Sep 29 8:03 AM: *BROWN AIDE SAYS TOO EARLY TO SAY IF 2 PCT 2003 GROWTH FORECAST WILL BE CUT

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Sep 29 8:00 AM: *BROWN AIDE SEES PUBLIC SPENDING TO BE DIVIDING LINE OF NEXT GENERAL ELECTION

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Sep 29 7:59 AM: WTO postpones farming meeting indefinitely

GENEVA (AFX) - A WTO meeting on agriculture that was due to be held on Oct 6-9 has been delayed indefinitely, said Chairman of the Special Session of the Committee on Agriculture Stuart Harbinson in a statement. No more talks will take place until after the General Council meets on Oct 21-22, according to a WTO official. "Because of the Cancun deadlock, we will wait to see what the General Council says," he said. The next scheduled meeting of the farming committee is due to start the week of Nov 17. Agriculture is a major sticking point in the Doha round of trade negotiations. Developing countries are demanding that WTO nations that subsidise their farmers -- such as the EU, Japan and US -- reduce their support. Farmers in those countries are concerned their business would be hit by cheaper imports. dmh/bar/hd/jsa For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:58 AM: *BROWN AIDE SEES 'BILLIONS' OF STG TO FLOW FROM GOVT EFFICIENCY SAVINGS

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Sep 29 7:57 AM: *WAL-MART SEPT SAME-STORE SALES AT TOP END OF 3-5% RANGE

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Sep 29 7:56 AM: US convoy comes under fire in Fallujah, Iraq UPDATE

(Updating with confirmation from US military sources of one US death) BAGHDAD (AFX) - The US military confirmed that one American soldier was killed and one wounded in a bomb attack on a convoy near the town of Fallujah, west of Baghdad. A military spokeswoman said the convoy was attacked by an "improvised explosive device" in the town of Habbaniyah. In an earlier report from Fallujah, Iraqi police and US officials said a US convoy was attacked with at least one bomb, but they could not confirm witness reports of several casualties, some serious. Police officer Ismail Ibrahim said the convoy of three or four vehicles was attacked at about 10.00 am in the flash-point town 50 km west of Baghdad and that "the Americans opened fire blindly." Witnesses said they saw several US soldiers wounded, some seriously. A US soldier at the scene confirmed the attack but did not speak of any wounded. A local man, Khaled Abed, aged 32, reported three explosions and said a vehicle was damaged. He said he saw two badly wounded Americans carried into a truck. newsdesk@afxnews.com dp/ps/rak/cmr/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:55 AM: *BROWN AIDE SAYS GOVT TO RAISE REAL SPENDING EX-HEALTH BY 2.5 PCT/YR TO 2008

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Sep 29 7:54 AM: *BROWN AIDE SEES STRONG UK GROWTH, LOW INFLATION IN COMING MONTHS

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Sep 29 7:51 AM: SEC eyes Morgan Stanley mutual fund trades, report says

NEW YORK (AFX) -- Regulators are investigating possible insider trading by a pair of mutual funds at Morgan Stanley , The Wall Street Journal reported on Monday. The Securities and Exchange Commission is focused on the funds' purchases of Dean Foods Co. stock in March 2001, as the investment bank was advising a company that was negotiating to acquire Dean Foods, said the newspaper, which cited people familiar with the probe. The mutual funds under the microscope are Morgan Stanley Strategist Fund and Morgan Stanley 21st Century Trend Fund, the newspaper reported. The funds bought more than one million shares of Dean Foods days after a key meeting to discuss the possible acquisition of Dean Foods by Suiza Foods Corp. This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com. For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:38 AM: Amsterdam shares slightly higher early afternoon, led by Ahold, Aegon

AMSTERDAM (AFX) - Share prices were higher in quiet early afternoon trade, led by Ahold and Aegon, with US futures pointing to a slightly higher opening on Wall Street later this afternoon, dealers said. At 13.28 pm, the AEX index was up 2.78 points or 0.9 pct to 316.76, just off an intraday high of 317.46 after opening at 312.55. Government bonds traded narrowly mixed, while the euro was bid at 1.1405 usd. Ahold headed the list of gainers, up 3.2 pct to 8.31. The retailer is expected to release audited 2002 results later this week. Numico fell 0.09 to 18.04. Philips was up 0.40 to 20.46, ASML added 0.06 to 11.67 and ASMI gained 30.38 to 13.10. The SIA said global semiconductor sales were up 4 pct in August versus July and up 12.5 pct year-on-year. Third-quarter sales are stronger than normal, SIA said. On the midcap, Oce was down 0.17 to 12.40. Oce said it will cut 175 Dutch jobs, moving the assembly of printers and associated part purchasing to China and East Europe. Aegon led financials higher, up 0.29 to 10.69, on the back of a positive note on Benelux insurers from Deutsche Bank. The broker called Aegon top-pick in the region and said the insurer deserves a structural re-rating. Deutsche Bank upped its price target to 12.50 eur from 11.70. ING advanced 0.31 to 16.51 and ABN Amro lifted 0.16 to 16.16, while Fortis gave up early gains to fall 0.10 to 14.97. Deutsche Bank raised its price target on Fortis and ABN Amro, but lowered ING slightly due to the challenges ING faces in its core Dutch and US markets. Buhrmann was up 0.12 to 6.70 on renewed buying after Moody's upgraded the company's senior implied rating to Ba3 from B1 following the earlier sale of its Paper Merchanting division. KPN gained 0.08 to 6.57 as Goldman Sachs raised the stock to 'outperform' from 'in-line'. The broker said the Dutch government's recent sale of a 12 pct stake in KPN has "relieved a significant technical pressure on the stock." Other notable movers were Getronics, down 4.3 pct to 1.12 and KLM, up 2.9 pct to 10.45 ahead of eagerly awaited news of an alliance with Air France. amsterdam@afxnews.com mrk/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:37 AM: Madrid shares turn higher midsession on US futures, dollar gains; Jazztel up

MADRID (AFX) - Shares prices turned higher in light midsession trading, lifted by the strengthening US futures and dollar, though interest remained minimal with blue chips showing only small gains and TMTs mixed, with Jazztel surging 10 pct on stake building news, dealers said. At 1.15 pm, the IBEX-35 index was up 10.1 points at 6,819.5, after trading in a range 6,780-6,836, on light turnover of 448 mln eur, with put-throughs accounting for 10 pct. The IBEX-NM put on 4.4 to 1,780.9. The broad market opened flat, briefly moving lower in early deals, before turning higher over the morning as the US futures and dollar strengthened, with the German bourse's gains also lending support. "There's not a lot of confidence behind this move. Instead we're just tracking the US futures and Germany, with very little in terms of real buying interest," a salesman at a Spanish bank said. "The firmer dollar's providing some support, but with little in the way of key US data until tomorrow and later in the week, investors will be sidelined," he said. "Telefonica and Repsol are struggling to go higher, while SCH and BBVA are faring only a little better," he said, noting that "for the rest it's pretty mixed." Jazztel surged 0.04 euralthy capital gains, or leaving it with the option to sell to another oil major," an analyst at a European bank said. "Either way, SCH is in a win-win situation," he said, noting that "the only question mark concerns how the Spanish government, traditionally opposed to any move by Total to take control of Cepsa, reacts," he added. Among other energy stocks, Repsol added just 0.01 to 14.36, with investors reluctant to take positions amid concerns over a possible stock overhang in the wake of speculation that Pemex will soon sell its 5 pct stake. Endesa added 0.14 to 13.55, Iberdrola was up 0.08 at 14.74 and Fenosa put on 0.12 to 14.54, underpinned by JP Morgan's decision to upgrade to 'neutral,' raising its target price to 14 from 12. Among defensives, Altadis slipped 0.08 to 21.43, while Inditex lost 0.09 to 18.71, extending last week's losses as investor confidence remained fragile in the wake of the company's decision in the less than nine months to scale back expectations. Mapfre, also viewed as defensive, was up 0.17 or 1.84 pct at 9.41. Among small caps, Urbis added 0.02 to 6.63, off a high of 6.75, extending Friday's gains on press speculation that a bid for Banesto's 51 pct stake in the real estate company is imminent. TelePizza slipped 0.02 to 1.42, off a high of 1.46 on light profit-taking following recent outperformance on bid hopes. Travel stocks were mixed, with Iberia up 0.04 at 1.79, while Sol Melia was off 0.09 at 6.31 and NH Hoteles lost 0.06 to 9.84. afxmadrid@afxnews.com fb/wf

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Sep 29 7:34 AM: BG, partners sign sale contract for Egypt's Train 2 LNG project

LONDON (AFX) - BG Group PLC and its partners have signed the sale and purchase contract for the entire 3.6 mln tonnes of liquefied natural gas from the Train 2 project in Egypt. BG, through unit BG Gas Marketing Ltd, will acquire the Train 2 output which will be supplied to the group's Lake Charles import terminal in Louisiana, US. The 550 mln usd project is scheduled to start commercial operations in 2006, BG said in a statement. The contract will initially cover the Train 2 production but provides for volumes to be switched to the proposed LNG import terminal at Brindisi in Italy, which is being developed by BG and Enel. Its partners in the project include Malaysia's Petronas, Gaz de France and the government-owned Egyptian General Petroleum Corp and Egyptian Natural Gas Holding Co. mbe/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:30 AM: Aker Kvaerner's Roekke to inform Aker RGI board today on repaying loan -report

COPENHAGEN (AFX) - The board of Aker Kvaerner ASA majority shareholder Aker RGI ASA will meet this afternoon, to discuss how a loan made by Orkla ASA to a company owned by Aker Kvaerner chairman Kjell Inge Roekke is to be repaid, newswire NTB reported. Orkla loaned 600 mln nkr to Roekke's company Norway Seafood Holdings Group, and repayment of the loan is due on Sept 30 2003. According to Finansavisen, Roekke has apparently raised the money to be paid back. Banks have earmarked 600 mln nkr for Roekke's company, but the banks are hesitant to approve the payment, fearing the security of their loans, Finansavisen said. michael.delaine@afxnews.com mdl/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:29 AM: Sophia, Fonciere Lyonnaise share trading suspended ahead of statement - bourse

PARIS (AFX) - Euronext Paris said the trading of shares in both Sophia and Fonciere Lyonnaise have been suspended at the request of the two companies, ahead of a statement. Earlier this month, both Societe Generale and AGF said they were looking to sell their 27 pct stakes in Sophia. Sophia and Fonciere Lyonnaise are both property management companies. Sophia shares last traded today at 36.95 eur, while Fonciere Lyonnaise last traded at 32.60 eur. paris@afxnews.com js/vs

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Sep 29 7:28 AM: EU adopts regulation endorsing International Accounting Standards

BRUSSELS (AFX) - The European Commission said it has adopted a regulation endorsing International Accounting Standards (IASs), including related interpretations (SIC)s. In a statement, the commission said the regulation brings the use of IAS into force from 2005, under the terms of the general IAS regulation adopted by the European Parliament and the Council in 2002. The commission noted that IAS 32 and 39, which deal with the accounting and disclosure of financial instruments, are not included because they are currently in the process of being revised by the International Accounting Standards Board, in co-operation with European accounting experts. Commission spokesman for the internal market Jonathan Todd said the consultations on IAS 32 and 39 are still ongoing, but that this does not affect the application of the other standards. afxbrussels@afxnews.com jdy/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:27 AM: AFX Europe Summary - midday

European markets at midday LONDON (AFX) - Leading shares were near session highs midday clawing back some of the ground lost last week after a string of encouraging trading updates from SABMiller and Wolverhampton & Dudley, bolstered by indications of a stronger Wall Street opening, dealers said. At 12.02 pm, the FTSE 100 index was up 25.7 points at 4,182.8, just off a session high of 4,190.7.

FRANKFURT (AFX) - Share prices were firm in midday trade amid growing hopes surrounding Altana's pipeline potential respiratory blockbuster drug, with insurers and autos rebounding from last week's weakness, dealers said. At 11.36 am, the DAX 30 was at 3,346.91, up 22.06 points or 0.66 pct, having traded in a range of 3,312.51-3,356.91 points so far today. The MDAX was at 4,004.41, up 18.79 points or 0.47 pct, while the TecDAX was at 489.95, up 4.46 points or 0.92 pct. The DAX future was at 3,362.0, up 19.0 points or 0.57 pct, while the bund future was at 114.65, down 0.22.

PARIS (AFX) - Share prices were slightly higher at midday, with investors remaining cautious on concerns the benchmark index may have further downside risk following its 198.25 point decline over six straight sessions, dealers said. At 12.04 pm, the CAC-40 index was 17.68 points higher at 3,234.44.

MILAN (AFX) - Share prices were higher at midsession, supported by gains in Fiat and STM, brokers said. At 12.02 pm, the Mibtel index was up 0.47 pct at 25,272 points and the Mib30 up 0.41 pct at 18,813, The market opened lower, on the back of Wall Street's weak close Friday, before moving higher.

STOCKHOLM (AFX) - Share prices were slightly higher in early afternoon trade on bargain-hunting after last week's losses, with Ericsson leading the market higher after a 9 pct loss last week, dealers said. At 1.05 pm, the Stockholmsboersen All-Share index was up 0.43 pct at 176.77, while the Attract40 was down 0.19 pct at 52.54.

ZURICH (AFX) - Share prices moved slightly higher in late morning trade recovering from opening losses, with Swiss Re boosted by a favourable ruling in the WTC dispute, traders said. At 11.30 am, the Swiss Market Index was 25.90 points higher at 5,157.20, and the Swiss Performance Index was up 16.33 points at 3,700.59. The euro rose to 1.5406 sfr, while the dollar fell to 1.3488 sfr.

Top stories

LONDON (AFX) - Consumer credit growth accelerated in August, while mortgage lending hit a record high for the second straight month, the Bank of England said.

PARIS (AFX) - The French bourse regulator CMF said it approved Alcan Aluminium Ltd's 48.5 eur per share takeover offer for Pechiney SA.

LONDON (AFX) - Anglo American plc said it will invest 150 mln usd on the conversion and expansion of paper machine 1 (PM1) at its Merebank paper mill, in KwaZulu-Natal, South Africa.

LONDON (AFX) - HMV Group PLC, the music and Waterstone's book retailer that floated in May last year, said total group sales grew 1.8 pct in the first 21 weeks of its year to Sept 20, while like-for-like sales growth was 0.3 pct.

LONDON (AFX) - SABMiller PLC said group's financial performance in the five months to August was strong, with European, South African and Africa and Asian businesses delivering good earnings growth. The performances of its North and central American operations have been in line with its previously announced expectations, the company said in a trading update.

FRANKFURT (AFX) - Publisher Georg von Holtzbrinck GmbH & Co said it has found a buyer for its Der Tagesspiegel newspaper in Berlin, paving the way for Holtzbrinck's planned takeover of the Berliner Zeitung newspaper.

LONDON (AFX) - Wolverhampton & Dudley Breweries PLC said its performance for the year to date is in line with expectations and trading has been satisfactory in the second half of the year. Following a recent actuarial valuation, the group also announced a 2.5 mln stg increase in company contributions to the pension scheme with effect from Sept 1, 2003.

LONDON (AFX) - The UK's fourth largest mobile phone operator mmO2 PLC expects O2 UK to deliver service revenue growth in the mid-teens for the first half, but it is expected to slow significantly in the second half as the termination rate cuts imposed by the regulator take effect. The EBITDA margin during the first half period is progressing towards the full-year target of 30 pct, while reflecting the costs of growing the business.

STOCKHOLM (AFX) - Scandinavian Airlines System AB said it has signed a sale-leaseback agreement with the Danish company Keops to sell five office properties in Copenhagen. The transaction will provide a gain on sales in excess of 500 mln skr, release capital of approximately 1 bln skr and will reduce net debt by a similar amount, SAS said.

newsdesk@afxnews.com rak/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:24 AM: Brown says next spending round to 'lock in' higher spending for priorities

BOURNEMOUTH, England (AFX) - Chancellor of the Exchequer Gordon Brown pledged to set aside more money for the public services in next summer's Comprehensive Spending Review, despite growing concerns about the state of the public finances. In a speech to the Labour Party annual conference, Brown said the next spending round will "not only lock in the higher spending" delivered so far but "do more...with further increases in spending and investment for our priorities in the years to come." Over the last couple of years, Brown has put in increasing amounts of money into the UK's public services, just at a time the UK had to cope with the impact of the global slowdown. This has meant the public accounts have deteriorated substantially. Even the public sector net borrowing forecast made in the April annual budget of 27 bln stg this year looks unattainable. There have been growing indications that the Treasury is embarking on a very tight spending round ahead of next summer's Comprehensive Spending Review, with some forecasters predicting that government spending across the departments may even be cut in real terms. But Brown said the domestic economy is back on track and "will grow even stronger in the months to come". In April's budget he predicted UK GDP growth of 2.0-2.5 pct this year, only to be greeted by widespread scepticism among UK economists. Tomorrow's revisions to GDP data by National Statistics could give him an even better chance of meeting those projections. The Chancellor also promised help for the manufacturing industry given the sector can now operate with more favourable exchange rates and "world trade growing again". On the euro, Brown reiterated that the government would demonstrate to the public the benefits of membership "if we can achieve sustainable and durable convergence with the euro area". However, he added that the UK would seek reform of the euro zone's growth and stability pact. pp/fp/cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:23 AM: Iraqi child killed by US fire - hospital sources

KIRKUK, Iraq (AFX) - US forces killed a 10-year-old Iraqi child and wounded a 25-year-old man when they opened fire on hundreds of demonstrators who pelted them with stones in Hawija, west of Kirkuk, a hospital director said. Hussein Dakhil Ahmad was killed by US soldiers, said Dr Jassem Abdullah Jiburi at Hawija hospital, 50 km (31 miles) from the northern Iraqi city. He said that 25-year-old Meaad Abdullah was hit in the heart and transferred to a hospital in Kirkuk. The US army has not yet confirmed the report. The casualties occurred when around 500 protestors carrying portraits of ousted Iraqi president Saddam Hussein took to the streets of Hawija and began pelting US soldiers with stones, an Agence France-Presse correspondent at the scene said. newsdesk@afxnews.com str-hkb/rak

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Sep 29 7:20 AM: STOCKWATCH Richemont rebounds after Cartier presentation

ZURICH (AFX) - Compagnie Financiere Richemont SA shares recouped some of the past week's losses after the group outlined the new strategy at its flagship Cartier brand on Friday, analysts said. Richemont has lost ground ever since its Sept 17 AGM when its outlook guidance failed to reassure investors. At 1.06 pm Richemont was 0.2 sfr or 0.8 pct higher at 26.85 while the SMI rose 21.4 points or 0.4 pct to 5,152.7. Cartier is estimated to be behind 80-85 pct of Richemont's earnings and over half of its sales -- around 1.9 bln eur, analysts said. Cartier's new strategic programme seem to be on track - with more innovation and more frequent product launches in the future on top of a new store concept and greater emphasis on luxury lines in jewellery, said BNP Paribas' Aline Nguyen. "On paper, measures to relaunch the brand and the overall programme appear convincing" with new product lines in both jewellery and watches, said Oddo Securities' analysts. The risks surrounding the programme's implementation should not be underestimated, even if Cartier has the resources to turn itself around, they said. A shortened product life cycle for luxury goods, including Cartier's, however increases operational risks and raised marketing and promotion costs, CSFB analyst Neville Pike warned. The first results of the new Cartier strategy are expected as of 2004-2005, two years behind Bulgari's, said Exane Equity Research's Francoise Paumard. The first impact of the recently hired artistic director, Giampero Bodino, is forecast with the 2004-05 collections, she said. Unfortunately few figures regarding invested money, sales and margin targets and timing were given during the presentation, the analysts said. "Cartier merely said that the store renovations and product launches would require no additional capex or other spending (like marketing)" BNP Paribas' Aline Nguyen said. "In the medium to long term, the Chinese, Russian and Indian markets seem to hold a lot of potential for the brand," she said. Richemont will release its first half results to Sept 30 on November 13. zurich@afxnews.com de/wf

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Sep 29 7:18 AM: Euroshares post solid gains midday as Wall St expected to make solid rebound

