OUTLOOK BAA H1 pretax seen up 14 pct

LONDON (AFX) - BAA PLC, operator of seven UK airports including Heathrow, Gatwick and Stansted, is expected to report a 14 pct increase in first-half pretax profit when it publishes interim results this morning.
The performance reflects a 7.5 pct increase in passenger numbers to 77.5 mln and improved retail spending as long-haul markets have recovered, particularly high-spending Asians post SARS.
For the six months to Sept 30 analysts are forecasting a consensus pretax profit of 362 mln stg up from 312 mln stg last time, on revenue of 1.14 bln stg versus 1.04 bln stg. The comparative period was depressed by the impact of the Iraq war and SARS on global travel.
Analysts anticipate an interim dividend of about 6.9 pence, up from 6.6 pence.
Stephen Clapham, analyst at Williams de Broe, reckons costs will be a key area of focus. He points out the first quarter was adversely impacted by several timing issues, including the accrual of wage increases.
"On the revenue side, there should be some benefit at Heathrow from faster growing long haul, although September disruptions (at British Airways) may affect the results," he notes.
When BAA published first-quarter results in August it said it was comfortable with its forecast for passenger growth of "more than 6 pct" for the balance of the year with retail revenue growth in line with this.
Investors will also expect an update on the Heathrow Terminal 5 build. Reassurance that it is ahead of schedule and on budget is anticipated.

London shares outlook - slightly higher as oil price dip offsets US election

LONDON (AFX) - Leading shares are expected to open slightly firmer as a dip in the price of oil overnight is likely to offset jitters ahead of today's bitterly fought US election, dealers said.
According to spread-betting firm IG Index, the FTSE 100 index is seen starting the day around 3 points higher after closing yesterday's session up 49.6 points at 4,673.8.
Meanwhile, US stocks ended Monday's session higher -- the last full day of trading before the US goes to the polls -- as blue chips posted a fifth straight session of gains on a one-month low for oil prices.
The DJIA closed up 26.92 points at 10,054.39, off an intraday high of 10,076.59 reached when oil fell below 50 usd for the first time in a month in late morning trading.
Across Asia overnight, the Nikkei 225 index closed up 153.10 points at 10,887.81, while the Hang Seng was 157.03 points higher at 13,251.28 by midday.
Asian markets were boosted as crude oil prices slipped below 50 usd a barrel, with New York's benchmark contract down 0.23 usd to 49.90 a barrel from its close of 50.13 usd in New York overnight.
Back in London, the US election will unsurprisingly take centre stage with investors looking for a quick, decisive result to the race.
But fears have grown there could be a repeat of 2000's legal debacle as all polls are showing the race for the White House is too close to call.
Reports that over 50,000 postal ballots in Florida have already gone missing in the run up to today's vote did little to calm nerves.
Away from politics, on the corporate front, the aviation sector will be in focus after budget airline Ryanair posted better-than-expected results, and with airport operator BAA tipped to post interim numbers later this morning.
The Dublin-based airline posted net profit for the second quarter of 147.6 mln eur against 128.4 mln eur, significantly ahead of analysts' consensus forecast of 130 mln eur.
Ryanair said it currently has no plans to change its policy of remaining unhedged against fuel prices.
But it revised its forecast on yields (average fares). It now expects a fall of 5-10 pct in the second half versus previous guidance of a decline of 10-20 pct.
Meanwhile, BAA, which operates seven UK airports including Heathrow, Gatwick and Stansted, is expected to report a 14 pct increase in first-half pretax profit.
The performance reflects a 7.5 pct increase in passenger numbers to 77.5 mln and improved retail spending as long-haul markets have recovered, particularly high-spending Asians post SARS.
For the six months to Sept 30 analysts are forecasting a consensus pretax profit of 362 mln stg up from 312 mln stg last time, on revenue of 1.14 bln stg versus 1.04 bln stg.
In retail, investors in Matalan, the discount and homewares retailer subject to persistent bid speculation, will focus on current trading, the outlook for the crucial Christmas period and the possible sale of the Lee Cooper jeans business when it publishes interim results.
The perennial issue of the ongoing commitment to the business of John Hargreaves, the group's founder, executive chairman and 52 pct shareholder, will also inevitably raise its head.
For the 26 weeks to Aug 28 analysts are forecasting a pretax profit of 41-44 mln stg versus 41.2 mln stg last time.
Retail will also be in focus with the CBI monthly distributive trades survey due later this morning and the BRC shop price index this evening.
But more importantly, on the economic front, the market is forecasting construction PMI date to drop to + 56.5 against + 56.8 previously.

