A Brief Look At The Week Ahead

BSkyB's first-quarter results on Friday will be one of the highlights of the week. While attention is usually focused on increases in the subscriber base, this time it will be on the decision to spend 211m on broadband supplier Easynet, and the 1bn raised recently from a bond issue. Analysts are keen to hear the broadcaster flesh out its future strategy, especially for Easynet, which should allow BSkyB to offer better video-on-demand services. On the same day, BSkyB faces a shareholder revolt at its AGM over plans to buy in up to 5% of its shares. Investors worry that this will increase the influence of 37% shareholder News Corporation. Tate & Lyle, is publishing interims this week. It has warned that profits from its sugar refineries may be down this year, but analysts will want to see how obesity fears have improved the sales of Sucralose. Analysts expect Imperial Tobacco's full-year results to be in line with forecasts, and possibly improved on last year's growth of 7% after a campaign of cost cutting. A steady performance is anticipated from ICI, which is expected to report in Q3 numbers that paints have sold well. Analysts say, however, that they only expect significant improvements in the company's business once the oil price falls, and that isn't likely until the next financial year. In the retail sector, shares in Clinton Cards fell dramatically earlier this year when the company revealed it expected profits to fall by twice as much as forecast and there is little optimism for the company's interims due on Monday. There are similar sentiments for Matalan, reporting on Tuesday, which has also had a difficult six months, revealing in August that sales had slid as consumers cut back on spending. Other BB favourites in the limelight this week include Surfcontrol, Phytopharm, Carphone Warehouse and British Airways. Don't forget that the new Champion Investor competition is now under way! If you haven't yet registered, take a look today. Entry is free and there are great cash prizes to be won. Please note: I am still waiting to have a telephone line installed at the new house. Until that happens, I will be starting off the daily Traders Threads early each morning instead of the night before. I hope you will bear with me on this for a while. I'll return to the evening startup as soon as I can. Greystone (Greystone is Alan English, City Editor at MoneyAM.)

PO

AFX UK at a glance share guide - weekend

MARKETS
FTSE 100 5,213.4 up 30.6
FTSE 250 7,500.8 down 34.1
FTSE techMARK 100 1,252.04 up 2.80
DJIA 10,402.77 up 172.82
Nasdaq composite 2,089.88 up 26.07
S&P 500 1,198.41 up 19.51
Brent Crude: December 59.42 usd vs 59.14
Gold: 470.65 usd vs 473.45