LONDON (AFX) - European markets were higher midday as Wall St is widely expected to open in positive territory with many investors believing last week's sell-off was overdone, dealers said. At 12.10 the STOXX 600 was up 1.13, or 0.54 pct, at 212.82 and the STOXX 50 was up 12.94, or 0.53 pct, at 2458.28. Early indications suggest the DJIA will add more than 30 points at open after falling 3.5 pct last week. In contrast to last week, it will be a busy week on the economic front, with Friday's US labour market report and tomorrow's US consumer confidence and Chicago PMI the main macro pointers. Today will see the release of US personal income and consumer spending data for August. Personal income is seen rising by 0.3 pct in August, from July's 0.2 pct rise. Consumer spending is forecast to have jumped 0.8 pct in August, the same rate of increase reported in July. Things were quieter on the corporate front. The technology sector made solid advances with Nokia leading the pack -- up 3.588 pct -- after bullish comment in influential weekly Barron's and after the group's restructuring measures last week. Solid data and an optimistic outlook from the Semiconductor Industry Association also added to the optire unanimous that market leader Tesco has the most to benefit from the judgement, while they took a wait-and-see approach on the other supermarket stocks as the bidding for Safeway continues. UK trade and industry secretary Patricia Hewitt gave the green light to Bradford-based supermarket chain William Morrison Supermarkets to bid for the UK's fourth largest supermarket, on the condition it sells 53 Safeway stores in areas where local competition concerns arise. dlh/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 7:12 AM: *PACT ALLOWS PHONE NUMBERS BTWN NON-AFFILIATED CARRIERS

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Sep 29 7:10 AM: *PACT ALLOWS PHONE NUMBERS BTWN NON-AFFILIATED CARRIERS

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Sep 29 7:09 AM: Stockholm shares slightly higher early afternoon on bargain-hunting

STOCKHOLM (AFX) - Share prices were slightly higher in early afternoon trade on bargain-hunting after last week's losses, with Ericsson leading the market higher after a 9 pct loss last week, dealers said. At 1.05 pm, the Stockholmsboersen All-Share index was up 0.43 pct at 176.77, while the Attract40 was down 0.19 pct at 52.54. The OMX index climbed 0.40 pct to trade at 583.99. Total turnover amounted to 3.86 bln skr. The main indices moving this afternoon were healthcare, which was down 0.33 pct; technology hardware & equipment, which was up 3.20 pct; and telecommunication services, which was up 0.36 pct. Among the main individual movers within the indices, AstraZeneca was down 1.04 pct at 332 skr bid, Ericsson B up 3.48 pct at 11.90, and TeliaSonera was up 0.87 pct at 34.80. Among other heavily traded shares, SEB A was up 1.17 pct at 86.50, Hennes & Mauritz B down 0.56 pct at 179, and Sandvik down 0.68 pct at 217.50. hc/cmr







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Sep 29 7:08 AM: *NEXTEL, SPRINT COMPLETE NUMBER PORTABILITY AGREEMENT

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Sep 29 7:02 AM: Morgan Stanley Capital International Indices

In US dollars SEPT 26 SEPT 25 Europe 981.8 992.2 EAFE 1110.2 1119.1 World 912.2 918.9 In local currency France 1057.8 1064.4 Germany 414.1 414.7 Hong Kong 6058.1 6054.2 Italy 893.5 899.5 Japan 616.5 614.9 Spain 640.2 648.7 UK 1255.1 1268.7 USA 936.1 942.1



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Sep 29 7:00 AM: US Forex Trading Preview: At 8:30:00 AM US August Personal Consumption (exp 0.8%, prev 0.8%) US August Personal Income (exp 0.3%, prev 0.2%)

Dollar Breaks G7 Gloom, But Sentiment Stays Bearish

Last week's G7 communiqu urging more flexibility in foreign exchange rates added downward pressure on the dollar, as most traders viewed the move as a deliberate attempt by the US administration to weaken their currency. But the dollar staged a modest recovery this morning and should continue to find near term strength as it broke key trendline resistance against some of the major currencies this morning.

Gold added to last week's losses after reaching a new 7-year high at $393 and US equity futures also traded higher in London, following a sharp slide last week, which saw the S&P 500 end 50 points down from its most recent one year highs at 1040. Key support is seen at 960, while resistance remains at 1040.

While most market participants feel the dollar will continue to fall, it will become more troublesome to those countries that have already seen their currencies appreciate against the dollar. Therefore, the medium term outlook is for a weaker dollar, but once the greenback reaches new multi-year lows against the European and commodity currencies, a large rebound may be in store.

US and UK Pressured at Home Over Iraq

While the US stock market and the dollar may see a healthy bounce this week, near term weakness may lead to further questioning of the recovery now that more US troops are being required to deploy to Iraq. The US said on Friday it will activate 15,000 National Guard troops after president Bush's appeal at the UN for foreign military help fell on deaf ears.

UK PM Blair is having the same hard time at home and Chancellor of the Exchequer Gordon Brown said Blair's recent dip in popularity is in part attributable to the war in Iraq, But Brown continues to support Blair's decision to go to war in Iraq.

Nevertheless, pressure in the US over Iraq will likely gain momentum as evidence of the economic recovery is further called into question. This weekend, the census bureau said poverty rose and income levels declined in 2002 for the second straight year.

German Consumer Sentiment Stable

The German GfK consumer climate index rose to 5.0 in September from 4.6 in August. GfK said the German consumer climate is stable, but continues to lack dynamic development, meaning talk of a recovery would be premature.

EUR/USD

The dollar staged a mild recovery, but could add to its gains after breaking a month-long trend channel against the euro. EUR/USD broke trendline support at 1.1440 in London trade this morning. A probable development would be a retest of this trendline from the 1.0765 and 1.1140 September lows. Failure would indicate further weakness to come, targeting the 1.1240 support/resistance. Key resistance is seen at the 1.15 level followed by the July high of 1.1548. This level marks the 61.8% retracement of the 1.1930-1.0760 decline. Above here opens the way for the previous highs and support at 1.1550 and 1.1650 as it targets the 4-year high at 1.1930 in the coming weeks.

USD/CHF

The dollar rose above the 1.35 mark but resistance is seen at 1.3550 and the gap lower last Monday at 1.3650. A common feature of markets is to retest the gap. Failure here would retest the overnight low at 1.3410. Further support is seen at 1.3370. While the dollar does appear to want to make new multi-year lows, it will take a push below this level to confirm the bear trend. Today's session high of 1.3520 marks immediate resistance, followed by 1.3550 and 1.3650.

GBP/USD

Sterling fell sharply after cresting at 1.66 last week and struggling against a technically overbought reading after rallying 7 cents in five days. Last week we wrote that with near term momentum now rolling over to the downside a decline was likely. Support is seen at 1.6450 and 1.64. Below here targets 1.62. Only a sustained move above 1.66 will target the 1.6745 and 1.6905 highs.

USD/JPY

Japan MoF's Mizoguchi reiterated his warning on the forex markets saying the yen's recent ascent has been too strong, adding that the government will act appropriately as needed. Mizoguchi also said that given the relative strength of the US economy to Japan's, there is no reason for the yen to rise so sharply. Nevertheless, the BoJ has yet to show its hand in curbing the currency's steep ascent against the dollar leading traders to question where the government's threshold is.

The dollar fell back to recent 3-year lows just above 110.93 after another failure to hold the 112 level put added pressure on the pair. But traders are increasingly weary of Japanese intervention, stealth or overt, despite the lack of resolve. Support is seen at 110.90 and 110.65. Resistance is seen at 11200/30.

AUD/USD

The Australian dollar's break of trend line support at 0.6740 suggests further weakness in the near term after last week's 2-month high of 0.6835, failed to take out the previous 5-year high of 0.6845. Above here will likely take the Australian dollar to new 6-year highs targeting the 0.71 level. Support is seen at 0.6755 and 0.6735.

USD/CAD

The dollar overcame last week's highs at 1.3586 and rose to a session high of 1.3635, right at the 61.8% of the 1.33 to 1.4190 move. Further gains will target the 1.3675 mark, which is both the 38.2% Fibonacci retracement of the 1.4160 decline and the rising trendline resistance from last week's 1.3365 low. Above here meets additional resistance at 1.3765.

Last week the dollar rebounded strongly from lows at trendline support at 1.3370. A sustained move above 1.36 should add to recent gains, but while a relief rally could be in store for the dollar in the near term, it appears to be only a matter of time before the dollar falls to new 5 year lows below 1.33, opening the way for support at 1.3075 initially. (MGFG)

Sep 29 6:58 AM: Getronics denies in talks to swap preferred shares for ordinary stock

AMSTERDAM (AFX) - A spokeswoman for Getronics NV denied an analyst report that the company is in talks to swap its preferred shares for ordinary stock. According to a report from Fortis Bank, the company is negotiating a swap with pref share holders Aegon, ING and Fortis in order to further improve its balance sheet. Fortis analyst Sebastian Schriejen estimates such an exchange could lead to dilution of up to 60 pct. He noted that the shares could be seen as debt, with the dividend payments putting pressure on profit and cash flow at the company. Getronics spokeswoman Sytska Bregman said the company is not in talks with the pref share holders about a possible swap. At 12.50 pm Getronics shares were down 3.4 pct to 1.13 eur while the AEX index added 1 pct at 317.21. amsterdam@afxnews.com cjs/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:55 AM: *BROWN COMMITS TO FURTHER SPENDING RISES FOR PRIORITIES IN YEARS AHEAD

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Sep 29 6:54 AM: *BROWN REITERATES WILL CAMPAIGN FOR EURO MEMBERSHIP IF CONVERGENCE ACHIEVED

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Sep 29 6:53 AM: Deutsche Telekom applies to cut foreign call charges from Dec 1

BONN (AFX) - Deutsche Telekom AG's fixed line unit T-Com said it has applied with the telecoms regulator to lower charges for calls abroad for customers on 'AktivPlus' contracts from Dec 1. T-Com has been losing customers as a result of the liberalisation of the German telecoms market. scs/wf

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Sep 29 6:51 AM: UK's Hewitt set to work closer with unions to help manufacturing sector

BOURNEMOUTH, England (AFX) - The UK government is set to work closer with manufacturing unions to find ways to assist the beleaguered sector, said Trade and Industry Secretary Patricia Hewitt. In a speech to delegates at the annual conference, Hewitt said she wants to work "more closely" with trade unions to "better prepare" for the future. "That's why I've welcomed Kevin Curran's suggestion to get my department working with the GMB - and other trade unions - to help map the manufacturing skills we'll need in the future," she said. Unions have demanded a greater saying in forming a strategy to pull the sector out of the doldrums and Curran, the general secretary of the GMB, one of the UK's largest unions, has been in the forefront of this campaign. Earlier this month, the unions won a commitment from Prime Minister Tony Blair to be consulted on future reform in the public services. pan.pylas@afxnews.com pp/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:45 AM: LIBOR Fixings for dollar, sterling, euro

LONDON (AFX) - Libor interest rate fixings at 11.00 am BST from the British Banking Association.

Dollar 1 mth 1.12000 3 mths 1.16000 6 mths 1.18000 1 yr 1.29000

Sterling 1 mth 3.69500 3 mths 3.72250 6 mths 3.81781 1 yr 4.01875

Euro 1 mth 2.11175 3 mths 2.13038 6 mths 2.13250 1 yr 2.16375









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Sep 29 6:38 AM: Iran says enriched uranium found by IAEA inspectors was on imported equipment

TEHRAN (AFX) - A high ranking Iranian official has confirmed traces of highly enriched uranium were found in the country for the second time by UN inspectors but attributed the find to the contamination of imported equipment. The explanation for the discovery in August by inspectors from the International Atomic Energy Agency (IAEA) at the Kalaye Electric Company near Tehran was given on state television by Iran's ambassador to the IAEA, Ali Akbar Salehi. newsdesk@afxnews.com hj-sas/mb/rak/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:34 AM: SAS's Reitan says market has bottomed out, sees some growth this year

HELSINKI (AFX) - Scandinavian Airlines System AB's vice-CEO and chairman of the board Gunnar Reitan said the bottom of the slump in air travel has already been reached and he expects to see some growth during this year. "We feel that the bottom point has been passed, there are signs of growth going forward," Reitan said in a news conferenece in Helsinki. "Not large or significant growth, but we expect to see some growth in different markets over the latter part of the year," he said. Reitan said first responses to SAS's no-frills airline Snowflake, which currently flies from Denmark, and Swedem, have been good, but "its too early to comment on any expansion to new areas." tarmo.virki@afxnews.com tv/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:33 AM: Oil - Brent crude rises after Putin says Russia prepared to cut exports

LONDON (AFX) - Brent crude futures rose in late morning trade, boosted by comments by Russian President Vladimir Putin on Friday suggesting Russia is prepared to curb oil exports to support prices, analysts said. "The market is a bit stronger this morning after Putin said Russia is prepared to cut back oil exports," said Prudential Bache broker Christopher Bellew. He quoted Putin saying Russia is prepared to trim exports of crude if prices become "unfair." He said the Russian President's comments were made in New York on Friday. Russia is the world's second largest oil producer, with output of over 8 mln barrels per day (bpd), or 10 pct of global production. Bellew suggested the comments were aimed at satisfying the domestic Russian market, but had nevertheless boosted global prices. At 11.27 am, November-dated Brent futures were up 33 cents at 26.97 usd a barrel. Putin's comments follow last week's meeting of the Organisation of Petroleum Exporting Countries (OPEC), which announced a surprise cut in its output ceiling of 900,000 bpd from Nov 1. The cut has been seen as a pre-emptive measure to avoid prices falling below the group's preferred 22-28 usd a barrel price range, and a move intended to keep Western oil inventories low. Barclays Capital analysts said Putin's comments signify that "Russia may be prepared to shoulder its share of the burden in helping to tailor crude oil supply to demand early next year." "He emphasised that via its control of oil pipelines and railways the Russian government possessed the instruments required to cut oil export levels," the wrote in a note to clients. Despite Putin's hint that exports may be trimmed, Russia is set to become a more important supplier to the US market longer term. At a meeting with senior business executives at the New York Stock Exchange, the Russian leader said that his country's booming oil output could supply 10 pct of US crude imports within five to seven years. For the moment, Russia lacks the means of shipping its exports to the US and has none of the infrastructure needed to load supertankers. The US, the world's largest oil importer, wants to build up its purchases of Russian crude, currently insignificant, to diversify its sources of supply and reduce its dependence on the volatile Middle East. frank.watson@afxnews.com fw/wf

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Sep 29 6:28 AM: UK Aug net new consumer credit 1.6 bln stg vs 1.5 bln in July

LONDON (AFX) - Consumer credit growth accelerated in August, while mortgage lending hit a record high for the second straight month, the Bank of England said. UK net new consumer credit totalled 1.58 bln stg in August, up from 1.51 bln in July on a seasonally adjusted basis, the Bank reported. The net expansion in consumer credit last month is in line with the expectations of UK economists. The acceleration in credit growth came as credit card lending expanded a net 747 mln stg in August, after rising 699 mln in July. Net lending secured on dwellings totalled 7.71 bln stg in August, down from 8.21 bln the previous month. Total net lending -- including both lending secured on dwellings and consumer credit -- amounted to 9.29 bln stg, down from 9.72 bln in July. On a percentage basis, total net lending rose 1.0 pct in August from the previous month, for the smallest increase since June 2002. The BoE also reported that the value of approvals of new mortgage loans rose to a record high of 27.55 bln stg, compared with 25.98 bln in July, which was the previous record. The number of loan approvals for house purchases rose to 120,000 in August -- the highest level since October 2002 -- from 112,000 in July. The full August credit report will be posted at the following website: www.bankofengland.co.uk chris.anstey@afxnews.com cxa/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:27 AM: ROUNDUP HMV says strong DVD release schedule points to good Christmas

LONDON (AFX) - HMV Group PLC, the music and Waterstone's book retailer that floated in May last year, reckons a particularly strong line-up of scheduled DVD releases means it is well placed to trade strongly this Christmas. Despite a relatively dull second quarter when sales were hit by the phenomenally hot August weather, chief executive Alan Giles said his confidence in a good festive performance is underpinned by a DVD offer that includes Matrix Reloaded, Pirates of the Caribbean, The Hulk, Terminator 3, the Indiana Jones trilogy and the second series of The Office. He said the music offer this Christmas is also robust with new albums out today from Robbie Williams and Dido and new releases later in the season from artists including, Kylie, Travis and Blue, plus 'best of' offerings from Michael Jackson, REM and Red Hot Chili Peppers. Although there are no Christmas blockbusters on the book front new titles from a host of best selling authors are scheduled, Giles explained. These include new books from Patricia Cornwall, Stephen King, and John Le Carre as well as What Not to Wear Part 2 from style gurus Trinny Woodall and Susannah Constantine. "We're looking eat this financial year," Citigroup Smith Barney told clients in a note. By 11.15 am, shares in HMV Group, which floated at 192 pence last May, were up 5-1/4 pence, or 3 pct, at 165-1/2, valuing the company at 667.4 mln stg. The group will report interim results on Jan 15, 2004. james.davey@afxnews.com jdd/ra For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:24 AM: Asian bourse roundup

BEIJING (AFX-ASIA) - Asian closing stockmarket indices:

-Bangkok: SET index 580.93 (up 0.06 pts) -Bombay: BSE-30 index 4,400.32 (up 17.75 pts) -Hong Kong: Hang Seng index 11,141.28 (down 148.87 pts) -Jakarta: Composite index 597.140 (down 2.700 pts) -Kuala Lumpur: KLSE Composite index 736.16 (down 6.06 pts) -Manila: Composite index 1,310.36 (down 3.49 pts) -Seoul: Composite index 696.06 (down 1.34 pts) -Shanghai: A index 1,436.38 (down 16.47 pts) B index 98.54 (down 0.09 pts) Composite index 1,355.34 (down 15.51 pts) SSE-180 index 2,597.88 (down 30.88 pts) -Singapore: Straits Times index 1,628.71 (up 1.17 pts) -Sydney: S&P/ASX 200 3,164.30 (down 7.20 pts) All Ords 3,170.30 (down 5.40 pts) -Taipei: Weighted index 643.50 (down 6.61 pts) -Tokyo: Nikkei 225 index 10,229.57 (down 88.87 pts) -Wellington: NZSX50 index 2,270.59 (down 3.62 pts)

ivy.cheng@xfn.com ic/wpf

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Sep 29 6:23 AM: Iran rejects any curbs on its civilian nuclear programme

TEHRAN (AFX) - Iran will not accept any restrictions on how it uses civil nuclear technology, and rejected international demands for tougher safeguards on the Islamic republic, government spokesman Abdollah Ramezanzadeh said. newsdesk@afxnews.com hj-sas/rak/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:21 AM: Bank of Italy 7-yr T-cert auction 203 pct oversubscribed, yield falls

ROME (AFX) - The Bank of Italy said its auction of 7-year treasury certificates (CCTs) was 203 pct oversubscribed while the yield fell from the previous auction. The price established was 101.29 for a gross yield of 2.10 pct compared with 2.21 pct previously. The bank said it received 6.063 bln eur worth of bids for the 2.0 bln on offer. The exclusion price was 99.355, below which no bid was accepted. nt/vs

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Sep 29 6:19 AM: Iceland's Kaupthing buys stake in Finland's Norvestia in 62.6 mln eur deal

HELSINKI (AFX) - Kaupthing Bunadarbanki said it has acquired a majority stake in Norvestia Oyj from Swedish Havsfrun AB for 33.2 mln own shares valued at approximately 62.6 mln eur. The majority stake consists of 300,000 unlisted Norvestia A shares and 1,249,617 listed B shares and represents 54.44 pct of votes and 30.35 pct of shares, it said. Kaupthing said it has no further intentions to increase its stake in Norvestia. To further improve its position in Finland, Kaupthing intends to apply for a banking license for its Finnish subsidiary Kaupthing Sofi and change its name to Kaupthing Bank Finland, it said. Havsfrun will own 7.5 pct of Kaupthing shares after the transaction. tarmo.virki@afxnews.com tv/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:17 AM: Bank of Italy 10-yr T-bond auction 33 pct oversubscribed, yield falls

ROME (AFX) - The Bank of Italy said its auction of 10-year treasury bonds (BTPs) was 33 pct oversubscribed while the yield fell from the previous auction. The price established was 101.17 for a gross yield of 4.14 pct compared with 4.30 pct previously. The bank said it received 3.329 bln eur worth of bids for the 2.5 bln on offer. The exclusion price was 99.325, below which no bid was accepted. nt/wf

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Sep 29 6:15 AM: Qualcomm buys Alcatel Mobicom assets

NEW YORK (AFX) -- Qualcomm said it bought the assets of Alcatel unit Alcatel Mobicom, which provider of mobile satellite data communications services for the European trucking market. Financial terms were not disclosed. Qualcomm's European wireless business unit, headquartered in The Netherlands, will now support Alcatel Mobicom's customers. Qualcomm shares closed Friday down $1.24 at $41.65 and Alactel's U.S.-listed shares slipped 16 cents to $11.69. This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com. For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:14 AM: Paris shares slightly higher midday as investors brace for further correction

