MARKETS
FTSE 100 4,914.0 up 19.6
FTSE 250 7,180.6 up 50.1
DJIA 10,404.30 down 99.46
Nasdaq Comp 1,984.81 down 14.42
S&P 500 1,172.92 down 7.67
Gold 425.65 usd (427.65 usd)
Oil - Brent May 56.51 usd (54.29 usd)

BREAKING NEWS - WEEKEND
* HSBC weighing up a possible 40 bln stg bid for MORGAN STANLEY, stepping in as a white knight after the dreadful pounding the Wall Street bank has suffered in the past week; Morgan Stanley's chairman, Philip Purcell, has been under fire since a management shake-up backfired last week - Independent on Sunday
* Vicious price war between supermarkets boiling up with Asda unveiling more than 100 mln stg of price cuts this week and rival TESCO expected to hit back within days - Mail on Sunday
* TESCO taking on DIY rivals Homebase and B&Q in a major push into the 16.9 bln stg home improvement market with women to the forefront - Sunday Express
* Lansdowne Partners, one of Britain's largest and most successful hedge funds, buys more than 1 pct of TESCO; bet thought to represent more than 10 pct of Lansdowne's UK fund - Sunday Times
* TRINITY must dump the Mirror, major shareholder demands; sources close to US fund manager Tweedy Browne, which has a 4.71 pct stake in TRINITY MIRROR, tells Financial Sunday Express it is becoming increasingly impatient with the losses accumulated by the group's national titles
* Schools put new bite on COMPASS; Jamie's food flair turns up pressure on the company's education arm, Scolarest; extra dinner money encourages meals rethink - Observer
* Career of Mike Bailey, chief executive of COMPASS GROUP, stands on a knife-edge as leading shareholders demand his removal following two profit warnings at the mass caterer - Sunday Times
* Fortune Brands, the US homewares-to-spirits conglomerate, appoints CSFB to target acquisitions in the European drinks industry; moves by Fortune could include participating in a possible 6.5 bln stg bid for ALLIED DOMECQ - Sunday Times
* Tory leader Michael Howard ready to kill the controversial Gambling Bill, in a move that will spread panic among gambling firms and hit their already shaky share prices - Observer
* Iran's National Petrochemical Company close to sealing a politically sensitive 2.3 bln stg deal to buy Basell, the polymer business jointly owned by SHELL and BASF - Independent on Sunday
* Britain's poorest 10 pct of households becoming even poorer, according to devastating official figures revealing that Chancellor Gordon Brown's tax-and-spend agenda is hurting Middle Britain while failing to help the most vulnerable - The Business
* Lord Laidlaw, Conservative peer and millionaire philanthropist, hoping to land a 500 mln stg cash windfall after appointing Lazard to sell his conferences and training business - Sunday Times
* Thales, the French arms and electronics company, raises prospect of an 8.6 bln stg merger with Italian rival Finmeccanica; this would create Europe's second-largest defence group and present a big challenge to BAE SYSTEMS - Independent on Sunday
* BAE SYSTEMS taking the Sultan of Brunei to court over a 1 bln usd dispute involving an order for three naval ships; dispute centres on a lucrative export order, estimated to be worth over 600 mln stg (1.13 bln usd), to build three offshore patrol vessels for the Royal Brunei armed forces - Sunday Telegraph
* BAE SYSTEMS considering a 250 mln stg sale of its Atlas Elektronik business, signalling it is looking to use proceeds from European divisions to increase its presence in the US - Observer
* Virgin's Sir Richard Branson plans to launch a mobile network in India before further phone rollouts in China, South Africa and Nigeria - The Business
* Europe's technology and telecoms sectors set for a wave of takeovers from US and Asian firms this year as they compete to buy European companies - The Business
* RAB CAPITAL secretly sells its stake of almost 15 pct in GRIFFIN MINING without formally notifying the company - Sunday Telegraph
* German media group RTL prepared to bid up to 800 mln stg for digital TV group Flextech - Sunday Express
* Contractors (AMEC, Fluor, Jacobs, Bechtel) could earn 4 bln stg from nuclear clean-up deals) - Independent on Sunday