WEEKEND BREAKING NEWS
* P&O set to receive a 3 bln stg takeover approach from Gulf state-owned Dubai
World Ports - Sunday Times, Business
* EURONEXT backs off of making a cash bid for the LONDON STOCK EXCHANGE in the
face of stiff opposition from its shareholders - FT
* EURONEXT will take up to three months to decide whether to bid for the
LONDON STOCK EXCHANGE leaving way clear for Australia's MACQUARIE - Telegraph
* MACQUARIE will come under increasing pressure to accelerate its bid for the
LONDON STOCK EXCHANGE this week; UK Competition Commission set to allow a bid
by EURONEXT - Business
* Private equity raiders circling GCAP MEDIA, with media industry heavyweights
such as former EMAP radio head Tim Schoonmaker approached to run a slide
rule over it - Sunday Express
* PEACOCK GROUP could face a 400 mln stg management buyout offer as soon as
this week - Sunday Express
* LEGAL & GENERAL to vote against BSKYB's share buy-back plan at Friday's AGM - Sunday Telegraph
* BSKYB acts to head off AGM revolt over share buy-back which would increase
stake held by NEWS CORP - FT
* BT GROUP developing a search engine for its new internet television service
that could rival GOOGLE - Business
* US private equity firm Advent International is to assess a bid for troubled
catering company COMPASS GROUP - Business
* COMPASS GROUP bid may come before new CEO can be found; US private equity
firm Texas Pacific Group understood to have joined list of those working on a
possible bid- Sunday Telegraph
* COMPASS GROUP has widened its investigation into claims that it obtained
details of rival bids for a multi-million stg UN contract - Sunday Times
* SAINT-GOBAIN poised to get green light from the European Commission to
proceed with its 3.7 bln stg hostile bid for BPB - Sunday Telegraph
* Lakshi Mittal is understood to be considering snapping up some of the mining
assets put up for sale by ANGLO AMERICAN last week - Sunday Times
* BRITISH AIRWAYs chairman Martin Broughton has launched an attack on the
bald-faced effrontery of the US government and its airline industry: Mammon
interview - Observer
* TESCO's rule threatened as OFT admits it made an error over convenience
stores probe - Times
* BP considers 2,500 job cuts in European operations - FT
* After years of being seen as acquisition fodder, O2 is now able to look for
deals of its own, according to chief executive Peter Erskine: Interview -
Sunday Times
* O2 looks favourite to land contract worth estimated 200 mln stg to provide a
secure communications network for the UK fire service - Independent on Sunday
* CARPHONE WAREHOUSE expected to announce plans to invest millions installing
broadband internet equipment in BT GROUP's exchanges - Sunday Times
* CARPHONE WAREHOUSE set to launch service which will allow unlimited free
calls between its TalkTalk fixed line service and any mobile phone network -
Sunday Telegraph
* STAGECOACH is to sell its New Zealand transport operations as part of a
restructuring - Sunday Times
* Mounting speculation MATALAN chief executive, John King wants to quit -
Sunday Express
* MOTHERCARE chief Ben Gordon thought to have been approached by headhunters
seeking a global boos of the George at Asda fashion brand - Sunday Express
* Middle-ranking WEIR GROUP executive named in UN oil-for-food scam
investigation - Sunday Times
* DE VERE 'in final group' for the auction of RENTOKIL INITIALs conference
business - Times
* GRAINGER TRUST unmasked as secret bidder behind a 135 mln stg takeover
approach for caravan park group PARKDEAN - Sunday Times
* Sir Gerry Robinson has pledged to return to big business despite his
humiliating failure to take control of RENTOKIL INITIAL: Interview - Sunday
Times
* EASYJET chairman, Stelios Hajj-Ioannou could see his authority over the
airline he founded challenged by FL Group's stake building - Business
* Chinese telecoms group Huawei was knocked out of the race to buy
MARCONI CORP over US security concerns - Financial Mail on Sunday
* Germany's RWE set to buy BP's Great Yarmouth gas-fired power station in a 199 mln eur deal - Business
* PERNOD RICARD in final talks with two private equity firms over the 2 bln
usd-plus sale of its Dunkin' Donuts fast food chain - Business
* MICROSOFT may pull Windows operating system out of South Korea - FT
* WALT DISNEY has started recruiting executives for the possible launch of a
mobile phone company next year - Sunday Times
* UBS settles 5 mln stg suit bought by top bond dealer - Times
* Huntingdon Life Sciences investors plot legal action against NYSE listing
withdrawal - Sunday Telegraph
* Australian gaming firm Betcorp seeks fast-track AIM listing - Times
* Italian restaurant and food shops chain Carluccios set to float this year
with 55 mln stg price tag - FT
* Power station firm Drax powers on with London Stock Exchange listing - FT
* All three consortiums racing to buy the Drax power station business are set
to announce bids this week despite the firms announcement of its intention to
list on the LSE - Business
* Irish private equity group Ballymore in exclusive talks to buy a stake in
Battersea Power Station - FT
* Bed maker Silentnight Group has appointed Merrill Lynch is exploring
strategic options just two years after it was taken private following a
bidding war - Sunday Times
* Gartmores US owner Nationwide thought to have appointed Morgan Stanley to
carry out a strategic review of the UK fund management firm - Sunday Times
* Former Pizza Express CEO David Page looking at making an approach for
private equity-owned health clubs business Esporta, and is also looking at
two other UK health club chains - Business
* Jordan-based international generics manufacturer Hikma Pharmaceuticals to
float on the LSE this week, with market cap of more than 500 mln stg - Business
* Health & beauty products firm Accantia put up for sale by private equity
owner Duke Street Capital for up to 300 mln stg - Sunday Express
* Ex-Mirror chief David Montgomerys takeover of Berlin newspapers is only his
first salvo: Interview - Sunday Express
* Ukraine property developer, XXI Century set to float on the LSE by the end
of the year - Business
* Russian media firm, IMS Group to announce plans for a 120 mln usd float on
AIM this week - Business
* Bank of China flotation, due next year, could be hit weak Hong King stock
market debut of rival China Construction Bank last week - Times
* Members of Queen's tennis club in west London are holding talks with three
institutions - RBOS-owned Coutts, LLOYDS TSB, and HBOS -- to provide funding
to make a bid for the site - Sunday Times
* Malcolm Dagleish is close to completing the sale of his eponymous estate
agency business to CB Richard Ellis for 30 mln stg - Sunday Times
* Toucan, telecom-operator owned by IDT of the US, is the front-runner to buy
rival Homecall, owned by John Caudwell - Financial Mail on Sunday
* Former Wembley chief executive, Nigel Potter jailed for US bribery attempt -
Times
* OFT to reconsider its refusal to investigate convenience store sector - FT
* OFT confirms probe into complaints regarding property investment group,
Inside Track - FT
* FSA to review mortgage regulation - FT
* Merlin Biosciences chairman Sir Christopher Evans faces Serious Fraud Office
grilling on Wednesday - Sunday Telegraph
* Several property funds close doors to new money because of huge cash inflows
and a shortage of suitable investment properties - FT
* Hedge funds say relax despite worst month of the year for several strategies
and asset classes - FT
* Royal Mail has spurned bids from the world's largest logistics firms, FEDEX,
UPS, and TNT, for its European parcels business, GLS - Sunday Telegraph
* Stamp prices rise to be linked in future to the size of the Royal Mails
pension deficit under plans drawn up by regulator, Outcome - Observer
* Federal reserve will raise US interest rates again on Tuesday for the
twelfth time to mitigate the impact of oil price inflation - Observer

