Outlook

Investors Chronicle

TIPS - LARGE COMPANIES: SLOUGH ESTATES (buy); AQUARIUS PLATINUM (buy); VEGA (buy)

TIPS - SMALL COMPANIES: NELSON RESOURCES (buy); CORPORATE SYNERGY (buy); SYSTEMS UNION (buy)

TIPS - UPDATE: CARTER & CARTER (buy) ANTOFAGASTA (sell); URBIUM (hold); CRC GROUP (good value); RANK (buy); FIRST CALGARY (fairly priced); BAGGERIDGE BRICK (high enough)

LONDON (AFX) - The FTSE 100 is expected to open flat this morning, following an uninspiring session in the US last night and ahead with little corporate newsflow to provide direction to the market, dealers said.
CMC Group is indicating the FTSE 100 to open up around 1 point, after closing 23.4 points lower last night at 5,269.3.
The UK blue chip index yesterday closed 23.4 points down at 5,269.3.

MARKETS
FTSE 100 5269.3 -23.4
FTSE 250 7619.8 -34.7
DJIA 10554.9 +4.2
Nasdaq Comp 2136.08 -9.07
S&P 500 1219 -1.25
Tokyo: Nikkei midday 12,226.86 down 40.51
Hang Seng midday midday 15,088.44 down 59.65
Gold 439.65 usd (442 usd)
Oil - Brent Oct 62.15 usd (62.56 usd)

TODAY'S PRESS
* Goldman Sachs expects US benchmark oil prices to remain above 60 usd a barrel for the rest of the decade - FT
* Six of Europe's largest defence groups are to be invited to examine internal financial information of Atlas Electronik, being sold by BAE Systems - FT
* Gate Gourmet's loss-making Heathrow operation faced closure last night unless a last-ditch meeting to hammer out a new deal with BA succeeds - Independent
* BT has scrapped plans to generate 300 mln stg revenues from mobile services by 2005 - Times
* Somerfield insiders worried about failure of interested parties to bid for group - Daily Telegraph
* Kvaerner head Kjell Inge Rokke could be personally liable for 1 bln stg pension liabilities - Telegraph

PRESS COMMENT

FT
THE LEX COLUMN comments on RBoS investment in Bank of China (for RBoS shareholders, things could have been worse), music phones (taking a more open approach in music could well help other 3G services as well), Google (those who write cheques are taking a bet on the instincts of Google's youthful founders), Morgan Stanley (keeping Discover may even reduce the probability of a sale in the medium term, which investors could come to regret)
Times
RUMOUR OF THE DAY BELHAVEN GROUP (rekindled talk that the Scottish brewer and pub operator could be in the sights of Wolverhampton and Dudley Breweries or Greene King) - DIRECTORS' DEALINGS: SSL INTERNATIONAL (purchase of stock for 5,279 stg by its senior independent non-executive director) - TEMPUS: AMLIN (insurance cycle may persist in some form, but a re-evaluation of shares is also due. Buy.) WEIR GROUP (Hold) ASHTEAD (Hold)
Telegraph
QUESTOR: WEIR (good value and worth holding on), AIR PARTNERS (rating is pretty high but stay on board), BRITISH POLYTHENE (if BPI can stabilise margins, it's worth holding for the yield)
Express
SHARE WHISPER: PNC TELECOM (talk profits continuing to surge) - WHO'S DEALING: EUROMONEY (founder sells 20,000 shares)

Investors Chronicle
TIPS - LARGE COMPANIES: SLOUGH ESTATES (buy); AQUARIUS PLATINUM (buy); VEGA (buy); TIPS - SMALL COMPANIES: NELSON RESOURCES (buy); CORPORATE SYNERGY (buy); SYSTEMS UNION (buy); TIPS - UPDATE: CARTER & CARTER (buy) ANTOFAGASTA (sell); URBIUM (hold); CRC GROUP (good value); RANK (buy); FIRST CALGARY (fairly priced); BAGGERIDGE BRICH (high enough)

Thanks gents for your hard work.

