Limpsfield's Weekly Chart View

Strength returned to the markets over the past week, with the FTSE rallying strongly away from the low set in January. Although short term there is scope for some strength, these markets are still not out of the woods yet as their downtrends are still just about in place.FTSE 100Intraday FTSE First of all, the slide that started in mid-February from just below the 5100 levels is still intact. But as mentioned a few times, there is an obvious big level at 4765 the lows set in January and once again the market has rallied ahead of here over the past week. There is scope for more strength from current levels, with short term support at 4890/4900 the first area to watch for a buy the dips opportunity. But as can be clearly seen on the chart the, 4940/5000 area is the one the needs to be cracked to finally shake off this two month+ slide. In summary short term, higher levels are achievable but there does not look to be masses of upside left from where we are and the market is vulnerable to rolling over in the next few days. Dow Jones Intraday Dow It is a similar outlook on the Dow. The last week saw the US rally impressively but the two month downtrend is still in force. There is still potential for 100+ points in the short term but the big barrier that needs to be cracked on the Dow is 10,570 the highs from early April. At the moment the expectation is that rallies near to this zone will run out of steam. It should be another very interesting week. Limpsfield Limpsfield is David Jones, the widely acclaimed charting expert at Shares Magazine who also hosts regular Charting courses for Global Markets Training (www.glomtc.com)

Hello traders!

An interesting week ahead, starting with the BoE interest rate announcement tomorrow and their inflation report on Wednesday.

Maybe not such a hot week for company reporting but I see a couple of surprises on the horizon.. ;-)

Back soon with news....

Have a great week!

G.

FX UK at a glance share guide

MARKETS
FTSE 100 4,918.9 up 16.6
FTSE 250 6,780.80 down 9.9
DJIA 10,345.40 up 5.02
Nasdaq Comp 1,967.35 up 5.55
S&P 500 1,171.35 down 1.28
Gold 424.62 usd (429.10 usd)
Oil - Brent Jun 50.77 usd (51.13 usd)