* UK's largest radio companies shunning the auction of THE WIRELESS GROUP, run by former Sun editor Kelvin MacKenzie, because they do not want to compete with the BBC - Independent on Sunday
* Malcolm Glazer's advisers at Rothschild to hold showdown talks with Cazenove this week to decide whether there is any point in proceeding with a formal takeover bid for MANCHESTER UNITED - The Business
* A feasibility study commissioned by YOUNG & COS BREWERY into the possibility of selling the Wandsworth site and relocating about to be completed; the sale could raise 100 mln stg and shareholders will soon be voting on whether to accept the plan - Mail on Sunday
* Graphite Capital sells its majority shareholding in Ridgmont Care Homes to ASHBOURNE HEALTHCARE in a transaction that values the company at 88 mln stg - The Business
* Brokers rate IG GROUP a better bet ahead of IPO; group's financial advisers this weekend preparing to value the UK's largest spreadbetting company at between 426 mln and 451 mln stg; proposed IPO was originally estimated to value the firm at 375 mln - The Business
* Gaz de France plans to expand as it prepares for spring float - The Business
* Dividend payments by listed UK companies surged 16 pct last year to a record 52.3 bln stg, amid signs that the bumper payouts may be helping fund private equity rivals - Saturday FT
* Auditors who failed to spot the massive overstatement of reserves at SHELL raked in record fees from the oil giant last year; KPMG and PricewaterhouseCoopers earned 22 mln stg for preparing Shell's accounts, according to documents just filed in America - Mail on Sunday
* ROYAL DUTCH/SHELL warns that US lawsuits linked to alleged contamination of groundwater could have a "significant impact" on future results if successful - Saturday FT
* Air travellers who miss their flights unwittingly paying millions of pounds in taxes to airlines which are keeping the money as profit - Saturday Telegraph
* Government offers 100 mln stg lifeline to troubled MG Rover ahead of election - Saturday FT
* Hewitt overrides officials on Rover's 100 mln stg; DTI's most senior mandarin tells minister that she cannot recommend rescue loan for the ailing car manufacturer - Sunday Telegraph
* Owners of MG Rover stand to scoop a 150 mln stg prize if their deal with Shanghai Automotive Industries Corporation proceeds smoothly - Sunday Express
* Negotiations to save MG Rover on a knife-edge this weekend amid fears from its potential Chinese partner that it could be liable to fund a 400 mln stg pension 'black hole' if the UK carmaker goes bust - Observer
* Euro zone manufacturing close to stagnation, while Japanese manufacturers' confidence falls sharply, according to surveys that cast fresh doubts over the strength of the economic recovery in both regions - Saturday FT
* Oil prices hit a record 57.70 usd a barrel in New York, eclipsing the previous peak of 57.60 usd set on March 17
* DaimlerChrysler acts to end Smart losses; third of jobs at small car brand will be axed; half of model range cut in 1.2 bln eur restructuring - Saturday FT
* Executives at Lions Gate Entertainment, the largest independent Hollywood entertainment company, considering mounting at counter bid for HIT ENTERTAINMENT - Saturday FT
* SCI ENTERTAINMENT, the video game retailer battling a US private equity group backed by U2's Bono for control of EIDOS, reveals its stake in its target has edged above 30 pct
* Shareholders in EIDOS threatening to oust the group's board unless it endorses an all-share takeover by its UK rival SCI ENTERTAINMENT in preference to a cash bid from Elevation Partners - Sunday Telegraph
* SAFEWAY debt default premiums rise on unease over WILLIAM MORRISON SUPERMARKETS - Saturday FT
* Understood that Baugur, whose 190 pence a share approach for SOMERFIELD was rejected in February, has put in a second proposal in the region of 205 pence, or 1.1 bln stg - Saturday FT
* Property tycoons Ian and Richard Livingstone understood to be putting more than 100 mln stg of their own cash into a bid to buy SOMERFIELD - Independent on Sunday
* SINGER & FRIEDLANDER in takeover talks with Kaupthing, the Icelandic bank