PARIS (AFX) - Share prices were slightly higher at midday, with investors remaining cautious on concerns the benchmark index may have further downside risk following its 198.25 point decline over six straight sessions, dealers said. At 12.04 pm, the CAC-40 index was 17.68 points higher at 3,234.44. Volume at 776 mln eur was well below the recent midday average. On the Matif, September CAC-40 futures were trading 17.5 points higher at 3,234. The euro stood at 1.1417/21 usd compared with 1.1486/92 late Friday. Dealers said a shortage of new input kept many investors on the sidelines ahead of US income and spending data due out later today. "We're seeing some bottom fishing with a number of stocks now slipping into an area where in pure value terms they're worth buying. Unfortunately there are widespread worries the market still has some downside risk," said one Paris dealer. Many of the shares posting gains today were among the leading fallers in last week's more than 5 pct decline. Among technology shares, Alcatel was up 0.34 eur, or 3.3 pct, at 10.53, Thomson rose 0.26 to 15.78, and STMicroelectronics was 0.39 higher at 21.48. Schneider Electric added 0.90 to 46.60. Le Parisien reported over the weekend thshare cash if more than 95 pct of Pechiney shareholders accept the bid. The EU Commission is expected to announce the results of its Phase I competition ruling on the merger today. Alcan has said its takeover offer for Pechiney will be void if the Commission does not grant Phase I approval. On the negative side, Galeries Lafayette was down 1.80 at 123.20, pressured by cautious broker comment following the company's first half results announced Friday, dealers said. Vivendi Universal was 0.07 lower at 15.77, Pernod Ricard declined 1.55 to 82.95, France Telecom slipped 0.04 to 20.69, while its Orange mobile phone unit was 0.04 lower at 9.07. paris@afxnews.com dl/bam For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:13 AM: Bank of Italy 3-yr T-bond auction 66 pct oversubscribed, yield falls

ROME (AFX) - The Bank of Italy said its auction of three-year treasury bonds (BTPs) was 66 pct oversubscribed while the yield fell from the previous auction. The price established was 100.24 for a gross yield of 2.68 pct compared with 2.86 pct previously. The bank said it received 3.317 bln eur worth of bids for the 2.0 bln on offer. The exclusion price was 98.296, below which no bid was accepted. nt/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:12 AM: Asian money markets summary

BEIJING (AFX-ASIA) - Asian late money market rates (vs previous close):

-Bangkok: overnight rate 1.125 pct (1.125) -Hong Kong: 3-month HIBOR rate 0.4375 pct (0.84375) overnight rate 0.3125 pct (0.4375) -Jakarta: overnight rate 5.82889 pct (5.92168) -Kuala Lumpur: 3-mth KLIBOR bid/ask 2.85/2.87 pct (2.86/2.88) overnight rate 2.70/2.72 pct (2.70/2.73) -Manila: overnight rate 6.8125 pct (6.8125) -Seoul: 3-yr corporate bond yield 5.05 pct (5.10) 3-yr state bond yield 4.11 pct (4.18) -Singapore: avg overnight rate 0.60274 pct (0.63694) 3-month SIBOR 0.80073 pct (0.79008) -Sydney: 90-day bank bill rate 4.893 pct (4.905) -Taipei: avg overnight rate 1.021 pct (1.021) -Tokyo: unsecured overnight rate 0.001 pct (0.001) 3-month TIBOR 0.09500 (0.08000)

ivy.cheng@xfn.com ic/wpf

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Sep 29 6:11 AM: GPC Biotech initiates Phase III trial for prostate cancer drug satraplatin

MUNICH (AFX) - GPC Biotech AG, in which Altana AG has an 8.3 pct stake, said it has initiated the Phase III registrational trial of its prostate cancer drug satraplatin as planned. The trial, which is called SPARC, evaluates satraplatin together with prednisone as well as prednisone alone as a second-line chemotherapy regimen for treating patients with hormone-refractory prostate cancer, GPC Biotech said. Following the start of the trial, GPC Biotech will pay 1 mln usd to Spectrum Pharmaceuticals Inc and will purchase Spectrum shares worth 1 mln usd, it added. Satraplatin has an annual peak sales forecast of 500 mln usd, the company said earlier. peter.dinkloh@afxnews.com din/vs

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Sep 29 6:10 AM: Milan shares higher at midsession, led up by Fiat, STM

MILAN (AFX) - Share prices were higher at midsession, supported by gains in Fiat and STM, brokers said. At 12.02 pm, the Mibtel index was up 0.47 pct at 25,272 points and the Mib30 up 0.41 pct at 18,813, The market opened lower, on the back of Wall Street's weak close Friday, before moving higher. Fiat was up 1.60 pct at 7.0 eur. Brokers pointed to foreign funds buying into the stock on the possibility of a recovery in the auto sector. Fiat's market share in Italy and Europe has recovered in the last months, one broker said. STM was up 1.65 pct at 21.5. Yesterday's country-wide electricity power cut had some impact on energy stocks, though brokers expressed differing views on the market impact. One analyst said ENEL will gain from political pressure to build more power stations and from easier investment rules in the grid sector. Another broker said the impact is zero for ENEL's figures since the government won't approve tariff hikes to fund power station investment. ENEL was up 0.54 pct at 5.43 and Edison, which the analyst said is building more plants than ENEL, was up 0.29 pct at 1.37. AEM, which is also building plants, was up 0.37 pct at 1.34. ENI was up 0.03 pct at 13.29. In the banking sector, Capitalia was up 0.85 pct at 2.145 on prospects for a new shareholder pact. BNL rose 0.30 pct at 1.685, giving up larger earlier gains made on weekend reports of buying interest. BMPS fell 0.82 pct at 2.405 after reported efforts by BNL investor Danilo Coppola, a Roman property magnate, to link up with BMPS to win a BNL board seat. Unicredito was up 0.34 pct at 4.12 and Banca Intesa down 0.04 pct at 2.695. RAS rose 0.84 pct at 13.38 ahead of next Monday's announcement of a new three-year business plan, which is attracting analyst interest. Generali rose 0.75 pct at 19.78. Telecom Italia was up 0.14 pct at 2.185 ahead of any comments from a news conference by its wireline chiefs. Alitalia rose 1.36 pct at 0.291 ahead of a board meeting this evening on alliances with other airlines. Bulgari added 1.99 pct at 7.07 after upbeat comments from CEO Francesco Trapani on new products and marketing efforts. nt/wf

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Sep 29 6:09 AM: Alcatel sells mobile satellite systems provider Mobicom to Qualcomm; no terms

PARIS (AFX) - Alcatel SA said its Alcatel Space unit sold Mobicom -- a European mobile satellite data communications systems and service provider -- to Qualcomm Inc. Alcatel did not disclose financial terms. paris@afxnews.com sr/wf

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Sep 29 6:08 AM: France Telecom refuses comment on US backbone plans, denies Equant buyout

PARIS (AFX) - France Telecom SA refused to comment on a report that it is looking for partners for its US network backbone, but it denied any plans to buyout the 46 pct of Equant that it does not already own, also reported by the Lettre de l'Expansion newsletter today. Regarding Equant, the newsletter said France Telecom may transfer ownership of its European and Asian backbones to Equant, in exchange for a larger Equant stake, which could be the first step in a total buyout of minority stakes. "France Telecom denies any plans to absorb (Equant). This issue is not currently on the agenda," said company spokesman Bruno Janet. Janet refused to comment on the report that France Telecom may close its North American network backbone. The Lettre de l'Expansion said France Telecom's American infrastructure is losing 50 mln eur annually, and said the company would prefer to shut down the backbone and instead either find a partner such as Sprint, or else acquire a US-based operator. paris@afxnews.com js/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:03 AM: BASF chairman says current order levels not yet indicating required upswing

FRANKFURT (AFX) - BASF AG chairman Juergen Hambrecht said that current order levels are not yet indicating the upswing needed for the chemicals group to post full year operating profit at last year's level. Speaking in an interview with Tagesspiegel, Hambrecht echoed comments made at the beginning of August that the company "will have problems" posting full year operating profit at last year's level if there is no upswing. And he is "not seeing any upswing in our order books yet," the paper cites him as saying. Hambrecht also reiterated that the company expects third quarter operating profit to be below the year-earlier level on flat sales. "We are not particularly optimistic (for the third quarter). Sales will be around the year-earlier level and earnings below," Hambrecht said. A BASF spokeswoman clarified that earnings refers to operating income. scs/din/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 6:00 AM: Asian economic and corporate news summary

BEIJING (AFX-ASIA) - A summary of Asian economic and corporate news at 1000 GMT:

JAPAN: -Aug auto output drops 5.6 pct yr-on-yr; exports fall 3.4 pct - JAMA -Aug chip manufacturing equipment orders surge 69.4 pct year-on-year -Japan mail-order auto insurance sales 'skyrocketing' - Nikkei -Japan, SKorea, US officials meet in Tokyo on NKorea nuclear crisis

-Tokyo Gas raises H1 group net profit forecast to 22 bln yen from 17 bln -Meiji Seika FY03 group net profit forecast cut to 1 bln yen from 4 bln -Tokyu Dept Store widens FY group net loss forecast by 6.9 bln yen -Japan Tobacco to liquidate hotel subsidiary in year to March 2004 -Aozora Bank chief plans management changes, restructure balance sheet -Idetmitsu expects to revise down corporate earnings on fires

SOUTH KOREA: -Roh says he will quit MDP after mass defection of supporters -Bank of Korea sees 2003 current a/c surplus significantly exceeding 2 bln usd -Aug industrial output up 1.5 pct yr-on-yr vs rise 0.7 in July -Aug avg bank deposit interest rate 3.94 pct vs 4.09 -Aug current account surplus 1.39 bln usd vs 425.9 mln in July -Aug gross shipments up 1.2 pct yr-on-yr vs rise 1.4 in July -Aug industrial output up 3.4 pct mth-ility -Qantas appeals regulator opposition to Air NZ alliance -Westfield Holdings names Stefanovski deputy CFO

ivy.cheng@xfn.com ic/wpf

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:54 AM: Slovak August PPI down 0.2 pct vs July, up 8 pct yr-on-yr

BRATISLAVA (AFX) - The producer price index in the Slovak Republic declined 0.2 pct in August compared with July and was up 8 pct from the year-earlier level, the Slovak statistics office said. The new data indicated a continued easing of producer prices in Slovakia. The July PPI was up 0.2 pct from the previous month and up 8.2 pct from the previous year. Electricity, gas and heating prices, which are de-regulated in Slovakia, rose 17.8 pct from August 2002 but were just 0.1 pct higher than in July. In the first eight months of this year, producer prices gained 8.3 pct compared with the year-earlier period. FX/ir/cmr

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Sep 29 5:53 AM: STOCKWATCH Aker Kvaerner shares rise on restored confidence in chairman Roekke

OSLO (AFX) - Aker Kvaerner shares rose in early morning trade on restored market confidence that chairman Kjell Inge Roekke will manage to raise the money needed for his Norway Seafood Holdings group to pay back a 600 mln nkr loan to Orkla by the due date Sept 30. At 11.30 am Aker Kvaerner shares were up 4.00 to 98.00, while the OSEBX benchmark index was up 1.4 at 144.59. Today's rise in Aker Kvaerner shares turns the trend from last week, when the shares fell steadily after Orkla issued a warning that it would demand payment from Roekke personally, as Norway Seafood's owner, if the company fails to repay a loan. The statement was made after Orkla received a warning from Norway Seafoods that it may not repay the loan granted by Orkla. An analyst who declined to be named said that Roekke has managed to restore the market's confidence in him. "I believe there will be a last-minute solution to the situation," he said, adding that he is adamant Roekke will manage to raise 600 mln nkr by the deadline. Another analyst said he was sure the two parties would come to an agreement, whether this means Roekke pays back the loan in full, or whether Orkla agrees to a new payment plan. "There are too many companies implicated in this situation, so an amicable solution is preferable to all parties," he said. elisabeth.dalseg@afxnews.com ebd/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:50 AM: EU to announce decision on Alcan acquisition of Pechiney this afternoon

BRUSSELS (AFX) - The European Commission said it will announce its decision on Alcan Aluminium Ltd's acquisition of Pechiney this afternoon. The commission said that no decision has yet been reached on the deal, despite reports it has been conditionally cleared by the authorities. afxmadrid@afxbrussels ed/jdy/wf

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Sep 29 5:49 AM: Precious Metals Summary - London AM Fixings

Gold AM fix 379.85 USD 381.85 USD overnight

Gold AM fix 230.37 STG 228.75 STG overnight

Silver morning 5.12 USD 5.15 USD overnight

Silver morning 311.00 pence 309.0 pence overnight

Platinum AM fix 702.00 USD 705.50 USD overnight

Platinum AM fix 425.74 STG 422.63 STG overnight

Palladium AM fix 208.00 USD 211.00 USD overnight Palladium AM fix 126.14 STG 126.40 STG overnight

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Sep 29 5:48 AM: Vodafone UK to give customers wireless web connection via BT Openzone network

LONDON (AFX) - Vodafone UK Ltd said it has signed a deal with BT Openzone that will enable it to provide its customers with a Wireless LAN (Local Area Network) service through the BT Openzone public wireless LAN network. Vodafone UK said the deal will complement its existing wireless offerings by allowing its customers to access the Web and their corporate LANs through BT's network of Wireless LAN hotspots. It intends to introduce its wireless LAN service early next year. bam For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:47 AM: German shares ahead late morning, led by Altana and rebounding insurers, autos

FRANKFURT (AFX) - Share prices were firm in midday trade amid growing hopes surrounding Altana's pipeline potential respiratory blockbuster drug, with insurers and autos rebounding from last week's weakness, dealers said. At 11.36 am, the DAX 30 was at 3,346.91, up 22.06 points or 0.66 pct, having traded in a range of 3,312.51-3,356.91 points so far today. The MDAX was at 4,004.41, up 18.79 points or 0.47 pct, while the TecDAX was at 489.95, up 4.46 points or 0.92 pct. The DAX future was at 3,362.0, up 19.0 points or 0.57 pct, while the bund future was at 114.65, down 0.22. The euro last traded at 1.1421 usd, compared with 1.1417 usd in early London trade. Dealers said that trading volumes were fairly thin this morning as investors braced themselves ahead of a raft of economic data from both sides of the Atlantic this week -- mindful of how disappointing US consumer sentiment data weighed on US equity markets on Friday. Altana stood out as the main large-cap gainer, adding 1.78 eur or 3.44 pct to 55.57, as analysts gave the thumbs up to data released by the pharma group yesterday which found its respiratory drug Roflumilast to be well tolerated in a Phase III clinical trial involving 1,400 patients. WestLB subsequently upgraded its stance on the group to 'buy' from 'outperform', with its price target rising to 65 eur from 58. "After attending the ERS (European Respiratory Society) meeting in Vienna yesterday (where latest Roflumilast Phase III pivotal trials data in asthma and chronic obtrusive pulmonary disease, or COPD, has been published and discussed), we are even more optimistic about Roflumilast coming to the market than we had been before," Merrill Lynch said, reiterating its 'buy' stance on the stock. Insurers were in recovery mode after the Wall Street Journal reported that a federal appeals court ruled that three insurers of the destroyed World Trade Center complex are bound by documents that define the Sept 11, 2001 terror attacks as a single occurrence requiring only one payment. The ruling marks a major setback for the Trade Center's leaseholder, Larry Silverstein, and the government agencies hoping that more than the 3.5 bln usd face value of the Trade Center's insurance policy would be available for rebuilding Ground Zero. Allianz, up 1.82 at 77.65, was bolstered further after Merrill Lynch upgraded its stance on the insurance stock to 'neutral' from 'sell' on valuation grounds. Munich Re traded up 1.48 at 88.30. An easing of the eur/usd cross prompted a recovery among autos from last week's weakness, with BMW up 0.77 at 33.92, while DaimlerChrysler gained 0.60 to 31.30 and VW firmed by 0.57 to 40.13. Porsche, which is not listed on the DAX, gained 4.50 to 371.00 on a report in Der Spiegel that the carmaker's full-year pretax profit to end-July rose 14.6 pct on the year to 950 mln eur, which is in line with the range of 916.2 mln eur to 1.020 bln eur pegged by analysts. Infineon rallied by 0.12 to 11.48, as strong global August chip sales data took the sting out of Deutsche Bank's cut on the stock to 'hold' from 'buy'. Siemens gained 0.59 to 52.54. Bucking the trend, traditionally defensive utilities were out of sorts, with RWE down 0.22 at 23.10, while E.ON lost 0.25 to 42.40. Deutsche Boerse lost 0.26 to 44.49, while Bayer traded off 0.23 at 18.91. Over on the TecDAX, Draegerwerk lost 1.83 to 37.00, while Jenoptik lost 0.32 to 8.87. joe.brennan@afxnews.com jcb/cmr













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Sep 29 5:44 AM: UK consumer confidence unchanged at -3 in Sept from Aug - GfK UPDATE

(Adds details thoughout)

LONDON (AFX) - The UK consumer confidence index was unchanged at -3 in September from the previous month, according to the latest monthly survey from Martin Hamblin GfK. The Sept reading is below the recent average of zero. "It comes after some considerable improvements after the end of the Iraqi war but a small drop last month," GfK said. Within the detail, respondents were more optimistic over the development of personal personal finances and the general economic situation in the UK. But fewer believe that now is the time to make major purchases Roger Wright, Director of Martin Hamblin GfK, said: "After some big changes in the overall confidence figure before and after the Iraqi war period, the overall scores, although still relatively low, seem to be stabilising more. Consumers still show some reticence about making major purchases." The GfK consumer confidence index is carried out on behalf of the European Commission. sivakumar.sithraputhran@afxnews.com ss/lam

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Sep 29 5:42 AM: Laurel teams up with Morgan Stanley, Cinven to bid for S&N pubs - source

LONDON (AFX) - The privately-owned Laurel pub company is still in the auction for the 2.5 bln stg pub estate put up for sale by brewer Scottish & Newcastle PLC, sources close to the deal told AFX News. Laurel was thought to have shelved its interest after splitting with financial partner Nomura. However, according to the source Laurel is "in play and on track" to submit a bid for the 1,450-strong chain of hostelries, but this time it is backed by the private equity group Cinven and US investment bank Morgan Stanley. Contrary to reports and rumours, Paribas Affaires Industrielles, the French private equity firm, won't be joining the consortium. "They (Laurel's managers) believe they are in pole position to win this and they said all along they wanted to work with the strongest team," the source said. "They are fully-funded and are absolutely in line with a time scale that's been agreed with S&N." It is still unclear why Laurel/Nomura alliance broke down. Rival pub landlord Spirit Group poses the main threat to Laurel and the successful acquisition of the Scottish & Newcastle portfolio. One last minute challenge could come from Trevor Hemming, leisure entrepreneur and owner of the Blackpool Tower, who has reportedly been allowed back into the bidding after initially being omitted from S&N's shortlist of potential buyers. "It all depends whether he has been able to put the finances together at this late stage -- something I'd doubt," said one drinks industry analyst. S&N's pubs went under the hammer in July when the group decided to focus entirely on its brewing operation, which is responsible for brands such as Kronenbourg, Fosters and John Smiths. The estate itself boasts the Chef & Brewer chain, the Bar 38 operation and S&N's Premier Lodge budget hotels. Laurel was formed in May 2001 following the sale of the Whitbread pub estate to Morgan Grenfell Private Equity for 1.63 bln stg. A total of 2,300 of those outlets were sold to Enterprise Inns, and Laurel now operate 625 managed pubs and bars, including traditional locals and metropolitan bars, spread across residential and city locations throughout the UK. ijl/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:40 AM: UK consumer confidence unchanged at -3 in Sept from Aug - GfK

LONDON (AFX) - The UK consumer confidence index was unchanged at -3 in September from the previous month, according to the latest monthly survey from Martin Hamblin GfK. The Sept reading is below the recent average of zero. "It comes after some considerable improvements after the end of the Iraqi war but a small drop last month," GfK said. Roger Wright, Director of Martin Hamblin GfK, said: "After some big changes in the overall confidence figure before and after the Iraqi war period, the overall scores, although still relatively low, seem to be stabilising more. Consumers still show some reticence about making major purchases." The GfK consumer confidence index is carried out on behalf of the European Commission. sivakumar.sithraputhran@afxnews.com ss/lam

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Sep 29 5:39 AM: Swiss shares move higher in late morning trade on a rebound; Swiss Re in focus