SATURDAY PRESS COMMENT
FT
Lex Column: VODAFONE (India will join the US, France and Poland as territories
where VODAFONE is competing for long term control from a weak position.
Without a real prospect of industrial integration it is inefficient for
VODAFONE to buy publicly traded equities on its shareholders behalf); Oil
(Building up a stockpile of refined products could be worth considering but
might disrupt prices and would be expensive to implement); DEUTSCHE BANK (on
just 1.3 times book value and nine times next years expected earnings the
stock is still cheap); Credit Derivatives (DELPHI CDS contracts auction is a
big test. However the risk seems worth taking given the convenience of such
auctions) -- Lombard: RHM (The group now has a job to win back confidence and
convince the market its flotation was not a little too yeasty); GENUS/SYGEN
(With SYGEN now in play, all the dissidents can hope for is a higher bid. Deep-
pocketed Monsanto of the US is the obvious breeding partner) -- Weekend share
watch: NATIONAL EXPRESS (Shares trade at a discount to the other public
transport operators but there could be some upside from any future rail
franchise wins); GOLDEN PROSPECT (IPOs will increasingly constitute GOLDEN
PROSPECTs normal business and a rise in these should bode well for the niche
investment bank); DE VERE (Asset-rich status set to attract timely predators)

Daily Telegraph
The Market: CABLE & WIRELESS (talk C&W is a target for a private equity
group); DE VERE (talk two private equity firms have expressed an interest)

Times
Rumour of the day: Unicorn Asset Management understood to be seeking a merger
of recruitment firms MSB INTERNATIONAL and LORIEN -- Directors Dealings:
ALPHA AIRPORTS (two directors buy shares) -- Tempus: Online strength the key
for investors keen on media; the place to look is in newspapers and
directories, namely JOHNSTON PRESS, TRINITY MIRROR, and YELL -- Stock Market:
MOWLEM (vague talk of a 225 pence-a-share bid approach)

