Good morning traders!

In Asia, the Hang Seng ended the morning up 64.19 points at 15,224.97 with the Nikkei down 6.75 points at 12,592.68.

Oil prices weakened further in Asian trade with New York's main contract, light sweet crude for delivery in October, down 46 cents to $65.50 a barrel from its close of $65.96 in the US overnight when it dropped by $1.61.

Early brokers notes :-

JD WETHERSPOON UPGRADED TO 'NEUTRAL' VS 'SELL' AT MERRILL LYNCH

A busy day in prospect.

Happy trading!

G.

LONDON (AFX) - The FTSE 100 looks set to open on an upbeat footing this morning following a strong rally across the Atlantic last night, with earnings news from ITV, BAE Systems, Gallaher and Dixons in focus.
IG Index is indicating the FTSE 100 to open around 3 points higher, after the index closed up 21.4 points yesterday at 5,359.2.

MARKETS
FTSE 100 5,359.2, up 21.4
FTSE 250 7,795.4, up 7.3
DJIA 10,589.20, up 141.80
Nasdaq Comp 2,166.86, up 25.79
S&P 500 1,233.40, up 15.40
Tokyo: Nikkei closed at 12,630.26, up 30.83
Hang Seng midday 15,224.97 up 64.19
Gold 443.95 usd (445.35 usd)
Oil - Brent Oct 64.67 usd (64.85 usd)



TRAFFIC FIGURES
easyJet Aug passenger numbers

ECONOMICS
UK's NIESR GDP estimates (2301 GMT Tuesday)
Nationwide UK Aug consumer confidence index (2301 GMT Tuesday)
UK BRC Aug shop price index (0930 GMT)

TODAY'S PRESS
* Disaster prompts rates alert; OECD urges central banks to stay relaxed in wake of Katrina; US and Japan seen as better placed economically than UK or euro zone - FT
* Five senior rail executives cleared of breaching safety standards in the run-up to the Hatfield rail disaster four years ago - FT
* BAE SYSTEMS denies plans to offload stake in Airbus - FT

PRESS COMMENT
FT
THE LEX COLUMN comments on Red hot poker (for the cautious investor who still wants to play a hand, SPORTINGBET might be a better bet), UK interest rates (those hoping for further rate cuts should watch external events as closely as the BRC survey), Gas Natural/Endesa (Gas Natural will struggle to justify pumping up its offer; but given a history of abortive deals, and political pressures, paying up for closure may now be its fate), Bank of Italy (governor's position looks increasingly untenable) - BRIXTON (may have some upside) - ADMIRAL (could go higher, but for the near-term, there is little upside) - PREMIER FOODS (remain good value) - SPIRAX-SARCO (a justified premium to the sector on 14 times) - JOHN MENZIES (do not look expensive relative to comparable distributors) - ERINACEOUS (there is longer-term upside)
Guardian
REUTERS (acquisition hysteria grips Reuters)
Independent
THE INVESTMENT COLUMN comments on AEGIS (stick with TAYLOR NELSON SOFRES for greater value), ADMIRAL (buy), PREMIER FOODS (one for the store cupboard) - PUNCH TAVERNS (could Punch be about to buy the bulk of the pubs owned by Spirit Group)
Times
STREAM GROUP (could be the sector's next bid target) - TEMPUS: PARTYGAMING (sell), BRIXTON (buy), PREMIER FOODS (buy)
Express
Trevor Webster says NORTHUMBRIAN WATER looks good value; he takes profits in LOOKERS - SHARE WHISPER: ASCENT RESOURCES (rumoured to be close to announcing another European deal in the next few days) - WHO'S DEALING: BERKELEY SCOTT (chairman buys 15,000 shares at 30 pence)
Mail
LONDON & BOSTON INVESTMENTS (investment company owned by Vincent Tchenguiz acquires 13.5 pct stake)
Telegraph
REUTERS (Google bid talk) - QUESTOR: AEGIS (worth holding), TAYLOR WOODROW (buy on any dips), MEGGITT (attractive)

Morning all.

