GLAXOSMITHKLINE UPGRADED TO 'BUY' VS 'NEUTRAL' AT UBS

Investors Chronicle

Tips:
* Buy Northern Rock at 771p - Pure Wafer at 230p Hardide at 130p - Invu at 23p
* Sell Provalis at 3.25p - Autologic at 140p

Updates:
* Buy Hamworthy, Virgin Mobile and Albidon
* Carpetright high enough - Compass fairly priced

Company Results:
* Buy Mouchel Parkman and Whitbread.

LONDON (AFX) - Leading shares are expected to open the session lower, hit by sharp falls on Wall Street overnight on the back of some downbeat economic data, while weaker-than-expected results from Microsoft after the closing bell are also expected to hit sentiment, dealers said.
According to spread-betting group CMC Markets, the FTSE 100 index is seen opening around 11 points lower at 5,172 after closing yesterday 45 points lower at 5,182.8.

MARKETS
FTSE 100 5,182.8 down 45
FTSE 250 7,534.9 down 98.5
DJIA 10,229.95 down 115.03
Nasdaq Comp 2,063.81 down 36.69
S&P 500 1,178.90 down 12.48
Tokyo: Nikkei midday 13,305.56 down 111.52
Hang Seng midday 14,222.12 down 158.94
Gold 473.45 (472.25
Oil - Brent Dec 59.14 (58.87)

TODAY'S PRESS
* Jacques Chirac, French president warned he would block a world trade deal rather than make deep cuts to the European Union's farm subsidy regime - FT
* SAINSBURY and MORRISON are preparing to raise their orders of beef and lamb before the crucial Christmas trading period, amid growing fears that avian flu may hit sales of turkey and game birds - FT
* COMPASS has called in an independent auditor to review the accounts of a subsidiary embroiled in investigations into corrupt buying practices at the United National - FT
* Managers of the 1.5 bln usd AlphaGen Capella hedge fund for Gartmore have told investors that October is shaping up to be the worst month in its history - FT
* DE VERE is believed to have had two informal expressions of interest from private equity firms interested in acquiring the hotels and leisure group currently valued at slightly more than 460 mln stg - FT
* Eutelsat last night abandoned its planned IPO on Euronext Paris citing volatility in European equity markets - FT
* Phillip Bennett is today expected to be named in a 400 mln usd-plus lawsuit filed by Bawag, the Austrian bank that lent the former Refco CEO hundreds of millions of dollars the day before he was arrested and charged with fraud - Times
* The planned floatation of Thomas Weisel Partners, the investment bank based in San Francisco, will test investor appetite for Goldman Sachs-led deals after the collapse of Refco - Times
* AEGIS has asked the Takeover Panel to impose a "put up of shut up" deadline on WPP, Hellman & Friedman consortium, which is considering whether to mount a bid for the group - Times
* Deutsche Bank has become part of the FSA's inquiry into the activity of GLG Partners hedge fund trader Philippe Jabre - Telegraph


PRESS COMMENT
FT
THE LEX COLUMN comments on RD SHELL (Shell's 18 pct discount to BP on 2006 enterprise cashflow multiples looks overdone - although the need for patience and faith preclude closing the gap entirely), UK Pharmaceuticals (On 2006 forecasts, GLAXOSMITHKLINE, traditionally the laggard, is now trading at a small premium to ASTRAZENECA. With momentum on its side, however, it still looks the better bet), Paper & Packaging (Europe's paper and packaging industry needs to shrink. Stora Enso have bravely stepped in first, but the time to buy equity can only be when others, eventually, follow), France Telecom (Incumbents' quietly stupendous economic returns will always attract innovative competition. But the real gatekeepers are the regulators, who set a floor on profits by allowing legacy carriers to price wholesale network access above its true cost. This is why, despite its flaccid earnings momentum, the sector is still reasonable value), Verizon (If Verizon's share price keeps heading south, CEO Seidenberg might become more tempted to try something radical), Disney/Pixar(Finding a way to continue the companies' relationship when the current contract ends next year makes sense for both sides. The really intriguing question is whether Disney one day attempts to go a step further and buy the whole of Pixar)
Express
SHARE WHISPER: SUPERSCAPE (dealers reported a stock overhang has been cleared. There was also talk that corporate activity was close)
Telegraph
QUESTOR: SMITH & NEPHEW (Buy), CHRYSALIS (Sell), BLACKS LEISURE (Buy)
Times
Directors' dealings; INTERIOR SERVICES GROUP (The wife of CEO David King sold 1.14 mln stg worth of shares) - Rumour of the day: MACLELLAN GROUP (talk it has won a 20 mln stg a year facilities management contract from a chain of UK shopping centres) - TEMPUS: RD SHELL (hold) - EUROTUNNEL (the only reason to hold the shares is if you were one of the original investors who still enjoyed travel privileges. Everyone else should avoid), CENTER PARCS (hold on for the projected dividend yield of 7 pct)
Guardian
PEACOCK (rumours of an imminent cash bid)
Independent
THE INVESTMENT COLUMN: ASTRAZENECA (At 2,500 pence, sell), CORNWELL (We added Cornwell to the portfolio in March - we will replace it next week), BLACKS LEISURE (Hold)
Investors Chronicle
TIPS- LARGE COMPANIES: NORTHERN ROCK (buy), PROVALIS (sell), AUTOLOGIC (sell); TIPS SMALLER COMPANIES: PURE WATER (buy), HARDIDE (buy), INVU (buy)

Potential movers

FUN - agreement

ASD - interesting

BTR - contract with BA

CEN - gone a bit flat recently

WTV - one contract worth 20% p.a. of mkt cap. Hmm

LAT - good pre-close?

CPU - trading update. Ineresting longer term chart

GLA - Skaergaard drilling

TRD - contract

ALG - more trouble

I think that's it. TFIF ;-)

Morning all from a very wet North Wales. Will it be another DOWN day?

Morning Druid and All,

Can't remember a day with so much political corruption news about,

Over there as well as here. As for the market, well nothing surprises me at the moment.

Still raining In Wales Is It D,... oh you don't say :-)

Morning all,

Dark, grey day here in the Hampshire.....

The Company (UK Manufacturer) I work for t/o for the year is up 50% on last year, profit 350% up, but new orders have sudden dropped right off in the last 2 months.... down 50% on last year! The start for next year is not looking good at all.

Stan - Political corruption news??

1. Some of Bush's mates looking shaky.
2. Tessa Jowell's employer husband Is linked with Bellosconi's "Dealings" In Italy.
3. Renewed allegations from yankee land on George Galloway.

And not corruption but Blair trying to do his Thatcher/Bush impression over Iran leaders
comments.

Thanks.

they is going to be a rally market over sold.

End-of-day Market Summary