Suffering a series of power cuts this morning, so I'm afraid I'll have to be quiet a while to conserve my battery.....

Thanks to Digger, you will not be short of news.. :-)

MARKETS
FTSE 100 4,673.8 up 49.6
FTSE 250 6,361.2 up 39.4
DJIA 10,054.40 up 26.90
Nasdaq Comp 1,979.87 up 4.88
S&P 50 1,130.50 up 0.30
Tokyo: Nikkei 10,887.81 up 153.10
Hang Seng midday 13,251.28 up 157.03
Gold 427.97 usd (426.25 usd)
Oil - Brent Dec 47.06 usd (48.98 usd)

BREAKING NEWS
* Kerry and Bush hunt down the last votes as polls open; rival US presidential candidates stay on the stump in search of a late breakthrough as pollsters show them running neck and neck - FT
* Member of the prominent Sainsbury family (Jessica Sainsbury) rebuts recurring bid speculation about the ailing supermarket chain J SAINSBURY and voices support for chief executive Justin King, who is battling to turn it round - FT
* Shareholders in OFEX back plans to appoint Simon Brickles as chief executive - FT
* Premiership champions ARSENAL FOOTBALL CLUB conducting a strategic review, including investigating a full stock market listing - FT
* PRUDENTIAL puts its emphasis back on growth in Asia - FT
* ROYAL DUTCH/SHELL selling its share in the Netherlands' domestic gas grid to the Dutch state for 967 mln stg
* MARCONI's axeman, Mike Donovan, heads off with 4.5 mln stg payoff
* Asbestos-related claims will cost Britain's private and public sectors up to 20 bln stg over the next 30 years - Times

PRESS COMMENT
FT
THE LEX COLUMN comments on Oracle's latest offer for PeopleSoft, Metals, Mortgage lenders, KPN
Mail
CLIPPER VENTURES (Working with WPP-owned Global Sportnet to secure 3 mln stg of advertising ahead of 2006's 5-Oceans Race)
Times
RUMOUR OF THE DAY: ITRAIN (murmurs that Corporate Synergy, its stockbroker, is working on a 900,000 stg fundraising at 8 pence to finance an acquisition) - TEMPUS: BT (avoid), HAYS, DX (hold Hays, buy DX), SANCTUARY (buy)
Telegraph
QUESTOR: DX SYSTEMS (shares look like one for long-term investors only), BEAZLEY GROUP (take up rights), ENNSTONE (best avoided)
Guardian
BRITISH AIRWAYS (talk that the outlook statement with next Monday's half-year figures will disappoint and that BA could launch a rights issue)
Independent
THE INVESTMENT COLUMN: Media stocks (investors should treat the sector with great caution), JESSOPS (p/e rating of 11 times looks about right, at least until Jessops has had time to prove itself), SANCTUARY (add it to your collection)
Express
WHO'S DEALING: ROYAL BANK OF SCOTLAND (chief executive increases his holding to 64,944 shares) - SHARE WHISPER: LA FITNESS (talk of buoyant trading) - BROKER'S VIEW: SURGICAL INNOVATIONS (Westhouse buy)

Morning all.

Morning punters!

News wires on the blink - few links.

BAA - H1 numbers look well on traget
http://www.uk-wire.com/cgi-bin/articles/20041102070000PDA45.html

PNA - don't seem overly good with half performing well and the rest weak.

MTN - wouldn't say they're sparkiling, but who cares with potential bidders out there? ;-)

MOR - trading update shows nothing to write home about. Integration of Diagonal proceeding as planned.

UMC - meets forecasts.

CGR - brief AGM statement in line

RAC - transferred Leyland parts contract

RYA - seem to have beaten forecasts. Not hedging oil at these prices. Sector will fly anyway on lower oil.

