This Morning in London blue-chip shares reversed opening gains in early deals, as earnings news disappointed. SABMiller (SAB) fell 47p at 1,328p after the group said first half adjusted pretax profit increased 15% to $1.773bn, despite increased input costs and investment across the business. The brewer of Peroni Nastro Azzurro and Pilsner Urquell said investment and productivity gains are offsetting cost pressures and expects progress in the second half but said it faces a more challenging environment. Also weighing on SABMiller was news of the Heineken and Carlsberg bid for Scottish & Newcastle (SCTN) which could potentially end speculation that the group was was also poised to enter the fray. At 9:30 the FTSE-100 was down 44.4 points at 6,387.7 with the FTSE-250 off 115.8 points at 10,955.1.
BROKER RECOMMENDATIONS
Bear Stearns downgrades European pharmaceuticals sector to market weight.
Citigroup upgrades Lonmin (LMI) to buy from hold with a £37 target, has a hold on VT Group (VTG) raising target to 640p from 608p, has a hold on Amlin (AML), raising target to 340p from 320p and downgrades Babcock International (BAB) to hold from buy with a 620p target.
Credit Suisse initiates coverage of Johnson Matthey (JMAT) with an underperform and lowers target for Invensys (ISYS) to 320p from 390p.
Dresdner Kleinwort lowers target for Bank of Ireland (BKIR) to €12.40 from €14.15 and lowers target for C&C (CCR) to from €7.
Goldman Sachs downgrades Bloomsbury Publishing (BMY) to neutral from buy.
HSBC reiterates underweight Royal Dutch Shell (RDSA) cutting target to £19.30 from £20.15 and reiterates underweight BG Group (BG.) while raising target to 780p from 705p.
Lehman Bros raises target for Scottish & Southern Energy (SSE) to £14.10 from £13.30.
JP Morgan upgrades Premier Foods (PFD) to overweight from underweight raising target price to 250p from 230p.
The broker lowers price target for Burberry (BRBY) to 680p from 710p and lowers target for HSBC (HSBA) to 820p from 850p.
Numis has a buy and 136p target for African Copper (ACU), a buy and 159p target for Centaur Media (CAU), a buy and 607p target for Euromoney (ERM), an add and 535p target for Experian (EXPN), an add and 465p target for Helphire (HHR), a buy and 510p target for Ladbrokes (LAD), a buy and 104p target for Protherics (PTI), an add and 703p target for Reed Elsevier (REL), a buy and 520p target for WH Smith (SMWH), a hold and 792p target for Synergy Healthcare (SYR), a buy and 770p target for Ted Baker (TBK) and an add and 415p target for Trinity Mirror (TNI).
Seymour Pierce has a buy for Daily Mail & General Trust (DMGO), a hold and 540p target for Experian (EXPN), a buy for Fulcrum Pharma (FUL) and a buy and 240p-250p target for Orpak Systems (ORPK).
UBS downgrades Nestor Healthcare (NSR) to neutral from buy and upgrades both Antofagasta (ANTO) and Kazakhmys (KAZ) to neutral from sell.
NEWS ROUND-UP
Last Night in New York stocks closed sharply lower, with selling accelerating in the final moments of trade, as investors mulled reduced odds of another Federal Reserve interest-rate cut in light of positive economic data that included benign wholesale inflation. After listing modestly higher much of the day, the Dow Jones ended off 83.2 points at 13,223.9, with 22 of its 30 components ending in the red. The S&P fell 10.7 points to 1,470.35, while the Nasdaq shed 29.33 points to 2,644.32.
On this day in:-
1995 - Conservative Party chairman Brain Mawhinney was attacked by demonstrators throwing paint and flour, as he left Westminster after the Queen's Speech.
1985 - Prime Minister Margaret Thatcher and Irish Prime Minister Garret Fitzgerald signed the Anglo-Irish Agreement in Dublin.
1983 - The Greenham Common Women's Group mounted its first protest, as cruise missiles arrived at the US airbase in Berkshire.
1983 - An independent Turkish Republic of Northern Cyprus was unilaterally proclaimed... recognised only by Turkey.
1969 - ITV screened Great Britain's first commercial in colour, an advert for Birds Eye peas.
1968 - The Cunard flagship 'Queen Elizabeth' docked at Southampton for the last time. She was replaced by the new liner the QE2.
1956 - The New York premiere of Elvis Presley's first film: 'Love Me Tender'.
1901 - An electronic hearing aid was given a patent in New York.
1899 - Future Prime Minister Winston Churchill was captured while covering the Boer War as a war correspondent for the English newspaper, the Morning Post. He later escaped and reached Great British lines.
1889 - On the abdication of Pedro II, Brazil was proclaimed a republic.
1848 - Papal premier Count Rossi was assassinated.
1796 - In America, John Adams defeated Thomas Jefferson by 3 votes in the US Presidential election. Jefferson became vice president.
1577 - English explorer and navigator Sir Francis Drake began his voyage to sail around the world.
