This Morning in London markets inched higher in opening trade, with strong gains for electricity generators after Iberdrola of Spain confirmed its interest in bidding for Scottish Power (SPW.L). Overall gains were limited by poorly-received interim numbers from BT (BT.L) and profit-taking at Man Group (EMG.L), the world's largest listed hedge fund. The FTSE-100 started the session 0.2% higher at 6,248.8, helped by a strong showing for oil majors as crude prices returned to the $60 mark. The FTSE-250 was flat at 10.566.3.
Borat spoof film banned in Russia
Russia has banned the hit comedy film, Borat, which has been accused of poking fun at Moscow's neighbour and close ally Kazakhstan. The film stars British comedian Sacha Baron Cohen as a spoof reporter on a trip to the US. A senior official at Russia's culture ministry has said it will not provide a distribution licence. The film has been described as a "mockumentary" which follows Mr Cohen's travel across the US. On the way, he has a series of real life encounters with unsuspecting Americans in which he makes the most outrageous, sexist, racist, anti-Semitic and homophobic comments. It has proved to be a big hit in the US and Europe, where it opened last weekend. Some reviewers have described it as "hysterical" and "the funniest film of the year". But there are others, not least the government of Kazakhstan who say it is deeply offensive. One Kazakh diplomat says that the depiction of his country as violent, primitive and oppressive bears no resemblance to reality.
Britney faces child custody fight
Kevin Federline says he is planning to fight pop star Britney Spears for sole custody of their children. In court papers filed in Los Angeles, the rapper says he intends to take action to protect and safeguard their two young sons. Spears made the first move by filing for divorce, citing irreconcilable differences as the reason. She said she wanted physical and legal custody of the couple's year-old son and new baby. But 24 hours later, Federline has started the legal process to seek sole custody of the two children. He also wants spousal support. According to the rapper's lawyer, he is prepared to go the distance in order to do what he feels is necessary to protect and safeguard the children - and will not be intimidated or dissuaded from pursuit of those goals.
BROKER RECOMMENDATIONS
ABN Amro has upgraded AB Foods (ABF.L) to buy from hold.
Bear Stearns initiates coverage of Shire (SHP.L) with an outperform.
Citigroup reiterates hold for Scottish & Newcastle (SCTN.L), cutting target to 575p from 580p.
The broker raises price target in Bank of Ireland (BKIR.L) to €17.50 from €16.
Credit Suisse has an underperform for Electrocomponents (ECM.L).
Deutsche Bank, in a note on UK banks, prefers Lloyds TSB (LLOY.L) to Barclays (BARC.L), has a hold for JD Wetherspoon (JDW.L), raising target to 650p from 440p and a buy for CSR (CSR.L), cutting target to £10.50, from £11.
Dresdner Kleinwort reiterates hold Scottish & Newcastle (SCTN.L), downgrades Cookson (CKSN.L) to hold from add and has a hold and 615p target for Scottish Power (SPW.L).
The broker reiterates buy Galiform (GFRM.L) and has a sell for Nokia (NOK.L).
Goldman Sachs has a neutral for National Grid (NG.L).
HSBC initiates coverage of HMV (HMV.L) with an underweight and 135p target.
Lehman Bros reiterates equal-weight for Cable & Wireless (CW.L), raising target to 165p from 130p and has an underweight for CSR (CSR.L), cutting target to 700p from 800p.
Merrill Lynch has a neutral for FirstGroup (FGP.L), a buy for ARM (ARM.L), a buy for CSR (CSR.L) raising target to £11.10 from 800p, a buy for Scottish & Newcastle (SCTN.L), a neutral on London Stock Exchange (LSE.L) and a sell for Sainsbury (SBRY.L).
The broker reiterates buy Punch Taverns (PUB.L).
JP Morgan reiterates overweight SABMiller (SAB.L), has an overweight for British Land (BLND.L), raising target to £17.70 from £16.25 and an overweight for Land Securities (LAND.L), raising target to £25 from £23.50 and raises target for Brixton (BXTN.L) to 585p from 560p and price target for Derwent Valley (DWV.L) to £23 from £19.20.
The broker reiterates overweight for Rexam (REX.L), reiterates underweight and 600p target for CSR (CSR.L), has an overweight and £13.10 target for Scottish & Southern (SSE.L) and an underweight and 525p target for Scottish & Newcastle (SCTN.L), cutting estimates.
Morgan Stanley reiterates overweight for Cable & Wireless (CW.L), raising target to 175p from 165p, has an underweight and 450p target for Scottish & Newcastle (SCTN.L), raising estimates, an overweight for Debenhams (DEB.L) and an equal-weight for Unilever (ULVR.L).
The broker reiterates equal-weight for Invensys (ISYS.L) with a 210p target.
Seymour Pierce has a buy for Quintain Estates (QED.L) and outperforms for BT (BT.L) and Fulcrum Pharma (FUL.L).
UBS has a neutral for Scottish & Newcastle (SCTN.L), a neutral for IMI (IMI.L), a neutral for easyJet (EZJ.L), raising target to 600p from 480p and a buy for Ryanair (RYA.L), raising target to €11 from €9.50.
NEWS ROUND-UP
Last Night in New York stock indices rebounded from earlier losses with the Dow Jones edging higher to a record close, but some companies and industries that have been criticised in the past by the Democrats were pressured. With the House of Representatives under control of the Democratic party and the Senate still to be decided, analysts expect greater scrutiny over healthcare, energy and credit card companies and the retailer, Wal-Mart, over improving labour conditions. At the close, the Dow Jones was 19.77 points higher at 12,176.54, a record close. The Nasdaq rose 9.06 points to 2,384.94. Whilst the S&P was up 2.88 points, at 1,385.72.
On this day in:-
1812 - Beginning of one of the worst European winters on record, which severely hindered Napoleon Bonaparte's retreat from Moscow. French troops endured temperatures as low as Minus 37 Degrees Centigrade for almost 4-weeks.
1837 - Great British philanthropist Moses Montefiore became the first Jew to be awarded a knighthood in England.
1858 - The first concert performance of the New York Symphony Orchestra.
1859 - The Great British Army abolished flogging as a form of punishment.
1907 - The Cullinan Diamond, the largest diamond yet found, was presented by the Transvaal to King Edward VII.
1908 - Great Britain elected its first woman Mayor, when Mrs Garrett Anderson became Mayor of Aldeburgh in eastern England.
1918 - Poland declared independence.
1922 - The formation of the Schutzstaffel (SS) or 'Protection Squad' in Germany.
1937 - Japanese troops took Shanghai.
1963 - 450 Japanese miners were killed by an underground explosion at a coal mine in Umata.
1975 - Police find an unexploded bomb underneath the car of Conservative Party leader Edward Heath.
1979 - A computer fault led to a full-scale nuclear alert in the United States.
1988 - In Moscow, Gary Kasparov became the world chess champion, beating Anatoly Karpov who had held the title for 10-years.
1989 - The East German Government lifted the 'Iron Curtain', to allow free travel through the Berlin Wall, an offer immediately taken up by thousands of East Berliners.
