This Morning in London shares opened higher after a resolute performance from Wall Street and with a strong mining sector. Xstrata (XTA.L) led the blue-chip risers with a jump of 47p to 1,294p after Goldman Sachs highlighted the group as its 'Best buy idea', repeating its 'Conviction Buy' recommendation and raising its target price to 3,966p from 3,025p in a mining sector note. The broker also raised its commodity price forecasts and price targets for the sector, although downgraded Vedanta (VED.L) to 'neutral' from 'buy' and lowered its target to 1500 pence from 2,040. Vedanta shares however, gained 24p to 1,290p, while Antofagasta (ANTO.L) added 7p to 486.75p. At 9:15am, the FTSE-100 was up 34.90 points at 6,083.7 with the FTSE-250 ahead 78.40 points at 10,752.40.
England smoke ban to start 1 July
Smoking in enclosed public places will be banned in England from 1 July next year, the government has announced. The ban covers virtually all enclosed public places including offices, factories, pubs and bars, but not outdoors or in private homes. It follows similar bans in the Irish Republic and Scotland - a ban in Wales starts on 2 April. Ministers say it will protect everyone from passive smoking, but opponents say the total ban is "draconian". From 1 July pubs and restaurants will have to display prominent "no smoking" signs around their premises. Health Secretary Patricia Hewitt said the ban was a "huge step forward" which would save thousands of people's lives. The cost of implementing the ban has been estimated at about £50m.
Mills 'seeks occupation of home'
Heather Mills McCartney plans to apply for access to the house she shared with her estranged husband Sir Paul McCartney, according to reports. Mills, 38, who is divorcing the former Beatle after four years of marriage, was pictured carrying a writing pad. "I am seeking an order for occupation of the matrimonial home," could be clearly seen written on one page. In August, police were called when the former model tried to gain entrance to the home in St Johns Wood, London. Newspaper reports claimed Lady McCartney had arrived at Sir Paul's residence with the couple's daughter Beatrice for a scheduled visit, to find the locks had been changed. Her security guard was believed to have scaled the wall, prompting staff inside to contact the authorities.
BROKER RECOMMENDATIONS
ABN Amro has a buy for Intercontinental Hotels (IHG.L), buys for Amlin (AML.L), Beazley (BEZ.L) and Hiscox (HSX.L), adds for Chaucer (CHU.L) and Catlin (CGL.L), reiterates buy for Jessops (JSP.L) and upgrades Reed Elsevier (REL.L) to buy from hold.
Citigroup downgrades Rank Group (RNK.L) to hold from buy, upgrades National Grid (NG.L) to hold from sell, has a buy for BHP Billiton (BLT.L) and holds for Britvic (BVIC.L), Kingfisher (KGF.L), Pennon (PNN.L) and Tesco (TSCO.L).
Deutsche Bank downgrades Northumbrian Water (NWG.L) to hold from buy, United Utilities (UU.L) to hold from but with an unchanged 710p target, has a sell for Kingfisher (KGF.L), cutting target to 215p from 220p, upgrades Bunzl (BNZL.L) to buy from hold, resumes coverage of Premier Farnell (PFL.L) with a hold and 170p target, resumes coverage of Electrocomponents (ECM.L) with a 220p target and has a buy for Wolseley (WOS.L).
Dresdner Kleinwort reiterates sell for Nokia (NOK.L).
Evolution upgrades Wolverhampton & Dudley (WOLV.L) to buy from add.
Goldman Sachs, in a note on the mining sector, downgrades Vedanta Resources (VED.L) to neutral from buy, has a buy for Xstrata (XTA.L) and neutrals on BHP Billiton (BLT.L), Anglo American (AAL.L) and Rio Tinto (RIO.L).
The broker has sell rating for Britvic (BVIC.L) while raising target to 216p from 199p.
HSBC has a neutral for Peter Hambro Mining (POG.L) and an overweight for Ladbrokes (LAD.L).
Merrill Lynch initiates coverage of Experian (EXPN.L) with a buy rating and 654p target.
The broker reiterates neutral for Compass (CPG.L) and has a neutral for Pennon (PNN.L).
Morgan Stanley reiterates overweight for Britvic (BVIC.L) and an equal-weight for EMI (EMI.L).
Numis has buy ratings for Anglo Asia Mines (AAZ.L) with an 84p target and Moneterrico Metals (MNA.L) with a 607p target.
The broker has upgraded its ratings for Alizyme (AZM.L) to buy from add, 120p, Rolls-Royce (RR.L) to buy from add 525p and Xstrata (XTA.L) to buy from add £28.73, but downgraded Hiscox (HSX.L) to hold from add 265p and Wolverhampton & Dudley (WOLV.L) to reduce from hold £13.95.
UBS upgrades FKI (FKI.L) to buy from reduce, reiterates neutral Tate & Lyle (TATE.L), has a buy for Unilever (ULVR.L), cutting estimates, a buy for Intercontinental Hotels (IHG.L), raising target to £12 from £11.20, has a buy for Diageo (DGE.L) and a neutral on Rentokil Initial (RTO.L).
NEWS ROUND-UP
Last night in New York, stocks ended an erratic session little changed as strength in energy stocks offset weak manufacturing data and a disappointing forecast from Wal-Mart Stores. The Dow closed 4.80 points lower at 12,221.93, while the Nasdaq fell 0.46 to end the session at 2,431.77.
On this day in:-
1848 - WH Smith opened its first railway bookstall at Euston Station in London.
1894 - In Russia, the death of Alexander III. Nicholas II became Tsar of Russia.
1914 - World War I: Great British warships 'Good Hope' and 'Monmouth' were sunk by a German fleet at the Battle of Coronel.
1940 - In France, archaeologists discovered a prehistoric painting in a cave at Lascaux in the Dordogne.
1944 - Great Britain's Home Guard, formed in 1939 to fight the expected German invasion, was ordered to disband.
1945 - In Great Britain, it was announced that all available evidence supported the theory that the German Fuhrer Adolf Hitler had committed suicide in Berlin.
1946 - The first Royal Command Performance in public cinema at the 'Empire', Leicester Square.
1950 - Premium Bonds first went on sale in Great Britain, with the winning numbers picked at random by a machine with the acronym 'ERNIE'.
1951 - US President Harry Truman survived an assassination attempt by 2 Puerto Rican nationalists.
1959 - In Great Britain, the official opening of the country's first full-length motorway (M1).
1963 - The Rolling Stones' released their first single, 'I Wanna Be Your Man'.
1963 - During a military coup in South Vietnam, President Ngo Dinh Diem was assassinated.
1972 - At least 10,000 people were killed and a further 5-million left homeless, when a tidal wave hit the coast of India.
1976 - Jimmy Carter was elected US President.
1978 - The launch of a new daily newspaper in Great Britain, 'The Daily Star'.
1982 - A new terrestrial television channel, Channel Four began transmitting its first programme - the word game 'Countdown'.
