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The FTSE 100 index is expected to dip following Fridays loss on Wall Street...

Europe's largest media advertising buyer Aegis said it was trading in line with expectations and was expecting an improvement in the media marketing environment

Vodaphone jut raised to outperform

09.30 Dec CIPS Construction PMI

Auto Sales Dec 5.7M

Truck Sales Dec 8.0M

15.00 Nov Construction Spending m/m 0.5% exp.

D07.00 Nov German Retail Sales m/m 0.2% exp.

11.00 Oct New Industrial Orders 11.00 Dec Flash CPI 2.1% exp.

Croc@SnappyTrader.com  WWW.SnappyTrader.com

09.30 Dec CIPS Construction PMI

Auto Sales Dec 5.7M

Truck Sales Dec 8.0M

15.00 Nov Construction Spending m/m 0.5% exp.

D07.00 Nov German Retail Sales m/m 0.2% exp.

11.00 Oct New Industrial Orders 11.00 Dec Flash CPI 2.1% exp.

British Airways Dec Traffic Figures Next Trading Statement

Carr's Milling Industries (AGM) Topps Tiles (AGM)

09.30 Dec CIPS Services PMI 09.30 Dec Preliminary M0 Money Supply y/y 7.7% exp. 11.00 Dec CBI Distributive Trades

15.00 Dec Non-manufacturing ISM 60.6 exp. 15.00 Nov Factory Orders 1.4% exp.

09.00 BME Services PMI

CRH Trading Statement

Travis Perkins Trading Statement

10.30 Dec NTC , Deloitte & REC Report on Jobs

Peugeot-Citroen (Sales)

11.00 Dec Industrial Confidence 6.0 exp. 11.00 Dec Economic Confidence 96.2 exp. 11.00 Dec Consumer Confidence 15.0 exp.

Ex Dividend: Allied Domecq (8.7), Aveva Group (1.8), Care (1.9), Character Group (2), Christian Salvesson (1.2), Connaught (5.1), G(8), Halma (2.44), Hornby (8), Nord Anglia Education (2.92), Pennon Group (13.2), RM (3.4), Renold (1.5), Scottish Radio (13), Shaftsbury (2.54), Topps Tiles (15.4), Whitehead Mann (3)

Abbey National (I)

Big Food Group Trading Statement

House of Fraser (Update) EasyJet Dec Traffic Kidde Trading Statement, Taylor Woodrow Trading Statement Taylor Nelson Sofres Trading Statement, Signet Trading Statement

00.01 Dec BRC Shop Price Index

12.00 BOE MPC Rate Announcement

Alcoa

13.30 Initial Jobless Claims (w/e 03/01) 345k exp. 15.00 Nov Wholesale Inventories 0.5% exp. 20.00 Nov Consumer Credit $5.0bn exp.

Carrefour (Update), Renault (Sales)

08.55 Dec German Unemployment Change 5k exp. 11.00 Nov PPI m/m flat exp.

12.45 ECB Rate Announcement

Interserve

09.30 Nov World Trade -2.2m exp.

15.30 Nov Leading Indicator / Trade Report

13:30 Average Workweek Dec 33.9 13:30 Hourly Earnings Dec 0.2% 13:30 Nonfarm Payrolls Dec 140K 13:30 Unemployment Rate 5.9%

Ahold (I)

07.00 Nov German Current Account 7.0bn exp. 11.00 Nov Pre German BBK Factory Orders m/m 0.5% exp. 11.00 Oct Retail Trade y/y 0.2% 11.00 Nov OECD Leading Indicator

Honeycombe Leisure (I) Pace Micro (I) Photo-Me International (I)

Cytomyx (EGM)

00:01 UK CBI Quaterly Financial Services Survey 09:30 UK Dec Producer Prices

Inter Link Foods (I), Jacques Vert (I)

Parkdean Holidays (F)

Unicorn (AGM)

Burberry Trading Statement New Look Group Trading Statement

Dixons (I)

London Scottish Bank (F)

MJ Gleeson (AGM)

John David Group Trading Statement Marks & Spencer Group Trading Statement Matalan Trading Statement

09:30 UK Dec/Nov labour market report 11:00 UK CBI semi-annual property trends survey

Ex Dividend:

GUS Trading Statement Ottakar's Trading Statement Woolworths Group Trading Statement

Boots Trading Statement

The holidays are over but the good feeling gone remained as the FTSE 100 sealed a 10-day winning streak. Good economic data inspired buyers to invest in telecoms and banks.