ZURICH (AFX) - Share prices moved slightly higher in late morning trade recovering from opening losses, with Swiss Re boosted by a favourable ruling in the WTC dispute, traders said. At 11.30 am, the Swiss Market Index was 25.90 points higher at 5,157.20, and the Swiss Performance Index was up 16.33 points at 3,700.59. The euro rose to 1.5406 sfr, while the dollar fell to 1.3488 sfr. After sharp losses last week, the market may have reached bottom now, with investors hoping for a reversal of trends on Wall Street, a trader here said. Focus this week will be on a raft of US economic data which is expected to give some indication as to the anticipated economic recovery, he said. Swiss Re climbed 2.2 pct or 1.85 sfr to 87.60, boosted by a US federal appeals court ruling on Friday that the Sept 11 terror attacks against the WTC constitute a single occurrence, requiring only one insurance payment. The ruling marks a major setback for the WTC leaseholder, Larry Silverstein, and the government agencies which were hoping that more than the 3.5 bln usd face value of the World Trade Center's insurance policy could be reclaimed. Silverstein has argued that the attack involving two airliners constituted two "occurrences"m and www.afxpress.com

Sep 29 5:36 AM: AstraZeneca says asthma study shows Symbicort more effective than Seretide

LONDON (AFX) - AstraZeneca PLC said that data from the first head-to-head study comparing Symbicort with rival asthma drug Seretide, made by GlaxoSmithKline, shows Symbicort to be more effective in treating the disease. AstraZeneca said that data presented at the European Respiratory Society's annual meeting showed that the rate of severe exacerbations is 40 pct lower in asthma patients on Symbicort adjustable dosing than in patients on fixed dosing salmeterol/fluticasone DPI -- which is marketed as Seretide. The seven-month study involved 658 patients with moderate asthma, who were taking inhaled steroids at entry, and remained symptomatic despite their treatment. Patients were randomly allocated to one of three groups: Symbicort fixed dosing; salmeterol/fluticasone DPI fixed dosing; or Symbicort adjustable dosing. The results of the study showed that all treatment regimens provided similar levels of control based on the odds of achieving a 'well controlled asthma week', but adjustable dosing with Symbicort provided superior control to fixed dosing with either salmeterol/fluticasone DPI or Symbicort. A well controlled asthma week is a week with mild intermittent asthma with no adverse events and no need for additional asthma medication. Severe exacerbations are exacerbations requiring oral steroid treatment for at least three days, emergency room visit, or hospitalisation. Asthma is a chronic inflammatory disease of the lungs, which affects around 100-150 mln sufferers worldwide, according to WHO statistics. Symbicort recorded sales of 299 mln usd in 2002. etain.lavelle@afxnews.com el/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:34 AM: Danish shares higher in midmorning trade, led by AP Moeller-Maersk

COPENHAGEN (AFX) - Share prices were higher in midmorning trade, led by AP Moeller-Maersk after reports that it is willing to pay 2 bln dkr a year more in oil-related taxes from Jan 1, which could stave off demands for higher tax payments, brokers said. At 11.15 am the KFX index was 0.77 points higher at 246.30, and the KBX benchmark index was 0.64 points higher at 209.52. AP Moeller-Maersk A was 300 higher at 44,300, while the B-shares were unchanged at 46,200. The group has offered to pay an additional 2 bln dkr per year in taxes from its oil and gas activities as of next year in a bid to win an extension of its North Sea concessions from the Danish government, daily Boersen reported. SAS AB rose 0.5 to 51 on news it will see a gain exceeding 500 mln skr after it signed a sale-leaseback agreement with the Danish company Keops to sell five office properties in Copenhagen. The transaction will also release capital of approximately 1 bln skr and will reduce net debt by a similar amount. Lundbeck fell 0.5 to 126. Goldman Sachs has cut its rating to 'underperform' from 'in-line' as it believes the share's current high valuation has not taken into consideration the likely negative newsflow in the fourth quarter, dealers said. Analysts at the US bank said they expect consensus forecasts for 2004 to be trimmed in the coming months amid new generic challenges. Chief executive Claus Braestrup said he expects legally acceptable generic copies of the company's Cipramil anti-depression treatment to be on the market by next year, daily Boersen reported. By then, companies making generic copies of the drug will be using production methods that do not breach Lundbeck's patents. Novo Nordisk added 1 to 240 and Novozymes was 1 higher at 201. TDC rose 2.5 to 198 after Jyske Bank upgraded its stance to 'accumulate', with a price target of 210 dkr, from 'sell'. NKT Holding added 5 to 109 and GN Store Nord rose 0.2 to 35.6. IC Companys was up 1 at 45, recovering some of its losses following the weak full-year earnings report last week. Jyske Bank added 1.5 to 275. michael.delaine@afxnews.com mdl/cmr



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Sep 29 5:33 AM: STOCKWATCH ABB outperforms after Italian blackout on new order hopes

ZURICH (AFX) - ABB Ltd outperformed in morning trade on hopes of new power technology orders in the wake of the blackout which hit Italy on Sunday, analysts said. At 11.18 am ABB was 0.3 sfr or 3.8 pct higher at 7.7 while the SMI rose 24.4 points to 5,155.7. The whole of Italy, with the exception of Sardinia, was plunged into darkness on Sunday night with power only returning by the late afternoon. "A few contracts might emerge from the Italian blackout. But one should not count on them in the short to medium term," one private bank analyst said. ABB's rebound, after last week's 7.4 pct decline, will be short-lived and there is no fundamental reason behind it, he added. ABB is expected to announced the sale of its oil, gas and petrochemicals division in the coming days - a move necessary to cut its debt pile - and the final approval of its proposed asbestos compensation package is expected shortly after Oct 7. zurich@afxnews.com awp/de/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:32 AM: Belgian Sept CPI up 0.29 pct vs Aug, up 1.80 pct yr-on-yr

BRUSSELS (AFX) - Belgian consumer prices rose 0.29 pct in Sept from Aug and were up 1.80 pct year-on-year, the Belgian Index Office reported. afxbrussels@afxnews.com ed/jlw

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Sep 29 5:31 AM: *UK SEPT CONSUMER CONFIDENCE -3, UNCHANGED FROM AUG - GFK

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Sep 29 5:30 AM: Three men rescued from boiler at Dutch power plant, 4 feared dead

THE HAGUE (AFX) - Emergency workers have rescued three of eight men who fell into a boiler in the Amercentrale electricity plant in the southern Dutch town of Geertruidenberg in the early hours of yesterday morning, and were attempting to bring out a fourth today, Dutch ANP news agency reported. But the rescue workers acknowledged that the four others have probably died. The eight men -- four Americans and four Turks -- fell into the 85-metre deep boiler yesterday after the scaffolding collapsed while they were sandblasting the interior. Two American workers were freed from the boiler yesterday and taken to hospital. A 19-year-old Turkish man was freed today and is said to be in stable condition in hospital. Emergency workers cut a hole in the side of the boiler in order to get him out. The rescue workers have pinpointed the position of a fourth man trapped inside but are having trouble reaching him because the collapsed scaffolding is unstable and the emergency services cannot climb on it. Authorities in Geertruidenberg said the rescue workers had failed to detect any signs of life from the four other victims. The authorities say the rescue operation could take days because of the difficulties of getting into the boiler with the unstable scaffolding blocking the way. newsdesk@afxnews.com sb/cml/rak/cmr



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Sep 29 5:29 AM: *BELGIAN SEPT CPI UP 0.29 PCT VS AUG, UP 1.80 PCT YR-ON-YR

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Sep 29 5:28 AM: Sweden Riksbank's Heikensten sees inflation 2 years ahead close to 2 pct

STOCKHOLM (AFX) - Riksbank governor Lars Heikensten, said the outlook for economic activity and inflation has not changed much since the Riksbank's forecast in August, and that he expects inflation 2 years ahead to be about 2 pct. "For Sweden, it seems likely that the economy will experience a rather normal recovery next year," Heikensten said in a speech. "Consequently, it is also probable that inflation a couple of years ahead will be close to 2 pct, roughly as forecast by the Riksbank in August, even if inflation in the forthcoming year may be lower." He said inflation expectations of all players in the economy today are firmly entrenched around 2 pct. He said it is likely that the recent strengthening of the krona has been due to market assessments of the relative strength of the Swedish economy compared with the euro area in the near future, but also to a revaluation of the dollar against the euro following comments from the G7 meeting in Dubai. "However, it is currently too soon to come to any real conclusions for inflation (as a result of the stronger krona) in the near future," Heikensten said. He said the current yield spread between Swedish bonds and their euro zone counterparts is partly due to recently bets in time. If this does not happen, they could become seven times worse in a matter of years, when the population trend has become more markedly negative. This could then require greater, more painful changes under less orderly circumstances," Heikensten said. hc/cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:27 AM: Nordic govt bonds slightly lower late morning tracking German bund

STOCKHOLM (AFX) - Nordic government bond prices were slightly lower late morning tracking the German bund following the release of data showing an increase in German consumer confidence, and ahead of the ECB's rate decision on Thursday, dealers said. At 11.00 am the yield on the Swedish 2-year bond 1044 was up 3.0 basis points at 3.380 pct, while the yield on the 10-year bond 1041 was up 4.0 basis points at 4.630 pct. In Sweden the governor of the Riksbank Lars Heikensten, said the outlook for economic activity and inflation has not changed much from the Riksbank's forecast in August, and that he expects inflation 2 years ahead to amount to 2 pct. "For Sweden, it seems likely that the economy will experience a rather normal recovery next year. Consequently, it is also probable that inflation a couple of years ahead will be close to 2 pct, roughly as forecast by the Riksbank in August, even if inflation in the forthcoming year may be lower," Heikensten said in a speech. He said inflation expectations of all economic agents today are firmly entrenched around 2 pct and that the outlook is similar for the future. The krona was weaker, with the TCW index up 0.18 points at 125.06. It was trading at 8.9475 skr bid against the euro, compared with 8.9445 late Friday, and at 7.8425 against the dollar, compared with 7.8370 late Friday. Finnish government bonds opened slightly lower in Helsinki, with the yield on the bond due 2013 up 2 basis points at 4.06 pct, dealers said. The 10-year Norwegian bond, the NST 470, was at 112.90 nkr bid compared with Friday's close of 113.05 nkr. Analysts say that news that the Norwegian job market is stabilising reduces the need for, and hence the likelihood of, further rate reductions. The krone was trading at 8.1040 nkr against the euro compared with 8.0845 Friday, and at 7.1040 nkr against the dollar versus 7.0465 Friday. Danish bonds opened lower after a German poll indicated the highest confidence in the economy among consumers for almost a year, dealers said. At 10.15 am, the 10-year 5 pct 2013 government bonds were 0.15 points lower at 106.05. The yield was 4.25 pct, compared with Friday's closing level of 4.23 pct. stockholm@afxnews.com sjr/am/ebd/mdl/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:26 AM: Hafslund sells 442,058 of its own shares to employees

OSLO (AFX) - Hafslund ASA said it sold 442,058 if its own class B shares to Hafslund employees at 21.6 nkr a share. The allotment was in connection with a general purchase program including all employees in Hafslund ASA and companies where Hafslund has a more than 50 pct holding. After the transaction, Hafslund holds 987.223 of its own class B shares. This is the equivalent of 0.51 pct of total outstanding shares and 1.24 pct of outstanding shares of class B. elisabeth.dalseg@afxnews.com ebd/jc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:25 AM: London AM Brent Crude Oil Prices

spot vs prev. close Nov 26.97 USD 26.64 USD Dec 26.67 USD 26.37 USD





























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Sep 29 5:24 AM: Brown attributes part of Blair's loss of appeal to war in Iraq - UPDATE

(Updating to add details throughout) LONDON (AFX) - Chancellor of the Exchequer Gordon Brown has attributed Prime Minister Tony Blair's recent dip in popularity at least in part to the war in Iraq. Enumerating the reasons for Blair's loss of popularity, Brown said: "There is the whole question of the controversy over Iraq." But Brown echoed what Blair had said earlier - that the decision to go to war in Iraq was the right one. Brown also said that British troops in the field will not be left "defenceless" or "ill equipped". A 3 bln stg sum has been set aside and the autumn's report in the next few weeks will detail the figures, he said. The UK GDP growth forecasts will also be announced then, he added. Brown went on to add that the issue of "long term investment and the time it takes to yield the results" and a broader global insecurity over terrorism and the economy also undermined Blair's popularity. Asked about the departure of Blair's top communications director, Alastair Campbell, Brown said Campbell "did a wonderful job for Tony" but went on to add that the issue in "not about presentational communication." Brown was speaking in an interview on BBC radio. Over the weekend, Blair insisted that the decision to join the US-led invasion and occupation of Iraq was the right thing to do. Speaking on BBC television at the start of a crucial annual conference of the ruling Labour Party, Blair said: "I don't apologise for Iraq." "I am proud of what we have done," he said. Brown is due to speak at the Labour party conference later today. sivakumar.sithraputhran@afxnews.com ss/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:23 AM: German consumer climate index rises to 5.0 in Sept from 4.6 in Aug - GfK

FRANKFURT (AFX) - The German consumer climate index rose to 5.0 in September from 4.6 in August, according to a monthly survey from GfK market research. The September reading beat GfK's forecast of 4.8 points. GfK said the German consumer climate is stable, but continues to lack dynamic development. "German consumers are cautiously optimistic about the economic development and their personal future," GfK said. But it added: "While consumers had been more positive about general economic development for three months, in September they were more reserved again." The economic outlook indicator fell 1.4 points -- its first decline since May this year -- to minus 10.6. GfK said the optimism shown by consumers with respect to their income expectations has so far not extended to their propensity to buy. The indicator measuring consumers' willingness to spend rose by 1.6 points to minus 31.6. "However, talk of a recovery would be premature, since the value is still at a low." GfK said it forecasts a rise in the overall climate index to 5.3 points in October. "The latest consumer climate indicators show that the overall consumer climate indicator continues to stabilise, but there is still no evidence of any dynamic change," it said. "For as long as there are no identifiable, positive signs from either the economy or the labour market, which will bring about a fundamental economic upturn, we are unlikely to see any dynamic consumer climate trends. "However, if the discussions regarding tax and social security reforms are resolved with clear, transparent statements for consumers, this will speed up recovery of the consumer climate." GfK consumer climate survey polls 2,000 people and is carried out on behalf of the European Commission. matthew.brockett@afxnews.com mb/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:22 AM: Hong Kong Q2 BoP deficit 21.7 bln hkd vs surplus 10.4 bln in Q1

HONG KONG (AFX-ASIA) - The balance of payments in the second quarter of 2003 was a deficit of 21.7 bln hkd, against surplus of 10.4 bln in the first quarter of the year, the Census and Statistics Department said. It said the current account was a surplus of 19.7 bln hkd in the second quarter, down from 36.5 bln in the first quarter. The department said the smaller surplus was due to a decrease in visible trade deficit, a fall in invisible trade surplus, a continued net inflow of external factor income and a further net outflow of current transfers. It said there was a net outflow of financial non-reserve assets amounting to 25.2 bln hkd recorded in the second quarter, smaller than the 26.0 bln in the first quarter. The overall net outflow of financial non-reserve assets in the second quarter was the combined result of a net inflow of direct investment, a net outflow of portfolio investment, a net inflow due to cash settlement of financial derivatives and a net outflow of other investment, it said.

(1 usd = 7.8 hkd) leefun.chew@afxasia.com clf/ds For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:18 AM: Samsung Electronics develops 4-gigabit NAND flash memory - UPDATE

(Updating with comment on outlook for third-quarter memory performance) SEOUL (AFX-ASIA) - Samsung Electronics Co Ltd said it has developed an array of next generation memory technologies including the world's first 70 nanometer 4-gigabit NAND flash memory and an 80 nanometer DRAM device. In addition, the company announced a single chip memory solution, called fusion memory, which takes the multi-chip package and system-in-package concepts one step further to deliver a single design combining memory and logic, it said. Samsung's world first 4Gb NAND flash, used for mobile applications, is the fourth generation of NAND flash memory, it said. "Samsung's bullish strategy of investing heavily in next generation design and manufacturing technologies has enabled the company to offer a unique portfolio of advanced memory devices designed to meet the challenges of convergence and mobility in tomorrow's digital marketplace," said Hwang Chang-Gyu, president of Samsung's memory division. Samsung said it plans to produce both flash memory and DRAM chips at its memory line 12, which produces 300mm wafers. Hwang said the memory market is showing "a lot stronger growth" than expected by the company previously, and the flash memory market is expected to maintain sharp growth going forward in line with growing demand for mobile applications. He said the company's third quarter to September memory chip results will be "far stronger" than the second quarter's, without providing specific figures. He added that Samsung will be able to remain profitable in its memory operations as it has a profit structure where it can effectively cope with industry cycles and volatile market conditions. jaehyon.cho@afxasia.com jhc/mas/wpf

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Sep 29 5:15 AM: Singapore's Keppel Corp interested in PT Jawa Power stake

SINGAPORE (AFX-ASIA) - Keppel Corp said it is interested in acquiring a stake in PT Jawa Power. "We are looking at it," a Keppel Corp spokeswoman said when asked about the planned sale of Powergen's 35 pct stake in PT Jawa, an Indonesian power company. Other parties interested in the PT Jawa stake include Genting Bhd, which said earlier it has been shortlisted to make a final binding offer for Powergen's 35 pct stake in PT Jawa Power. (1 usd = 1.72 sgd) singapore@afxasia.com jb/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:13 AM: Euribor Interest Rate Fixings

LONDON (AFX) - Euribor interest rate fixings at 09.19 am GMT from the German Banking Association.

1 mth 2.114 3 mths 2.133 6 mths 2.132 1 yr 2.165

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Sep 29 5:12 AM: Hong Kong Aug new mortgages at 7.60 bln hkd, up 13.60 pct from July - HKMA

HONG KONG (AFX-ASIA) - New mortgage loans drawn in August rose 13.60 pct month-on-month to 7.60 bln hkd, the highest level in 11 months, on the back of recovery in mortgage lending, the Hong Kong Monetary Authority (HKMA) said. However, new approvals in August decreased by 32.30 pct following the strong growth in the previous month, with most of the reduction coming in primary market transactions. New applications decreased by 29.70 pct, the HKMA said in a statement. The proportion of new approvals priced at more than 2 pct below the best lending rate was 92.90 pct, up from 92.40 pct in July, while the outstanding amount of mortgage loans grew by 0.10 pct to 522.40 bln hkd, it said. HKMA also said the mortgage delinquency ratio improved further to 1.09 pct from 1.10 pct, while the rescheduled loan ratio remained unchanged at 0.55 pct. The combined ratio stood at about 1.65 pct. "The recovery in mortgage lending experienced in recent months continued into August," said William Ryback, deputy chief executive of the HKMA. "At the same time, the mortgage delinquency ratio has continued to show a small but steady improvement." New loans drawn down for the purchase of property in mainland China decreased by 5.40 pct to 113 mln hkd, and the amount of outstanding loans at end-August was 6.20 bln hkd.

