LONDON (AFX) - Leading shares are expected to make a strong start, pushing close to the key 5,500 level, following gains on Wall Street last night, dealers said.

MARKETS
FTSE 100 5,460.0 up 30.0
FTSE 250 8,102.8 up 41.6
DJIA 10,720.22 up 45.46
Nasdaq Comp 2,220.46 up 32.53
S&P 500 1,242.80 up 11.59
Tokyo: Nikkei 225 midday 14,613.65 up 201.86
Hang Seng midday 14,874.22 up 86.24
Gold - 485.30 usd (477.70 usd)
Oil - Brent Dec 54.85 usd (56.00 usd)

TODAY'S PRESS
* The UK's biggest leisure and hospitality companies yesterday attacked the government's compromise to introduce a partial smoking ban, calling instead for a full ban in 2010 - The FT
* ROYAL MAIL chairman Allan Leighton warned yesterday that it could face bankruptcy without a solution to mounting problems at its pension fund, one of the largest in the UK - The Guardian
* GLAXOSMITHKLINE is setting up a network of research facilities in India to test the new cancer drugs it is developing - The Guardian
* ROYAL MAIL's pension deficit could soar by 2 bln stg to 6.25 bln stg and cost the group almost 1 bln stg a year, more than double its cashflow, it has been warned - The Times
* NTL abandoned plans to challenge BSKYB's dominance of live Premiership football coverage, after the European Commission refused to split future coverage equally between two broadcasters - The Times
* VIRGIN MOBILE is considering bidding for Phones4U mobile phone shops as part of a plan to expand on to the high street - The Express
* MAN GROUP may decide to hive off its derivatives brokerage next year, after the 188 mln stg purchase last week of assets of the bankrupt US firm Refco - The Independent

PRESS COMMENT
FT
THE LEX COLUMN comments on BPB/SAINT-GOBAIN (It may take longer than Saint-Gobain hopes, but BPB should grow into its valuation), MAN GROUP (With Man's stock trading at 13 times forward earnings, a discount to its European and US peers, investors can look forward with optimism), US/CHINA TRADE (President Bush has got the big stuff out of the way. On Tuesday he rebuked China for its lack of democracy and bibles. That leaves the economic gripes for Saturday, when he actually touches down on the mainland), RENAULT (With 90 pct of Renault's market value accounted for by its stakes in Nissan and Volvo, the stock is cheap), VNU/IMS (The 910 mln usd premium paid to IMSs undisturbed value was not wildly above cost synergies worth perhaps 520 mln usd), GENERAL MOTORS (General Motors is vast and will not run out of liquidity any time soon. Its cash pile stood at 19 bln usd at the end of September)

Telegraph
MARKET REPORT PENNON GROUP (consolidation talk), MAX PETROLEUM (talk that institutional investors were tempted to buy shares), EMPIRE ONLINE (talk that PARTYGAMING bid could be as low as 50 pence pert share) -- QUESTOR: NATIONAL GRID (Buy), MAN GROUP (Buy with confidence), MOTHERCARE (worth hanging on to)

Independent
THE INVESTMENT COLUMN: HILTON GROUP (Avoid), BARRATT DEVELOPMENTS (high quality, geographically diverse, business to buy for the long term), INVESTEC (still a buy) -- MARKET REPORT LONMIN (bid talk), EGG (talk that PRUDENTIAL will soon unveil a bid to buy out minorities at the internet bank)

Times
Directors' dealing: BIG YELLOW GROUP (chief executive sold 575,589 shares at 300 pence, sales director sells 106,000 at 300 pence) -- Rumour of the day: TEG ENVIRONMENT (talk that it has received approval from the State Vetinary Service to treat animal by-products at its Sherdley Farm facility near Preston) -- TEMPUS GUS (a good buying opportunity), MAN GROUP (Hold), BPB (shareholders might just as well sell in the market at once)

Express
MARKET REPORT: BG GROUP (talk that ROYAL DUTCH SHELL is lining up a bid), COMPASS GROUP (takeover talk),

Mail
MARKET REPORT BG GROUP (rumours of bid from ROYAL DUTCH SHELL), MAX PETROLEUM (talk of Russian corporate interest), EMPIRE ONLINE (talk of 50 pence per share bid, not 60 pence), INCHCAPE (talk of counter MBO proposal from chief executive Sir Peter Vardy and family)

Guardian
MARKET FORCES MISYS (rumours of bid), EMPIRE ONLINE (fears that PARTYGAMING will never make bid), LONDON CLUBS (bid talk)

Investors Chronicle
Large Companies BARCLAYS (buy), WOLSELEY (buy), 888 HOLDINGS (buy) -- Smaller Companies, CANACCORD (buy), RUGBY ESTATES (buy), URUGUAY MINERAL (buy)

Good Morning all. Will Barc get to 610 today after the "buy" in the Investors Chronicle?

Druid - you know what usually happens to IC tips..... ;-)

Good morning all

does anyone else thing the trade volumes are low this morning?

Greystone - in this weather they drop off!

Nam

Nam :-) ROFL

End-of-day Market Summary