This Morning in London construction company Costain (COST.L) surprised the market by warning that it was likely to be in breach of certain banking covenants. Costain said that by taking the appropriate action now it would be able to move forward next year. Although caught off guard the market started to look at the bigger picture for the company and the shares have rallied from a low of 44.25p to stand 52.5p, off 12.25p. Tate & Lyle (TATE.L) wasn’t that much sweeter today either, after warning that margins were under increasing pressure. However, the market has performed quite well and climbed over 9-points, it has also slipped off over 13-point and at 11:37 the FTSE-100 was off just 1.3 at 6258.7.
You're not praying over there... You're not praying over there
According to the Vatican’s Holy See's Secretary of State, Cardinal Tarcisio Bertone, the Vatican may one day field a football team that could rival the top sides in Italy's powerful Serie A. He said, "I do not preclude the possibility that the Vatican, in the future, could put together a football team of great value, that could play on the same level as Roma, Inter Milan and Sampdoria." Bertone has never hidden his passion for football, and has commented on matches in the past when he was archbishop of Genoa. He has mentioned on several occasions the possibility of the Vatican fielding a team. At least there should be no swearing at the referee and some of the chants may have to be 'cleaned-up' too!
Well, they did say she had 9 lives!!
Ashes thought to be that of Joan of Arc may in fact actually belong to a cat. The ashes were discovered in 1867 and have been at a museum in Chinon, western France, but carbon-dating tests identified a cat's femur and rib bone in the ashes. Joan of Arc prevented a British invasion, before being burnt at the stake as a witch by the English in 1431 at the age of 19. Anthropologist Philippe Charlier revealed the discovery tallied with the medieval practice of throwing a black cat on a witch's pyre to appease the devil. As the femur is not burnt, just a bit charred, he said, "It maybe that we are just dealing with a passing pussy cat. The chances that we are dealing with the remains of the French heroine are diminishing." However, a spokesman for the French Catholic Church said that Joan of Arc's remains could well be there amid other things.
BROKER RECOMMENDATIONS
ABN has initiated coverage of Group 4 (GFS.L) appending a 230p price target.
Altium reiterates buy Arena Leisure (ARE.L) and says buy Innovation Group (TIG.L) and Panmure Gordon (PMR.L).
Arbuthnot says sell TDG (TDG.L) (219p target) and buy Costain (COST.L) (cutting the price target to 55p from 68p).
Bridgewell reiterates neutral on Cosalt (CSLT.L) and has neutral on Misys (MSY.L) (cutting estimates).
The broker has underweight on Provident Financial (PFG.L) and says buy Skyepharma (SKP.L).
Bridgewell is neutral on Senior.
Citigroup has issued a note on UK Housebuilders, in which they have downgraded Berkeley (BKG.L) to sell from hold, Bovis Homes (BVS.L) to hold from buy and Redrow (RDW.L) to hold from buy.
The broker says buy EMI (EMI.L), Sci Entertainment (SEG.L) and Star Energy (STAR.L) and sell Misys (MSY.L).
Citigroup says hold IMI (IMI.L) and Inchcape (INCH.L).
Credit Suisse has assumed coverage of Intertek (ITRK.L) appending an outperform recommendation and raising the price target to 930p from 755p.
The broker has upgraded Centrica (CNA.L) to outperform from neutral (raising the price target to 390p from 340p) and reiterates outperform on Petrofac (PFC.L) (raising the price target to 425p from 340p).
Deutsche says hold JJB Sports (JJB.L) (raising the price target to 230p from 200p) and has Carphone Warehouse (CPW.L) and Marks & Spencer (MKS.L) as its top picks in the General Retailers arena.
The broker reiterates hold Game Group (GMG.L) (raising the price target to 84p) and says hold United Utilities (UU.L) (750p target).
Deutsche says sell Trinity Mirror (TNI.L) (400p target) and hold HBOS (HBOS.L) (1090p target).
Evolution reiterates add Bateman Litwin (BNLN.L) (185p target) and says add Cairn Energy (CNE.L) (2000p target).