SATURDAY PRESS COMMENT
FT
THE LEX COLUMN comments on SOMERFIELD bid situation (chairman wisely rejected a 120 pence bid; this time he should be a willing seller), DaimlerChrysler (Daimler's shares are not yet a smart investment proposition), Finmeccanica (at a 2005 price/earnings multiple of 17 times, achievements to date are already priced in), US economy - Weekend share watch: BOC (keeping up the momentum is going to be a challenge, but core gases retain their long-term growth potential), INTERTEK (having had such a great run, the shares may pause for breath), JARVIS (the banks want to take 99.9 pct of the company's equity in the forthcoming debt-for-equity swap) - ANALYST WATCH: HILTON GROUP - MY PORTFOLIO: John Lee comments on JAMES CROPPER (not in the bargain basement short term, but hopefully a genuine "lock-away")

Guardian
Market forces: BP (hopes that sale of its petrochemicals business, Innovene, will yield much more than expected), BOOTS (rumours of private-equity interest), ALEXANDER GOLD (start trading on Monday; dealers expect a healthy first day premium), TELIT COMMUNICATIONS (starts trading on Monday at 140 pence following a 20 mln stg placing)

Mail
INVESTMENT EXTRA: Brian O'Connor says splits rescue leaves many out in the cold - MARKET REPORT: BOOTS (Thursday's pre-close trading statement is bound to be cautious, at best, and hungry private equity houses are rumoured to be circling with eyes on Boots's extensive property portfolio and highly cash-generative business), EUROPEAN BUSINESS JETS (dealings on AIM start Monday; placed at 1-1/2 pence, buyers should chase them up to 3 pence and beyond)

Independent
Private Investor: Sean O'Grady comments on SERCO (a good each way bet), AG BARR, SPORTINGBET and MATRIX COMMUNICATIONS (I'm still in the money with both of them) - No Pain, No Gain: Derek Pain comments on WYATT (my offbeat gamble is paying off in the long run), MEARS (I believe a significant acquisition is being prepared), MACLELLAN (with MacLellan looking stronger after a difficult year, it will be seen as a takeover candidate by the stock market) - MARKET REPORT: STANLEY LEISURE (most market professionals betting on a break-up bid), ASTRAZENECA (number of hedge funds heard to be taking large bull positions before Phase-111 data from its Cerovive stroke drug), DOMESTIC & GENERAL (rumours a 1,100 pence-a-share offer is just around the corner); according to gossips, HOMESERVE most likely predator), MATRIX COMMUNICATIONS (whispers it is in talks aimed at a tie-up with privately-owned Azzurri Communications)

Times
THE RESTAURANT GROUP (suggestions it is preparing to follow up this week's purchase of a 40 pct stake in Living Ventures with a further acquisition) - TEMPUS: Robert Cole comments on the Tempus Ten (overall, the ten are worth 2 pct less than they were at the start of the year, an underperformance of 4 pct relative to the FTSE all-share index) - STELLA SHAMOON'S SHARES OF THE MONTH: She sells WILLIAM MORRISON SUPERMARKETS, but holds the remainder of her portfolio

Telegraph
THE MARKET: o2 (speculation about foreign predators) - QUESTOR COLUMN: It's worth taking AIM, but beware the shells and bubbles; Questor recommends five AIM stocks: LOK'NSTORE (new property valuation later this month should justify its 145 pence share price), MAJESTIC WINE (worth tucking away), HOME ENTERTAINMENT (still a buy), DEALOGIC (not liquid but, at 167 pence, are a risky buy), RAB CAPITAL (worth buying)

Express
MARKET REPORT: SOMERFIELD (analysts say the number of predators circling means the offer price could rise to 220 pence a share), o2 (analysts believe it would make a good buy for Deutsche Telekom), SSL INTERNATIONAL (hit by start of an OFT probe into its monooply of the condom market), MEARS GROUP (tumbles on an apparent stock overhang)

SUNDAY PRESS COMMENT
The Business
BENCHMARK: Grant Clelland comments on ALSTOM rescue, Hewlett-Packard (what investors want to know is whether new chief executive Mark Hurd intends to break the company up) - THE ALCHEMIST: Clem Chambers tips GKN - THE BEST OF THE BROKERS: SEVERN TRENT (water utilities back in vogue on takeover talk), HENNES & MAURITZ (H&M remains fashionable despite sales slip), BURREN ENERGY (riding crest of oil price wave) - SMALL-CAP INVESTOR: MELROSE RESOURCES (remain attractive) - AIM INVESTOR: SURFACE TRANSFORMS (current level could represent a buying opportunity for investors willing to stick with them over the long term)