BREAKING NEWS - WEEKEND
* TELEWEST and NTL, Britain's two cable-television operators, finally heading towards agreement on a 5.5 bln stg merger to create a powerful competitor to the satellite broadcasting giant BSKYB - Sunday Times
* Home Depot, the world's biggest DIY retailer, signals talks on a takeover deal with B&Q owner KINGFISHER - if the British chain is willing to dispose of its French business; Kingfisher took full control of Castorama in France following a 2 bln stg rights issue in 2002 - Mail on Sunday
* Sir Francis Mackay to resign as chairman of COMPASS; strategic review will trigger asset sales in response to shareholder unrest following two profit warnings - Sunday Telegraph
* High street sales in April recorded their biggest fall in six years; British Retail Consortium-KPMG Retail Sales Monitor will show that like-for-like sales in shops over April fell by between 3 and 4 pct compared with the year before, analysts believe - Sunday Telegraph
* Senior media figures express caution about the state of the UK advertising market and link the slowdown to poor consumer spending - Sunday Express
* Premier League, the European Commission and the UK media regulator Ofcom working towards a deal that would break BSKYB's monopoly on live broadcasting of English football's top matches - Saturday Independent
* Fears of hedge-fund meltdown prompt FSA to launch probe - Independent on Sunday
* TESCO in talks to buy the Cherokee clothes brand as part of a massive expansion of its international clothing operation; Cherokee brand has been put up for sale by its US owner, Cherokee Group, for an estimated 200 mln stg - Mail on Sunday
* 'Accept 800 mln stg or I walk away': Glazer to put MANCHESTER UNITED on spot - Independent on Sunday
* Irish shareholders 'ready to sell MAN UNITED stake', according to City sources - Sunday Express
* Royal Mail plans John Lewis-style sell-off to staff - Sunday Times
* Chancellor Gordon Brown's reputation for economic competence will be dealt a fresh blow this week with the publication of critical reports revealing further deterioration in Great Britain's economic prospects and competitiveness - The Business
* Labour MPs tell Blair to quit Downing Street - Sunday Times
* I won't quit, vows Blair, as cabinet rift opens - Observer
* BARCLAYS makes 2.8 bln stg return to South Africa; Absa shareholders fall into line as Barclays' new chief executive stands firm; but ROYAL BANK OF SCOTLAND has second thoughts about 2 bln stg Bank of China deal - Observer
* BARCLAYS poised to raise its Absa offer to 82 rand (700 pence) a share, from the R79 a share plus a dividend of R1.80 indicated on April 25 - Saturday Independent
* HSBC to conduct a worldwide review of its huge property estate to find ways of releasing capital and of outsourcing management of its facilities - Sunday Times
* Myners poised to win battle over chair of MARKS & SPENCER, having received support from shareholders, staff and customers - Sunday Telegraph
* Rebel MARKS & SPENCER non-executive director Kevin Lomax wants Lord Terry Burns to take over from Paul Myners as chairman of the troubled retailer - Sunday Times
* Kevin Lomax, the MISYS executive chairman who is heading the search for a new MARKS & SPENCER chairman, understood to have approached former Bertelsmann chief executive Thomas Middelhoff for the job; informed German sources say Middelhoff turned down Lomax's approach - Saturday Telegraph
* Clothing at MARKS & SPENCER is 19 pct more expensive than at its rivals - and prices relative to the rest of the high street are rising, not falling, according to research commissioned by Deutsche Bank - Sunday Times
* Peter Williams, former chief executive of Selfridges, lined up as a candidate to take over as finance director of BOOTS - Sunday Times
* Construction of BP's 1.05 bln stg oil pipeline from the Caspian Sea to western Europe delayed by engineering problems, claim groups which have been monitoring the project for its environmental and social impact - Sunday Express
* ULTIMATE LEISURE, the Newcastle-based pubs and nightclubs operator, facing questions from FSA into share sales by directors and the brothers of the chairman effected within weeks of a profits warning - Sunday Telegraph
* MFI faces a shareholder revolt over the pay and conditions of its senior executives at its annual meeting next Thursday - Sunday Telegraph
* Blunkett returns to the cabinet; modernisers are promoted; chastened PM acknowledges voters' protest message; election has left him more vulnerable - Saturday FT
* Rail Tsar's job panel failed to find sex claim - Sunday Express
* Tory MPs fear a period of infighting as Howard announces his resignation - Saturday FT
* A 73-year-old property developer from Yorkshire to walk away with more than 130 mln stg from the recommended takeover of his company, TOPS ESTATES, by LAND SECURITIES - Saturday FT
* US economy created 274,000 jobs in April, raising hopes that the recent slowdown in growth will be shortlived
* United Co-operatives enters the fray for SOMERFIELD, raising the prospect of a bidding war - Saturday FT
* Warner Music intends to flout threats from its top-selling artist Linkin Park to derail its 750 mln usd flotation by listing on the New York Stock Exchange later this week - The Business
* Yahoo developing a search facility that is feared could deliver a knockout blow to the already reeling music industry by allowing fans to locate downloadable songs from anywhere on the internet - The Business
* Radio and music group CHRYSALIS will disappoint investors by not including plans to spin off its non-core businesses in first-quarter results on Tuesday - The Business
* Iran withdraws state backing for a rescue of MG Rover because the failed carmaker had already sold rights to its cars and engines to a Chinese company - Saturday FT
* Doughty Hanson starts preparations for a potential flotation of RHM, which would value the company behind brands such as Mr Kipling cakes, Hovis bread and Bisto gravy at more than 1.5 bln stg - Saturday FT
* Mr Kipling (RHM) aims for 1.8 bln stg float - Mail on Sunday
* BAE SYSTEMS seeking permission to ignore IFRS rules; the company fears that it could breach its own credit rules under the new reporting system - Saturday FT
* ULSTER TELEVISION to announce a near-100 mln stg offer to acquire THE WIRELESS GROUP with a view to using the broadcaster behind TalkSport to pursue other radio transactions on mainland Britain - Saturday FT
* MARCONI agreed to delay the announcement of major job losses until after Thursday's election to avoid embarrassing the government, according to industry insiders - Observer
* MARCONI chiefs may consider breaking up the group instead of pushing for a sale to a single buyer - Mail on Sunday
* MARCONI to cut 800 jobs after failing to win any part of a crucial 10 bln stg contract with BT GROUP
* 3i GROUP to cut portfolio and give 300 mln stg back to investors - Observer
* MidOcean Partners makes a recommended cash offer of 220 pence a share for LA FITNESS, which values the only large listed health club in the UK at about 90 mln stg
* WYEVALE GARDEN CENTRES considering selling some of its properties in a bid to fend off interference from its largest shareholder; Laxey Partners seeking to topple David Williams, chairman; Laxey wants to replace Williams with Robert Ware, a former director of MEPC - Saturday FT
* Bank of Italy gives green light to the 6.3 bln eur bid by Holland's ABN Amro for Italy's Banca Antonveneta
* EVRAZ, Russia's largest steel producer, confirms it will launch an initial public offering and list on the London Stock Exchange in late May or early June; the group could raise as much as 270 mln stg
* PYATEROCHKA, Russia's biggest grocery retailer by sales, to press on with its initial public offering in London, but prices the shares at only 13-16 usd - Saturday Telegraph
* Scottish drug company, PRO STRAKAN, looking to raise between 75 mln stg and 100 mln in what will be one of the biggest flotations in the emerging pharmaceuticals sector in recent years - Sunday Times
* ALPHYRA, Britain's biggest processor of mobile-phone payments, gears up for 400 mln stg float - Sunday Times
* Barrick, the world's third-largest gold producer, to raise its stake in HIGHLAND GOLD to 20 pct, bringing a much-needed cash injection of 26.4 mln stg
* Bob the Builder owner HIT ENTERTAINMENT will finally be sold to Apax in a 489 mln stg deal after would-be challeger Lions Gate pulls lout of the running - Saturday Mail
* Jersey-based tycoon Tom Scott spends 4.3 mln stg on 6.6 mln shares in his company CI TRADERS; Scott now owns 15.4 pct of the company
* Struggling engineering group JARVIS sees its shares fall after reports that it needs to borrow another 20 mln stg to last until August when it hopes to carry out a debt-for-equity swap - Saturday Independent

