A Brief Look At The Week Ahead

On a shortened trading week, thin on corporate reporting, the financial markets are expected to be jittery ahead of the Bank of England's interest rate decision on Thursday. While many economists are forecasting that the Monetary Policy Committee will leave rates unchanged at 5.25%, a minority believe a rise to 5.5% cannot be ruled out; if not this month then next. After months of negotiations and plenty of speculation, it looks as if the merger of the shipbuilding businesses of VT and BAE Systems will be consummated this week. Talks had progressed so far that by last Friday afternoon the companies had already drawn up the press release to announce the tie-up, but they had to wait while last-minute details were worked out. The new entity would control VT's shipyard at Portsmouth and the BAE sites on the Clyde. The MoD has been pushing for the creation of a single UK shipbuilder to increase efficiencies. Integral to the deal is the MoD's 3.8bn plan to build two new aircraft carriers. Much of the work on the mega-project will be done by the new group. Mortgage bank Northern Rock is due to update the market on this year's performance on Monday. While home-loan approvals are slightly down on a six-month average, the widely predicted slump has not yet emerged. Harry Potter publisher Bloomsbury puts out full-year figures on Tuesday. The results are expected to show that the old magic failed to offer immunity to setbacks in 2006 after a substantial profit warning in December and a significant reduction in analysts' forecasts. Bloomsbury blamed lower-than-expected pre-Christmas sales and delays in reference rights sales for the alert that profits before tax for the year would fall to 5m. That compares with underlying profits of 20m in the previous year, when sales of the hardback copy of Harry Potter and the Half Blood Prince hit record levels. On the same day, car-parts and bike retailer Halfords is expected to show solid trading figures in its pre-close statement. Analysts at Seymour Pierce believe there is a chance a suitor will make a bid for Halfords and they suggest full-year profits may come in ahead of the forecast 75.8m. Amongst others in the spotlight this week will be Evolution and Alexon on Monday and Melrose Resources and Severfield-Rowen on Tuesday. The market wil be closed on Friday at the start of the Easter break. Good hunting! Greystone Thanks, as always, to Digger, Kyoto and Supermum for their invaluable input to the Traders Thread (Greystone is Alan English, City Editor at MoneyAM.)

Friday's market reports:

Telegraph
Telegraph (Bloomberg summary)
The Times
FT
The Guardian
The Independent
This is Money

Activists give hedge fund taste of its own medicine
Early rate rise on the cards

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

In Asia today, the Hang Seng was recently up 124.14 points at 19,925.07, while
the Nikkei ended the morning session 89.52 points higher at 17,377.17.

New York Mercantile Exchange's main oil futures contract, light sweet crude for
delivery in May, was down 2 cents at $65.85 a barrel from $65.87 in late trading in
the US Friday.

Happy trading!

G.

OUTLOOK - UK smaller company results for 2 weeks to April 13

RPT - Asian economic and corporate news summaryAFX Europe AM at a glance share guide: Stocks mostly higher, oil steadyAsian economic and corporate news summary

OUTLOOK - UK smaller company results for 2 weeks to April 13Asian markets summary

COLT sell - HSBC
BGY buy - JP Morgan
DRX sell - JP Morgan
ETI initiated underweight - target 610 - Credit Suisse
KESA buy - target 400 - Merrill Lynch
SCTN upgraded to neutral from underweight - JP Morgan
VOD reiterated overweight - target 173 - Lehman Brothers

Property sector - HSBC

ITV reiterated reduce - target 100 - UBS
MARS initiated neutral - target 460 - Goldman Sachs
PGH initiated buy - target 310 - Panmure Gordon

Leisure sector - Merrill Lynch

The Monday Press Roundup

London shares outlook - higher as DJIA ends on firm footing; M&A lends support

BLND upgraded to overweight - HSBC
LAND upgraded to neutral - HSBC

STOCKWATCH Scottish & Newcastle upgraded to 'neutral' by JP Morgan

STOCKWATCH British Land, Land Securities upgraded, Slough Estates cut at HSBCAustralian shares close sharply lower on interest rate fearsAFX UK at a glance share guideAFX UK at a glance share guide - weekend

STOCKWATCH Enterprise Inns seen lower as Credit Suisse starts at 'underperform'

STOCKWATCH Northern Rock still a 'buy' at Merrill Lynch after in line updateUK smallcap opening - Billing Services up on results, disposal, cash return moveTokyo shares close lower as uncertainty persists

Morning all.