Independent
Market Report: INTERTEK (bid stories evaporate as talk of Swiss banks issuing
warrants and hedging positions accounts for share price rise); O2 (talk
DEUTSCHE TELEKOM may team up with HUTCHISON WHAMPOA to make a bid); DE VERE
(talk of two informal approaches from private equity firms); MOWLEM (talk of a
225 pence per share offer amid rumours of stake building via CFDs) -- The
Interview: Tim Linacre, chief executive of PANMURE GORDON

Guardian
Market Forces: O2 (revived talk of a bid from DEUTSCHE TELEKOM); CABLE &
WIRELESS (FRANCE TELECOM bid talk re-emerges); REG VARDY (rumours of a
possible bid; Jack Petchey holds nearly 6 pct)

Daily Mail
Market Report: SCI ENTERTAINMENT (talk of agreed bid from ELECTRONIC ARTS
intensifies); NEXT (rumours of a profit warning continue to do the rounds) --
Investment Extra: Cash in on CARDPOINT; avoid SCOTT TOD

Express
Market Report: P&O (revived takeover speculation. Singapore's Temasek rumoured
to have been interested during the summer); MARCH NETWORKS (rumours of further
contract wins) -- Week of Dealing: A clutch of retail directors willing to buy
this week - INSTORE, WH SMITH, and JJB SPORTS)

SUNDAY PRESS COMMENT
Sunday Times
Agenda: FSA (Probe in hedge fund GLG's star trader Phillipe Jabre could be
just the start of an the investigation into recent convertible bond issues.
Big banks proprietary trading desks were mentioned as 'high risk areas' by
Hector Sants of the FSA); EASYJET (The Icelandics of FL Group might have
tricks up their sleeve short of an outright bid for the discount airline
group. They might even try to force debate on the separate branding agreements
that limit what EASYJET can do with the Easy name); CABLE & WIRELESS/ENERGIS
(Integrating the two firms will be far from easy. The del has the potential
to ruin reputations and shareholders must hope those of one or other the two
respective CEOs, Francesco Caio and John Pluthero remain intact); RENTOKIL
INITIAL (Sir Gerry Robinson never wanted an EGM; hi goal was to assemble
enough firepower to blow the bloody doors off the boardroom. As soon as he
did not have the magic 30 pct holding, he had to walk away) -- Judgment Day:
Should you buy shares in EMI GROUP; Andy Brough of Schroders says: 'Tune in,
listen, then check out,' EMI shares may trade up to 250 pence then it will be
time to leave them to another fan or collector'; Time Steer of New Star says:
'Avoid. Buy WOLFSON MICRO - it supplies chips to APPLE for the iPod' -- Inside
the City: TATE & LYLE (Despite concerns over the ability to protect its
sucralose, and the planned EU sugar market reforms, TATE & LYLE is rated on a
racy 12 times earnings and looks anything but cheap); CORVUS CAPITAL (The
firm's Commoditrade vehicle is expected to announce the completion of its
first deal this week. But chief executive Andrew Reagan really hankers after
the big deal. It will be an interesting test of the City's capacity to let
bygones be bygones when he finally returns); EVOLUTION (The question is
whether the departure of company founder Richard Griffiths is evidence that
EVOLUTION has matured)

Sunday Telegraph
Blue chip values: BRAMBLES INDUSTRIES (buy); AVIVA (Hold on) -- Small Cap
comment: CAMBRIDGE ANTIBODY (Keep buying); FRENCH CONNECTION (Keep selling);
MAJESTIC WINE (Buy); NORTHERN PETROLEUM (A risky punt) -- Breaking Views:
ANGLO AMERICAN (There would, of course be another advantage to streamlining
ANGLO AMERICAN; if would make it more vulnerable to a bid. If CEO Tony
Trahar's restructuring fails to improve performance, someone else might);
BOOTS/ALLIANCE UNICHEM (The slump in ALLIANCE UNICHEM's share price does not
reflect doubts about the BOOTS deal completing - although it does reflect
doubts about its merits. A big fall in value it maybe. But it is unlikely to
deter Alliance and its boss, Stefano Pessina, who has been after this prize
for years)