(1 usd = 7.8 hkd) leefun.chew@afxasia.com clf/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:11 AM: London shares climb midmorning as rosier trading updates buoy sentiment

LONDON (AFX) - Leading shares climbed higher in midmorning trade as a number of rosier trading updates boosted sentiment among investors, many of whom were already shopping for bargains following last week's sell off, dealers said. By 9.56 am, the FTSE 100 was 23.6 points higher at 4,180.7, while the broader indices were all higher as well. Volume was moderate as 481.3 mln shares traded hands in 27,453 transactions. Much is expected on the economic front this week. Today in the UK, August consumer credit numbers are due for release, as is the GfK September consumer confidence data. Also slated for release this week is second quarter revised GDP growth and second quarter current account balance on Tuesday. On Wednesday, CIPS manufacturing PMI is due, while on Friday CIPS services PMI is out. Expected out of the US this week is the personal income and consumer spending data -- due today. While tomorrow, US consumer confidence and Chicago PMI appear on the calendar followed by the US labour market report on Friday. Away from economic and corporate news, focus is expected to be on this afternoon's speech by Chancellor of the Exchequer Gordon Brown at the Labour party conference. On the corporate front, food retails w expectations, despite a small year-on-year increase in both operating profit and earnings. leb/ra For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:10 AM: Vodafone to offer flat price for data roaming; lowers Eurocall Platinum rates

LONDON (AFX) - Vodafone Group Plc said it will offer a flat price for data roaming, such as picture messaging or remote access, across an initial 10 countries in Western Europe. The new rate will begin from October 1 in most of the following countries: Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, UK, Austria and France. In addition, it will reduce the maximum flat roaming rate for Eurocall Platinum customers to 0.50 eur per minute (excluding local tax) from 0.65 plus the monthly fee. rf/ For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:09 AM: LM Ericsson to cut 65 jobs in Denmark - report

COPENHAGEN (AFX) - LM Ericsson AB will cut 65 jobs, or 10 pct of its staff, in Denmark, newswire Boersen Online reported, citing the group's head of communications in Denmark, Ole Selchau. The layoffs are part of the group's plans to improve effectiveness internationally, it said. All functions will be hit, but the final distribution will depend on negotiations with staff representatives, which start today, it added. michael.delaine@afxnews.com mdl/jc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:08 AM: Argentina Sept CPI up 0.2 pct vs Aug; tax receipts up 35 pct yr-on-yr - report

BUENOS AIRES (AFX) - Consumer prices rose by about 0.2 pct in September from August, while tax receipts were 5.9 bln pesos, up 35 pct from a year earlier, daily La Nacion reported, citing preliminary estimates of the economy ministry. The CPI figure will be released on Friday and the tax receipts results are scheduled to be unveiled on Wednesday. Analysts expect consumer prices to rise by 0.2-0.3 pct month-on-month. For tax receipts, forecasts range from an increase of 25 pct at Dresdner Kleinwort Wasserstein to an increase of 42.2 pct at Goldman Sachs. jean-marc.poilpre@afxnews.com jmp/cmr





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Sep 29 5:07 AM: Holzbrinck finds buyer for Tagesspiegel newspaper

FRANKFURT (AFX) - Publisher Georg von Holtzbrinck GmbH & Co said it has found a buyer for its Der Tagesspiegel newspaper in Berlin. Holzbrinck said Pierre Gerckens, vice president of the national association of German publishers (BDZV), will buy the Tagesspiegel as soon as possible. The sale could pave the way for Holzbrinck's planned takeover of the Berliner Zeitung newspaper. The cartel office told Holtzbrinck to sell Der Tagesspiegel before it buys the Berliner Zeitung in order to avoid a monopoly situation in the Berlin newspaper market. DP/mb/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:06 AM: Russia still to decide on whether to ratify Kyoto treaty - Putin

MOSCOW (AFX) - Russia has not yet decided whether it will ratify the Kyoto treaty on greenhouse gases, Russian President Vladimir Putin said at the opening of an international conference on climate change in Moscow. "The Russian government is meticulously examining this question and is studying all of the difficult problems associated with it," Putin said as he opened the five-day conference. "The decision will be taken at the end of this work and in conformity with Russia's national interests," he said. Putin said that "restrictions should not be enacted that would restrict economic growth and social development." Kyoto supporters had been hoping to convince Russia, whose agreement is necessary to bring Kyoto into force, to ratify the 1997 treaty during the World Conference on Climate Change that Moscow is organising. Today's meeting brings together 1,200 experts from 43 countries to present a total of 500 scientific papers. An official in the presidential administration said last week that Russia would only ratify Kyoto if it received firm guarantees on investment and on the sale of emission rights. The Kyoto protocol, signed in 1997, provides for a worldwide reduction in the emission of greenhouse gases held responsible for global warming, notably carbon dioxide. newsdesk@afxnews.com mo-vvl-yad/rak/cmr

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Sep 29 5:01 AM: Euroshares opening - Markets pull back early losses as bargain hunters move in

LONDON (AFX) - Most European markets tracked Wall St lower at open but soon ticked higher as the investors searched around for bargains after last week's heavy selling and ahead of key US data and the upcoming US earnings season, dealers said. The technology sector made solid advances with Nokia leading the pack after bullish comment in influential weekly Barron's and after the group's restructuring measures last week. Solid data and an optimistic outlook from the Semiconductor Industry Association also added to the optimism. Shares in Deutsche Telekom and KPN were both higher after Goldman Sachs upgraded its stance to 'outperform' from 'in-line'. dlh/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 5:00 AM: Alcatel wins 16 mln eur telecoms network contract from Egypt's EETC

PARIS (AFX) - Alcatel SA said it has won a 16 mln eur order from the Egyptian Electricity Transmission Company (EETC) to provide a full turnkey telecommunication network aimed at serving the country's electrical grid. Alcatel's network will provide high-speed voice and data links between EETC's high voltage substations and its West Delta control center. paris@afxnews.com js/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:56 AM: Forex - Asia currency summary

BEIJING (AFX-ASIA) - Asian currency rates against the US dollar at 0855 GMT (vs previous late levels):

-Australian dollar: 1.4942 (1.4787) -Hong Kong dollar: 7.7478 (7.7563) -Indian rupee: 45.8625 (45.8425) -Indonesian rupiah: 8,400 (8,425) -Japanese yen: 111.42 (112.07) -Korean won: 1,149.90 (1,150.00) -Malaysian ringgit: 3.7993 (3.7993) -Philippine peso: 54.855 (54.995) -Singapore dollar: 1.7300 (1.7304) -Taiwan dollar: 33.781 (33.783) -Thai baht: 39.990 (40.080)

afxdesk@yahoo.com ic/wpf

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Sep 29 4:54 AM: Odfjell shares suspended pending company announcement

OSLO (AFX) - Odfjell ASA shares have been suspended pending a company announcement at a press conference this evening at 4.30 pm. elisabeth.dalseg@afxnews.com ebd/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:52 AM: Microsoft's Ballmer says unable to sustain previous growth rate

PARIS (AFX) - Microsoft Corp chief executive Steve Ballmer warned the company "can no longer post the same growth rate as before," in an interview with French daily La Tribune. "The truth is that we've become a big company with an impressive number of employees and sales, and we can no longer post the same growth rate as before," he said. With regard to the software group's large cash reserves, Ballmer said the company and the industry are faced with several risks that require Microsoft to be cautious in its spending. "For the time being, we think there are too many risks in our businesses to use this money to a great extent." Earlier this month however, Microsoft said it will double its annual dividend, reversing management's previous decision to keep the dividend the same until it resolved more of its antitrust legal issues. He said he does not expect Microsoft to invest in the media sector in the future, and said the company "has absolutely no plans" to develop products for the Linux operating system. He said Microsoft has "accepted the idea of collaborating with other companies, notably competitors." "But I still have work to do to give Microsoft a more human image." Ballmer also said he expects "significant partnerships between the media, telecommunications operators and technology companies in digital broadcasting." Other than IBM Corp -- Microsoft's number one competitor -- Ballmer said Nokia Corp is a "significant competitor", but that Microsoft "is in talks to see how we can cooperate." "Nokia phones must be able to communicate with PCs and Windows. That's a fact. And we will find a way to do it," he said. He noted that Microsoft still has to settle European Commission inquiries, antitrust issues and legal proceedings in the US, but declined to speculate on the outcome of the cases. Video games and the internet are "extremely important sectors" for the company, he said. Ballmer said the company must concentrate on innovation, and on resolving customer difficulties, adding: "I see lots of opportunities to benefit from the experience of our users. How that can be translated into revenues, I do not know." paris@afxnews.com sr/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:51 AM: SAP, IDS Scheer found institute to improve business software

FRANKFURT (AFX) - Software maker SAP AG said it has founded an institute together with software advisory company IDS Scheer AG that will cooperate with universities to find improved business software applications. The so-called Institute for Business Process Innovation will advance research into ways to model business processes, which will then be used for software solutions, and will also train managers, SAP said. It will cooperate with universities such as the University of New Orleans in the US and the university of Saarbruecken in Germany, it added. peter.dinkloh@afxnews.com din/cmr



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Sep 29 4:49 AM: RPT - HK Govt has no plan for tycoon Li Ka-shing's tax-free zone - official

(Repeating to change dateline) HONG KONG (AFX-ASIA) - The Hong Kong Government has no plans to set up a special tax-free manufacturing zone between the SAR and neighboring Shenzhen as tycoon Li Ka-shing has suggested, an official said today. Secretary for commerce, industry and technology John Tsang said that "there is no definite plan" to set up a special tax-free manufacturing zone in the boundary region between Hong Kong and Shenzhen. Cheung Kong (Holdings) chairman Li floated the proposal when he met Chinese president Hu Jintao in Beijing on Saturday. However, he said the government will consider any proposals. Tsang pointed out that the government's policy called for the development of high-valued and high-technology industry, and most of Hong Kong goods will enjoy tax-free status with the signing of the Closer Economic Partnership Arrangement (CEPA) between the SAR and China. He also said substantial investment will be needed to recover land along the boundary with Shenzhen, as well as to build the necessary infrastructure for the proposal. Under Li's proposal, investors in the zone will have to hire a certain percentage of Hong Kong residents to create jobs for the city, press reports said. Li said the proposal could help solve Hong Kong's unemployment problems, which stood at 8.6 pct in August. He told local media after meeting Chinese leaders that he had discussed the idea with Hong Kong officials before going to Beijing, but that the proposal required the backing of China's central government before it implementation. pl/rmj/ds

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Sep 29 4:48 AM: HK Government has no plan for tycoon Li Ka-shing's tax-free zone - official

HONG KONG, Sept 29 (AFP) - The Hong Kong Government has no plans to set up a special tax-free manufacturing zone between the SAR and neighboring Shenzhen as tycoon Li Ka-shing has suggested, an official said today. Secretary for commerce, industry and technology John Tsang said that "there is no definite plan" to set up a special tax-free manufacturing zone in the boundary region between Hong Kong and Shenzhen. Cheung Kong (Holdings) chairman Li floated the proposal when he met Chinese president Hu Jintao in Beijing on Saturday. However, he said the government will consider any proposals. Tsang pointed out that the government's policy called for the development of high-valued and high-technology industry, and most of Hong Kong goods will enjoy tax-free status with the signing of the Closer Economic Partnership Arrangement (CEPA) between the SAR and China. He also said substantial investment will be needed to recover land along the boundary with Shenzhen, as well as to build the necessary infrastructure for the proposal. Under Li's proposal, investors in the zone will have to hire a certain percentage of Hong Kong residents to create jobs for the city, press reports said. Li said the proposal could help solve Hong Kong's unemployment problems, which stood at 8.6 pct in August. He told local media after meeting Chinese leaders that he had discussed the idea with Hong Kong officials before going to Beijing, but that the proposal required the backing of China's central government before it implementation. pl/rmj/ds For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:47 AM: Brown attributes part of Blair's loss of appeal to war in Iraq

LONDON (AFX) - Chancellor of the Exchequer Gordon Brown has attributed Prime Minister Tony Blair's recent dip in popularity at least in part to the war in Iraq. Enumerating the reasons for Blair's loss of popularity, Brown said: "There is the whole question of the controversy over Iraq." He went on to add that the issue of "long-term investment and the time it takes to yield the results" and a broader more global insecurity over terrorism and the economy also undermined sentiment. Brown was speaking in an interview with BBC radio. Yesterday, Blair insisted that the decision to join the US-led invasion and occupation of Iraq was the right thing to do. Speaking on BBC television at the start of a crucial annual conference of the ruling Labour Party, Blair said: "I don't apologise for Iraq... I am proud of what we have done." sivakumar.sithraputhran@afxnews.com ss/cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:46 AM: US convoy comes under fire in Fallujah, Iraq - officials

FALLUJAH, Iraq (AFX) - A US convoy was attacked with at least one bomb in Fallujah, Iraqi police and US officials said, but they could not confirm witness reports of several casualties, some serious. Police officer Ismail Ibrahim said the convoy of three or four vehicles was attacked at about 10.00 am in the flash-point town 50 km west of Baghdad and that "the Americans opened fire blindly." Witnesses said they saw several US soldiers wounded, some seriously, but there was no official confirmation. A US soldier at the scene confirmed the attack but did not speak of any wounded. A military spokesman in Baghdad said they had no report of the incident. A local man, Khaled Abed, aged 32, reported three explosions and said a vehicle was damaged. He said he saw two badly wounded Americans carried into a truck. newsdesk@afxnews.com dp/ps/rak/cmr



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Sep 29 4:43 AM: Siemens' SBS unit wins single digit mln eur IT services order

MUNICH (AFX) - Siemens AG's Siemens Business Software Services AG said it won an order from Hitachi Data Systems GmbH in the single digit mln eur area to install and maintain software and hardware for the German unit of Hitachi Ltd. The contract was signed on Sept 24 and SBS expects the order will be extended to all HDS customers in Europe, a spokesman said. peter.dinkloh@afxnews.com din/jc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:42 AM: UK Aug net new consumer credit 1.6 bln stg vs 1.5 bln in July

LONDON (AFX) - Consumer credit growth accelerated in August, while mortgage lending hit a record high for the second straight month, the Bank of England said. UK net new consumer credit totalled 1.58 bln stg in August, up from 1.51 bln in July on a seasonally adjusted basis, the Bank reported. The net expansion in consumer credit last month is in line with the expectations of UK economists. The acceleration in credit growth came as credit card lending expanded a net 747 mln stg in August, after rising 699 mln in July. Net lending secured on dwellings totalled 7.71 bln stg in August, down from 8.21 bln the previous month. Total net lending -- including both lending secured on dwellings and consumer credit -- amounted to 9.29 bln stg, down from 9.72 bln in July. On a percentage basis, total net lending rose 1.0 pct in August from the previous month, for the smallest increase since June 2002. The BoE also reported that the value of approvals of new mortgage loans rose to a record high of 27.55 bln stg, compared with 25.98 bln in July, which was the previous record. The number of loan approvals for house purchases rose to 120,000 in August -- the highest level since October 2002 -- from 112,000 in July. The full August credit report will be posted at the following website: www.bankofengland.co.uk chris.anstey@afxnews.com cxa/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:41 AM: Dragados plans to increase investments in Brazil - Cymi unit

SAO PAULO (AFX) - Grupo Dragados SA plans to increase its investments in Brazil, said Javier Alfaro, director of Dragados's unit Control y Montajes Industriales. He told financial daily Valor Economico that the group could build small hydroelectric power plans, and even gas-generated or coal-generated thermoelectric plants. But he cautioned that it will all depend on the regulatory framework for the energy sector that the government will eventually adopt. Cymi was awarded last week by national energy agency Aneel two concessions, which cover the construction, operation and maintenance of electricity transmission lines. The first line will link Salto Santiago to Ivaipora, and Ivaipora to Cascavel Oeste. Cymi has a 51 pct stake in the winning consortium. Its two partners are Eletrosul and Santa Rita-Com?rcio e Engenharia Ltda. Cymi also won the concession for the Cama?ari II/Sapea?u line. It led the Alhambra consortium, with a 95 pct stake, and had local company Fluxo Engenharia Ltda as a partner. Alfaro said Cymi wants to use the synergies of these concessions for the auctions of new transmission lines to be held next year. Cymi intends to win three to four new concessions in the Parana and Santa Catarina states, he said. jean-marc.poilpre@afxnews.com jmp/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:40 AM: German shares AFX market data at 10.31 am; Altana up on Roflumilast data

FRANKFURT (AFX) - Market data at 10.31 am Major indices: DAX 30 - 3,344.16, up 19.31 points or 0.58 pct MDAX - 3,999.99, up 14.37 points or 0.36 pct TecDAX - 485.91, up 0.42 points or 0.09 pct DAX futures - 3,356.0, up 13.0 points or 0.39 pct Euro bund - 114.66, down 0.21

Major risers: -Altana, up 2.23 eur or 4.15 pct at 55.97, as analysts gave the thumbs up to data released by the pharma group yesterday which found its respiratory drug Roflumilast to be well tolerated in a Phase III clinical trial involving 1,400 patients -Allianz, up 1.87 eur or 2.47 pct at 77.70, on a Merrill Lynch upgrade, with insurance issues also buoyed by a report that a federal appeals court ruled that three insurers of the destroyed World Trade Center complex are bound by documents that define the Sept 11, 2001 terror attacks as a single occurrence requiring only one payment -HVB, up 0.34 eur or 2.19 pct at 15.90 -Munich Re, up 1.60 eur or 1.84 pct at 88.42, in tandem with Allianz

Major fallers: -E.ON, down 0.35 eur or 0.82 pct at 42.30 -Lufthansa, down 0.09 eur or 0.77 pct at 11.58 -Bayer, down 0.12 eur or 0.63 pct at 19.02 -Metro, down 0.19 eur or 0.60 pct at 31.41 -Deutsche Boerse, down 0.23 eur or 0.51 pct at 44.52 joe.brennan@afxnews.com jcb/cmr







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Sep 29 4:36 AM: France Telecom mulls US partner/acquisition, for NAmerican backbone - report

PARIS (AFX) - France Telecom SA is considering a partnership with Sprint or another US telecoms operator, as a means of cutting losses from its North American network backbone, which are currently running at 50 mln eur annually, the Lettre de l'Expansion newsletter reported. France Telecom could also acquire a US-based operator outright, in order to improve the profitability of its US infrastructure, the report said. Concerning France Telecom's network backbones in Europe and Asia, the operator may transfer the assets to its Equant subsidiary, owned 54 pct by France Telecom, in exchange for a larger Equant stake. In this scenario, France Telecom would be able to take 100 pct control of Equant, the report said. paris@afxnews.com js/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:35 AM: Boeing sees defence ops growing 10 pct/yr for several years

LONDON (AFX) - Boeing Co expects its defence operations to grow 10 pct a year over the next several years, the Financial Times reported, citing Boeing Integrated Defence Systems president James Albaugh. Albaugh said he expected Boeing to grow at a higher rate than the forecast 5 pct annual rise in US defence spending, in areas such as missile defence and integrated command and control. Albaugh's unit had revenues of 25 bln usd in 2002, but he said in an interview: "We think we can grow over the next several years at a compounded annual growth rate of 10 pct or so -- it is higher than the actual (US defence) budget. It's a response to many of the programmes that we have won and as these programmes get through the development to the deployment stage." Nevertheless, he expected defence spending to "flatten out probably in 2006 and 2007." Albaugh expected European defence companies such as EADS to continue to "enlarge their footprint" in the US, and further consolidation of IT-oriented defence groups. "That seems to be the acquisition de jour." "If I were to say what are the areas we are interested in, it is knowledge management and information management. We have good capabilities, but I would like to add some more," he saidor more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:34 AM: RPT - Hong Kong shares close lower on Wall St, Sept contract expiry - UPDATE

(Repeating to add "close" in headline) (Updating with closing prices, broker comments) HONG KONG (AFX-ASIA) - Share prices closed lower on rangebound trading on the expiry of the September futures contract and following declines on Wall Street on Friday, dealers said. The Hang Seng Index was down 148.87 points or 1.32 pct at 11,141.28, off a low of 11,104.34 and a high of 11,256.06 on trade of 12.06 bln hkd. The Hang Seng September contract was finally settled at 11,169. Tung Tai Securities associate research director Kenny Tang said the market opened lower and was locked in a tight range around the 11,150 level for most of the day, as investors remained cautions ahead of the expiry of the September contract. "The caution dragged down activities and shrank turnover for the day," he said. Tang said he expects the benchmark index to trade within 11,000-11,400 points for the rest of this week. "There will be a rash of economic indicators to be released in the US this week. We are also keeping an eye on the retail sales situation from Wednesday, when the National Day Golden Week starts, and see if the influx of mainland tourists can help spur consumption," he said. Among the banks, HSBC dropped 1.00 to 103.50, Hang Seng Bank fell 0.50 to 93.75, while Bank of East Asia was down 0.40 at 19.60. In the property sector, Cheung Kong was down 0.75 at 61.00, Henderson Land down 0.80 at 32.20 while Sun Hung Kai Properties fell 1.25 to 61.50. Of the telecommunications stocks, China Mobile eased 0.30 to 20.25, China Unicom rose 0.05 to 6.25, and China Telecom dropped 0.055 to 1.97. Hutchison Whampoa, which goes ex-dividend today, was down 1.24 at 56.25. Pacific Century Insurance rose 0.15 to 2.525 on news that Hong Kong companies can raise their stakes in insurance firms in China under the Closer Economic Partnership Arrangement (CEPA). PCCW added 0.10 to 5.25 and City Telecom was up 0.275 at 2.875, on news that China has agreed to grant preferential treatment to telecommunications services under CEPA. The Hang Seng China Enterprises Index was down 18.45 points at 3,159.57 while the CAC Index dropped 10.25 points to 1,195.53. The GEM Index dropped 11.10 points to 1,168.52 on trade of 112.18 mln hkd. At 4.00 pm, the 12-month Hong Kong dollar forward premiums were at negative 60 to negative 45 pips, little changed from negative 60 to negative 40 pips in midday. (1 usd = 7.80 hkd) peter.chan@afxasia.com ptc/skb

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Sep 29 4:33 AM: UK Aug M4 money supply flat vs July, unchanged from prev estimate

LONDON (AFX) - M4 money supply recorded no growth in August compared with the previous month on a seasonally adjusted basis, the Bank of England said. This is unchanged from the previous estimate, released earlier this month. On a year-on-year basis, M4 money supply expanded 6.6 pct, also unchanged from the initial estimate. M4 refers to "broad money," which includes cash and coins in circulation, bank deposits, and money market paper. In its final M4 release, the Bank also reported that M4 lending expanded a seasonally adjusted 4.65 bln stg in August. This is up from the 4.60 bln stg in the initial estimate. M4 lending refers to sterling loans made by the central bank, banks, and building societies to the private sector. The full M4 release will be posted at the following website: www.bankofengland.co.uk chris.anstey@afxnews.com cxa/rf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:32 AM: Alitalia board to discuss industrial policy for Air France, KLM link-up

