A Brief Look At The Week Ahead

In another busy week of reporting, one eagerly awaited result is that of Sainsbury's, due on Wednesday. The market range for the interim profit is quite large at 120m to 150m. This largely reflects analysts' views on margin performance and the pace at which management is transforming the company. Analysts are also looking for some bright news on Q3 sales performance in the lead up to Christmas and an update on the companies worriesome banking operation. The telecoms sector comes under scrutiny again this week with Vodafone (Tuesday), Virgin Mobile (Thursday) and the soon-to-be acquired O2 (Wednesday) all publishing number. These results come against a backdrop of increasing competition in 2006, with news that Deutsche Telekom will sacrifice margin in the UK and Germany to kickstart market share growth. O2 buyer, Telefonica, has reported the last nine months profit has exceeded the whole of the previous year. Pundits are expecting few fireworks from Vodafone but are predicting sales and network sales growth of a healthy 10% for Virgin. A less buoyant result is expected from chemical manufacturer BOC on Thursday. Analysts predict only a modest rise on 2004's 504m pre-tax result. The group's shares hit a five-year high in September as rumours circulated that BASF was interested in BOC. Profit growth will be hit by the sale of the Afrox division and tough trading conditions. Among others in the spotlight this week will be Majestic Wine and Uniq on Monday; Big Yellow and Kewill Systems on Tuesday; Scottish & Southern Energy on Wednesday and GUS on Thursday. It was great to see so many old friends at the MoneyAM NW Traders Day in Manchester on Friday. Particular thanks to Ruth, Shogun and Sputnick for being brave enough to take the stage. I know that for many of the audience these were the highlight sessions of the day. It is really good to get a view of how other MoneyAM investors approach the subject of making money. At MoneyAM we will soon be sitting down to plan next year's events. If you have any specific subjects you would like to see covered at Traders Days, please feel happy to contact me at alan@moneyam.com and I will make sure your suggestions are on the agenda. Better still, why not come along to our Christmas bash in London on Friday 2nd December and you can give me your ideas in person. Supermum is taking a break this weekend but will be back next time with her regular charting slot. Please note: My telephone troubles continue. I am now waiting to have a satellite phone installed. Until that happens, I will continue 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.)

Weekend Press

Good morning traders!

In Asia this morning, the Hang Seng closed the first half down 23.33 points at 14,717.27 while the Nikkei closed the day down 39.02 points at 14,116.04.

Oil was on the rise again with New York's main contract, light sweet crude for delivery in December, up 41 cents at $57.94 a barrel from its close of $57.53 in the US last Friday.

Happy Monday!

G.

Miners higher

LONDON (AFX) - The FTSE 100 is set for a modestly positive start to the session, mirroring solid gains in US indices on Friday, with results from O2 and further M&A speculation likely to provide focus for investors, said dealers.
CMC Markets is indicating the FTSE 100 to open up 7 points at 5,472, having closed up 41.6 points at 5,465.1 on Friday.

MARKETS
Tokyo: Nikkei 14,116.04 down 39.02
Hang Seng midday 14,717.27 down 23.33

TODAY'S PRESS
* Microsoft steps up EU fight; software group seeks US support in antitrust battle; memo asks companies to lobby White House and Department of Justice - FT
* Hopes of a deal between Saint-Gobain and BPB quashed as the French company is again rebuffed in its attempt to gain a recommendation for its takeover bid - FT
* Investors fear the growing use of the internet and digital distrbution will erode business models for cable, satellite, telecoms and media groups - FT
* US group Koch buys Georgia-Pacific, the paper and packaging company, for 13 bln usd
* ROYAL DUTCH SHELL and its partners in Nigeria's largest liquefied natural gas project face delays that could cost them more than 1.2 bln usd - FT
* Drax Power disputes suggestions that it has received a bid worth 2.25 bln stg from a consortium led by Constellation Energy - FT

PRESS COMMENT
FT
THE LEX COLUMN comments on bird flu (while the risk of a deadly pandemic is still not great, given the potential damage, it cannot be dismissed lightly, Oil services (investors should still be mindful of the sector's capricious nature), European bonds (bond markets and "conundrum" have become almost synonymous)
Times
Rumour of the day: TAGHMAN ENERGY (understood to have reached a deal to obtain two operating licences and take an option on a third; it is expected to take a 50 pct stake in blocks in belize and Guatemala, with the option on 50 pct of a field in eastern Guatemala
Independent
Small Talk: Michael Jivkov comments on LANGBAR INTERNATIONAL (cash in question: Langbar risks wrath of investors), HITCHENS, HARRISON (will announce it has hired Robyn Harte-Bunting as a technology analyst), BEMA GOLD (takeover target), MEDITERRANEAN OIL & GAS (comes to AIM on Wednesday), CYAN (takes AIM for 27 mln stg market value)

SKYEPHARMA TO REVIEW STRATEGIC OPTIONS, INCLUDING OFFERS FOR THE COMPANY

Morning all.

Midday Market Summary

Good Afternoon all

End-of-day Market Summary