This Morning in London major shares were sharply lower in early deals, knocked by a slump in Asian markets this morning. Wolseley (WOS) slumped in early deals, down 62.5p at 653.5p, after it said in a trading statement this morning its pretax profit for the five-month period to the end of December 2007 is likely to have fallen by around a third due challenging conditions in the US, especially the deteriorating US housing market. In reaction, Evolution Securities downgraded its stance on Wolseley to sell from reduce. The mining sector also weighed on the FTSE, as metals price fell today. Rio Tinto (RIO) traded sharply lower at the open. This followed its biggest fall in 10 years in Sydney trading after BHP Billiton (BLT) failed to make a new offer. UK weekend press reported BHP Billiton has called on seven global banks to provide the crucial $70bn needed to fund its planned merger with Rio Tinto. BHP Billiton was down 76p at 1,302p, while Rio shares lost 290p at 4,410p, Xstrata (XTA) gave away 33p at 3,330p and Anglo American (AAL) was 101p lower at 2,490p. At 9:30 the FTSE-100 was down 137.2 points at 5,764.5 with the FTSE-250 off 218.8 points at 9,461.3.
HSBC reiterate Overweight National Grid (NG.) (raising the price target to 970p from 860p).
Landsbanki has upgraded Corin (CRG) to buy from hold and reiterates hold RAB Capital (RAB) (cutting estimates).
The broker says hold New Star Asset Management (NSAM) (cutting estimates) and Impax (raising estimates) and says buy Davenham (DAV).
Sanford Bernstein has reviewed the European Food Producers and has Nestle (NSTR) and Cadbury Schweppes (CBRY) as its top picks.
The broker has reviewed the Orthopaedics stock and has underperform on Smith & Nephew (SN.) (550p target price).
NEWS ROUND-UP
Last Friday in New York shares saw a triple digit rally dwindle, as equities continued their southward momentum for a 4th consecutive day. There was a different aspect that pushed prices lower, this time it was new concerns about bond insurers, which had the strength to brush aside solid results from IBM and General Electric. The Dow Jones closed down 59.91-points at 12099.30, the Nasdaq fell 6.88-points to 2340.02, while the S&P lost 8.06-points to close at 1325.19. On the week the Dow closed down 507-points, or 4%, the Nasdaq fell just short of 100-points, or 4.1%, while the S&P lost 75.8-points or 5.4%.
On this day in:-
1793 - In Paris, Louis XVI of France was guillotined after being found guilty of treason.
1846 - In Great Britain, the first publication of 'The Daily News,' edited by writer Charles Dickens.
1879 - 1,200 Great British troops were massacred at Islandwana during the Zulu War.
1911 - The start of the first Monte Carlo Rally. It finished 7 days later, won by French driver Henri Rougier.
1935 - Snowdonia in Wales became Great Britain's first National Park.
1942 - The BBC broadcast the first 'Desert Island Discs' programme.
1951 - The United States staged its first Atomic bomb tests in Nevada.
1954 - America launched the USS Nautilus, the world's first nuclear powered submarine.
1966 - Beatle George Harrison married model Patti Boyd.
1976 - A Great British and a French 'Concorde' made simultaneous maiden flights, from London to Bahrain and from Paris to Rio De Janeiro.
1996 - Great British couple Steve Nicholson and Caroline Harrison were among those who survived 18-hours in shark-infested waters, after a ferry sank off the coast of Indonesia. More than 200 passengers were killed in the accident.
1998 - In America, a newspaper reported that a White House intern, Monica Lewinsky, claimed to have an affair with President Bill Clinton.