The U.S finished the 2003 in a bullish mood with the Dow Jones up 25.3 percent on the year and the Nasdaq index closing up 50 percent at 2,003.Week Ahead UK stocks are set to kick off the first full week of 2004 with trading updates from Next and jewellery retailer Signet , which may offer some clues to how the retail sector fared over Christmas. After WH Smith said that they had disappointing sales there are worries that other retailers might have suffered the same fate.  Lower consumer spending during the Rugby World Cup and mild weather caused pre-Christmas discounting across the sector. MondayTopps Tiles and wood flooring specialist are expected to produce a positive trading update and should be on target for full year pre-tax profits of 21.5m against a reported 18.9m last time. Tuesday

Next is the first blue-chip company expected to bring investors up to speed with its trading update Although they managed to delay the winter sale, it could have lost margins due to discounting. Full year profits are expected to come in at 319m against 302.8m previously. Wednesday

The Bank of England holds its January interest rate meeting next Wednesday and Thursday with analysts expecting it not to add to November's interest rate hike just yet.Thursday

Signet the worlds larget jeweller and the owner of H Samuel and Ernest Jones should produce good results. This follows a TV campaign and after fellow jewellery retail chain Goldsmiths reported a bumper Christmas at the end of December. Analysts predict a 4% rise in like-for-like UK sales for the festive period. However Signet has 1,092 stores across in the U.S and does two-thirds of its business there could be impacted by gold prices and dollar weakness. In the U.S Alcoa kicks off what is widely expected to be a strong earnings season.Kidde Fire-fighting equipment maker said in September it was comfortable with market forecasts for year profits

House of Fraser beat market forecasts for Christmas sales in 2002 and investors will be hoping for a repeat performance when it provides an update. However stockbroker Seymour Pierce, predicted HoF will post a 9% fall in pre-tax profits to 21m for the year to January 31.

The European Central Bank meets but is not expected to make changes to euro zone interest rates. At 12.00 the UK BOE Rate Announcement

FridayIn the U.S the unemployment report for December will take most of Wall Street's attention for the week. The report is expected to show another month of rising payrolls and and may help encourage further buyers into the market.

Thoughts

The big question of course is 'Can the markets go higher?'. The economic data looks very good especially in the U.S which is both the main source of global growth and also the main source of global imbalances. The Institute for Supply Management reported the biggest upswing in U.S. manufacturing in 20 years. Last week the ISM's employment index rose above 50, signalling the creation of manufacturing jobs, for the second month in a row.

However there are several cracks being papered over in this economic recovery. The US trade balance is currently running at a  deficit of over $40 billion dollars a month and the 'black hole' of the current account deficit currently running at over 5% of GDP. They are also adding to the global imbalance by 'engineering' the fall in value of the dollar by printing notes as fast as possible. This threatens the global economic recovery as European & Far Eastern products become more expensive. The European car manufacturers have already expressed their concern during the last few weeks.

This imbalance is also being felt in China who for several years have pegged their currency to the dollar. This threatens country's expanding economy and the improving individual wealth of its citizens.

On top of this we have the enormous cost of the war against 'Terrorism' and the ongoing costs of keeping armies deployed in many countries. This will have to be paid for by taxation leading to another 'brake' on the economic recovery. We also have to take into account the possibility of a devastating terrorist attack leading to another massive drop on the world markets.

Looking at this week's chart we can see the DOW is now returning to its trading channel of 3 years ago giving a range of 10500 to 11250. If the FTSE closed its recent divergence against the DOW we would have a corresponding trading range of 5900 to 6500!

2 weeks ago I took a very small short out on the DOW with a stop loss and fortunately the fall on Friday has just about kept it in play. This really shows the danger of trading against the trend and trying to guess when it is likely to break down!

