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Thursday, December 20, 2007
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Equity News
Dec 17 2007 3:17PM
STOCKS NEWS EUROPE-UK retailers down on Christmas trade jitters

STOCKS NEWS Reuters Results diary

Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

09:40GMT 17Dec2007-UK retailers plunge on Christmas trade jitters

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Shares in British general retailers fall sharply in early trade on downgrades amid signs they are suffering from poor trade in the crucial run up to Christmas.

Seymour Pierce analyst Andrew Wade downgrades Next <NXT.L> to "underperform" from "buy" and Debenhams <DEB.L> to "hold" from "outperform".

Debenhams falls 8.9 percent, Next falls 4.6 percent, Home Retail Group <HOME.L> falls 5.8 percent, DSG International <DSGI.L> falls 4.7 percent and Marks & Spencer <MKS.L> falls 2.6 percent.

"Those we see most at risk are the fashion retailers, big ticket and the commodity-type gift retailers," says Seymour Pierce's Wade.

Reuters Messaging rm://[email protected]

09:39GMT 14Dec2007-Reports of FSA probe, tepid research notes hit S. Life

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Shares in insurer Standard Life <SL.L> are down almost 6 percent in early trade, hit by lukewarm analyst research and a weekend report that the Financial Services Authority is investigating leaks of price sensitive information during the battle for rival Resolution <RSL.L>, analysts say.

Standard Life made a cash-and-shares bid for Resolution but pulled out last month, hit by market turbulence, handing the victory to unlisted rival Pearl, which had made a cash offer.

"Standard were rapped over the knuckles by the Takeover Panel during the sale, so people are afraid they could lose further face or be fined," one analyst says. "Though on the whole it would make little sense, since Standard Life was the last one that had anything to gain from Resolution's share price going up".

Separately, HSBC starts Standard Life with a "neutral" rating in research titled "inexpensive but unattractive".

At 0920 GMT, the stock is down 6 percent at 242.5p, underperforming a weak European insurance sector. The DJ Stoxx index of insurance shares <.SXIP> is down 2.5 percent.

Reuters Messaging: rm://[email protected]

08:15GMT 17Dec2007-European Shares fall on U.S. inflation fears

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European stocks drop in early trade, tracking falls in U.S. and Asian shares as strong U.S. inflation data dispel chances for another prompt interest rate cut by the Federal Reserve.

Banks are among the biggest losers, with HSBC <HSBA.L> down 1.1 percent and Royal Bank of Scotland <RBS.L> down 2 percent.

At 0805 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares is down 1.3 percent at 1,497.02 points.

Data on Friday showed the U.S. consumer price index jumped by the sharpest amount in more than two years in November. Stripping out food and energy prices, the core CPI advanced the most since January.

Reuters messaging rm://[email protected]

07:50GMT 17Dec2007-Pernod's CDS widen on Stolichnaya bid talk

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The cost of insuring the debt of Pernod Ricard <PERP.PA> against default rises after weekend media reports that the French wine and spirits group is close to buying vodka brand Stolichnaya. The Financial Mail reported on its Web Site that Pernod Ricard was close to acquiring Stolichnaya from Russia's SPI Group for 1 billion pounds ($2.03 billion).

Pernod Ricard is not immediately available for comment.

Five-year credit default swaps on Pernod Ricard widen 10 basis points to 110 basis points, according to Deutsche Bank prices.

Reuters Messaging rm://[email protected]

($1=.4931 Pound)

07:00GMT 17Dec2007-European shares set to drop on U.S. inflation fears

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European stocks are set to open lower, tracking a drop in U.S. and Asian shares after strong U.S. inflation data tempered hopes for another prompt interest rate cut by the Federal Reserve.

Financial bookmakers, or spread betters, in London expect Britain's FTSE 100 <.FTSE> index to open between 77 and 94 points lower, or down as much as 1.4 percent, the German DAX <.GDAXI> 95 to 109 points lower, or down as much as 1.3 percent, and the French CAC 40 <.FCHI> 68 to 90 points lower, or down as much as 1.5 percent.

Data on Friday showed the U.S. consumer price index jumped by the sharpest amount in more than two years in November. Stripping out food and energy prices, the core CPI advanced the most since January.

Macroeconomic data (GMT time):

0900 EZ RBS/NTC Comp PMI Dec

0900 EZ RBS/NTC Manuf PMI Dec

0900 EZ RBS/NTC Serv PMI Dec

1330 US Current account Q3

1330 US NY Fed mfg Dec

1800 US NAHB housing market index Dec

Company update:

Danisco Q2 <DCO.CO>

Informa PreClose Final Tr <INF.L>

Reuters messaging rm://[email protected]

Keywords: MARKETS EUROPE STOCKSNEWS

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