MILAN (AFX) - Alitalia SpA chairman Giuseppe Bonomi said this evening's board meeting will discuss an industrial policy for the airline so it can link-up with Air France and KLM Royal Dutch Airlines NV. The board will not discuss any values for a share exchange with these possible partners, he said, without giving any indications of job cuts. "I am convinced that to affirm this link-up, it is useful that the carriers maintain their own industrial policy while pursuing joint policies," he said. Alitalia's board should set an industrial policy that allows the airline to enter the alliance "with equal dignity between the partners", without any partner being weaker industrially, he said. Brokers have said that Alitalia still has to cut its workforce, but faces difficulties overcoming trade union opposition. Bonomi cited Air France chairman Jean-Cyril Spinetta saying that the future three-way alliance would have four European hubs, including both Milan and Rome's Fiumicino airport in Italy. nt/cmr



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Sep 29 4:31 AM: Hong Kong shares lower on Wall Street declines, Sept contract expiry - UPDATE

(Updating with closing prices, broker comments) HONG KONG (AFX-ASIA) - Share prices closed lower on rangebound trading on the expiry of the September futures contract and following declines on Wall Street on Friday, dealers said. The Hang Seng Index was down 148.87 points or 1.32 pct at 11,141.28, off a low of 11,104.34 and a high of 11,256.06 on trade of 12.06 bln hkd. The Hang Seng September contract was finally settled at 11,169. Tung Tai Securities associate research director Kenny Tang said the market opened lower and was locked in a tight range around the 11,150 level for most of the day, as investors remained cautions ahead of the expiry of the September contract. "The caution dragged down activities and shrank turnover for the day," he said. Tang said he expects the benchmark index to trade within 11,000-11,400 points for the rest of this week. "There will be a rash of economic indicators to be released in the US this week. We are also keeping an eye on the retail sales situation from Wednesday, when the National Day Golden Week starts, and see if the influx of mainland tourists can help spur consumption," he said. Among the banks, HSBC dropped 1.00 to 103.50, Hang Seng Bank fell 0.50 to 93.75, while Bank of East Asia was down 0.40 at 19.60. In the property sector, Cheung Kong was down 0.75 at 61.00, Henderson Land down 0.80 at 32.20 while Sun Hung Kai Properties fell 1.25 to 61.50. Of the telecommunications stocks, China Mobile eased 0.30 to 20.25, China Unicom rose 0.05 to 6.25, and China Telecom dropped 0.055 to 1.97. Hutchison Whampoa, which goes ex-dividend today, was down 1.24 at 56.25. Pacific Century Insurance rose 0.15 to 2.525 on news that Hong Kong companies can raise their stakes in insurance firms in China under the Closer Economic Partnership Arrangement (CEPA). PCCW added 0.10 to 5.25 and City Telecom was up 0.275 at 2.875, on news that China has agreed to grant preferential treatment to telecommunications services under CEPA. The Hang Seng China Enterprises Index was down 18.45 points at 3,159.57 while the CAC Index dropped 10.25 points to 1,195.53. The GEM Index dropped 11.10 points to 1,168.52 on trade of 112.18 mln hkd. At 4.00 pm, the 12-month Hong Kong dollar forward premiums were at negative 60 to negative 45 pips, little changed from negative 60 to negative 40 pips in midday. (1 usd = 7.80 hkd) peter.chan@afxasia.com ptc/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:30 AM: *UK AUG MORTGAGE LENDING HITS RECORD 27.5 BLN STG VS 26.0 BLN IN JULY



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Sep 29 4:29 AM: *UK AUG NET NEW CONSUMER CREDIT 1.6 BLN STG VS 1.5 BLN IN JULY



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Sep 29 4:28 AM: Brussels shares tick higher in thin morning trade; Mobistar remains in focus

BRUSSELS (AFX) - Share prices ticked slightly higher in thin morning trade, tracking a tentative bounce across most of Europe, with Mobistar seeing follow-through buying interest, while D'Ieteren remained in the doldrums, dealers said. At 10.21 am, the Bel 20 was up 15.03 points or 0.72 pct at 2,092.64. Equities opened lower, undermined by Wall Street's losses Friday, but soon recovered some ground in line with the broad European trend as investors did some bargain hunting. Volumes are light, however, ahead of a raft of key US data this week, including US consumer confidence and Chicago PMI tomorrow. "It's quiet, with low volumes, and we're tracking the rest of Europe," a KBC trader said. "There's a lot of US data out this week, which will provide the main direction for the markets," he added. On specific stocks, the trader said Mobistar saw some follow-through buying interest after it announced a lower-than-expected cut in termination rates Friday, while on the downside, D'Ieteren remained in the doldrums after a weak set of results. D'Ietern fell 2.09 eur or 3 pct to 140.2, on volume of 6,079 shares, while Mobistar gave up earlier gains to drop 0.93 to 42.6, off a high of 43.7. Delhaize was up 0.16 at 36, while Fortis gained 0.11 to 15.18 and Dexia was 0.21 higher at 12.88. Interbrew fell 0.04 to 21.46. afxbrussels@afxnews.com jdy/vs

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Sep 29 4:27 AM: Forex - Dollar steady early London, attention turns to data in week ahead

LONDON (AFX) - The US dollar was steady in early trade with attention turning to the week's heavy data calendar which will culminate with the US labour market report on Friday, analysts said. West LB analysts believe the dollar will remain stuck in a tight range but with a small downward bias. After a period of weakness in the wake of the G7 meeting in Dubai, "market participants seem to realise that the downside risks for the dollar related to the G7 statement are smaller than initially thought," they said. Performances on the US Treasury market have been encouraging, they added. During the Asian trading session the dollar fell back but has since steadied, with the euro unable to capitalise on the US currency's dip, said Steve Pearson, head of currencies at HBOS Treasury Services. "The failure of the euro to capitalise on the beleaguered dollar is interesting, it has not been often in the last 2 years that the dollar has shown strength in diversity," he said. The euro was also under some pressure in its other crosses, with euro-sterling in particular still pushing lower. The euro was weaker against the yen but more so than either the dollar or sterling. While there is enough euro zone data to keep mar5 unchanged 1.5405 Sterling usd 1.6511 down from 1.6563 yen 184.06 down from 184.11 sfr 2.2285 down from 2.2303 Australian dollar usd 0.6700 down from 0.6711 stg 0.4057 up from 0.4051 yen 74.68 up from 74.60

sivakumar.sithraputhran@afxnews.com ss/rf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:26 AM: Japan govt bonds close lower on caution ahead of Tankan, 10-yr bond auction

TOKYO (AFX-ASIA) - Japanese government bonds closed modestly lower in thin trading ahead of the release Wednesday of the central bank's "Tankan" quarterly corporate sentiment survey and a 10-year bond auction on Thursday, dealers said. The No 253 issue of 10-year bonds, paying a 1.6 pct coupon, was yielding 1.440 pct at the finish, up from 1.395 pct late Friday. The No 252 issue of 10-year bonds, carrying a 1.0 pct coupon, was yielding 1.445 pct, up from 1.415 pct late Friday. The 10-year bond futures contract for December delivery finished at 136.68, down from 136.77 late Friday. Trading was thin as many investors were reluctant to take new positions ahead of the end tomorrow of the first half of the financial year, and were taking a wait-and-see stance ahead of the announcement of the Tankan survey results and bond auction over the following two days, traders said. The Tankan survey is widely expected to show corporate sentiment continues to improve. The stronger-than-expected results of the June survey triggered a surge in Japanese stock prices and caused bond yields to jump. Some bond investors also worry that the 10-year auction the following day will not meet strong demand if the coupon is set much below the 1.6 pct rate at the August auction. Tomorrow the government releases three sets of data which could influence the bond market. At 8.30 am, the Public Management Ministry will release unemployment and wage earners' household spending data, both for August. At 8.50 am, the Ministry of Economy, Trade and Industry (METI) will release the preliminary industrial production index for August. robin.elsham@afxasia.com rte/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:25 AM: SAS makes gain of over 500 mln skr on sale of Copenhagen office properties

STOCKHOLM (AFX) - Scandinavian Airlines System AB said it has signed a sale-leaseback agreement with the Danish company Keops to sell five office properties in Copenhagen. The transaction will provide a gain on sales in excess of 500 mln skr, release capital of approximately 1 bln skr and will reduce net debt by a similar amount, SAS said. SAS has also signed a lease agreement of between 10 and 15 years and will also in the future use the properties involved, and said the costs for the leaseback are neutral compared with depreciations and interest costs at today's rates. hc/cmr



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Sep 29 4:24 AM: Lundbeck CEO Braestrup sees legally acceptable generic Cipramil by 2004

COPENHAGEN (AFX) - H Lundbeck AS Chief Executive Claus Braestrup said he expects legally acceptable generic copies of the company's Cipramil anti-depression treatment to be on the market by next year, daily Boersen reported. By then, companies making generic copies of the drug will be using production methods that do not breach Lundbeck's patents, daily Boersen reported. "The original patent (for Cipramil) has expired and we are defending some production patents," Braestrup told the daily. "In the course of a few months, maybe a half year, generic producers will be making copies using methods that don't breach our production patents." michael.delaine@afxnews.com mdl/jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:23 AM: Stockholm shares slightly higher in early trade on bargain hunting

STOCKHOLM (AFX) - Share prices were slightly higher in early trade on bargain hunting after last week's losses, dealers said. At 10.15 am, the Stockholmsboersen All-Share index was up 0.56 pct at 177.00, while the Attract40 was up 0.32 pct at 52.81. The OMX index climbed 0.58 pct to trade at 585.04. Total turnover amounted to 1.53 bln skr. "We had quite a big pull back last week so today's gains are not surprising, but investors are still jittery and flows can reverse very quickly," a dealer said. Ericsson B was up 2.61 pct at 11.80 skr bid and Nokia A was up 3.35 pct at 123.50. Ericsson declined by 9 pct last week. Mid cap telecom equipment vendor LGP Telecom fell 5.70 pct to trade at 29.80, after negative newspaper comment. Among the telecom operators, TeliaSonera was up 1.16 pct at 34.90, and Tele2 B up 0.14 pct to 352. The index heavyweight banks were flat to slightly higher. FS-Banken A and Handelsbanken A were unchanged from Friday's close, Nordea was up 0.44 pct at 45.40 and SEB climbed 1.17 pct to 86.50. Electrolux B was flat at 173.50, as Danske Equities reiterated its 'Sell' rating and 177.5 skr target price, pointing to margin contraction at the white goods giant. "We reiterate our 'Sell' rating on Electractoring in as high a market share as Teleca expects for browsers, we see significant value that is not reflected in the share price," the brokerage said. stockholm@afxnews.com hc/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:21 AM: Tokyo Gas raises H1 group net profit forecast to 22 bln yen from 17 bln

TOKYO (AFX-ASIA) - Tokyo Gas Co Ltd said it has raised its group level net profit forecast for the first half to September to 22 bln yen from the initial 17 bln estimate, citing a boost in sales. The major utility company said its first-half group ordinary profit estimate has been boosted to 33 bln yen against the earlier 23 bln forecast, while its group sales projection has been raised to 506 bln yen from 498 bln. At parent level, first-half net profit is forecast at 20 bln yen from 15 bln previously, while its ordinary profit projection has been increased to 30 bln yen from the earlier 20 bln estimate. Its parent level sales forecast for the first half has been lifted to 447 bln yen from 439 bln. nozomi.toyama@afxasia.com nt/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:20 AM: STOCKWATCH Swiss Re outperforms on WTC court ruling

ZURICH (AFX) - Shares in Swiss Re outperformed in thin morning trade, boosted by a US federal appeals court ruling last Friday that the Sept 11, 2001 terror attacks against the World Trade Center in New York constitute a single occurrence, requiring only one insurance payment, analysts said. At 9.45 am, Swiss Re was 1.5 pct or 1.25 sfr higher at 87, while the Swiss Market Index added 2.60 points to 5,133.90. "Apparently there is still some common sense in the US legal system," Bank Sal Oppenheim analyst Heinrich-Horst Wiemer said. A federal appeals court in New York on Friday ruled that three insurers of the destroyed World Trade Center complex are bound by documents that define the Sept 11 terror attacks as a single occurrence requiring only one payment. Friday's appeal court confirmation of an earlier ruling in the WTC dispute is likely to put shares of the reinsurer into the spotlight today, Bank Vontobel agrees. The ruling marks a major setback for the WTC leaseholder, Larry Silverstein, and the government agencies which were hoping that more than the 3.5 bln usd face value of the World Trade Center's insurance policy could be reclaimed. Silverstein has argued that the attack involving two airliners constituted two "occurrences", obliging insurers to pay double that sum. With the 3.5 bln usd insurance policy, WTC leaseholder Larry Silverstein has clearly under-insured the complex, Wiemer said. zurich@afxnews.com at/cmr/cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:19 AM: Danish shares AFX market data at 9.45 am - TDC up after broker upgrade

COPENHAGEN (AFX) - Market data at 9.45 am Major indices: -KFX up 1.22 points at 246.75 -KBX up 1.04 points at 209.92 -KAX up 0.82 point at 214.78 Turnover 237 mln dkr

Major gainers: -TDC up 2.5 dkr at 198 after Jyske Bank upgraded its stance to 'accumulate', with a price target of 210 dkr, from 'sell'. -NKT Holding rose 2 to 106. -IC Companys up 1 at 45, recovering some of its losses following the weak full-year earnings report last week. -AP Moeller-Maersk B was 400 higher at 46,600 and the A-shares added 300 to 44,300. The group has offered to pay 2 bln dkr a year more in oil-related taxes from Jan 1, which could stave off demands for higher tax payments, brokers said.

Major losers: -NEG Micon down 1.5 at 83.5 and Vestas Wind Systems down 0.5 at 115. -Lundbeck down 1 at 125.5 after CEO Claus Braestrup said he expects generic copiers next year to start using production methods that do not breach Lundbeck's patents. michael.delaine@afxnews.com mdl/vs

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Sep 29 4:18 AM: Taiwan's TSMC buys machinery from SEZ Singapore for 574.18 mln twd

TAIPEI (AFX-ASIA) - Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) said it bought semiconductor machinery from SEZ Singapore Pte Ltd for a total of 574.18 mln twd between June 16 and Sept 29. TSMC closed up 0.50 twd at 66.50. (1 usd = 33.80 twd) philip.wang@afxasia.com pw/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:17 AM: Dairy Crest sells chilled juice business for 11 mln stg; brands perform well

LONDON (AFX) - Dairy Crest Group PLC said it has sold its chilled juice business based at Kidlington, Oxfordshire to Princes Ltd for approximately 11 mln stg in cash. It said it decided to take advantage of the increase in juice concentrate prices to to sell the business, in line with its continuing strategy of developing branded and added value products. The sale will result in an exceptional non cash loss of some 3 mln stg. In a trading trading, the company also said its brands are performing well. Including the benefit of the St Ivel Spreads acquisition, adjusted group pretax profit -- before exceptional items and goodwill amortisation -- for the first half to June is expected to be in line with expectations. Cathedral City, Frijj and the Yoplait brands have also performed strongly with double-digit volume growth and increased market share. It said that as anticipated, despite challenging market conditions in the first half, the company is now seeing progress in the tightening of stocks of cheddar with prices of mature cheddar starting to firm. "We expect margins to improve progressively throughout the rest of the financial year," it said. The sale of the chilled juice business is expected to have a broadly neutral impact on group profits in the full year, excluding exceptional items and is expected to result in an exceptional non cash loss of approximately 3 mln stg. The final consideration will be adjusted for stock valuation on completion. rf/ For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:16 AM: Italy Aug PPI up 0.2 pct vs July; up 1.3 yr-on-yr

MILAN (AFX) - Italy producer prices rose 0.2 pct in August from July, giving a 1.3 pct year-on-year rise, the ISTAT statistical bureau said. The rises are the same as those reported in July. In August, producer prices, excluding energy and water prices, were unchanged on a monthly basis, and up 0.8 pct from a year earlier, ISTAT said. nt/cmr



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Sep 29 4:14 AM: INTERVIEW Wolverhampton & Dudley Breweries warns of rising costs

---- by Malcolm Locke ----

LONDON (AFX) - Wolverhampton & Dudley Breweries PLC today became the latest leisure group to bemoan the escalating cost of running a pubs company after it warned that rises in National Insurance and forthcoming increases in the Minimum Wage would add around 5 mln stg to the annual cost base going forward. "There is relentless pressure on the company's cost base," group chief executive Ralph Findlay told AFX News in a telephone interview this morning. "The one-off cost of implementing next year's licensing reforms will alone cost the group 1 mln stg, while other regulatory and legislative charges are likely to see overall costs rise by 5 mln stg a year," he added. Rival pubs group JD Wetherspoon PLC recently warned that the rising costs within the industry, together with increases in excise and stamp duties, would impact its future financial performance. As a result, analysts clipped back their earnings estimate for the company by around 2.5 mln to 59.5 mln stg for the year to July 2004. However, Findlay believes the extra cost burden at W&DB will be offset by improving efficiencies within the group and by switching more of its managed pubs to tenancies. t better, than any others I have seen in the industry," said Findlay. "With 90 pct of our pubs situated away from high street locations and a large proportion with gardens we benefited particularly well from the recent hot spell," he added. In the stock market, the group's shares put on 5 pence to 713-1/2 at 9.00 am. Findlay also revealed that the group has terminated its contract with Diageo PLC for the supply of Harp Irish Lager in its pubs. This will cost W&DB 3.2 mln stg. It has replaced Harp with a mixture of Fosters and Carlsberg, which Findlay reckons will generate an extra 1 mln stg of profit a year going forward. "While there will be a one-off exceptional charge in this year's accounts, we believe the improved rate of sales for two of the world's best known lager brands will more than offset the cost of terminating the Harp contract," he said. ml/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:13 AM: China B-shares close mixed in quiet trading; earnings eyed - UPDATE

(Updating to add analyst comment, share prices) SHANGHAI (AFX-ASIA) - B-shares in Shanghai and Shenzhen closed mixed in thin turnover ahead of the extended National Day holiday, with trading focused on corporate earnings as the reporting season draws near, dealers said. The Shanghai B-share Index was down 0.09 points at 98.54 on trade of 2.81 mln usd after trading between 97.95 and 98.69. The Shenzhen B-share Index edged up 0.49 points to 226.71 on 71.70 mln hkd after trading between 224.87 and 226.92. Trading was typically dominated by a wait-and-see atmosphere ahead of the long holiday, with third-quarter earnings the only thing which seemed to be drawing investor attention, dealers said. The mainland bourses will be closed from October 1-7, while their 1,200-plus listed firms are required to publish quarterly financial reports by the end of next month. Automaker Chongqing Changan Automobile Co Ltd (SZ B 200625; SZ A 000625), which had forecast an over 50-pct growth for its net profit during the first nine months, rose 0.14 hkd to 6.82. Paper maker Shandong Chenming Paper Holdings Co Ltd (SZ B 200488; SZ A 000488) was up 0.09 hkd at 5.50 after predicting similar profit growth for the first three quarters. Shanghai Erfangji Co Ltd (SH B 900902; SH A 600604) ended down 0.001 usd at 0.361, reversing its early gains on profit-taking after the textile machinery maker said that its third-quarter net profit is expected to jump by over 100 pct year-on-year. Home appliance maker *ST Wuxi Little Swan Co Ltd (SZ B 200418; SZ A 000418) shed 0.10 hkd to 3.36 after saying that its board of directors approved a proposal to close the air-conditioner sales business of its 51 pct-held subsidiary, Jiangsu Little Swan Sales Co Ltd. The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 15.51 points at 1,355.34 on turnover of 3.75 bln yuan after moving between 1,353.25 and 1,369.48. The FTSE/Xinhua China B 35 Index was up 10.52 points at 3,197.23.