Mail on Sunday
MIDAS: 2005 portfolio update: ENTERTAINMENT RIGHTS (up 57 pct), BEDE (up 37 pct), ENNSTONE (up 18 pct), TULLOW OIL (up 17 pct), HOLIDAYBREAK (up 4 pct), BARCLAYS (down 6 pct) - COMPANIES AND MARKETS: VODAFONE (fears Japan sales fall), BOOTS (expected to announce plans for a 300 mln stg sale and leaseback of its High Street properties this week); SECRET DEALINGS: WYEVALE GARDEN CENTRES (Jack Petchey has secretly built a 2 pct stake)

Independent on Sunday
Market whispers: DIAGEO (reports surface in Germany that it is considering a big reduction in its operations in the country, which has suffered weak beer and alcopops demand), SOMERFIELD (market chatter agrees that should it be taken over and then broken up, the rival most likely to benefit is Waitrose, which is desperate to expand but sites are scarce)

Observer
THROG STREET: Oliver Morgan comments on VT GROUP (Paul Lester is a canny and downbeat CEO; on performance to date, he is likely to keep VT afloat during the coming squalls), COMPASS (chief executive desperately needs to serve up better fare at the strategy presentation that will accompany the interim results in May if he is to keep the confidence of the City), BURREN ENERGY (prospect of new drilling is why most brokers have it as a buy)

Sunday Times
JUDGMENT DAY: SHOULD YOU BUY SHARES IN RENISHAW Andy Brough, fund manager at Schroders, says buy below 700 pence, but Tim Steer, fund manager at New Star, says wait - INSIDE THE CITY: John Waples comments on EIDOS (shareholders should not sell out just yet; some of them may not want SCI ENTERTAINTMENT's paper, but Elevation's Riccitiello can't have come all this way just to make a fool of himself), SOMERFIELD (if chairman Spreckelson wants to conduct a proper auction, he should appoint a valuer to undertake a detailed appraisal of the estate's worth); MARKET MOLE: BPB (Ashton Bradbury bought 233,000 shares this week to take his Old Mutual UK Select Mid Cap fund's stake to 1.34 mln shares, or 0.27 pct; Tim Steer's New Star UK Alpha fund now holds 980,000 shares) - DIRECTORS' DEALS: PRUDENTIAL (director Mark Wood snaps up 30,000 shares for 501-1/2 pence each); TELECITY (chairman exercises options over 3.13 mln shares at 12.8 pence for an outlay of 400,000 stg) - Islamic banking set to boom; banks are rushing to launch products that comply with sharia - and some may prove attractive to non-Muslims (MONEY p.6)

Sunday Telegraph
EQUITY VIEW - BLUE CHIP VALUES: ELAN (avoid), SIGNET (sell); Look who's trading: DOWDING & MILLS (four directors bought stock in March); SMALL CAP COMMENT: KINGSPAN GROUP (keep buying), ALEXANDER MINING (buy), TELECOM PLUS (now could be a good time to buy back in), DICOM (an attractive buy, despite the steep rise in the share price so far) - NUMBERS GAME: Tony Jackson compares TESCO and GREGGS (on balance, I come down in Greggs's favour)

Morning all,

long BUR RGU TRY ARM S&P MNKS BBY CTM SKP

short CABLE

C U all at the open :-)

Mega...

Good morning traders!

Asian markets this morning are all pretty flat. Oil-related stocks have been by far the most active.

At 4.30 am, New York's main contract light sweet crude for May delivery was trading at $57.53 a barrel, up 26 cents from $57.27 in New York.

London and Toronto-listed European Minerals Corporation (EMC) is seeking between C$60m-C$90m from an equity issue to fund the development of its majority owned Varvarinskoye copper-gold project in the north Kazakhstan...

Back with breaking news in a mo.....

Happy trading!

G.

The following is a compilation of results for UK smaller companies due out in the two weeks to April 15.