The broker says buy Petrofac (PFC.L) (410p target) and reduce Spirent (SPT.L) (56p target).
Evolution says buy Tate & Lyle (TATE.L) (920p target) and Wichford (WICH.L) (230p target).
HSBC has reinitiated coverage of LogicaCMG (LOG.L) appending an overweight recommendation and a 210p target.
KBC Peel Hunt says sell Costain (COST.L) and reiterates buy NCipher (NCH.L).
The broker says buy Senior (SNR.L).
Kepler Teather & Greenwood reiterates reduce Provident Financial (PFG.L) and says buy Petrofac (PFC.L), Soco International (SIA.L) and Gulfsands (GPX.L).
The broker says sell Cairn Energy (CNE.L).
Merrill has upgraded Smith & Nephew (SN.L) to buy from neutral and adds the stock to its Europe 1 list.
The broker reiterates buy Dana Petroleum (DNX.L) and says buy Premier Oil (PMO.L), Soco International (SIA.L) and Tullow Oil (TLW.L).
Merrill is neutrals on Burren Energy (BUR.L) and Venture Production (VPC.L) and reiterates buy Next (NXT.L) (raising the price target to 2100p from 1950p).
Numis has upgraded BHP Billiton (BLT.L) to buy from add (1385p target) and Whatman (WHM.L) to buy from add (327p target).
The broker has downgraded Costain (COST.L) to hold from add (66p price target), Greggs (GRG.L) to reduce from hold (3450p target) and says reduce Kingspan (KGP.L) (€15.50 target).
Panmure Gordon says buy Raymarine (RAY.L) and has upgraded Metal-Tech (MTT.L) to buy from hold (200p target) and says hold National Express (NEX.L) (1080p target).
Seymour Pierce has outperform on BT (BT.L) and Photo-Me (PHTM.L).
UBS reiterates neutral on McKay Securities (MCKS.L) (raising the price target to 490p from 420p) and says buy Barratt Developments (BDEV.L) and Carphone Warehouse (CPW.L).
NEWS ROUND-UP
Last Friday in New York shares closed higher on the day and for the week, as the Dow Jones set another record closing high, after hopes of a “Goldilocks Economy” and an interest rate cut in 2007 were revived by an unchanged presentation on consumer inflation. The Dow closed up 28.76-points at a record 12445.52 (during the day the index hit an intraday high of 12454), the Nasdaq added 3.35-points to 2457.20, while the S&P put on 1.60-points to 1427.09. On the week, the Dow Jones rose 1.1%, the Nasdaq gained 0.8%, while the S&P advanced 1.2%.
On this day in:-
1991 - In South Africa, Inkatha leader Mangosuthu Buthelezi announced his withdrawal from negotiations on ending apartheid.
1990 - In India, the Taj Mahal reopened to the public, after being closed to tourists due to secretarian fighting in the nearby city of Agra.
1956 - Japan was admitted to membership of the United Nations.
1952 - The first showing of the children's television programme 'The Flower Pot Men'.
1946 - Labour MP’s triumphantly sang The Red Flag (normally associated with communism) as the House of Commons voted to nationalise the railways, road haulage and the ports.
1927 - In China, Chiang Kai-Shek overthrew the Hankow Government.
1912 - Piltdown Man was discovered in Sussex. It was claimed to be the fossilised skull and remains of the earliest known European. But in 1953 it was proven to be a hoax, the skull was that of an orang-u-tan.
1903 - The USA-Panama Treaty placed the Panama Canal Zone in American hands in perpetuity for an agreed annual rent.
1890 - In Africa, Great British soldier and colonist Frederick Lugard occupied Uganda on behalf of the British East African company.
1865 - Slavery was officially abolished in the United States of America, with the ratification of the 13th Amendment to the Constitution.
1792 - In England, radical political writer Thomas Paine was tried for treason (in his absence) for publishing 'The Rights of Man' in which he supported the French Revolution and called for the abolition of the Great British Monarchy.
1559 - Queen Elizabeth I sent aid to the Scottish Lords to drive the French from Scotland.
