A Brief Look At The Week Ahead

The deadline for offers for Cadbury Schweppes' European drinks arm is on Wednesday. Names associated with the 1.2bn business include private equity firm Permira and US rival Blackstone, which has teamed up with London-based Lion Capital. French private equity group PAL is also thought to be interested. Discount airline easyJet will report a fairly flat 2005 profit on Tuesday as rising fuel costs eat into healthy revenue growth. Gerald Khoo, an analyst with Oriel Securities, is forecasting a pre-tax profit of 63.3m In the drinks sector, tomorrow's deadline for the Spirit auction should see bids of around 3bn from rival pub chain Punch and property tycoon Robert Tchenguiz, who is understood to have the backing of Scottish & Newcastle. Former WestLB banker Robin Saunders is also bidding and has lined up a number of investors, including the brewing giant InBev. Halfords is bucking the retail trend and is expected to report an interim pre-tax profit of around 40m on Thursday, a 9% cent increase on last year. "Halfords is much larger than the next biggest specialist rival and the generalists, such as supermarkets, can't really compete with its service offering.", said Simon Proctor, an analyst at Charles Stanley Securities. Tesco posts its Q3 sales figures on Friday. While momentum is likely to slow due to increasing competition and waning disposable income, analysts believe the group will still produce the strongest sales figures of UK food retailers. Analysts are predicting UK like-for-like sales growth of more than 6%, excluding petrol sales, compared to 7.5% growth last year. They are even more bullish about offshore growth, predicting sales up by 20%. Among others in the spotlight this week will be Mice and Thus on Monday; Enterprise Inns and SSL International on Tuesday; Speedy Hire on Wednesday and British Land and Imagination Technologies on Thursday. Plenty there to keep us all busy! Good hunting! Please note: My comms troubles should be resolved over the next few days so I will then be in a position to return to starting off the daily Traders Threads each evening - if that is what you prefer. If you would rather I continue with the morning start, please be sure to let me know. It is YOUR thread - I'll go along with the majority view. Greystone (Greystone is Alan English, City Editor at MoneyAM.)

hi greystone/// WHATEVER SUITS YOU////IFIND IT USEFULL WHATEVER EVENING OR MORNING many thanks hope you are settle in your new home/

AFX UK at a glance share guide - weekend

MARKETS
FTSE 100 5,498.9 up 38.9
FTSE 250 8,183.9 up 81.1
DJIA 10,766.33 up 46.11
Nasdaq Comp 2,227.07 up 6.61
S&P 500 1,248.27 up 5.47
Gold 487.30 usd (485.30 usd)
Oil - Brent Jan 54.88 usd (54.85 usd)