MONDAY APRIL 4
Alexon Group PLC watchers will be keen for an update on the consequences of the Allders administration. Alexon said in January that Allders Department Stores owed it 1.5 mln stg in respect of concession takings net of commission and VAT.
Meanwhile, Alexon investors will be looking for a resumption of share buybacks in the near future. In terms of the business, the key issue is whether management can sort out the problems in Bay Trading.
Mark Charnock of Investec Securities sets his sights on year to January 2005 pretax profits of 30.7 mln stg, down from 32.7 mln, for EPS of 35.6 pence against 39.1. The dividend total is expected to rise to 8.5 pence from 7.5.

Burren Energy PLC recently provided an update on operations at M'Boundi in Congo (Brazzaville), where it has a 35 pct interest. Apart from a pair of well results -- one good and one not so good -- Burren also revealed that Total has improved the terms of trade for oil produced from M'Boundi.
Subject to the completion of certain modifications at its Djeno terminal, which should be completed by the end of September, the French oil major will incorporate crude from M'Boundi into the N'Kossa blend.
The alterations necessary at the Djeno terminal will be paid for by the M'Boundi partners and will cost around 15 mln usd.
Nevertheless, even after taking account of this and the relatively low price currently being achieved by M'Boundi crude, Richard Slape of housebroker Seymour Pierce has stepped up his estimate of Burren's net asset value by 9 pence a share to 597 pence.
On the profits front, the analyst looks for year to December 2004 pretax of 51.3 mln stg, up from 18.4 mln. A 3.00 pence dividend total (nil) would be covered by EPS of 25.9 pence against 16.8.

TUESDAY APRIL 5
Whatman PLC, which supplies separations technology to the life sciences industry, warned in December that its restructuring will result in a loss of around 160 jobs, taking the headcount of the combined group to around 1000.
This will give rise to a one off cost of 11.4 mln stg.
Together with other costs, the company's total exceptional charges will be 14.6 mln stg, of which the pretax cash cost is 13.8 mln stg.
Whatman watchers were not particularly concerned that restructuring costs were likely to be some 3 mln stg more than expected, but were rattled by news that revenue was expected to be some 3 pct below consensus forecasts.
Against the backdrop of the higher than expected exceptional charge and slightly poorer performance from the underlying Whatman business, Elizabeth Klein of Baird Equities downgraded her forecasts for the year to December 2004.
The analyst now looks for pretax profits of 16.1 mln stg, up from 13.9 mln. A 4.5 pence (4.3) dividend total would be covered by EPS of 15.2 pence against 7.5.
Over at Investec, Sebastien Jantet predicts pretax of 17.2 mln stg, and a 4.68 pence payout.

WEDNESDAY APRIL 6
Recruitment group MSB International PLC said in January that it was trading in line with market expectations.
With a better temp/perm split likely in 2005 (courtesy of the acquisition of perm business Elite), net fee income should move ahead, helped by the stronger growth in perm activity, said Ian Jermin of Baird Equities.
Meanwhile, Jermin sets his sights on year to January 2005 pretax profits of 700,000 stg, up from 300,000 stg, for EPS of 2.7 pence against 0.8. A similar 3.0 pence dividend is anticipated.

Robotic Technology Systems PLC could pick up around 10 mln stg of cash from its disposal of Wright and surplus property -- and there is the possibility of a substantial return of cash to shareholders and the payment of a maiden dividend for 2005, analysts believe.
The company said in January its expects to post year to December 2004 pretax profits for continuing operations, excluding exceptional items, discontinued operations, goodwill amortisation and currency translation effects of not less than 2.0 mln stg. It incurred losses of 3.6 mln in the previous year.
The 2004 results will, it said, include the impact of restructuring in the Life Science operation, resulting in exceptional costs of about 1.8 mln stg, including the impairment of some capitalised software development costs and a change to specific warranty cost provisioning, it said.
"Each of the three continuing business units is expected to have traded profitably in the year before exceptional items," the company said.
Looking ahead, Teather & Greenwood analyst Mark Paddon predicts 2005 pretax profits of 3.25 mln stg, along with a maiden 1.50 pence payout.

