire.com/cgi-bin/articles/200412140700043431G.html

TDG - not the best update
http://www.uk-wire.com/cgi-bin/articles/200412140700053490G.html

PEN - contract with BAE
http://www.uk-wire.com/cgi-bin/articles/200412140700053475G.html

XPP - agreement with PFL
http://www.uk-wire.com/cgi-bin/articles/200412140700073533G.html

PET - Jordan
http://www.uk-wire.com/cgi-bin/articles/200412140700073515G.html

MIL - wanna financial advisor? ;-)
http://www.uk-wire.com/cgi-bin/articles/200412140700083538G.html

POG - "conservative" Russian reserves
http://www.uk-wire.com/cgi-bin/articles/200412140700093549G.html

ITRK - decent rading update
http://www.uk-wire.com/cgi-bin/articles/200412140700113554G.html

BUR - Congo. Deeper OWC in well 1301 may indicate more oil. Hmm
http://www.uk-wire.com/cgi-bin/articles/200412140700123561G.html

MGNS - good update
http://www.uk-wire.com/cgi-bin/articles/200412140700133564G.html

VEG - contract
http://www.uk-wire.com/cgi-bin/articles/200412140700143572G.html

PNT - BT and placing
http://www.uk-wire.com/cgi-bin/articles/200412140700253605G.html

CNM - ramping up manganese production due to demand
http://www.uk-wire.com/cgi-bin/articles/200412140700293621G.html

FTC - handset division. Hmm
http://www.uk-wire.com/cgi-bin/articles/200412140700323631G.html

MOB - looks a very good statement
http://www.uk-wire.com/cgi-bin/articles/200412140700173585G.html

GYG - spin-off company formed
http://www.uk-wire.com/cgi-bin/articles/200412140700233595G.html

PMO/ROC/HNR - found a bit of oil this week! LOL
http://www.uk-wire.com/cgi-bin/articles/200412140708313636G.html

GED - also found a bit of oil in Colombia
http://www.uk-wire.com/cgi-bin/articles/200412140700053500G.html

That's it I'm afraid. No time to go through any results today.

Have a good one.

I'm long CKN, DPH, ERT, GLD, TBK, TFC, UMC, ZYT

Morning all. Hope the new house is working out well, Al :-)

Morning all,just before the bell,,ding ding.

jj - cheers. Moving all week, one bit at a time.

anyone know if GLH is giving a trading statement today please

Anyone know if there is a way to get a streaming gold price, or
somewhere where you can get a price which is updated at intervals
during the day - free service really looked for....
Thanks and Be Lucky All!

A few Christmas party pics up now. Not as raucous an occasion as last year, probably because Ruth wasn't there, and not a bit of Burberry in sight... :-)

stockbunny - Take a look here. Not sure how up-to-date it is...

http://www.galmarley.com/framesets/fs_price_chart.htm

Thanks Greystone!

bunny - commodities

http://www.kitco.com/

http://www.livecharts.co.uk/MarketCharts/GOLDchartpage.htm

Stockbunny, If you don't mind a few adverts, you can get free
live streaming charts for most stuff here.

Melnibone.

http://www.livecharts.co.uk/MarketCharts/GOLDchartpage.htm

Sorry, pasted the link instead of inserting it.
See if this is any better for clicking on.

Melnibone.