WEEKEND PRESS
* Novolipetsk Steel, one of Russia's largest steel groups, expected to announce plans for a listing on the London Stock Exchange that will value the group at around 6 bln stg - The Business
* Novolipetsk deal will catapult Vladimir Lisin, a little-known Russian metals tycoon, to international prominence; Lisin owns 90 pct, with the listing valuing his holding in the group at about 5.4 bln stg - enough to put him in contention for the title of second-richest Russian behind Roman Abramovitch - Sunday Times
* PUNCH TAVERNS preparing a 2.5 bln stg knockout bid for rival pubs operator Spirit that will include an agreement to take on Spirit's debts of about 400 mln and plug its 80 mln pensions deficit - Observer
* Alcatel, the French telecoms-equipment group, considering a 5 bln stg bid for French defence group Thales, the second-largest supplier to Britain's Ministry of Defence - Sunday Times
* Anglo-American private equity groups could launch a 5 bln stg-plus bid for VNU, the Dutch business information and market research group that was forced by investors last week to abandon plans to acquire IMS Health, a US market research organisation - Observer
* Sources close to board of ROYAL BANK OF SCOTLAND say they fear its chief executive, Sir Fred Goodwin, is about to quit; the banker, 47, is understood to be unhappy about the company's relationship with investors and the low rating that Britain's second-largest bank has on the stock market - Independent on Sunday
* Shares in GLAXOSMITHKLINE look set to fall sharply tomorrow as the US Food and Drug Administration proposes tough new restrictions on its biggest-selling asthma drug, Advair (known as Seretide in the UK) - Sunday Times
* Astonishing attack on Bank of England; BoE accused this weekend of incompetence, mental paralysis and disgraceful sloppiness in an extraordinary critique by top economic consultancy Lombard Street Research - The Business
* Microsoft, REUTERS and AOL set to transform the way financial market traders communicate by joining together to launch a messaging service this week - The Business
* Boeing will attempt to steal a march on arch-rival Airbus at this weekend's Dubai air show by announcing a 6 bln usd-plus (3.5 bln stg) order from airline Emirates for a mix of Boeing planes, including the 777-300 extended range and 777-200 long range - The Business
* The 2012 Olympic Games will deliver a 9 bln stg boost to the UK economy during the next six years, according to a study by CB Richard Ellis - Sunday Express
* Olympic costs set to double; Games bill to hit 6 bln stg; Department of Culture, Media and Sport calls in accountants to review the books; Londoners face huge tax rise - Observer
* 30 bln stg high-speed London to Scotland rail link proposed - Sunday Telegraph
* Future of Royal Mail secured after government agrees to inject 2 bln stg into the insolvent organisation; and for the first time in its 300-year history, workers are to be given a stake in the business - Mail on Sunday
* LONDON STOCK EXCHANGE holding talks with its Franco-Dutch rival Euronext over a merger of equals - Mail on Sunday
* Three private equity firms - Blackstone Group, Hellman & Friedman and Kohlberg Kravis Roberts - forming an alliance to buy COLLINS STEWART TULLETT, the investment bank and broker valued at 1.3 bln stg - Mail on Sunday
* BAE SYSTEMS successfully tests a system to beat terrorist missile attacks on commercial aircraft; Jeteyes, which could yield billions of pounds or orders, uses a powerful burst of laser rays to combat surface-to-air missiles - Mail on Sunday
* RENTOKIL INITIAL expected to announce the sale of its Initial Style Conferences unit for at least 300 mln stg within a matter of days - Sunday Express
* Vigilant Technology, an Israeli company which has developed a CCTV system which can alert its operator when a rucksack is left unattended in a train station, to float on AIM later this month; it will be valued at up to 19 mln stg - Sunday Telegraph
* Sir Digby Jones, director-general of the CBI, rejects a secret government request to help implement a series of controversial demands from the trade unions - Sunday Telegraph
* BARRATT and WIMPEY may gatecrash PERSIMMON's confirmed approach for property developer WESTBURY - The Business
* BT develops a voice identification system to be at the heart of its 10 bln stg 21st Century Network - The Business
* MATALAN imposes a mandatory 2 pct cut on what it pays suppliers on goods already ordered for the second half of the year as it battles to protect its profits in a tough market - Saturday FT
* SANCTUARY MUSIC suffers a further setback as a Californian record label announces it is suing the embattled entertainment company for 50 mln usd (29 mln stg); Sanctuary last month said it planned to cut a quarter of its workforce in the hope of staying alive after recent takeover talks fell through - Saturday Times
* Blair orders gas inquiry as fears mount of winter supplies crisis - Saturday Independent
* Report by the Parliamentary Ombudsman into whether government mishandling caused some 85,000 people to lose all or part of their pensions postponed for a second time, delaying potential compensation - Saturday FT
* Yields on the new 50-year government bonds fall to unprecedented lows, creating distortions that could deepen the pensions crisis - Saturday FT
* Hopes rise for open skies deal with US; air liberalisation text agreed but hurdles remain over Washington's rules on foreign ownership of airlines - Saturday FT
* BRITISH AIRWAYS: Talks over open skies may drag on until March - Saturday Mail
* Chinese government predicts copper prices will fall sharply next year as prices continue to rise on speculation about the conduct of a Chinese trader - Saturday FT
* A Chinese metals trader who lost his government as much as 460 mln stg over the past few months may have been executed, sources in the London Metal Exchange fear - Sunday Express
* US advisory panel says it sees no evidence that Roche's Tamiflu anti-flu medicine caused the death of 12 children in Japan - Saturday FT
* An Agreed 2 bln stg-plus takeover of PILKINGTON by Nippon Sheet Glass looks increasingly likely after the two sides held a series of high-level meetings - Saturday Mail
* PILKINGTON turns to oil as gas prices soar - Sunday Telegraph
* Vincent Bollore, the French corporate raider, approaches AEGIS with a plan to carve up the UK advertising company with WPP and American private equity group Hellman & Friedman - Saturday Telegraph
* Talks aimed at "privatising" more than 100 mln stg-worth of rail assets, in North-west England, collapse after negotiators from both sides storm out of a critical meeting; Network Rail confirmed that negotiations had "broken down", although Merseyrail, owned by SERCO and Dutch company Nedrail, insist they are "still in communication" - Saturday Independent
* Equitable Life hires investment bank Lexicon Partners to advise on the break-up of the troubled mutual insurer; move comes amid speculation that Resolution Life is squaring up for a bid battle with Hugh Osmond's Life Company Investor Group over Equitable's with-profits life insurance fund - Saturday Telegraph
* PENDRAGON motors ahead with VARDY; terms of a 422 mln stg deal to acquire REG VARDY have been agreed and a recommended offer for the company at 750 pence per share is expected to be made within the next few days - Sunday Telegraph
* Jack Petchey, the entrepreneur, could play a central role in PENDRAGON's attempt to take over rival dealership REG VARDY after new Takeover Panel rules reveal he holds almost 13 pct of Vardy - Saturday FT
* Simon Heath and Lawrence Wosskow, owners of the Little Chef roadside restaurant chain, believed to have prepared the first bid for COMPASS's travel concession business, Select Service Partners - Saturday Telegraph
* IMPERIAL TOBACCO could face a 20 mln stg hit to profits from a German government ruling that its Singles products will be taxed as fine-cut tobacco until March next; after that, they will be taxed as cigarettes - Saturday Mail
* Wal-Mart opening its biggest Asda store in the UK (in Milton Keynes, Buckinghamshire) today as it strives to step up the pressure on its British rivals - Saturday Express
* EUROTUNNEL plans to consolidate shares so that it is no longer a "penny stock" - Saturday Telegraph