SATURDAY PRESS COMMENT
FT
THE LEX COLUMN comments on election result (the government now has little room for manoeuvre on the political as well as the fiscal front; investors will need to take a much keener interest in events at Westminster), Private equity, Pensions, UNILEVER (team examining whether it should abandon its dual listing will not report until the annual meeting in May 2006; twelve months seems a long time to wait to see whether Unilever's inner beauty will resurface) - QXL RICARDO (at this elevated price, this is one only for the brave) - Weekend share watch: C&C GROUP (if roll out of its Magners cider brand in England and Wales is as successful as it has been in Scotland, brokers estimate earnings growth could almost double over a five-year period), TOROTRAK (still looks a long climb back to the 125 pence peak of last year), CHARTER (cost savings and margin improvements in Esab should drive profit and therefore the share price) - ANALYST WATCH: SHELL (high oil price offsets reserve fears; merger of Dutch and British holding companies will fuel buying as funds seek to lift exposure to index behemoth)

Mail
MARKET REPORT: DOMESTIC & GENERAL (Cantor Fitzgerald reported to have unwound a sizeable contract for differences position)

Express
MARKET REPORT: DTZ HOLDINGS (talk of falling profit margins), IP2IPO (rumoured margin call casualty), HIGHBURY HOUSE (concerns about its financial position)

Guardian
Market forces: BSKYB (according to New Media, Brussels has told the Premier League that separate live football packages should be reserved for cable, Freeview, DSL and digital satellite)

Independent
MARKET REPORT: CENTRICA (rumours it will have some ropey trading news for shareholders at Monday's AGM), KENSINGTON (rumours of a profits warning), DOMESTIC & GENERAL (speculation Robert Bonnier is a forced seller), KINGSTON COMMUNICATIONS (Kohlberg Kravis Roberts likely to sell some or all of its 25 pct stake)