Looking towards next week I will go for a small fall on the markets but will have my finger above the button ready to close that short and accept my loss!

As always I look forward to your thoughts and comments on the week ahead! 

All the above comments are purely a personal opinion and no investment advice is intended.  Please do your own research.

SUNDAY Headlines Sunday 4th January 2004

European stocks will add to their gains last year, when indexes climbed for the first year in four, as accelerating global economic growth lifts corporate profits, Bloomberg

WH Smith to start closing unprofitable branches to cut costs, Crocodile.  

Full story behind the WH Smith profit warning click here Swann flies into a crisis at WH Smith

Citigroup analysts recommended that investors buy shares in Parmalat despite not being able to understand the Italian companys accounts fully and struggling to get its management to explain them. (Sunday Times)

BAE Systems, A BOARDROOM row over the future of has exploded into the open with Paolo Scaroni, one of the non-executive directors, removing himself from the board.

Boots: Tesco, will tomorrow turn up the competitive heat on Boot's with the launch of a 70m price-cutting campaign. The average price reduction of 8 per cent will affect more than 600 products and will focus on popular health and beauty lines, including baby wipes, toothpaste and medicines. (Telegraph)

Borrowing against increases in the value of their homes, known as mortgage equity withdrawal (MEW), rose sharply to a record 13.43 billion pounds in the third quarter of 2003, the Bank of England

SUNDAY TIMES

Marks & Spencer Group, Our stock pickers return to form by beating FTSE 100 Legal & General, Our stock pickers return to form by beating FTSE 100 Enterprise Inns, Our stock pickers return to form by beating FTSE 100 Ryanair Holdings, And Finally ... Predictably, McLaughlin will change his forecast Barclays And Finally ... Predictably, McLaughlin will change his forecast HBOS, Shares tipped to beat property this year Swann flies into a crisis at WH Smith Whatman, Sunday Times staff recommendations Psion, Sunday Times staff recommendations International Power, Sunday Times staff recommendations Sainsbury, Sunday Times staff recommendations Amstrad, Sunday Times staff recommendations

Scottish Power, Directors' Deals: Power chief hopes for a share surge HSBC, UK to enjoy 13th year of growth Last man on Bula board promises cash lifeline

Centrica, Ten shares that are set to soar this year Exel, Ten shares that are set to soar this year Anglo Irish Bank, Ten shares that are set to soar this year United Utilities. Ten shares that are set to soar this year Compass Group, Ten shares that are set to soar this year BT Group, Ten shares that are set to soar this year WPP, Ten shares that are set to soar this year BAA, Ten shares that are set to soar this year

Prudential, Ten shares that are set to soar this year The Big Food Group, Come with us, BFG chiefs tell Londis owners IMS Maxims, Fugitive Czech financier exploits Irish passport Royal Bank of Scotland, Shareholders tell Grossart he should quit Kingfisher, Agenda: William Lewis: My 13 predictions could be unlucky for some BAE Systems, Agenda: William Lewis: My 13 predictions could be unlucky for some Whitbread , Agenda: William Lewis: My 13 predictions could be unlucky for some

Wolfson Microelectronics, deal whets appetite for flotations

WH Smith to cut Hodson payout

SUNDAY TELEGRAPH

Icap, Market miscellany: Dixons, Market miscellany: Invensys. Market miscellany: WH Smith City comments Enterprise Inns, Market miscellany: Tesco, Market miscellany: Ryanair, Market miscellany: Abbey, National Market miscellany: HBOS, UK pay consultants splurge WH Smith 'There are no quick fixes' Sainsbury, Market miscellany Anglo American, Market miscellany

Tesco, Headache for Boots The Big Food Group, Gloves off in Londis fight

British Airways, City comment: Sour milk Amersham, Market miscellany: Canary Wharf, Market miscellany Hanson Market miscellany Unilever, Market miscellany Legal & General, UK pay consultants splurge Anglo Irish Bank, Market miscellany GKN, Market miscellany: British Airways, Market miscellany: Next, Market miscellany: BAE Systems, UK pay consultants splurge Cable and Wireless, City comments

Royal & SunAlliance, Market miscellany

British Airways, Savings plans for BA  

British Airways, is to cut costs by a further 500m a year. They will present their business strategy at the end of this month which will involve further reductions in BA's 45,000 headcount

Scottish Power's strategy to develop its UK and US businesses and cut costs appears to be paying off. The shares, worth 370p, should have further to go.