SATURDAY PRESS COMMENT
FT
THE LEX COLUMN comments on the VERNALIS acquisition of Canadian rival Cita (accompanying 43 mln stg share offer should fund Vernalis until its turns cash positive in 2007-08; this strategy is based on hard-headed expense control and commercial deal making), Cisco/Scientific-Atlanta (what the deal does surely signal is that Cisco is growing up and might have to pursue more traditional targets in the future), EDF (priced in line with E.on and the sector as a whole, but yields less than both on its dividend; that is bold, but not outrageous), Brazil (political upheaval has not resulted in fiscal slippage; nevertheless, with interest payments a fifth of government revenue, the debt burden remains huge) - Weekend share watch: GALAHAD GOLD (one to tuck away), CHLORIDE (prospective multiple of about 20 times looks expensive - but it might be a price worth paying for such strong underlying growth), DS SMITH (offers a yield of 6 pct, one of the sector's best performers) - LONDON MARKET: STANDARD CHARTERED (late rumour that UBS is preparing to bid), PENNON (talk of a bid), MISYS (persistent gossip that founder and chief executive is planning a management buyout) - ANALYST WATCH: HMV (time to face the music; bid for Ottakar's may help buoy value after retail slump kicks in)

Guardian
Market forces: CELTIC RESOURCES (has 7 pct stake in VICTORIA OIL & GAS)

Mail
MARKET REPORT: RHM (rumours of a pending bearish circular), BRADFORD & BINGLEY (cover short positions - Fox-Pitt Kelton) - INVESTMENT EXTRA: ADVENTIS (Seymour Pierce thinks the shares are worth 37 pence; if boss Charles Phillpot delivers they could be worth more; but it will take time, so be patient; for prudence, set a stop loss at 25 pence); DANIEL STEWART (if it keeps growing, it could be a tempting target)

Express
MARKET REPORT: TRAVIS PERKINS (fears that its Wickes stores will be hit by a DIY price war this weekend), BG (hopes of a bid from SHELL, said to be priced at between 650 pence and 750), AMVESCAP (rises in strength of the dollar and resilient bid talk), INGENTA (management buyout gossip)

Telegraph
THE MARKET: STANDARD CHARTERED (BARCLAYS or UBS bid speculation), SUTTON HARBOUR (dealers expecting a very strong set of interim results Monday) - QUESTOR COLUMN: BURBERRY (not overly expensive; buy); SMALL CAP VALUES: AUGEAN (if they fall any further, they might be worth a look), CLAPHAM HOUSE (worth buying), LATCHWAYS (aren't cheap, but hold on)

Times
Rumour of the day: CREST NICHOLSON (talk that Gerald Ronson's Heron International will be studying Wednesday's trading update before deciding the fate of its 23.3 pct stake) - Directors' dealing: IOMART GROUP (three directors purchase stock for 78,380 stg) - STOCK MARKETS - LARGE CAPS: LLOYDS TSB (rehashed talk of tie-up with ABN Amro); SMALL CAPS: TARQUIN RESOURCES (hot money latches on to its 1.2 pct per-float stake in MAX PETROLEUM, the Kazakhstan oil play which has nearly doubled since last month's uncertain debut; Tarquin, however, may have sold out of Max in the past few weeks, a change it has yet to declare), COMMUNISIS (executive selling; also talk of problems with its work for Hutchison's 3) - TEMPUS: Robert Cole comments on corporate bonds (this may not be the most auspicious time to fill up with corporate bonds; however, the asset class should be considered as earning a worthy and enduring place in the investment armoury)

