Monday
TRADING STATEMENTS
Aggregate Industries
GKN
Lloyds TSB
Savills

MARKETS
Tokyo: Nikkei 10,789.25 up 32.45
Hang Seng midday 13,767.39 down 134.42

BREAKING NEWS
* LONDON STOCK EXCHANGE to reject 1.25 bln stg approach from Deutsche Boerse - FT
* The BoE will warn that some of the UK's biggest banks may have underestimated the risks associated with lending to the commercial property - FT
* Honeywell poised to make white knight bid for NOVAR with a recommended cash offer of 185-190 pence per share - FT
* Permira has joined forces with Apollo to bid for the global operations of Toys R Us - FT
* CVC Capital believed to be considering bid for TRINITY MIRROR - Guardian
* JARVIS agrees sale of Tubelines stake to Star Capital for just over 100 mln stg - Telegraph

PRESS COMMENT
FT
THE LEX COLUMN comments on BoE's report on stability in UK financial industry; (the bad news is that new quantitative risk modelling practices have not yet been tested by any real life market shock) - European Equity Issuance (declining margins in traditional agency activities and battle for corporate clients have pushed banks into riskier waters) - US mobile sector - (the big loser from a Nextel/Sprint deal could be T-Mobile. If Nextel/Sprint does go ahead, it would be tough to persuade US regulators to allow the number of operators to be whittled down to three)

Independent
Small Talk: Michael Jovkov comments on the Growth Company Investor survey (found that 26 AIM companies paid over 1 mln stg to their boards), DINKIE HEEL (fund raising should be completed before Christmas), GENERICS (will today boast a new round of financing for its ASTRAVERDA unit), Roger Cursley, UK equity strategist at Investec predicts that Q1 will see a raft of smaller companies, SECTORGUARD (set to unveil today the acquisition of CHOICE SECURITY SERVICES), EMERGING UK INVESTMENTS rumoured to have approached A-Z Restaurants)

LSE SAYS RECEIVED OFFER FROM DEUTSCHE BORSE AT 530P/SHR

LSE REJECTS 'UNDERVALUED' DEUTSCHE BORSE PROPOSAL

LLOYDS TSB SAYS REVENUE GROWTH EXCEEDS COST GROWTH IN ALL DIVISIONS
LLOYDS TSB EXPECTS FY PRETAX PROFITS 'IN LINE WITH MARKET EXPECTATIONS

HSBC CUT TO NEUTRAL' FROM 'BUY' AT MERRILL LYNCH - DEALERS

Morning all.

STOCKWATCH Barratt, Persimmon & Wimpey initiated as 'underweight' at JP Morgan

LONDON (AFX) - UK housebuilders will be eyed in opening deals today as JP Morgan initiated coverage on Barratt Developments PLC, Persimmon PLC, George Wimpey PLC with 'underweight' recommendations, while Taylor Woodrow PLC was given a 'neutral' rating, dealers said.
JP Morgan said the recommendations reflect its cautious view on the outlook for the housing markets in the UK -- mainly prices -- and the US -- mainly volumes.
JP Morgan set a price target of 493 pence for Barratt, 507 for Persimmon, 278 pence for Taylor Woodrow, and 373 for Wimpey.
JP Morgan highlighted these valuations contrast with the average 12 pct upside to its 12-month valuations for the 16 European construction and building
materials companies already under coverage.
JP Morgan has also estimated by how much these valuations could decline by
the end of 2006 if land prices weaken as house prices stabilise and building costs continue to increase.
On this basis, the broker's valuations decline to 452 pence for Barratt, 477 for Persimmon, 266 for Taylor Woodrow and 345 for Wimpey.

gone long phtm at 94.5 target 110 by march.

Afternoon. Sorry no news today, forgot to set alarm after working on house 'til late.

Stopped out of WMK -5 earlier.

Have a good day/week