OBSERVER

GlaxoSmithKline, Bosses who must deliver Vodafone, Bosses who must deliver Telecom Plus Wood-Smith wins double by banking on Anglo Irish Granada, Bosses who must deliver BAE Systems, Bosses who must deliver BP Bosses who must deliver

Abbey National, With-profits bonuses to fall again despite share recovery American DIY giant eyes 8bn Kingfisher takeover

Sainsbury, Bosses who must deliver Redrow, Wood-Smith wins double by banking on Anglo Irish BSkyB Bosses who must deliver National Grid Transco Wood-Smith wins double by banking on Anglo Irish Carlton Bosses who must deliver Lloyds TSB Bosses who must deliver

EMAP, Zoo hunt for young bucks with cash Rival bidders to lay siege to House of Fraser

SUNDAY MAIL

WH Smith warns as cuts backfire, Swift exit for managing director Recovery confidence sky-high, Big boost for manufacturing jobs Shoppers in 11bn card spree, Plastic spending hits a new high Shake-up at BSkyB to silence the critics, cull of non-execs Banks flout ban in call centre exodus, Loophole allows details to be exported Pay bonanza for Wolves pub bosses, Average 2003 salary rise was 25% Fears for Grant Thornton over Parmalat, Accountant bids to quell fears

Shamed Aberdeen pays advisers 11m, Bonanza despite split trust scandal BCCI: Was Bank afraid of 'racist' tag?, Watchdog faces 1bn court fight Londis is buying beans from Tesco, Chain admits suppliers too expensive MyTravel rapped over 40 flights, Tour operator 'misleading customers' Investor alarm at house builder Bellway, Shareholder revolt in the pipeline Claims Direct payout fight nears end, 'Vindictive liar v bullying litigant' Yell sting snares directory pirate, False entries snare thief Datapride

INDEPENDENT

HSBC, The week ahead: A less-than-gentle return to work

Cable and Wireless, Space tax threatens government broadband plan Ryanair Holdings, SAS takes off on the low-budget vapour trail  

Marconi, Space tax threatens government broadband plan Wembley developer closes door on poorer residents BT Group, Space tax threatens government broadband plan The Big Food Group, Londis shareholders wooed with letters from Iceland  

SCOTLAND ON SUNDAY 

HSBC, China's star is steadily rising Royal Bank of Scotland, City wakes up to 2004 with a little retail therapy

Stagecoach Group, A share in rising fortunes SMG, Scots directors back market to keep rising Stagecoach Group, Scots directors back market to keep rising

Business on Sunday

Investors should focus on good quality companies that look undervalued on a two year view and relative to long term average multiples. The media sector offers several candidates - VNU, Reed Elsevier, Wolters Kluwer and EMI - to name a few. Other sectors that look good value are life insurers, which should do well in a rising market, and oils. Attractive companies include Aviva, Corus, Cable & Wireless, ING, TotalElf, Adidas and Nestle. For those not keen on stock-picking, an index tracking* fund should be just the ticket.

Sunday Express

Of Lehman Brothers' 10 stocks to follow in 2004, Royal Bank of Scotland is one of the most compelling. The broker believes the bank will be able to sustain a 10% growth rate throughout this year on the basis of strong income and control of costs and bad debts. In the first half of 2003, RBS grew revenues by 10% against the sector's average 7%. The group also has strong free cashflow, expected to rise to 1 billion this year, that it could use for share buybacks or acquisitions. Buy at 1644p.

INVESTORS CHRONICLE  No copy for this week

SHARES MAGAZINE No copy for this week

Roco@SnappyTrader.com  WWW.SnappyTrader.com