(1 usd = 8.3 yuan) leo.zhu@xfn.com leo/ap/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:12 AM: Lagardere looking for partners for its Arjil banking unit - report

PARIS (AFX) - Lagardere SCA is looking for either French or European partners for its Arjil & Associes corporate banking unit, according to an unsourced report in the Lettre de l'Expansion newsletter. The report also said Arjil will post a profit this year following restructurings made last year, with an ROE (return on equity) close to 10 pct. paris@afxnews.com js/jc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:11 AM: *HK'S HANG SENG INDEX CLOSES DOWN 148.87 PTS AT 11,141.28



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Sep 29 4:10 AM: EU says no deal with Ryanair over Charleroi probe

BRUSSELS (AFX) - The European Commission denied a report that it has reached a deal with Ryanair Holding over the Charleroi state aid probe. Yesterday, the Sunday Times reported that Ryanair has reached a working agreement concerning the support given to Ryanair at Charleroi airport. Commission spokesman for airlines Gilles Gantelet told AFX News: "The European Commission has to decide on legal grounds. We do not have to have an agreement." "The point is to define on legal grounds what is acceptable. This is not a business agreement. There is no negotiation," said Gantelet. He added that the commission will make its decision in October to mid-November. Gantelet denied that there is any agreement on how contracts between airports and airlines should be negotiated in the future. The newspaper reported that airports will have to put time limits on deals with airlines and publish the terms of deals. "This is something we were considering," said Gantelet but he added there is no decision yet. emma.davis@afxnews.com ed/vs

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Sep 29 4:09 AM: *SAS MAKES 'EXCESS' OF 500 MLN SKR ON SALE OF COPENHAGEN OFFICE PROPERTIES

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Sep 29 4:08 AM: *DAIRY CREST SEES H1 ADJUSTED PRETAX PRE-EX, PRE-GOODWILL IN-LINE

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Sep 29 4:07 AM: Euroshares opening - Iberdrola moves higher, UBS lifts to 'buy' from 'neutral'

LONDON (AFX) - Shares in Iberdrola moved higher in opening trade -- after an initial spate of selling -- as news filtered through that UBS analysts had lifted their rating on the Spanish group to 'buy' from 'neutral', dealers said. The Swiss broker also lifted its target price to 18 eur from 16.6 eur. dlh/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:06 AM: STOCKWATCH Jazztel surges on Fidelity stock purchase

MADRID (AFX) - Shares in Jazztel PLC surged in brisk morning trading as reports that Fidelity has bought 17.7 mln shares, or a 3.4 pct stake, in the Spanish telecoms operator prompted renewed bid speculation, dealers said. At 9.55 am, Jazztel was up 0.03 eur or 8.11 pct at a session high of 0.4, off a low of 0.38, on turnover of 7.6 mln shares. The IBEX-35 index slipped 1.8 points to 6,807.6. According to a report on elConfidencial.com, citing a statement from the Spanish telecoms operator, Fidelity bought the shares through its FMR Corp and Fidelity International Ltd funds. "Being such a speculative stock, it's no surprise to see Jazztel getting a boost from this news, which is obviously positive given the US fund manager's reputation and track record," he said. "The news is bound to prompt renewed bid speculation as Jazztel's largest shareholder Spectrum, which controls the company, has been gradually reducing its stake at around these levels, and was never considered a long-term investor," he said. Dealers also noted that over recent months Fidelity has been increasing its equity holdings in a number of Spanish companies. The fund manager has 2.1 pct of both Indra Sistemas SA and Iberia Lineas Aereas de Espana SA, as well as 6.2 pct of Altadis SA and 2.0 pct of Repsol YPF SA. afxmadrid@afxnews.com fb/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:05 AM: Swiss shares AFX market data at 9.55 am - Swiss Re higher on WTC ruling

ZURICH (AFX) - Market data at 9.55 am Major Indices: Swiss Market Index 5,130.50, down 0.80 point Swiss Performance Index 3,684.51, down 0.25 point Major losers: -Richemont down 0.30 sfr or 1.1 pct at 26.35, continuing its recent downward trend affected by the ongoing economic weakness in Europe -SGS down 10 sfr at 685 Major gainers: -Swiss Re up 0.70 at 86.45, boosted by US district court ruling on Friday, confirming an earlier ruling, that the WTC attacks consist only of a single event -ABB up 2.7 pct or 0.20 at 7.62, as investors await news regarding the group's proposed sale of its OGP division. at/vs

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Sep 29 4:04 AM: Helsinki shares open higher following gains in Nokia, UPM; Elektrobit soars

HELSINKI (AFX) - Shares opened higher following gains in Nokia and UPM-Kymmene, while shares in Elektrobit opened sharply higher as the company raised its third quarter earnings estimates, dealers said. At 10.52 am, the HEX All-share index was up 1.67 pct at 5,745.42 points on turnover of 114 mln eur, with the HEX-portfolio index up 0.72 pct at 2,639.49, and with the HEX-25 index 1.00 pct higher at 1,401.55. Nokia was up 2.84 pct to 13.77 eur, after bullish comments in US weekly Barron's and a positive research note from Smith Barney, dealers said. Barron's said strong cash generation means the shares should be trading at two times their current level. "With wireless communications still the hottest trend in technology, few companies are as well positioned as Nokia," Barron's said. Smith Barney said Nokia's market share gains are potentially a source of significant upside surprise, as they appear to have been overlooked by market followers who have recently concentrated mainly on falling average selling prices (ASPs). Smith Barney reiterated its hold rating on the share with a 14 eur target price. However, it upgraded its market unit forecast for 2003 to 452 mln units from 440 mln, and for 2004 to 485 mln units from 475 mln. Nokia traded in a range so far of 13.40-13.78 eur on volumes of 100 mln eur. Elektrobit Group was trading 7.14 pct higher at 0.45 eur it said its Q3 opg will be above 3.6 mln eur vs earlier estimate over 1.6 mln, based on "good" profit development in Testing and Automation Solutions business units. In the forestry sector, UPM-Kymmene was trading 2.28 pct higher at 14.78 eur, while Stora Enso R gained 1.21 pct to 10.90 eur. Metso was up 0.46 pct at 8.80 eur. Deutsche Bank reiterated its 'buy' recommendation and 11.5 eur target price on Metso, after meeting with management assured analysts that market conditions have not changed recently. Tietoenator was 1.56 pct higher at 18.18, and Fortum was up 1.64 pct at 7.43. tarmo.virki@afxnews.com tv/vs

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Sep 29 4:03 AM: *ITALY AUG PPI UP 0.2 PCT VS JULY; UP 1.3 YR-ON-YR

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Sep 29 4:02 AM: China A-shares close at new 8-mth low; Unicom heightens liquidity fears UPDATE

(Updating to add analyst comment, share prices) SHANGHAI (AFX-ASIA) - A-shares in Shanghai and Shenzhen closed lower, hitting yet another eight-month low as prices slid for the third consecutive day, with next month's float of the 259 mln shares in China United Telecommunications Corp Ltd (SH A 600050) only adding to investor jitters about market liquidity conditions, dealers said. The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 15.51 points at 1,355.34 on turnover of 3.75 bln yuan after moving between 1,353.25 and 1,369.48. "Recent declines gathered pace today, as people were worried about possibly tighter liquidity after the holiday," said Li Jiangtao, a Shanghai Securities analyst. China's stock markets will be closed from October 1-7 for the National Day holiday. Talk has been circulating that the Shenzhen Stock Exchange, where no fresh share issues have been seen for years, is preparing for the launch of a Nasdaq-style board, and may resume hosting IPOs as early as late October. In addition, the convertible bond issues by both China Merchants Bank Co Ltd (SH A 600036) and China Vanke Co Ltd (SZ A 000002; SZ B 200002) are also expe down 16.47 points at 1,419.91 on turnover of 3.73 bln yuan and the Shenzhen A-share Index shed 6.33 to 388.77 on 1.96 bln yuan. The Shanghai 180 Composite Index slid 30.88 points to 2,597.88. The FTSE/Xinhua China A 200 Index was down 40.77 points at 3,347.19 and the FTSE/Xinhua China A 600 Index fell 39.63 points to 2,969.86.

(1 usd = 8.3 yuan) leo.zhu@xfn.com leo/ng/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 4:01 AM: *DAIRY CREST SELLS CHILLED JUICE BUSINESS FOR 11 MLN STG TO PRINCES

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Sep 29 4:00 AM: *DAIRY CREST SAYS BRANDS HAVE PERFORMED WELL

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Sep 29 3:59 AM: London shares start week higher on bargain hunting

LONDON (AFX) - Leading shares started the week on a positive note as investors went in search of bargains after last week's heavy sell-off, dealers said. By 8.50 am, the FTSE 100 was 16.1 points higher at 4,173.2, while the broader indices were all higher save for the small-cap index. On Friday, the DJIA closed down 30.88 points at 9,313.08 and the Nasdaq composite slipped 25.17 points to close at 1,792.07 on the back of some mixed economic data. In contrast to last week, it will be a busy week on the economic front, with Friday's US labour market report and tomorrow's US consumer confidence and Chicago PMI the main macro pointers. Today will see the release of US personal income and consumer spending data for August. Personal income is seen rising by 0.3 pct in August, from July's 0.2 pct rise. Consumer spending is forecast to have jumped 0.8 pct in August, the same rate of increase reported in July. Before then a steady flow of domestic economic news will keep investors on their toes ahead of this afternoon's speech to the Labour Party Conference by Chancellor of the Exchequer Gordon Brown. SABMiller was one of the best performing blue chips this morning after the brewing giant published a reassuring trading update. Trading in edged 2-1/2 higher to 842-1/2 on the back of an encouraging trading update in which it said that radio and press revenues are estimated to be 18 pct ahead of last year. Like-for-like group sales for the year to Sept 30 are estimated to have increased by 5 pct, with a 6 pct rise in radio sales and 4 pct increase in press sales, according to Scottish Radio. On the small-cap index, Madisons Coffee edged 0-1/4 pence higher to 6, boosted by news of narrowing full-year losses and an improvement in gross margins. Clean Diesel added 7-1/2 to 125 after the AIM-quoted engineering business signed a deal with Mitsui under which the Japanese trading company will take a minority stake to help commercialise a technology to clean up diesel engines. And Expro International gained 12-1/2 to 300 on the back of an encouraging first-half trading update. But Synstar slid 5 to 63-1/2 after warning that full-year results will come in at the low end of market expectations, despite a small year-on-year increase in both operating profit and earnings. sd/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:58 AM: AP Moeller-Maersk offers to pay more tax for oil concession extension - report

COPENHAGEN (AFX) - The AP Moeller-Maersk group has offered to pay an additional 2 bln dkr per year in taxes from its oil and gas activities as of next year in a bid to win an extension of its North Sea concessions from the Danish government, daily Boersen reported. The newspaper cited sources close to the government as saying AP Moeller-Maersk would consider such a sum a reasonable exchange for securing an extension to the concessions for its Dansk Undergrunds Consortium affiliate when they expire in 2012. The Royal Dutch/Shell Group and ChevronTexaco Corp also hold stakes in DUC. AP Moeller-Maersk and the government began talks on the issue last week following demands from politicians that profits from oil operations should be taxed at a higher rate. An agreement could be effective from Jan 1, but Economy Minister Bendt Bendtsen wants to secure support for the plan from two other parties, the Social Democrats and the Danish Peoples' Party, before ratifying it, the daily added. Plans for the state to take a stake in DUC have been postponed, it added. michael.delaine@afxnews.com mdl/jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:57 AM: Amsterdam shares AFX market data at 9.47 am - KPN up on Goldman Sachs upgrade

AMSTERDAM (AFX) - Market data at 9.47 am

Major indices: AEX index 316.58, up 2.60 points AMX Midcap index 315.28, down 0.92 point Govt bonds narrowly mixed

Major gainers: -KPN was up 1.1 pct to 6.57 eur after Goldman Sachs upgraded the stock to 'outperform' from 'in-line' -Buhrmann and Ahold were supported by a strengthening of the dollar versus Friday. Buhrmann put on 0.13 to 6.71 and Ahold rose 0.16 to 8.21. -Philips put on 0.24 to 20.30 and ASML climbed was 0.10 higher to 11.71. SIA said global chip sales rose 4 pct in August from July, with third quarter sales expected to beat seasonal trends. -Fortis climbed 0.21 to 15.28, ING rose 0.16 to 16.36 and ABN Amro gained 0.25 to 16.25. -KLM was up 0.06 to 11.92 ahead of news of an alliance with Air France.

Major gainers: -Van der Moolen dropped 0.24 to 9.20. -Unilever shed 0.15 to 51.90 amsterdam@afxnews.com mrk/vs

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Sep 29 3:56 AM: Alcan takeover offer for Pechiney approved by French bourse regulator CMF

PARIS (AFX) - The French bourse regulator CMF said it approved Alcan Aluminium Ltd's 48.5 eur per share takeover offer for Pechiney SA. The CMF said its approval is conditional upon Pechiney shareholders receiving at least the equivalent of 0.6 Alcan shares for each Pechiney share brought to the share-exchange portion of the offer, paid in either stock or cash, which was guaranteed this morning by Morgan Stanley and Lazard Freres, acting on behalf of Alcan. Alcan has offered to pay 24.60 eur per share in cash, and 22.90 eur in Alcan shares, plus 1 eur per share cash if more than 95 pct of Pechiney shareholders accept the bid. The EU Commission is expected to announce the results of its Phase I competition ruling on the merger today. Alcan has said its takeover offer for Pechiney will be void if the Commission does not grant Phase I approval. paris@afxnews.com js/jc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:55 AM: Milan shares AFX market data at 9.45 am; ENEL higher after power cut

MILAN (AFX) - Market data at 9.45am

Mibtel up 0.37 pct at 18,806 points Mib30 up 0.41 pct at 25,259 points

Main Mib30 gainers: -Fiat up 1.60 pct at 7.00 eur on turnaround prospects -Capitalia up 1.32 pct at 2.155 eur on shareholder pact prospects -Parmalat up 0.73 pct at 2.745 eur on hopes for bakery sale -RAS up 0.69 pct at 13.36 eur ahead of next week's business plan Main Mib30 losers: -Banca Antonveneta down 0.53 pct at 14.9 eur -Autostrade down 0.45 pct at 12.06 eur Other stocks in news: -ENEL up 0.54 pct at 5.43 eur after power cut; hopes for new plants -Edison up 0.22 pct at 1.369 eur after power cut nt

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Sep 29 3:54 AM: Shell licenses coal gasification technology to Chinese firms

BEIJING (AFX-ASIA) - Royal Dutch/Shell Group has signed four new licenses authorizing use of its coal gasification technology by major fertilizer plants in China, including facilities of China Petrochemical Corp (Sinopec Group). Shell said in a statement its technology will likely be used to produce synthetic gas as feedstock for the four plants in the southwestern province of Yunnan, the central province of Hubei and the eastern province of Anhui. Two licenses are for new fertilizer plants to be built in Yunnan, with an expected annual ammonia production of 500,000 tons each. The other two licenses are for existing fertilizer plants owned by Sinopec in Zhijiang city in Hubei province, and Anqing city in Anhui province, which are currently using naphtha as feedstock. Coal gasification is a process for converting coal partially or completely to combustible gases. After purification, these gases -- carbon monoxide, carbon dioxide, hydrogen, methane, and nitrogen -- can be used as fuels or as raw materials for chemical or fertilizer manufacture. Shell's coal gasification process is a clean way of using coal with the environmental performance of the product similar to natural gas. Heng Hock Cheng, managing director of Gas and Power for Shell China, said: "This is a significant step forward for Shell's coal gasification technology in commercial application in Asia. Shell's process enables the use of China's abundant coal reserves in a cleaner and more environmentally sustainable way." Shell has previously licensed its technology to two other companies in Hubei and the southern province of Guangxi. In addition, Shell has a 50-50 joint venture with Sinopec in Yueyang in the southern province of Hunan, to build a coal gasification plant with a daily production of 2,000-tons to supply synthetic gas as feedstock to the Sinopec Baling Fertilizer Plant. Construction of the plant is now in progress. sophia.zhu@xfn.com sz/ap/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:53 AM: Close Brothers sees better trade conditions as FY pretax rises - UPDATE

(Adds more detail on FY results) LONDON (AFX) - Merchant banking company Close Brothers Group PLC predicted some improvement in trading conditions as it posted a rise in pretax profit before goodwill to 85.4 mln stg for the year to July from 75.1 mln a year earlier. The full year dividend was unchanged at 26.0 pence. "The long storm in the stock market appears to have blown out, presenting a more positive outlook for our three investment banking divisions," said chairman Sir David Scholey. "However, the general economic situation remains uncertain. In these circumstances, we remain prudently cautious about the prospects for our investment banking activity, while expecting some improvement in the immediate trading environment in which we operate." After goodwill, pretax profit rose to 77.9 mln stg from 68.4 mln and earnings per share rose to 41.1 pence from 37.2 pence before goodwill and to 35.8 pence from 32.3 pence after goodwill. "With regard to our lending businesses, there is as yet no evidence of any significant adverse change in the bad debt environment; indeed interest rates remain at historically low levels, consumer spending continues quite strongly and unemployment remains low," the company said. "Against this background the outlook for our banking activity remains good." And more broadly, Close Brothers said it is looking forward "with considerably more confidence than for some time." Across the group, the company said its loan book was up 14 pct while bad debts were unchanged, and asset management saw a difficult year with profits sharply down, although funds under management rose 19 pct due to new money inflows. Overall net interest income rose to 126.5 mln stg from 110.4 mln and dealing income rose to 66.7 mln from 48.4 mln. In the corporate finance operations, profit doubled after a busy last quarter. And market-making profit was up 40 pct on increased activity levels and market share gains. newsdesk@afxnews.com cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:52 AM: STOCKWATCH Porsche up on report FY pretax 950 mln eur, within analysts' range

FRANKFURT (AFX) - Shares in Porsche AG edged higher in early morning trade on a report in Der Spiegel that the carmaker's full-year pretax profit to end-July rose 14.6 pct on the year to 950 mln eur, which is in line with the range of 916.2 mln eur to 1.020 bln eur pegged by analysts, dealers said. At 9.37 am, Porsche shares were up 2.37 eur or 0.65 pct at 368.87, while the DJ EuroSTOXX Auto Price Index was up 1.23 points or 0.75 pct at 165.14. The report said preliminary figures showed sales rose 15 pct to 5.6 bln eur. joe.brennan@afxnews.com jcb/jc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:51 AM: Oslo shares AFX at a glance outlook

OSLO (AFX) - Share prices are expected to open lower after Wall Street posted losses on Friday in the wake of falling consumer confidence, brokers said. On Friday, the OSEBX Benchmark index closed 2.76 points lower at 143.19 on turnover of 2.16 bln nkr. The OSEAX All Share index closed 2.71 points lower at 148.01.