Times
TEMPUS: Robert Cole says General Motors and Ford bondholders should ride out the storm; now is not the time to chase UK government stock; it is, however, time to have a hard and opportunistic look at corporate bonds)

Telegraph
QUESTOR COLUMN - Quarterly review: HILL & SMITH (remain good value), BALFOUR BEATTY (hold on), AIR PARTNER (stay on board), CAFFE NERO (bank some profits), ASTRAZENECA (we remain fans), TESCO (should form part of any long-term portfolio), FRENCH CONNECTION (continue to be wary of stocks in retail sector), JARVIS (remains about as high risk as you can get), MARCONI (bail out now before the shares slip any further)

SUNDAY PRESS COMMENT
The Business
THE ALCHEMIST: Clem Chambers tips NOBLE INVESTMENTS - SMALL-CAP INVESTOR: CARR'S MILLING INDUSTRIES (won't ever trade on a high rating but the current price represents an opportunity) - AIM INVESTOR: PRINTING.COM (with a business model that looks more than proven, in the long term the share price will look cheap) - BENCHMARK: Grant Clelland comments on BT GROUP (Marconi's woes are not down to BT, but to a misguided bet on the technology sector by Marconi's previous management), Renault (new executive chairman Carlos Ghosn has the appetite and experience to fix problem areas: lets hope the bosses in Turin (Fiat) and Wolfsburg (Volkswagen) will learn the lessons), Rating agencies

Mail on Sunday
TOP TEN SHAREHOLDER RETURNS SINCE 2000: ENTERPRISE INNS (482 pct), IMPERIAL TOBACCO (340 pct), BRITISH AMERICAN TOBACCO (270 pct), WOLSELEY (269 pct), NEXT (252 pct), ANTOFAGASTA (242 pct), BHP BILLITON (229 pct), GALLAHER GROUP (217 pct), CARNIVAL (202 pct), RECKITT BENCKISER (190 pct) - MIDAS reviews a number of its recent selections: SUBSEA RESOURCES (hold on), SPEEDY HIRE (we will again resist the temptation to take profits and will continue to hold), XN CHECKOUT (we will continue to hold), WYNDEHAM PRESS (we are realising a small loss by bailing out at 128 pence now that the risks outweigh the undoubted recovery prospects) - COMPANIES AND MARKETS: RED LETTER DAYS (on track for 25 mln stg AIM float) - ERUMA (security firm in 3 mln stg AIM move), GRIFFIN MINING (the Chinese zinc and gold mining outfit will unveil rising profits tomorrow - before the group even begins production) - SECRET DEALINGS: ALIZYME (Carl Stick last week picked up 150,000 shares for Rathbone Special Situations)

Sunday Times
WILLIAM MORRISON SUPERMARKETS (boys in dark glasses convinced it is about issue another profits warning; until clarity reigns, stay well clear - AGENDA p.4) - Rivals fear Chelsea's growing power; Peter Kenyon, the Chelsea boss, says he is eating into the markets of MANCHESTER UNITED and ARSENAL (BUSINESS p.9) - JUDGMENT DAY: SHOULD YOU BUY SHARES IN DAIRY CREST Andy Brough, fund manager at Schroders, says buy below 440 pence, where the shares are yielding just over 5 pct; Tim Steer, fund manager at New Star, says buy now before they reach their sell-by date in about 18 months' time - INSIDE THE CITY: John Waples comments on INVENSYS (cash generation from the group's handful of divisions is starting to come through, which will be reflected in this month's final results), JESSOPS; MARKET MOLE: WEIR GROUP (Framlington's Nigel Thomas bought 250,000 shares for the Framlington UK Select Opportunities fund last month to take its holding to 1.3 pct; another recent buyer has been Peter Webb, who has amassed a 230,000 share stake for the Unicorn Free Spirit fund) - DIRECTORS' DEALS: ELAN CORPORATION (chairman snaps up 90,000 shares at 353 pence each), VANCO (finance director sells 140,000 shares at 324 pence, and manager of Northern European operation sells 200,000 to net 650,000 stg)