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


CSFB
Upgrade Outperform from Neutral Swiss Re, ups target to 92 sfr from 85 -- Downgrade Neutral from Outperform Mobile Telesystems, target 41 usd -- Reiterate Neutral Vimpelcom, ups target to 45 usd from 40, raises estimates -- Neutral George Wimpey, cuts target to 410 pence from 425

DRESDNER KLEINWORT
Downgrade Hold from Add Air Liquide -- Upgrade Buy from Hold Credit Agricole -- Initiate Add Valeo

MERRILL LYNCH
Upgrade Neutral from Sell JD Wetherspoon -- Reiterate Buy Barclays, ups price target to 674 pence

GOLDMAN SACHS
European Aerospace & Defence: Ups sector stance to Attractive from Neutral; Upgrade In-line from Underperform Finmeccanica; Upgrade In-line from Underperform Thales; Downgrade Underperform from In-line Saab

UBS
Upgrade Buy from Neutral Swiss Re, ups target to 92 sfr from 87 -- Upgrade Neutral from Reduce De Rigo -- Upgrade Buy from Neutral Phonak, ups target to 62 eur from 87 -- Reiterate Buy Sanofi-Aventis, cuts target to 78 eur from 82 -- Buy Travis Perkins, cuts target to 1,732 pence from 1,875 -- Buy Neopost, ups target to 93 eur from 87 -- Neutral Surfcontrol, cuts target 440 pence from 540 -- Buy ITV, cuts target to 156 pence from 165

CITIGROUP SMITH BARNEY
Upgrade Hold from Sell Scottish Power, target 545 pence -- Reiterate Buy Admiral, ups target to 440 pence from 400 -- Hold Taylor Woodrow, ups target to 335 pence from 325 -- Buy Pirelli Real Estate, ups target by 12 pct to 54.1 eur -- Hold Victrex, ups target to 550 pence from 450 -- Hold Sanofi-Aventis, cuts target to 75 eur from 77

DEUTSCHE BANK
Upgrade Buy from Hold Credit Agricole -- Upgrade Buy from Hold Generali, ups target to 29.10 eur from 26.70, raises estimates -- Upgrade Buy from Hold Inditex, ups target to 26.50 eur from 25.00 -- Upgrade Buy from Hold Credit Suisse, ups target to 63 sfr from 52 -- Upgrade Buy from Hold UBS, ups target to 118 sfr from 108 -- Initiate Buy Caliber, target 14 usd - Initiate Buy Eurocastle, target 21 -- Reiterate Sell JD Wetherspoon, ups target to 245 pence from 235 -- Buy Commerzbank, ups target to 24.50 eur from 21.50 -- Hold IMI, ups target to 450 pence from 425 -- Buy Philips Electronics, ups target to 25.0 eur from 23.5

PANMURE GORDON
Downgrade Hold from buy Royal Bank of Scotland -- Initiate Buy Media Square -- Initiate Buy Foseco, target 175 pence -- Reiterate Buy Visonic, ups target to 100 pence from 90

WESTLB
Upgrade Buy from Outperform Credit Agricole -- Reiterate Neutral Altana, ups target to 44.1 eur

ALTIUM SECURITIES
Downgrade Reduce from Sell Pace Micro

WILLIAMS DE BROE
Upgrade Buy from hold Wilson Bowden

NOMURA
Downgrade Neutral from buy Inion

EXANE BNP PARIBAS
Upgrade Outperform from Neutral Air Liquide, ups target to 165 eur from 151 -- Reiterate Neutral Neopost, ups target to 80 eur from 75 -- Outperform Devoteam, ups target to 22.5 eur from 19.5 -- European Strategy: Utilities upgraded to Overweight from Neutral, top picks E.ON (outperform, target 90 eur) and Gaz de France (Outperform, target 31.5 eur); Media downgraded to Neutral from outperform

CA CHEUVREUX
Downgrade Underperform from Outperform Haldex, target 140 skr, 'take some profits' -- Downgrade Underperform from Outperform Travis Perkins, target 1,455 pence -- Downgrade Underperform from Outperform Trelleborg, cuts target to 120 skr from 130

SG SECURITIES
Downgrade Sell from buy easyJet, fair value 280 pence -- Reiterate Buy Axa, ups fair value to 25.5 eur -- Buy Sanofi-Aventis, fair value 75 eur

MORGAN STANLEY
Initiate Overweight Numico, target 39 eur

WH IRELAND
Initiate Add Vindon Healthcare

ARBUTHNOT
Initiate Neutral Development Securities

LEHMAN BROTHERS
Reiterate Equal-weight Shore Capital, ups target to 60 pence from 50

JP MORGAN
Reiterate Overweight BBA, ups target to 353 pence from 343 -- Underweight L'Oreal, ups target to 58 eur from 51 -- Underweight Premier Foods, cuts target to 320 pence

ING
Reiterate Hold Acambis, cuts fair value to 265 pence from 277

NUMIS
Reiterate Buy Biotrace, ups target to 122 pence from 115 -- Add Dairy Crest, ups target to 575 pence from 540 -- Buy Goshawk, cuts target to 46 pence from 52

BRIDGEWELL SECURITIES
Reiterate Buy Avingtrans, ups target to 176 pence from 156

End of day market wrap