This Morning in London the market was caught off-guard after data from the Office of National Statistics showed that UK inflation in November had risen to its highest level for almost a decade, increasing the chances of an interest rate rise early in 2007. November's Consumer Price Index jumped to 2.7%, from 2.4%, with the monthly rate of inflation standing at 0.3%. The RPI rate, which includes mortgage payments, rose to 3.9%. The London Stock Exchange (LSE.L), as expected, has issued a rejection of the Nasdaq bid. The Board said that it unanimously rejects Nasdaq's offer as it substantially undervalues the Exchange and fails to reflect its unique strategic position and the powerful earnings and operational momentum of the business. The LSE shares stand at 1317p, off 3p on the day. At 10:48 the FTSE-100 was down 20.2 at 6139.6.
Crooks with a conscience
Police in Romania are looking for 2 burglars who broke into an woman's apartment... and then left her some money. Eighty-six year old Filofteia Stefan, from Constanta, told police that 2 young men, wearing masks, trashed her apartment. She said they rummaged for money or valuables, but found only her wallet with the equivalent of 50p inside. The burglars then gave the woman all of their loose change... and left without taking anything. The victim handed the money, more than £1, to the police for fingerprint analysis.
Where has all the Ho, Ho, Ho gone?
Forty-seven year old Alan Parkin from South Yorkshire, has at this time of festivities and enjoyment, managed to upset his neighbours. How? Well it seems that he trimmed his outdoor Christmas tree in the shape of a ‘male appendage’. Alan from Penistone, teased his 10ft conifer into a phallic shape and decorated it with red and white lights. However, his jolly jape upset some of his neighbours and they complained to the police. One neighbour is reported to have said, "It's rather rude. There are children and teenagers about and I don't think it's good for them to see." Another remarked, "It's just obscene. We shouldn't have to put up with it." So, the police visited his home and asked him to remove the lights to make the tree less suggestive. Mr Parkin went all the way and gave the tree the snip. His defence was that it was just a laugh and said that if it offended anybody, he would be pleased to change the shape. “Tis the season to be jolly... tra la la, lala, la la.la la!”
BROKER RECOMMENDATIONS
Bridgewell has downgraded Bloomsbury Publishing (BMY.L) to neutral from overweight and RPC (RPC.L) to neutral from overweight.
The broker reiterates buy Advanced Medical Solutions (AMS.L) and says buy Anite (AIE.L), Trafficmaster (TFC.L) (target 75p) and Tribal Group (TRB.L).
Bridgewell has overweight on Global Energy Development (GED.L) and Keller (KLR.L), with neutral on Huveaux (HVX.L), Johnston Press (JPR.L) and Laird Group (LARD.L).
Citigroup says buy First Quantum (FQM.L) and Northgate Informational (NIS.L) (105p target, cutting forecasts).
Credit Suisse has upgraded Woolworths (WLW.L) to neutral from underperform and reiterates neutral on Rank Group (RNK.L).
Deutsche has downgraded Rank Group (RNK.L) to sell from hold (cutting the price target to 210p from 220p and reducing estimate) and says hold Pearson (PSON.L) (cutting the price target to 710p from 750p).
The broker has issued a note on UK Pubs, in which they say buy Greene King (GNK.L) and hold for Wolverhampton & Dudley (WOLV.L) (raising the price target to 1850p from 1350p).
Dresdner Kleinwort reiterates buy Davis Service Group (DVSG.L).
Goldman and says buy Pearson (PSON.L) and sell Lloyds TSB (LLOY.L).
The broker has downgraded Invensys (ISYS.L) to sell from neutral (raising the target to 24p from 21p and raising estimates) and says buy Go-Ahead Group (GOG.L) (raising the price target to 2450p from 2202p, raising estimates).
Goldman has neutral on Thus (THUS.L) (raising the price target to 185p from 150p, cutting estimates) and Xansa (XAN.L) (raising target to 86p from 77p).
HSBC reiterates neutral on Lloyds TSB (LLOY.L) (575p target).
KBC Peel Hunt says buy Ashtead Group (AHT.L) and Regus (RGU.L) and hold La Tasca (LAT.L).
Kepler Teather & Greenwood reiterates buy BP (BP.L) and says hold Royal Dutch Shell (RDSA.L).