THURSDAY APRIL 7
Chelford Group PLC made excellent progress in 2004, resulting in a significant improvement over the preceding year in both revenues and pre-tax profits, the IT supply chain software and services company said in its January update.
"A strong order pipeline within both the SSI and SAP divisions gives us confidence for our 2005 financial year," said Trevor Lewis, Chelford's chief executive.
Contracted orders already account for some 66 pct of Chelford's operating costs for the coming year, of which 43 pct is recurring revenue.
The group said both the SSI and SAP divisions traded profitably "and as a result, Chelford will have achieved a profit both before and after tax and goodwill amortisation in line with market expectations".
Progress in the first half was sustained in the second, cash flow continued positive and Chelford has ended the year with net cash of 2.1 mln stg.
Analysts look for year to December 2004 pretax profits of 900,000 stg, up from 400,000 stg.

Last year's acquisitions saw International Energy Group PLC using its balance sheet more -- a move to be welcomed in the context of the company's relatively predictable cash flow.
Growth within Portugal has been slowed by economic recession, and high and volatile LPG prices, and mild weather have left their mark within the Isle of Man/Channell Islands.
Investec Securities' Jonathan Copus believes IEG has further balance sheet capacity, which leaves room for continued organic and acquisitional growth.
The analyst forecasts year to December 2004 pretax profits of 13.5 mln stg, up from 10.7 mln. A 6.47 pence dividend total, up from 6.02, is anticipated.

Nearly 100 fire officers are trying to put out a major fire at a food factory near Hull. Workers on the night shift at Geest's food factory in Barton-upon-Humber have been led to safety.

MARKETS
Tokyo: Nikkei midday 11,677.23 down 46.40
Hang Seng midday 13,487.17 down 4.18

BREAKING NEWS - MONDAY
* Mourning for Pope to draw 2 mln pilgrims; Vatican prepares conclave to elect successor; 22 world leaders expected to attend funeral - FT
* PM delays launching election campaign as mark of respect - FT
* Morgan Stanley chief claims critics are risking damage to the bank's business - FT
* TESCO and Asda invest 167 mln stg to fuel supermarket price war - FT
* RDF MEDIA, the independent TV production house behind Wife Swap and Faking It, will announce plans for a listing on AIM valuing the company at 50 mln stg to 60 mln - FT
* o2 will today announce the mobile phone industry's first technology tie-up to provide stock market data, foreign exchange and other financial news to wireless customers; the company has signed a deal with KNOWLEDGE TECHNOLOGY SOLUTIONS to offer real-time market data to mobiles - FT
* South African government could approve a bid by BARCLAYS to buy a majority stake in South African bank Absa for 2 bln stg possibly as early as this week - FT
* Five days to rescue Rover as Chinese blow cold on deal; administration by Friday without 100 mln stg government loan; officials in crisis talks - Independent
* The Shanghai Automotive Industry Corporation receives a confidential report by Ernst & Young which suggests that MG Rover's parent company would be insolvent by March 31 - Times
* President of Opec, Sheikh Ahmad Fahd al-Sabah, urges member countries to begin talks on boosting output in an effort to bring prices down from their current record levels - Express

MONDAY PRESS COMMENT
FT
THE LEX COLUMN comments on Tax, Mandatory bids, Futures exchanges
Independent
Small Talk: Stephen Foley comments on MKM, VOLEX (company's future is far from assured), SINCLAIR PHARMA (wins European permission to launch its latest skin cream), NYATI (float pulled)

Shares in Smith & Nephew PLC have been upgraded to 'overweight' from 'neutral' at JP Morgan, dealers said.
The US broker said in a note to clients that despite last week's news that the group has received a subpoena from the US Department of Justice requesting information on its consulting contracts with certain US orthopedic surgeons, it expects a limited impact on the shares' long term fundamentals.
Therefore, given the recent share price weakness, JP Morgan has raised its stance on the shares.
The broker argued the number of surgeons which the investigation is likely to cover is "small" and its timescale should be relatively short.
JP Morgan said it still likes Smith & Nephew for its "high quality EPS growth" and its "proven ability to take share in the global reconstructive implant market".
It maintained its 583 pence price target on the shares.

Morning all.