The Business
Benchmark: 'The poor should give thanks for the WAL-MART's and TESCOs' --
Inside the Market: Growth Investor: ANGLO AMERICAN (The recent market inspired
sell-off in the mining sector and the outperformance of precious metals and
copper for ANGLO AMERICAN provides a good buying opportunity); Small Cap
Investor: MINORPLANET SYSTEMS ('Anyone who was been patient enough to hold on
to the shares may as well continue backing the company by taking up their open
offer entitlement. Potential investors should keep an eye on MINORPLANETs
progress); AIM Investor: TRISTEL (The shares are a long term buy) -- The
Alchemist: 'I do not want to tip any stock until October is out. Perhaps my
tip is to top up on your favourite stocks if they get clobbered alongside the
whole market'.

Financial Mail on Sunday
Midas: ST IVES (Not a stock to buy if you are looking for strong growth. But
With shares at current levels, the high yield makes them attractive to
investors looking for income); Midas Update: ZYTRONIC (Time to take profits)
-- Companies and Markets: LONDON STOCK EXCHANGE (EURONEXT could drop out of
the bidding if the Competition Commission's final report due on Tuesday
requires it to sell some of its holding in LCH.Clearnet); TRIAD (Warring
board members to share platform at potential explosive AGM); EMBLAZE (to
unveil VIRGIN MOBILE deal on Monday); SOFTWARE RADIO TECHNOLOGY (Buy-out from
SECURICOR expected to be valued at 25 mln stg when it joins AIM) -- Taking
Stock: 'Mixed messages fail to soothe investors'

UK's smaller firms technically in recession - CBI

LONDON (AFX) - The UK's small and medium-sized manufacturers are technically in recession in the wake of sky-high oil prices, falling demand and stagnating prices, a leading business lobby group said today.
In its quarterly SME trends survey, the Confederation of British Industry also said firms fear there could be worse come.
"Small and medium-sized manufacturers are a good barometer of future economic progress," said Hugh Morgan-Williams, chairman of the CBI's SME Council.
"They are the first to feel the effects of an ill wind and the last to recover," he added.
The survey found that just one firm in eight, or 12 pct, of firms are more optimistic about the business outlook than in July. One in three, or 36 pct, are more pessimistic.
The ensuing balance of -24 pct is marginally better than July's -27 pct, but is way down on the equivalent of -2 pct in January.
The survey also found that in the three months to October, output fell for the third quarter in a row with just 20 pct of small and medium-sized manufacturers increasing production compared to 35 pct who saw it fall.
The ensuing balance of -15 pct is way down on July's -6 pct.
"As the consumer spending slowdown filters into other areas of the economy SME manufacturers have now experienced three consecutive quarters of falling output and are technically in recession," said Morgan-Williams.
Meanwhile, falling output and higher energy prices pushed up average unit costs - a balance of 29 pct cent of firms reported an increase in the last quarter for the second consecutive quarter.
This increase in costs came despite employers shedding staff and cutting the wage bill for the fifth successive quarter.
More job losses are expected next quarter.
At the same time, the survey found that orders fell for the third successive quarter as the consumer spending slowdown spread into other areas of the economy. Looking ahead, firms do not expect any improvement in the fourth quarter of 2005.

OUTLOOK - UK company results for 2 weeks to Nov 11

LONDON (AFX) - The following is a compilation of UK company results due out in the 2 weeks to Nov 11.

MONDAY OCT 31
Lok'n Store Group PLC. Baird Equities forecasts year to July pretax loss 500,000 stg vs loss 200,000 stg; no dividend expected.