The broker says buy City of London (CIN.L), La Tasca (LAT.L), Advent Capital (ADV.L), Sondex (SDX.L), Anite (AIE.L), ICM Computer (ICM.L) and Mondas (MDS.L) and hold Fuller Smith & Turner (FSTA.L) and Global Energy (GED.L).
Kepler Teather & Greenwood says reduce Carpetright (CPR.L).
Lehman reiterates underweight on Lloyds TSB (LLOY.L) (633p target) and has overweight on SABMiller (SAB.L) (raising the price target to 1230p from 1200p and raising estimates) and WPP Group (WPP.L).
Merrill has downgraded Quintain Estates (QED.L) and Workspace (WKP.L) to neutral from buy and reiterates buy Lloyds TSB (LLOY.L) (625p target).
The broker says buy Whitbread (WTB.L) (raising the target price 1800p).
JP Morgan has initiated coverage of Tomkins (TOMK.L) appending an underweight recommendation and a 215p target.
The broker is neutral on Smith & Nephew (SN.L) (459p target).
Morgan Stanley reiterates underweight on Centrica (CNA.L) (raising target to 310p from 300p).
Numis has upgraded PartyGaming (PRTY.L) to reduce from sell (23p target price ahead of tomorrow's statement).
Panmure Gordon reiterates sell Johnston Press (JPR.L), but prefers Daily Mail (DMGO.L).
The broker says buy Inspired Gaming (INGG.L) (300p target, after a meeting with the company) and reiterates hold Carpetright (CPR.L).
Panmure says buy Tinpolis (TIN.L) (50p target) and reiterates hold La Tasca (LAT.L).
The broker reiterates buy Fuller Smith & Turner (FSTA.L) (raising target to 1850p from 1750p).
UBS has upgraded Gallaher (GLH.L) to neutral from reduce and downgraded Chloride (CHLD.L) to neutral from buy.
The broker has neutral on Reuters (RTR.L) (raising the price target to 475p from 440p).
NEWS ROUND-UP
Last Night in New York shares closed higher after another outbreak of merger news, although some tried to invoke a note of caution, ahead of a Federal Reserve decision on interest rates. A rising dollar helped to lower crude oil prices, although falling energy shares has restrained any gains. The Dow closed up 20.99-points at 12328.48, the Nasdaq put on 5.50-points to 2442.86, while the S&P added 3.20-points to 1413.04.
On this day in:-
1989 - Great Britain began the forced repatriation of Vietnamese refugees from camps in Hong Kong.
1988 - A train crash at Clapham Junction, just outside London, killed 35 people and injured another 100.
1977 - In Great Britain, women were elected to the Jockey Club for the first time.
1969 - Greece withdrew from the Council of Europe, following charges of violating human rights.
1966 - Great British sailor Francis Chichester arrived at Sydney - half way in his bid to become the first man to sail solo around the world.
1964 - Kenya gained independence.
1963 - Kenya became a republic within the Great British Commonwealth.
1962 - US President John Kennedy proposed the setting up of a special hot line between the White House in Washington and the Kremlin in Moscow.
1955 - Great British engineer Christopher Cockerell patented the hovercraft.
1955 - Bill Haley and the Comets recorded 'See You Later, Alligator' at the Decca Recording Studios in New York.
1948 - Great Britain introduced national service for all men aged between 18 and 26.
1936 - China declared war on Japan.
1925 - The world's first motel opened in California, USA.
1917 - 540 were killed in a train crash in France.
1915 - The German built Junkers J1, the first all-metal airplane, made its maiden flight.
1913 - Leonardo Da Vinci's most famous painting, the Mona Lisa, which had been stolen from the Louvre Gallery in Paris, was found in the bedroom of a small hotel in Florence.
1911 - King George V and Queen Mary attended the ceremony to mark Delhi replacing Calcutta as the capital of India.
1908 - The start of the first Australian Rugby League tour of the British Isles.
1905 - Tsar Nicholas II of Russia granted Montenegro its own constitution.
1901 - The first transatlantic wireless message was sent 1,800 miles from Poldhu in Cornwall to St John's in Newfoundland, where it was received by the Italian inventor and engineer Gugliemo Marconi.
1894 - Japanese troops invaded Korea.
1804 - Spain declared war on Great Britain.
1787 - Pennsylvania became the second state of the United States of America.
1642 - Dutch navigator Abel Tasman discovered New Zealand.