Equity Options Expire

Noon Market Wrap

End of day market wrap

AFX UK at a glance share guide - weekend

MARKETS
FTSE 100 5,312.6 up 43.3
FTSE 250 7,665.0 up 45.2
DJIA 10,559.23 up 4.3
Nasdaq Comp 2,135.56 down 0.52
S&P 500 1,219.71 up 0.86
Gold 438.20 usd (442.00 usd)
Oil - Brent Sep 64.36 usd (62.40 usd)

WEEKEND PRESS
* MAN GROUP, which manages 25 bln stg for the world's super-rich, weighing up splitting off its brokerage arm in a move that could create a 2 bln stg FTSE 100 business - Mail on Sunday
* Disgruntled shareholders in RENTOKIL INITIAL want Gerry Robinson to take control of the 2.7 bln stg company - Sunday Times
* RENTOKIL INITIAL investors hold talks over plan to install Gerry Robinson as chairman - Sunday Telegraph
* Transport & General Workers' Union head, Tony Woodley, dramatically raises stakes in Heathrow airport dispute with BA and Gate Gourmet; he warns that the T&G could ballot all 19,500 members at Heathrow for strike action if it judges that any are victimised as part of BA's investigation into the strikes which paralysed its operations earlier this month - Observer
* Gate Gourmet set to appoint administrators to its UK operations this week, a move that will jeopardise 2,000 jobs and threaten more disruption to BRITISH AIRWAYS flights - Sunday Times
* Gate Gourmet threatens to jettison UK operation; controversial catering group issues ultimatum to BA to agree terms on new supply contract by Tuesday - Sunday Telegraph
* Tensions mounting again at Heathrow this weekend between BRITISH AIRWAYS and its catering company Gate Gourmet, with both blaming each other for failure to sign a new contract, and the caterer seeking an injunction against a picket line at the airport - The Business
* The cost to BRITISH AIRWAYS of the Gate Gourmet catering fiasco swells by a quarter as the airline struggles to resume normal service; BA officials now believe the bill will be at least 50 mln stg - Mail on Sunday
* Internet gaming company Cassava Enterprises being prepared for a quick flotation to fund a major takeover and the creation of a massive gambling site, sources say; Cassava runs the 888.com poker website and it is thought to have its eyes on rival PokerStars; combined sites would make a gambling giant to rival PARTYGAMING - Sunday Express
* Carlyle Group lining up an approach for the 1.5 bln stg European soft drinks business of CADBURY SCHWEPPES - and ex-Pepsico executive Nish Kankiwala from rival KKR has been hired to spearhead the bid - Sunday Express
* One of Russia's biggest steel companies, Novolipetsk Steel, preparing a London listing that would value the company at close to 5 bln stg - Sunday Times
* James Crosby expected to quit as chief executive of HBOS to make way for his 38-year-old chief operating officer Andy Hornby in the new year - Observer
* Retail anger grows over China 'clothes mountain'; stores may seek redress as 900 mln stg of autumn lines pile up at borders - Observer
* Three suitors have approached the family that holds a controlling stake in Dow Jones, owner of the Wall Street Journal; any bid could value their stake at up to 1 bln usd (550 mln stg); most likely suitors would be strategic buyers such as the New York Times group Gannett and News Corp - The Business
* Guy Hands's investment vehicle Terra Firma Capital and Aviation Capital Group, a subsidiary of America's Pacific Life Corp, tipped as two of the potential buyers for the 2 bln usd aircraft leasing company AWAS, which Morgan Stanley's chief executive John Mack put up for sale last Wednesday - The Business
* Europe's four biggest gas retailers, RWE, Eon, GdF and CENTRICA, to compete to bid for Caledonia Oil & Gas, the North Sea gas firm built up by former Tory energy minister Lord Moynihan - The Business
* Minority shareholders in SIBIR ENERGY demand that Chalva Tchigirinski, its largest shareholder, step down from the board of the oil company - Independent on Sunday
* THUS plans to bounce back from its failed attempt to acquire ENERGIS by launching another takeover bid; in chief executive Bill Allan's sights are UNITED UTILITIES' Your Communications and Global Crossing's UK operations - The Business
* UNILEVER conducting a review of its frozen-food arm that could lead to the sale of Birds Eye fish fingers and Carte d'Or ice cream - Sunday Times
* Housing wealth declines for first time in a decade; higher mortgage debt and lower prices contribute to drop of more than 60 bln stg - Saturday FT
* Death of Andronico Luksic, ANTOFAGASTA's major shareholder and honorary president, renews speculation that the copper miner could become a takeover target - Saturday FT
* CABLE & WIRELESS faces inquiry into Bulldog's broadband pedigree - Saturday Times
* ENERGIS accused of misleading investors to thwart THUS bid - Independent on Sunday
* Phones 4U tycoon, John Caudwell, plans to sell empire for 800 mln stg - The Business
* Mobile firm in monster China deal; MONSTERMOB poised to buy Atop Century for 100 mln usd - Sunday Times
* SHIRE PHARMACEUTICALS boss Matt Emmens faces a probe by the City watchdog after buying shares days before a major stock market announcement was made - Saturday Mail
* Competition regulator is restricting discount supermarkets such as Netto and Aldi from buying stores from the big five supermarkets, which critics say is helping to keep the large supermarket chains in their powerful, dominant positions - Saturday Guardian
* TRINITY MIRROR frontrunner to buy online recruitment agency HOTGROUP, in a deal worth about 50 mln stg - a transaction highlighting recent newspaper interest in serving young job-hunters via the internet - Observer
* Clothing chain MATALAN cuts 300 jobs in a bid to save 15 mln stg a year - Saturday Express
* Rose Bowl, the company which owns Hampshire Cricket, considering listing on AIM - Saturday FT
* 32RED.COM, the online casino group, will raise about 25 mln stg in new capital next month when it becomes the latest internet betting company to float in London - Saturday Independent
* Georgia's largest retail bank, The Bank of Georgia, plans an AIM flotation in a move that highlights the London market's attraction to companies in the former Soviet Union - Saturday FT
* Merck faces 18 bln usd Vioxx clams - Sunday Telegraph
* Merck shares fall 8 pct after Texas jury awards family 253 mln usd in Vioxx case - Saturday FT
* Northern Ireland's electricity regulator is gracious in victory as all sides appear to concede that the proposed takeover of EAST SURREY HOLDINGS is now unlikely - Saturday FT
* EAST SURREY HOLDINGS calls on government to stop its energy watchdog in Northern Ireleand helping Terra Firma wriggle out of its 453 mln stg bid for the water and gas utility - Saturday Guardian
* Some of the biggest institutional shareholders in News Corp, outraged at chairman Rupert Murdoch's extension to his "poison pill" defence to ward off a takeover, call for the resignation of its independent directors - The Business
* News Corporation understood to be preparing to snap up yet another internet company, IGN Entertainment; IGN, which has about 27 mln monthly users, has been valued at anything from 600 mln usd to 1 bln - Saturday Independent
* News Corporation set to sell its Dutch radio operation in a 200 mln stg sale that could signal its exit from the radio sector - Sunday Express
* BSKYB-backed Music Choice sold for just 2.7 mln stg - Saturday Independent
* TELEWEST sets a deadline of the start of September for initial bids for Flextech - Sunday Telegraph
* Freeview's hold on 'digital Britain' breaches EC rules, claims BSKYB - Independent on Sunday