Independent
PRIVATE INVESTOR: Sean O'Grady comments on cold calling, DIGNITY (I'm going to have to research to see whether they're in rude health or in the bed next to the door), VODAFONE (is there really so little life in Vodafone) - NO PAIN, NO GAIN: Derek Pain comments on BLUE STAR MOBILE (many have famously scored huge rewards by betting against the herd; on that basis, I reckon Blue Star is worth a modest flutter) - MARKET REPORT: CABLE & WIRELESS (hopes that France Telecom will soon come forward with a 175 pence-a-share offer), MAX PETROLEUM (series of bullish presentations to institutional investors)

SUNDAY PRESS COMMENT
Sunday Times
JUDGMENT DAY: SHOULD YOU BUY SHARES IN LAIRD Andy Brough, fund manager at Schroders, says hold, while Tim Steer, fund manager at New Star, says the shares are worth 430 pence - buy - INSIDE THE CITY: Richard Fletcher comments on MFI (as it approaches the crucial January sales period - when kitchen and furniture retailers make most of their profits - the unfounded rumours are an unwelcome distraction), MARCONI (Fletcher calculates that Telent,,the ongoing business, is undervalued by as much as 80 mln stg; when the Ericsson deal is completed, expect Telent to be re-rated) - DIRECTORS' DEALS: PETER HAMBRO MINING (executive chairman and deputy chairman each sells 1.2 mln shares at 770 pence a share to raise about 10 mln stg apiece); CONNAUGHT (director sells 120,000 shares at 868 pence each to raise over 1 mln stg)

Sunday Telegraph
Equity View: ICI (buy), HAMPSON INDUSTRIES (buy), MWANA AFRICA (worth a speculative buy), HEALTHCARE ENTERPRISE (hang on in there), VEDANTA (play safe and bank profits; sell) - The Numbers Game: Tony Jackson says NORTHERN FOODS is not his meat and drink

The Business
THE ALCHEMIST: Clem Chambers tips COLT TELECOM - INSIDE THE MARKET - FUND OF THE MONTH: SCHRODER JAPAN GROWTH INVESTMENT TRUST; SMALL-CAP INVESTOR: NCIPHER (buy); AIM INVESTOR: GIPPSLAND (still a buy) - BENCHMARK: Rupert Steiner, City Editor, comments on BOOTS/ALLIANCE UNICHEM merger (Baker's recipe for Boots is half-baked), Google (now Google aims to click with print media), Launch of Gordon Brown's new enterprise summer schools

Mail on Sunday
COMPANIES AND MARKETS: ITV (former Carlton shareholders face missing out on a 90 mln stg bonus after ITV fails to meet financial targets); ALPHA PYRENEES TRUST (Sir John Beckwith, property tycoon, bringing the big European property investment firm to the market); WEATHERLY INTERNATIONAL (working on a 2.3 mln stg fundraising and the acquisition of a copper mine in Zambia) -MIDAS: SCOTTISH & SOUTHERN ENERGY (a low-risk share to buy and lock away for the long-term; it should give a steadily rising dividend stream and is a buy for investors seeking income); MIDAS UPDATE: SPEEDY HIRE (take profits); SUBSEA RESOURCES (take profits)

Independent on Sunday
MARKET WHISPERS: As a "reward" for the progress being made at BAA's 4.2 bln stg Terminal 5 project, it is rumoured that Laing O'Rourke, BALFOUR BEATTY and AMEC will be saddling up for the proposed 1.5 bln stg Heathrow East, having been "guaranteed" work there

Observer
THROG STREET: Richard Wachman comments on Macquarie (investors fret that chief executive Allan Moss could pay too much for the LONDON STOCK EXCHANGE - where banks that use the LSE have already warned they want tariff reductions; he also faces possible counter-offers from Euronext of France and Deutsche Bourse)

Good Evening all,

Hope to "hear" from you in the morning :-)

Good morning traders!

In Asia this morning, the Nikkei closed up 57.31 points at 14,680.43 with the Hang Seng up just 5.23 points at 14,888.55 at the midpoint.

Oil prices were higher in Asian trading as investors returned to a heavily oversold market. New York's main contract, light sweet crude for January delivery rose 43 cents to $57.64 a barrel from its close of $57.21 in US trading Friday.

Off to find some UK news.....

Happy trading!

G.

PRUDENTIAL UPGRADED TO 'OUTPERFORM' VS 'NEUTRAL' AT CSFB

Outlook

Empire Online scraps PartyGaming bid talks

Good morning all.

Good Morning all

End-of-day Market Summary