This Morning in London shares made strong early gains, with heavyweight miners pacing the FTSE-100's advance. Gains in heavyweight mining issues helped fuel the FTSE bounce back supported by solid production news from BHP Billiton (BLT) and positive news on Chinese growth. A senior research official with China's National Development and Reform Commission (NDRC) predicted that GDP in the country is likely to grow by around 11.5% in 2007 and about 11% in 2008. BHP Billiton issued its Q1 production report overnight in Sydney. The world's largest diversified resources group said output at its iron ore mines in Western Australia and at key coal projects in Australia and Colombia reached record levels in the first quarter to September. BHP Billiton said strong demand underpinned the record production as capacity was increased. In reaction, BHP Billiton shares added 29p at 1,793p, while Antofagasta (ANTO) added 25.5p at 806p, Vedanta (VED) gained 41p at 2,095p and Rio Tinto (RIO) took on 92p at 4,142p. At 9:40 the FTSE-100 was up 58.4 points at 6,517.7 with the FTSE-250 ahead 184.7 points at 11,362.6.
BROKER RECOMMENDATIONS
Bear Stearns has cut estimates in DSG International (DSGI) and estimates and fair values in Lloyds TSB (LLOY), Northern Rock (NRK), Bradford & Bingley (BB.) and Alliance & Leicester (AL.).
The broker suggests that Bradford & Bingley (BB.) is a short-term trading buy.
Cazenove reiterates outperform on BHP Billiton (BLT) and has outperform on BP (BP.).
The broker has in-line on Bradford & Bingley (BB.), outperform on Barclays (BARC) and underperform on Royal Bank of Scotland (RBS).
Collins Stewart says hold Prudential (PRU) (587p price target) and Carnival (CCL) (2810p target price).
Goldman has resumed coverage of Wolseley (WOS) appending a neutral recommendation and a 935p target and reiterates buy BAT (BATS) (raising the price target to 1823p from 1745p and raising estimates).
The broker says buy Reckitt Benckiser (RB.) (raising the price target to 3000p from 2913p and raising estimates) and WPP Group (WPP) (cutting estimates).
KBC Peel Hunt says buy Redstone (RED) (100p target) and has initiated coverage of AssetCo (ASTO) appending a buy recommendation.
Merrill has added Bank of Ireland (BKIR) to its European Bank Sector’s least preferred list, replacing Anglo Irish Bank (ANGL) and HBOS (HBOS).
The broker has neutral on Autonomy (AU.), BP (BP.) and BHP Billiton (BLT) and says buy Debenhams (DEB) (135p price target), Experian (EXPN) (635p target price) and Prudential (PRU) (900p target price).
Last Night in New York stocks rebounded on strength in technology stocks with investors expecting solid numbers from two of the sector's larger players, both scheduled to report on profits after the closing bell. The Dow rose 45 points to 13,567.0, with 18 of its 30 components higher. The S&P rose 5.70 points to 1,506.33, while the technology-laden Nasdaq gained 28.77 points to 2,753.93.
On this day in:-
2001 - The Northern Ireland peace process reached an historic breakthrough, as the IRA announced they had begun decommissioning their weapons.
1991 - The House of Lords ruled that husbands could legally be convicted of raping their wives.
1987 - Former Champion Jockey Lester Piggott was jailed for 3-years for tax evasion.
1983 - At least 146 American marines and 27 French servicemen were killed, after 2 separate bomb attacks on military headquarters in the Lebanese capital Beirut.
1967 - Great British farmers begin slaughtering cattle following a severe outbreak of 'foot and mouth' disease.
1956 - Students, intellectuals, and workers poured onto the streets of Budapest, Hungary, demanding an end to Soviet domination and communist rule. On 4th November, thousands of Soviet tanks rolled in to crush what had become a nationwide revolt. Outraged citizens fought back with little more than their bare hands, but they were hopelessly outmatched. As many as 25,000 Hungarians were killed and many more were wounded or imprisoned. Some 200,000 fled. The reformist premier Imre Nagy was deposed and the Soviets installed a new, pro-Moscow government led by János Kádár.
1946 - The United Nations held its first General Assembly in New York.
1943 - World War II, the start of the decisive battle of El Alemein between Allied forces commanded by Great British Field Marshall Montgomery and the German and Italian North African armies commanded by Field Marshall Rommel. The Allies gained a significant victory at the end of 16-days' fighting.
1906 - Women suffragettes, campaigning for the right to vote, held a demonstration at the House of Commons.10 were arrested and sent to prison.
1843 - The building of Nelson's Column in Trafalgar Square, commemorating Admiral Nelson's victory at the Battle of Trafalgar in 1805, was finally completed.
1642 - The Battle of Edgehill, in the Cotswolds, the first major battle of the English Civil War between King Charles I of England and Parliament.
42BC - Brutus, whose army was crushed by Anthony and Octavian at Philippi, committed suicide in Rome by falling on his own sword.
4004BC - The day God created the world -according to Archbishop James Usher, a 17th century Vice Chancellor of Cambridge Uniiversity. Although there are 14 conflicting versions of the date, Usher's is the only one matching the chronology of the authorised version of the bible.