SATURDAY PRESS COMMENT
FT
THE LEX COLUMN comments on FTSE 100 (Office of National Statistics thinks foreigners and "other financial institutions" (mainly hedge funds) own 45 pct of the FTSE 100, versus 36 pct in 1999; if the index is becoming a short list of global behemoths who select London for their primary listing, UK savers should abandon it as a benchmark for efficient asset allocation), Merck (if Vioxx liabilities swell too high, too fast, it seems possible the dividend could suffer longer-term; not a ride for the risk-averse), India (putting up a "No Entry" sign to foreign money is nonsensical), Axel Springer (debts from the ProSieben deal will inhibit further investments in eastern Europe, while the scope for organic improvements looks limited; hard to see why the stock should be trading at more than 20 times this year's earnings) - Younger, global and ambitious: the new generation of engineering chief executives (MORGAN CRUCIBLE, TOMKINS, WEIR GROUP, IMI, WAGON - MONEY & BUSINESS p.4) - Weekend share watch: BPP (a stock to hold), UMECO (not cheap but the prospective multiple of about 17 reflects niche skills), FENNER (on a p/e ratio of about 16, a justified premium to the sector) - ANALYST WATCH - WILLIAM HILL (is the bookie worth a punt The company has benefited from regulatory change, but there are doubts about its STANLEY LEISURE acquisition - MONEY & BUSINESS p.21)

Times
STOCK MARKETS: CARNIVAL (indications that the US government may delay its introduction of new passport rules for US citizens), HALFORDS (speculation that Autobacs could pick up the 20 pct held by CVC) - TEMPUS: GOOGLE (where Google is concerned, it may already be too late to get in - but not too early to get out) - STELLA SHAMOON'S SHARE OF THE MONTH: FRAMLINGTON BIOTECH FUND