NWF - disposal and acquisition. Helluva chart!

EAS - these deals been coming regularly
http://www.uk-wire.com/cgi-bin/articles/20041102073000P0775.html

ETR - trading in line

GPOR - sells freehold at better than book value

PFD - update on last month's Bury St Ed fire. Branston pickle should resume production within 3 weeks so that's a relief!! ;-)

QA. - making a comeback?

HNR/ROC - Mauritania updates give nothing new.

MCB - AGM statement looks OK.

Tricky to dig out much today with no RNS news coming across. Luckily DJ seems to be spitting it out.

Have a good election day!

Morning Guys & dolls, i don't like the new look home page, what do you lot think?

Morning all.

aldwickk - I thought the homepage was an error, sometimes Citywire appears like that till it corrects itself!!!

jj50/aldwikk,

The home page has been updated as we felt it was getting a little 'tired' after nearly 2 years in service. Thank you for your feedback,

Regards

Ian

It's even better after a few glasses of wine..........

Ian - I think it looks a little more disorganised, harder to spot stuff immediately.

Big Al,

We though it looked more organised :) and more modern for want of a better word - thanks for the feedback though.

Ian

That was what the Roayl Mail thought.

Yes, but the Royal Mail is being run like the old England Football Team.........

Ian - I might get used to it. Blue charts are better than orange ones, though! ;-))

Big Al,

See there is always a positive :) Give it a few weeks, I am sure it will grow on you,

Ian

Sorry Ian, didn't mean to criticise - shall give it due consideration :-))

jj50,

No problem - did not take it as criticism, all feedback be it positive or negative is always welcome - it is one of the ways we know if we are doing things rightly or wrongly.

Ian

Long a few XAR

Today's UK, European broker recommendations

LONDON (AFX) - UK and European brokers' recommendations issued today, as collated by AFX News from a range of market sources.


MERRILL LYNCH
Downgrade Neutral from buy Carlsberg, cuts fair value to 299 dkr from 340, reduces estimates -- Downgrade Neutral from buy Beru

DRESDNER KLEINWORT
Upgrade Add from hold Ryanair

LEHMAN
Downgrade Equal-weight from overweight International Power, target 165 pence, valuation call -- Reiterate Equal-weight ASM International, cuts target to 12 eur -- Equal-weight TDC, ups target to 285 dkr

CITIGROUP SMITH BARNEY
Downgrade Sell from hold Philips -- Downgrade Hold from buy ASM International, cuts target to 13.0 eur from 17.2 -- Reiterate Buy ABN Amro, cuts target to 21 eur from 22 -- Hold Pillar Property, cuts target to 700 pence from 725 -- Sell Scania, ups target to 250 skr from 230

UBS
Downgrade Reduce from neutral Scania -- Downgrade Neutral from buy Geberit -- Reiterate Neutral Helical Bar, ups target to 1,036 pence from 960 -- Neutral Tate & Lyle, ups target to 405 pence from 385 -- Buy Hays, cuts target to 145 pence from 153

SG SECURITIES
Downgrade hold from buy Sagem, fair value 77 eur

CAI CHEUVREUX
Downgrade Underperform from outperform ABN Amro, target 20 eur, reduces estimates -- Downgrade Outperform from Selected List Repsol, target 21.5 eur -- Reinitiate Underperform Hochtief, target 20 eur -- Reiterate Outperform ASM International, cuts target to 14 eur from 18 -- Underperform Fiat, cuts target to 4.9 eur from 6.1

NUMIS
Upgrade Add from hold Umeco, ups target to 480 pence from 440

CSFB
Initiate Autostrade Torino, target 21.5 eur; Outperform SIAS, ups target to 12.4 eur from 11.5 -- Reiterate Outperform SABMiller, ups target to 875 pence from 785, raises estimates -- Neutral Faurecia, cuts price target to 56 eur from 60

DEUTSCHE BANK
Initiate Hold Fortum, target 13 eur -- Reiterate Hold SABMiller, raises target to 750 pence from 680, ups estimates

MORGAN STANLEY
Reiterate Overweight Daimler-Chrysler, cuts target 38 eur from 44