This Morning in London major shares were modestly higher in opening deals. On the economic front all eyes will be on inflation figures which are expected to show the annual rate of CPI moved further above the BoE's 2% target during November, climbing to 2.2% from 2.1% October. Today also sees BoE governor Mervyn King and his deputy John Gieve appearing before the Treasury Select Committee. Gieve, responsible for financial stability, is likely to face fierce questioning on the Northern Rock (NRK) crisis. At 9:10 the FTSE-100 was up 25.9 points at 6,303.7 with the FTSE-250 ahead 75.6 points at 10,216.0.
BROKER RECOMMENDATIONS
Bear Stearns believes Carphone Warehouse (CPW) is beginning to look attractive.
Citigroup has a hold for CSR (CSR), buys for BT Group (BT.A) and Cable & Wireless (CW.), a sell for Colt Telecom (COLT), a hold for International Personal Finance (IPF), a hold for London Stock Exchange (LSE), raising target to £18.25 from £16.50, a buy for Provident Financial (PFG) and buys for Thomas Cook (TCG) and Thus (THUS).
Deutsche Bank has a hold for Premier Foods (PFD), cutting target to 190p from 230p.
Goldman Sachs downgrades Biffa (BIFF) to neutral from buy.
Merrill Lynch has added Philips and Roche (ROG) to its most preferred list, replacing Shire (SHP) and Stada.
JP Morgan has an overweight for Arriva (ARI), a neutral for ITV (ITV), trimming target to 96p from 99p and cutting estimates, an overweight for WPP Group (WPP), an overweight for Kesa Electricals (KESA) and an overweight for Next (NXT).
The broker is cutting another 5% from its forecasts in the retail sector.
Numis has an add and 240p target for Bodycote (BOY), a buy and £13.30 target for Charter (CHTR), a buy and 918p target for Cookson (CKSN), an add and £18 target for Tradus (TRAD), an add and £12.52 target for Ultra Electronics (ULE) and a buy and 775p target for VT Group (VTG).
Sanford Bernstein has a market perform for AstraZeneca (AZN).
SG Securities has a sell for BG Group (BG.) and downgrades Cairn Energy (CNE) to hold from buy.
UBS downgrades Rentokil Initial (RTO) to neutral from buy, cutting target to 125p from 185p and has a neutral for HBOS (HBOS), cutting target to 830p from 960p.
NEWS ROUND-UP
Last Night in New York stocks fell to more than two-week lows, with technology shares the most battered, as concerns over economic growth overshadowed a fresh spate of merger deals. The Dow Jones dropped 172.6 points to 13,167.2, its lowest close since the blue-chip barometer fell under the 13,000 mark on 28th November. Of the Dow's 30 components, 27 closed lower. Broader indexes fell as well, with the S&P declining 22.05 points to 1,445.9, and the technology-laden Nasdaq dropping 61.28 points to 2,574.46.
On this day in:-
1991 - In South Africa, Inkatha leader Mangosuthu Buthelezi announced his withdrawal from negotiations on ending apartheid.
1990 - In India, the Taj Mahal reopened to the public, after being closed to tourists due to secretarian fighting in the nearby city of Agra.
1956 - Japan was admitted to membership of the United Nations.
1952 - The first showing of the children's television programme 'The Flower Pot Men'.
1946 - Labour MP’s triumphantly sang The Red Flag (normally associated with communism) as the House of Commons voted to nationalise the railways, road haulage and the ports.
1927 - In China, Chiang Kai-Shek overthrew the Hankow Government.
1912 - Piltdown Man was discovered in Sussex. It was claimed to be the fossilised skull and remains of the earliest known European. But in 1953 it was proven to be a hoax, the skull was that of an orang-u-tan.
1903 - The USA-Panama Treaty placed the Panama Canal Zone in American hands in perpetuity for an agreed annual rent.
1890 - In Africa, Great British soldier and colonist Frederick Lugard occupied Uganda on behalf of the British East African company.
1865 - Slavery was officially abolished in the United States of America, with the ratification of the 13th Amendment to the Constitution.
1792 - In England, radical political writer Thomas Paine was tried for treason (in his absence) for publishing 'The Rights of Man' in which he supported the French Revolution and called for the abolition of the Great British Monarchy.
1559 - Queen Elizabeth I sent aid to the Scottish Lords to drive the French from Scotland.