Sunday Telegraph
Equity View - BLUE CHIP VALUES: DIXONS (sell), ICI (avoid for now); Look who's trading: ELAN CORP (chairman buys 90,000 shares; we advised avoiding the shares last month and continue to believe there are better opportunities elsewhere in the sector); SMALL CAP COMMENT: WS ATKINS (now would be a good time to buy), WYEVALE GARDEN CENTRES (keep buying), ADASTRA MINERALS (buy), JOHNSTON PRESS (sell) - THE NUMBERS GAME: Tony Jackson comments on WOLVERHAMPTON & DUDLEY BREWERIES (if things turn ugly, I suspect the market will take fright; and that, of course, will be the time to buy the shares)

Sunday Express
BROKERS' NOTES: DE VERE GROUP (Bear Stearns outperform), BOOTS (Dresdner Kleinwort Wasserstein reduce), CENTRICA (Merrill Lynch neutral), VIROTEC INTERNATIONAL (Durlacher buy), UNILEVER (CSFB underperform)

Observer
THROG STREET: Richard Wachman comments on CHRYSALIS (when it unveils its profits on Tuesday, there will be few surprises; the real interest is whether Chrysalis can generate significantly more value for its shareholders, and how), BRITISH AIRWAYS (if Paul Walsh can do as much at BA as Aer Lingus, and provided the economy doesn't nosedive, the BA turnaround story is far from over)

Evening all - thanks to all the contributors of this thread.

Evening all. lw - I'll second that.

Good morning traders!

In Asia this morning, stocks are generally negative. The Hang Seng has just closed its morning session down 15.43 points at 14,018.53 while the Nikkei was recently off 45 points at 11,146.

Oil prices began the week on a firm note in Asia as the market focused on gasoline supplies ahead of the US summer driving season. At 1.00 pm (0500 GMT) in Hong Kong, New York's main contract, light sweet crude for delivery in June, was up 44 cents at $51.40 a barrel, after closing at $50.96 in New York Friday.

Back with UK news in a mo.....

Happy Monday!

G.

EASYJET, RYANAIR UPGRADED TO 'BUY' FROM 'HOLD' BY CITIGROUP SMITH BARNEY

HAYS DOWNGRADED TO 'SELL' VS 'NEUTRAL' AT MERRILL LYNCH

AFX UK at a glance share guide - 2

MARKETS
Tokyo: Nikkei closed at 11,192.17 up 190.06
Hang Seng midday 14,078.51 up 16.81

BREAKING NEWS
* Threat to Microsoft as local authorities plan to use free open source software - FT
* BARCLAYS paying 2.9 bln stg for control of SAfrica's Absa - FT
* COMPASS seeks new chief - FT
* City economists do not expect interest rate rise - FT
* News Corp seeks funds Russia expansion - FT
* NTL and TELEWEST line up merger talks - FT
* MARKS & SPENCER seeks to resolve chairmanship issue - FT
* CENTROM raising 2 mln stg on AIM - FT
* Rising sales raise stakes in auction for KWIK-FIT - FT
* BOC's chief pilots organic growth - FT
* STANDARD LIFE chief urges pensions action - Telegraph
* India's TCS eyes London listing - Telegraph
* Lord Burns proposed MARKS & SPENCER role - Telegraph
* CITIGROUP 'ready to cut deal' with FSA - Telegraph
* NTL Irish sale points to merger - Telegraph
* BARCLAYS given clearance for 60 pct of Absa - Times
* ROYAL BANK OF SCOTLAND plays down rumours over 20 pct China holding - Times
* Royal Mail funding talks could give staff a stake - Times
* TESCO looking to buy Cherokee - Times
* High street gloom fuels rate decision - Mail
* BARCLAYS seals Absa deal - Mail
* Stelios dives into cruise price war - Mail
* Myners closes in as MARKS & SPENCER chairman - Express
* Rebellion over payout for UBM's Hollick - Express
* Mackay points to exit at COMPASS - Express
* SAINSBURY cuts banking jobs - Independent
* Iran backs out of plans to buy MG Rover - Guardian




PRESS COMMENT
FT
THE LEX COLUMN Focus piece on SAmerian economies, German manufacturing data discussed, Revival in Scottish fund management business

THE TIMES
EG SOLUTIONS (set to float on AIM next month), Emirates linked to 50 A350 Airbus order.