Independent
Stocks to get you into alternative energy: AZURE DYNAMICS, Clipper Windpower (tipped for a 250 mln stg flotation in the UK later this year), EVERGREEN SOLAR (Nasdaq-listed), GAMESA (listed in Spain), OCEAN POWER TECHNOLOGIES, SOLARWORLD - NO PAIN, NO GAIN: Derek Pain comments on LANDROUND (could soon be taken over by a bigger group, although the terms may not be attractive), MYHOME INTERNATIONAL (may be about to hit the takeover trail) - MARKET REPORT: o2 (should Deutsche Telekom throw its hat in the ring, CSFB argues that Telefonica will also table an offer for o2), Commerzbank (ROYAL BANK OF SCOTLAND talked of as a possible bidder)

Mail
MARKET REPORT: DIXONS (extremely vague private equity takeover rumours) - o2 (speculators convinced Deutsche Telekom will soon table a cash bid of at least 170 pence per share) - INVESTMENT EXTRA: TULLOW OIL (shares should have further to go); IMPAX GROUP (have plenty of potential)

Telegraph
THE MARKET: WHITE NILE (talk it could update the market shortly on its prospects in Ethiopia) - QUESTOR: ABBOT (price is getting a little toppy), WOOD GROUP (worth holding, but pricey), SONDEX (least exposure to an increase in oil companies' spending), HUNTING (buy); SMALL CAP VALUES: TOREX RETAIL (keep buying), HARVEY NASH (buy for recovery), OTTAKAR'S (hold out for a bid)

Express
SHARE WHISPER: BHP BILLITON (hopes it will post record results next Wednesday) - WHO'S DEALING: UNITED CLEARING (finance director sells 6,250 shares at 130 pence each)

SUNDAY PRESS COMMENT
The Business
THE ALCHEMIST: Clem Chambers selects a stock called SYGEN this week - AIM INVESTOR: COMPUTERLAND (hold on to this one) - SMALL-CAP INVESTOR: ANITE (there is always the possibility a rival could bid for Anite; this should limit any downside for the shares) - BENCHMARK: Ian Watson comments on ROYAL BANK OF SCOTLAND (investment in bank of China much more modest, and thus less risky, than originally feared), Google (take a bit of your profits), Morgan Stanley (it's time new chairman and chief executive John Mack battened down the hatches and steered the ship away from self-induced storms)

Mail on Sunday
COMPANIES AND MARKETS: THUS (must find another deal or face being taken over after its failure to gatecrash the 800 mln stg bid for ENERGIS by CABLE & WIRELESS), VODAFONE (eyes stake in Poland), HILTON (mixed bag of interim results expected this week), RENTOKIL INITIAL (to quit country HQ) - MIDAS: CODASCISYS (split could release value; buy)

Sunday Times
INSIDE THE CITY: John Waples comments on P&O (chairman John Parker and chief executive Robert Woods know the value of P&O; the trick will be to deliver it to investors), HILTON GROUP (chief executive David Michels has been looking hard at ways to internationalise Ladbrokes, its betting arm)

Sunday Telegraph
Equity View - BLUE CHIP VALUES: SPORTINGBET (cash in profits and sell), ROYAL & SUN ALLIANCE (keep buying); Look who's trading: SHIRE PHARMACEUTICALS (chief executive buys 17,010 shares; investors should resist banking profits; the TKT deal will boost earnings and Shire expects to launch 12 new products in the next two years); SMALL CAP COMMENT: VANTIS (rating to low), EGDON RESOURCES (readers who took our advice to buy should take some of their 80 pct profits), SHL GROUP (buy), STATPRO (should have further to go)

Observer
THROG STREET: Oliver Morgan comments on CORUS (if the spot market improves, Corus will benefit doubly in the way it has suffered from its falling; there could be a move towards that (Credit Suisse target of) 60 pence some time soon), PERSIMMON (the real question is whether it will buy another housebuilder; as one observer put it: 'The next era of significant share price outperformance requires a sizeable (at least 500 mln stg) UK acquisition'), BSKYB (a good buy for those who believe BSkyB may spend now to reap huge rewards further down the line - and remember: it's never a good idea to bet against a Murdoch)