TUESDAY NOV 1
BAA PLC. BNP Paribas forecasts six months to September operating profit 416 mln stg, up 4 pct; underlying pretax profit 368 mln stg, up 1.4 pct.

Imperial Chemical Industries PLC third quarter pretax profit before exceptionals under IFRS 121-135 mln stg vs GAAP 117 mln.

Imperial Tobacco Group PLC year to September pretax profit before exceptionals 1.12 bln stg vs 1.01 bln; total dividend 55 pence.

Matalan PLC six months to August pretax profit 30 mln stg vs 41.7 mln stg.

THURSDAY NOV 3
Carphone Warehouse PLC six months to September pretax profit before exceptionals and goodwill 38.0 mln stg vs 28.08 mln.

International Power PLC nine months to September pretax profit 195 mln stg vs 116 mln.

McCarthy & Stone PLC. Evolution Securities forecasts year to August pretax profit 143.4 mln stg vs 147.8 mln; total dividend 18.2 pence vs 17.3.

Pilkington PLC six months to September pretax profit before exceptionals 97-100 mln stg under IFRS vs restated 81 mln.

Shire Pharmaceuticals PLC third quarter pretax profit before exceptionals
91 mln usd vs 106 mln; net profit 75 mln usd vs 66 mln; Adderall XR sales
168.5 mln usd vs 140 mln.

FRIDAY NOV 4
British Airways PLC second quarter to September operating profit 215-260 mln stg vs 245 mln; pretax profit 186-236 mln stg vs 293 mln.

British Sky Broadcasting PLC first quarter pretax profit before goodwill 175-190 mln stg vs 176 mln

Good morning traders!

In Asia, the Hang Seng was recently up 109.84 points at 14,325.67 with the Nikkei at 13,587.08, ahead 240.54 points.

The oil price eased a little with New York's main contract, light sweet crude for December delivery, down 15 cents to $61.07 a barrel from its close of $61.22 in US trading Friday.

Happy Hallowe'en trading!

G.

AFX UK at a glance share guide

LONDON (AFX) - The FTSE 100 is set for a strong start to the week following triple digit gains in the Dow Friday on the back of robust third quarter GDP figures. Meanwhile, M&A news is likely to be key, with reports of a bid for O2 by Telefonica, confirmation that P&O is in takeover talks and as the European Commission rules on Euronext's proposed bid for the LSE, said dealers.
CMC Markets is indicating the FTSE 100 to open up around 28 points at 5,241, having risen 30.6 points on Friday to close at 5,213.4.

MARKETS
Tokyo: Nikkei midday 13,606.50 up 259.96
Hang Seng midday 14,325.67 up 109.84


TODAY'S PRESS
* Business angered by 'pro-union' government; ministers face lobbying from industry over 'bias' - FT
* Move on P&O by Dubai's state-owned ports operator could spark bidding war - FT
PRESS COMMENT
FT
THE LEX COLUMN comments on Inflation (if Asia's ability to export deflation really is slowing, US and European central bankers have even more reason to sound hawkish), Toyota (increasingly uncertain outlook in US markets could dent sales growth; Toyota is winning the fight but it is not time for the referee to intervene), Virtual network operators (cable operators could yet end up with a deal somewhere between reselling Sprint's branded service and launching a true MVNO)
Independent
Small Talk: AIR MUSIC & MEDIA (looks set to miss its published forecasts), SCOTT TOD (row hots up), ABCAM (antibodies maker heads for AIM)

TELEFONICA MAKES 17.7 BLN STG, 200P/SHR AGREED CASH BID FOR O2

Thanks Digger, a takeover at last with these lot.

Morning All.

Morning all.

Morning all,

A positive day for the end of the month?

Morning all. Nice to see more activity on this thread.

Sold OOM +39p.

Possible counter bid may arrive, but a bird In the hand and all that.

Midday Market Summary

Stan - I think you were very wise..... ;-)

Thank's G,... I just hope that I was very wise ;-)

End-of-day Market Summary

Well done Stan.