THE INDEPENDENT
CENTROM (software group to raise 2 mln stg in AIM float)

London shares outlook - seen lower after late Wall Street pullback, BoE eyed

LONDON (AFX) - Leading shares are expected to open slightly lower today, starting the week on the back foot following a late pull-back by Wall Street on Friday night, while concerns over today's postponed Bank of England interest rate announcement is also likely to weigh on sentiment, dealers said.
According to spread-betting firm IG Index, the FTSE 100 is expected to start around 15 points lower at 4,903 after closing at 4,918.9 on Friday.
Over on Wall Street, US stocks finished mixed on Friday, pulling back in the final minutes of trade as worries about higher interest rates took some of the shine off a much stronger than expected April jobs report.
After rising as high as 10,400 intraday, the DJIA finished the day up just 5.02 points at 10,345.40, while the Nasdaq rose 5.55 points to close at 1,967.35.
Across Asia, the Nikkei 225 index began the afternoon session 58.81 points lower at 11,133.36, while the Hang Seng was 15.43 points lower at 14,018.53 by midday.
In the UK, today's main focus should be the BoE's latest interest rate decision at midday, pushed back until Monday because of last week's general election.
Although the Bank of England is widely expected to keep rates on hold for the ninth consecutive month, any accompanying statement will be closely eyed, as recent economic data has shown the health of the UK economy to be a mixed affair.
With UK earnings news slowing to a trickle this week, today's main points of interest look like being AGM statements from blue chips Centrica and Xstrata, while among smaller companies a trading update from Center Parcs and interim results from Richmond Foods should also provide some interest.
Elsewhere, investors and traders are expected to turn to broker comments and the weekend press for inspiration.
Royal Bank of Scotland shares should be active after the Observer newspaper reported yesterday that the group has stepped back from plans to buy a 20 pct stake in Bank of China for about 2 bln stg.
Sir Fred Goodwin, chief executive of RBoS, has reportedly bowed to shareholder concerns about making such a large investment in a Chinese firm whose operations are less than transparent, the sources said.
However, RBoS is still considering buying a small stake in Bank of China, perhaps 5 pct for about 400 mln stg, they added.
Remaining in the banking sector, the same newspaper reported that Barclays has finalised a 2.8 bln stg deal to acquire a 60 pct stake in South Africa's Absa.
The Financial Times noted that Barclays is set to announce the 2.9 bln acquisition today.
Kingfisher shares should also be in focus this morning after the Mail on Sunday reported yesterday that Home Depot, the US home improvement retailer, is considering launching a takeover for the UK group if it is willing to sell its French business.
Bob Nardelli, chairman and chief executive of Home Depot, reportedly discussed this plan at a recent meeting with Kingfisher chief executive Gerry Murphy and chairman Francis Mackay in London.
On the second line, shares in Manchester United should be in demand after the Sunday Telegraph reported that US sports tycoon Malcolm Glazer is to formally make an 800 mln stg bid for the football club this week.

Morning all,its about time that glazer bought them.

Good morning all. Anyone any vews on the Barclays/Absa deal?

The City seems to like the Barclays deal. I guess that's the important thing.

:-)

T Clarke only showing at 7% down on gainers/losers when it should be 67% down! Straight through my stop loss:-( News must have been worse than I thought, shall go and investigate now. Not a good day.

Oops, out of touch ......... bonus shares issued on CTO thus
explaining drop in price!

Glad you worked that one out jj50. But strangely, the intraday chart shows a massive drop in price just after 10am (from 660 down to 230). However, the sp opened this morning at the new level of 224 and all trades since have been in that ballpark. So why is the intraday chart out of step?

Starfrog, it is puzzling - Investors Intelligence was not alone in
marking it as the biggest loser of the day this evening either! It was close of day before comdirect tripled my holding but I had been out at the end of last week so was surprised when I saw the price collapse in front of my eyes this morning, despite a fairly positive statement from CTO. Doesn't explain intraday chart though!