Shares in Northern Rock PLC will be eyed in open deals after the mortgage bank released an in-line trading update, though failed to update the market on margins, said traders.
Northern Rock said trading in the first quarter of 2005 had been in line with its long-term targets of achieving annual asset growth of 20 pct and pretax profit growth of 15 pct.
As a result, Northern Rock said it was "comfortable" with the current consensus forecast, which calls for a 2005 pretax profits of around 475 mln stg.
Panmure Gordon reiterated its 'buy' rating on Northern Rock, noting the trading statement looks strong.
The broker highlighted that the group's residential lending pipeline is flat year-on-year at 4.5 bln stg, which is solid given that the industry as a whole is down.
There is no news on margins however, noted Panmure, adding it expects these to be lower.
CSFB recently downgraded Northern Rock to 'underperform' on concerns that mortgage and consumer credit volumes are slowing, which could affect margins.
Traders pointed out Northern Rock's share price was strong on both Thursday and Friday of last week, so they expect to see it trade down around 0.5 pct at the open.

Morning all.

CENTRICA UPPED TO 'BUY' FROM 'ADD' BY ABN AMRO, TARGET 270 PENCE

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


GOLDMAN SACHS
Europe Oil & Gas: Ups sector stance to Neutral from cautious; raises Brent crude estimates, ups fair values by 10 pct; Upgrade In-line from underperform Statoil; Downgrade Underperform from in-line Royal Dutch; Downgrade Underperform from in-line Shell

UBS
Downgrade Neutral from buy Chrysalis, cuts target to 188 pence from 212 -- Upgrade Neutral from reduce Viridian, ups target to 725 pence from 680 -- Upgrade Buy from hold Actelion, target 145 sfr, valuation grounds -- Downgrade Neutral from buy Taylor Woodrow, ups target to 340 pence from 330, raises estimates -- Upgrade Buy from neutral Swedbank, ups target to 200 skr from 180 -- Reiterate Reduce Arriva, cuts target to 500 pence from 515

CITIGROUP SMITH BARNEY
Downgrade Hold from buy Finmeccanica, ups target to 0.78 eur from 0.75 -- Upgrade Hold from sell Fortum, cuts target to 11.5 eur from 13.5 -- Reiterate Buy Continental, ups target to 75 eur from 55, raises estimates

JP MORGAN
Upgrade Overweight from neutral Smith & Nephew, unchanged target 583 pence

ABN AMRO
Upgrade Buy from add Centrica, target 270 pence -- Downgrade Sell from buy Renold, cuts target to 50 eur from 85

BRIDGEWELL SECURITIES
Downgrade Neutral from overweight Cosalt, cuts estimates

INVESTEC
Oil & Gas review: Raises Brent crude forecast by 25 pct for 2005 to 45.5 usd a barrel, ups 2006 by 23 pct to 40 usd, and 2007 by 17 pct to 35 usd; Upgrade to Buy Burren Energy, ups NAV estimates by 16 pct to 543 pence; Reiterate Buy JKX Oil & Gas, ups NAV estimate by 22 pct to 146 pence

SG SECURITIES
Upgrade Buy from hold Inditex, ups fair value by 14 pct to 25.1, raises estimates -- Reiterate Buy Continental, ups fair value to 75 eur from 65

ING
Upgrade Buy from hold Capitalia

SEYMOUR PIERCE
Initiate Buy Xansa

MORGAN STANLEY
European & Global Model Portfolios: Add Schroders (Overweight) -- Reiterate Overweight Slough Estates, cuts target to 550 pence from 620, reduces estimates -- Overweight TPG, ups target to 25 eur from 23 -- Equal-weight Victrex, ups target to 430 pence from 420, raises estimates

LEHMAN
European Recommended Portfolio: Remove Santander; increase weightings in RBoS

CSFB
Reiterate Outperform ABB, ups target to 9.0 eur from 7.7

DEUTSCHE BANK
Reiterate Buy FKI, cuts target to 135 pence from 145 -- Hold Scottish & Southern Energy, ups target to 800 pence from 625 -- Hold RHI, ups target to 24 eur from 18 -- Hold Tele Atlas, ups target to 14.5 eur from 8.6

CA CHEUVREUX
Reiterate Outperform Assystem Brime, ups target to 25 eur from 23 -- Outperform Manitou, ups target to 35 eur from 32, raises estimates

EXANE BNP PARIBAS
Reiterate Underperform San Paolo IMI, ups target to 11.0 eur from 10.2 -- Outperform Assytem Brime, ups target to 21.0 eur from 18.8

PANMURE GORDON
Reiterate Buy Barclays, ups target to 625 pence from 590