TODAY'S PRESS: -A further 170 mln nkr due for Roekke, and Aker RGI, in December (Dagens Naeringsliv) -Norske Skog subsidiary NorskeCanada may build 4 bln nkr gas plant in Canada (Dagens Naeringsliv) -Germany's government will pass bottle deposit scheme formally on Wednesday (Dagens Naeringsliv) -Roekke's Aker RGI Holding has paid 3.5 bln nkr in dividends over five years (Aftenposten). elisabeth.dalseg@afxnews.com ebd/mdl/vs

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Sep 29 3:50 AM: US fund Lone Star expressed no intent to take over Korea Investment - KDIC

SEOUL (AFX-ASIA) - Lone Star, a US investment fund, has not expressed any intent to take over either Korea Investment & Securities or Daehan Investment & Securities, Lee In-Won, president of the state-run Korea Deposit Insurance Corp, said. Asked whether Lone Star expressed any intent to buy any of the financially-weak brokerages at a financial committee of the National Assembly, Lee said the US investment fund had not officially expressed such an intent. Lee also said it is difficult to know the amount of additional public funds the KDIC will have to inject into the brokerages to put management of the two firms on the right track. Some local newspapers have reported that Lone Star is interested in the brokerages. Lone Star has recently bought a controlling 51 pct stake in Korea Exchange Bank. jaehyon.cho@afxasia.com jhc/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:49 AM: Paris shares AFX market data at 9.38 am; Air France higher awaiting KLM news

PARIS (AFX) - Market data at 9.38 am: Major indices: CAC-40 up 5.09 points at 3,221.65 SBF-80 up 4.73 points at 3,027.61 SBF-120 up 4.22 points at 2,295.08

Volume: 147 mln eur 27 CAC-40 stocks up 13 CAC-40 stocks down Major gainers: -Air France up 0.33 eur at 13.85. The company is reportedly in talks with works council representatives today to give details of its plans for a tie-up with KLM -Alstom up 0.06 eur at 2.69. The Paris urban transport network RATP said this weekend it has awarded Alstom a 181 mln eur contract to supply 70 trams for the city's planned tramway expansion. -Remy Cointreau up 0.50 eur at 28.75

Major losers: -ASF down 0.45 eur at 27.45 -Orange down 0.03 eur at 9.03 -Pernod Ricard down 1.00 eur at 83.50

Most active stocks: -Total down 0.10 eur at 132.40 in 19 mln eur -AXA up 0.14 eur at 15.16 in 12 mln eur -Aventis down 0.13 eur at 45.60 in 10 mln eur

dl/cmr







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Sep 29 3:48 AM: Fomento de Construcciones wins Seville street furniture contract - report

MADRID (AFX) - Fomento de Construcciones y Contratas SA unit Cemusa has been awarded a contract to supply, install and maintain street furniture, such as bus stops, for the city of Seville, ABC reported without naming a source. The deal is worth an estimated 100 mln eur in revenue, part of which is generated from the sale of advertising space, over the contract's 15-year life, it said. afxmadrid@afxnews.com jr/dpm/fb/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:47 AM: Euroshares opening - Deutsche Post gains on hopes of early Postbank IPO

LONDON (AFX) - Shares in Deutsche Post gained ground in opening deals amid reports the group will float its Postbank unit in the next 18 months, dealers said. WestLB analysts said the news is positive as the IPO looks set to take place sooner than they had anticipated. dlh/cmr



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Sep 29 3:46 AM: DaimlerChrysler to sell MB Lenkungen to ThyssenKrupp Automotive in days-report

FRANKFURT (AFX) - DaimlerChrysler AG is to sell its automotive steering unit MB Lenkungen to ThyssenKrupp Automotive AG in the next few days, Handelsblatt said, citing company sources. It quoted the spokesmen of DaimlerChrysler and ThyssenKrupp as saying that the deal could soon be concluded after some issues are clarified. The spokesmen declined to give details on the time frame, the report said. mog/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:45 AM: Spain's Union Fenosa says 'no hurry' to sell stake in Philippines Meralco

MANILA (AFX-ASIA) - Spanish utility firm Union Fenosa SA said it is in "no hurry" to sell its 9.20 pct share in Manila Electric Co and is instead "working closely" with the country's largest power distributor to improve the value of its equity before exploring opportunities to divest. Union Electric Fenosa country representative Emilio Vicens told AFX-Asia the company, which occupies a seat in Meralco's board of directors, "has no plans to divest in the immediate term, simply because the conditions are not right." Vicens was reacting to a newspaper report at the weekend which said it will dispose of its shares in Meralco as part of a strategy to unload other international investments. "It is obvious the Philippines, or other international assets for that matter, will, in some case, be subject to divestment depending on whether opportunity arises...(but) it's a matter of having the right conditions, which is not present at the moment," Vicens said. He added there was simply no hurry since its 9.20 pct interest in Meralco represents a very small portfolio of Fenosa's assets worldwide. In 1994, Fenosa injected capital of 100.00 mln usd into Meralco through a joint venture with the Lopez group and then acquired more shares in 1999 through additional equity worth roughly a further 100.00 mln usd. It bought the Meralco shares at 100.00 pesos each. Meralco B, open to foreigners, closed unchanged at 23.25 pesos per share today. Vicens added Fenosa is "committed to finding the right value" for its Meralco shares and said the company is not bent on selling at "just any price." "We're in fact helping in the resolution of issues confronting Meralco as it is important for us to recoup part of the value we've lost," Vicens added. Meralco officials declined to comment and instead referred the query to the Spanish shareholder. This is not the first time that Fenosa has been reported to want out of Meralco. (1 usd = 54.985 pesos) cecille.yap@afxasia.com cey/ds For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:44 AM: Deutsche Bank to sell 1 bln eur European properties to Blackstone - report

FRANKFURT (AFX) - Deutsche Bank AG is nearing an agreement to sell 1 bln eur worth of its European property portfolio to private equity group Blackstone in what would be one of the biggest property divestitures by a German company, the Financial Times said. The newspaper, quoting sources close to the deal, said Blackstone would buy about 50 Deutsche offices and branches in cities including Barcelona, Brussels, Milan, Lisbon, Luxembourg, Duesseldorf, Munich and Zurich. About two-thirds of the properties are in Germany, it said. The bank would continue to occupy most of the properties on long leases, while the rest would be on shorter leases with the understanding that Deutsche would probably vacate them when the leases expired. Terms of the deal are understood to have been agreed and Deutsche's supervisory board is expected to vote on the sale in the next few weeks. It said Deutsche Bank declined to comment and Blackstone, a US company, could not be reached. mog/cmr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:43 AM: Euroshares opening - Markets pull back early losses as bargain hunters move in

LONDON (AFX) - Most European markets tracked Wall St lower at open but soon ticked higher as the investors searched around for bargains after last week's heavy selling and ahead of key US data and the upcoming US earnings season, dealers said. The technology sector made solid advances with Nokia leading the pack after bullish comment in influential weekly Barron's and after the group's restructuring measures last week. Solid data and an optimistic outlook from the Semiconductor Industry Association also added to the optimism. Shares in Deutsche Telekom and KPN were both higher after Goldman Sachs upgraded its stance to 'outperform' from 'in-line'. dlh/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:42 AM: WM-data, Microsoft sign 3-year Nordic partnership agreement

STOCKHOLM (AFX) - WM-data AB said it has signed a 3-year strategic partnership agreement with Microsoft Corp, to create powerful solutions and increase the presence of Microsoft's products in the Nordic region. WM-data said the new deal strengthens its position as one of Microsoft's leading partners in the Nordic Area. hc/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:41 AM: *ALCAN TAKEOVER OFFER FOR PECHINEY APPROVED BY FRENCH BOURSE REGULATOR CMF

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Sep 29 3:40 AM: China-Hong Kong trade deal allows HK cos larger stake in mainland insurers

HONG KONG (AFX-ASIA) - Hong Kong companies will be able to take up to a 24.90 pct stake in Chinese insurance firms, up from 15 pct, under annexes to the Closer Economic Partnership Arrangement signed today, Secretary for Commerce, Industry and Technology John Tsang said. The annexes to the CEPA were signed by Hong Kong Financial Secretary Henry Tang and China's Vice Minister of Commerce An Min. The framework CEPA accord was signed on June 30, on the eve of the fifth anniversary of the handover of former British colony to China, witnessed by visiting Chinese Premier Wen Jiabao. The deal, which covers three areas -- trade in services, trade in goods and trade facilitation -- will come into effect on Jan 1, 2004, giving firms and professionals in Hong Kong a crucial head start over other foreign countries in the race to establish a footing in the Chinese market. Under previously announced terms, some 273 Hong Kong goods will be given zero tariffs and local firms and professionals will be granted easier access to the mainland market. On trade in services, the two sides have agreed on some further clarifications and refinements regarding the liberalization of the 17 sectors agreed and announced. China also has agreed to grant preferential treatment in telecommunications services. A joint steering committee responsible for overall coordination of CEPA will be set up soon and jointly chaired by An and Tang.

peter.chan@afxasia.com kk/ptc/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:39 AM: STOCKWATCH Altana firm on well-received Roflumilast data; WestLB upgrades

FRANKFURT (AFX) - Shares in Altana AG pushed higher in early deals as analysts gave the thumbs up to data released by the pharma group yesterday which found its respiratory drug Roflumilast to be well tolerated in a Phase III clinical trial involving 1,400 patients, dealers said. At 9.11 am, Altana shares were up 0.95 eur or 1.77 pct at 54.67, while the DAX 30 index was down 3.98 points or 0.12 pct at 3,320.87. And while WestLB has subsequently upgraded its stance on the group to 'buy' from 'outperform', with its price target rising to 65 eur from 58, dealers noted that profit-taking could set in at any stage, given the stock's strong performance last week in the run-up to the data's release at a medical congress in Vienna. Roflumilast, also a treatment for asthma, has a worldwide peak sales forecast of roughly 1 bln eur. It is being co-developed with Pfizer Inc. The patients in 11 countries were treated for 24 weeks with either a placebo or 250 microgrammes or 500 microgrammes of Roflumilast, Altana said. The results from the trial show Roflumilast was well tolerated -- the most frequent adverse effect was diarrhoea, Altana said. In addition, the data showed a statom and www.afxpress.com

Sep 29 3:38 AM: Anglo American invests 150 mln usd to upgrade South Africa Merebank paper mill

LONDON (AFX) - Anglo American plc said it will invest 150 mln usd on the conversion and expansion of paper machine 1 (PM1) at its Merebank paper mill, in KwaZulu-Natal, South Africa. The project will include upgrading most parts of the existing PM1 and will increase the capacity for competitive production of uncoated woodfree paper grades. The production of magazine paper grades on PM1 will be discontinued. The mill's annual production of uncoated woodfree paper will increase from its current 274,000 tonnes to 524,000 tonnes by 2006. Anglo American said it will also invest a further 44 mln usd in an emission reduction programme, that ultimately will cut SO2 emissions by 66 pct from the mill. The programme includes the flue gas desulphurisation of the existing coal fired boilers at a cost of 7 mln usd and the installation of a 37 mln usd multi-fuel boiler. Chairman and CEO of Anglo American's Mondi South Africa, Andrew Thompson, said: "This significant development at the Merebank mill is an important further step in Mondi's strategy to grow our business in value-added cut paper grades..." He added the project is expected to "significantly" increase exports, in the case of Europe and other important markets, exclusively through the marketing network of Mondi Europe's Neusiedler. rf/ For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:37 AM: China B-shares close mixed in quiet trading; earnings eyed

SHANGHAI (AFX-ASIA) - B-shares in Shanghai and Shenzhen closed mixed in thin turnover ahead of the extended National Day holiday, with trading focused on corporate earnings as the reporting season draws near, dealers said. The Shanghai B-share Index was down 0.09 points at 98.54 on trade of 2.81 mln usd after trading between 97.95 and 98.69. The Shenzhen B-share Index edged up 0.49 points to 226.71 on 71.70 mln hkd after trading between 224.87 and 226.92. The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 15.51 points at 1,355.34 on turnover of 3.75 bln yuan after moving between 1,353.25 and 1,369.48. The FTSE/Xinhua China B 35 Index was up 10.52 points at 3,197.23.

(1 usd = 8.3 yuan) leo.zhu@xfn.com leo/dw/ap/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:36 AM: China A-shares close at new 8-mth low; Unicom heightens liquidity fears

SHANGHAI (AFX-ASIA) - A-shares in Shanghai and Shenzhen closed lower, hitting yet another eight-month low as prices slid for the third consecutive day, with next month's float of the 259 mln shares in China United Telecommunications Corp Ltd (SH A 600050) only adding to investor jitters about market liquidity conditions, dealers said. The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 15.51 points at 1,355.34 on turnover of 3.75 bln yuan after moving between 1,353.25 and 1,369.48. The Shanghai A-share Index was down 16.47 points at 1,419.91 on turnover of 3.73 bln yuan and the Shenzhen A-share Index shed 6.33 to 388.77 on 1.96 bln yuan. The Shanghai 180 Composite Index slid 30.88 points to 2,597.88. The FTSE/Xinhua China A 200 Index was down 40.77 points at 3,347.19 and the FTSE/Xinhua China A 600 Index fell 39.63 points to 2,969.86.

(1 usd = 8.3 yuan) leo.zhu@xfn.com leo/dw/ng/wpf

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Sep 29 3:35 AM: Tokyo shares close lower on strong yen; Nikkei ends at 4-week low - UPDATE

(Adds analsyt comments, details, share prices of major winners and losers) TOKYO (AFX-ASIA) - Japanese share prices closed lower, as the strong yen triggered not only accelerated selling of major exporters such as Sony and Honda Motor, but of cyclical stocks too on concern over the muscular yen's effect on Japan's export-led recovery, dealers said. The yen jumped to 111.16 to the dollar in Tokyo trading, up from 111.67 late Friday and not far from the three-year high of 110.91 struck last week. The Nikkei 225 index finished down 88.87 points or 0.86 pct at 10,229.57, a four-week closing low. During trading it fell to 10,148.36, a six-week low, and has now dropped 8.3 pct since Sept 19 when it hit 11,160.19. The broader TOPIX index of all first-section shares fell 10.24 points or 1.0 pct to 1,010.82. Decliners outnumbered advancers by a ratio of more than two to one -- 939 to 446 -- on volume of 918 mln shares, down from 1.1 bln shares Friday. "Investors were reluctant to take new positions ahead of the end of fiscal first half (tomorrow) and the release of the central bank's Tankan quarterly corporate sentiment survey (on Wednesday)," said Kenji Karikomi, a general manager at Hinode Securities. Blue-chip exporalved its ratio of non-performing loans to overall lending to below 4 pct, from 7.9 pct as of March 2002. But Mitsubishi Materials plunged 6.9 pct after cutting its net profit forecast for the April-Sept half to break-even, while Sumitomo Chemical tumbled 5.8 pct after cutting its net profit forecast for the full year to March to 33 bln yen from 35 bln. Concern over the economic outlook meant muted reactions to companies announcing upward profit revisions. Chip test equipment maker Advantest rose just 2.4 pct after more than doubling its net profit forecast for the year to March 2004 to 7.5 bln yen, from 3.0 bln. And inkjet printer maker Seiko Epson gained only 0.86 pct after raising its net profit projection by 21 pct -- to 28.4 bln yen -- for the year to March. Eiken Chemical Co Ltd soared 12.5 pct or 100 yen to 900 following a report saying the company and government researchers have developed a quick, easy-to-use kit that can diagnose SARS within one hour. robin.elsham@afxasia.com rte/wpf

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Sep 29 3:34 AM: *PECHINEY SHARES OPEN 0.14 EUR HIGHER AT 46.80 IN PARIS AT 9.20 AM

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Sep 29 3:33 AM: EDF's Roussely sees higher H1, FY results, says 2002 was lowest point for co

FRANKFURT (AFX) - Electricity de France chairman Francois Roussely said the state owned utility will post a higher net profit this year than in 2002, and plans to be among the most profitable companies in the energy sector by 2006. "2002 was the low point. The first half results (for this year, which will be announced on Thursday) will confirm that," Roussely told daily Handelsblatt in an interview. "By 2005/6 we want to belong among the most profitable companies in the energy sector." Le Figaro reported on the weekend that EDF's first half net profit will be slightly above 700 mln eur with an operating profit of 5.5 bln. In 2002, EDF posted a net profit of 481 mln eur on sales of 48 bln. Roussely reiterated that he considers it necessary to strengthen the capital base of EDF. "With just 13 bln eur of own capital and 145 bln eur of assets, everyone regards EDF as under funded," he said. In August, Standard and Poor's cut its long-term credit rating on Electricite de France to AA- from AA, with a negative outlook due to EDF's unfunded pension liabilities. EDF is still considering a capital increase for Energie Baden-Wuerttemberg AG, in which it holds a 34.5 pct stake, but only after EnBW has sold units and focused on its core business, Roussely said. peter.dinkloh@afxnews.com din/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:32 AM: *CORRECTION ANGLOAMERICAN INVESTS FURTHER 44 MLN USD TO CUT SO2 EMISSIONS

(Correcting amount, type of emissions)



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Sep 29 3:31 AM: NZealand stocks close slightly lower; Freightways debut in focus

WELLINGTON (AFX-ASIA) - New Zealand shares closed slightly lower, shedding 0.16 pct, with the listing of Freightways the only feature, dealers said. The NZSX50 index was down 3.62 points at 2,270.59 on turnover of 82.7 mln nzd. ASB Securities' Andrew Kelleher said the market started off looking promising "but then everything just kind of slipped away." Freight and courier company Freightways listed at 1.75 nzd -- a 9.0 pct premium to the 1.60 nzd offer price in what was the largest listing in New Zealand since 1999. After rising as high as 1.76 nzd, Freightways closed at 1.72. Telecom was 0.02 nzd lower at 5.15. Contact Energy added 0.08 to 5.02 and Carter Holt Harvey was up 0.02 at 1.70. Air New Zealand was up 0.01 at 0.51 and Auckland International Airport was down 0.06 at 6.59. Fisher and Paykel Appliances shed 0.10 to 14.65, Fisher and Paykel Healthcare was down 0.10 at 12.55 and Fletcher Building down 0.07 at 4.18. Guinness Peat Group lost 0.01 nzd to 1.66, Independent Newspapers Ltd was down 0.01 at 4.55 and Sky TV down 0.03 at 5.02. mjf/bmm/wpf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:30 AM: LukOil given approval to explore Iran onshore block

LONDON (AFX) - LukOil OAO said the National Iran Oil Co has approved the participation of LUKOIL Overseas, the operator for the company's international exploration and production projects, in a geological and exploration project on the Anaran prospective onshore block in Iran. LUKOIL Overseas has a 25 pct share in the Anaran project, and Norsk Hydro ASA holds the remaining 75 pct. cmr/vs

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Sep 29 3:29 AM: Pechiney share trading delayed until 9.20 am - Euronext Paris

PARIS (AFX) - The opening of trading in Pechiney shares has been delayed until 9.20 am, a Euronext Paris spokeswoman said, who was unable to provide a reason for the delay. The EU Commission is expected today to give its Phase I ruling on the terms of Alcan Aluminium Ltd's 48.5 eur per share takeover bid for Pechiney. paris@afxnews.com js/jlw

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Sep 29 3:28 AM: Euroshares opening - Nokia gains on positive Barron's comment

LONDON (AFX) - Shares in Nokia stormed ahead in opening deals after very bullish comment in influential US weekly Barron's, dealers said. The magazine said strong cash generation at the Finnish mobile group means the shares should be trading at two times their current level. dlh/jlw

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Sep 29 3:27 AM: mmO2 sees O2 UK H1 service rev growth in mid-teens, but slowing in H2 - UPDATE

(Updates with further details on capex and Irish businesses)

LONDON (AFX) - The UK's fourth largest mobile phone operator mmO2 PLC expects O2 UK to deliver service revenue growth in the mid-teens for the first half, but it is expected to slow significantly in the second half as the termination rate cuts imposed by the regulator take effect. The expected service revenue growth is driven by strong growth of the customer base and higher average revenue per user (ARPU). The EBITDA margin during the first half period is progressing towards the full-year target of 30 pct, while reflecting the costs of growing the business. mmO2 said the termination rate cuts will impact the second half EBITDA margin, which however should continue to improve, enabling O2 UK to deliver its full-year target of 30 pct, and 10 pct service revenue growth, it said in a pre-close update. In Germany, O2 will show strong customer and ARPU growth, which is expected to continue through the second half. It expects to achieve a mid-teens EBITDA margin in the first half, ahead of its target for the full year. The company had previously stated it expected O2 Germany to achieve a double-digit EBITDA margin in the current year. "The momentum it has built up in the market is expected to enable O2 Germany to sustain this EBITDA margin through the second half," it said. In Ireland, mmO2 forecasts a steady growth of service revenue and EBITDA in the first half. The company will consider further potential cost saving opportunities across the group in the second half. On total expenditure in the full year, mmO2 expects it to be 5-10 pct below previous guidance of 1.3 bln stg. The capex profile will weigh towards the second half of the year, reflecting acceleration of the UMTS investment programme. Chief Executive Peter Erskine commented: "Capex and cash-flow continued to be tightly controlled in the first half, and investment efficiencies identified. "We expect 3G investment to increase during the second half, as we move towards the initial launch of UMTS-based services, when the conditions in our markets are right for this." The group will release its first half to Sept 30 results on Nov 17. newsdesk@afxnews.com shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:26 AM: *ANGLOAMERICAN INVESTS FURTHER 40 MLN USD TO CUT CO2 EMISSIONS

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Sep 29 3:25 AM: Dell CEO says major near-term acquisition unlikely; sees sector consolidation

PARIS (AFX) - Dell Inc Chief Executive Officer Michael Dell said the company does not expect to make a major acquisition in the near term. In an interview with Les Echos, Dell said: "It remains unlikely that we'll conclude a major acquisition in the near future. It is not our culture to merge with companies." The company has targeted a doubling of its sales to around 60 bln usd by 2006. Dell also said he expects the consolidation process in high-technology to accelerate, noting that only a few companies are making money in the sector. Dell said the company's strategy is to establish direct contact with customers, noting that an acquisition of a company like Sony Corp would make little sense. However, the company is seeking to expand in such sectors as home computing. paris@afxnews.com lwl/jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:24 AM: STOCKWATCH Omega Pharma opens up 9 pct after Fortis upgrades to 'hold'

BRUSSELS (AFX) - Shares in Omega Pharma NV opened sharply higher after Fortis upgraded the share to 'hold' from 'reduce' on valuation grounds. At 9.02 am, the share was up 2.22 eur or 9.14 pct at 26.50, while the Bel 20 was down 1.56 points or 0.08 pct at 2,076.05. "Although we maintain our cautious view on the group prospects with earnings per share estimates below the targets of the company, our scenario analysis indicates the stock is undervalued," said Fortis. Fortis maintains its target price of 28 eur. Dexia Securities issued its analysis of the company's first half results and said it maintains its 'add' rating and target price of 33 eur. afxbrussels@afxnews.com ed/vs

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Sep 29 3:23 AM: *ANGLOAMERICAN INVESTS 150 MLN USD TO UPGRADE SOUTH AFRICA MEREBANK PAPER MILL

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Sep 29 3:22 AM: *SHANGHAI A-SHARE INDEX CLOSES DOWN 16.47 PTS AT 1,419.91



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Sep 29 3:21 AM: *SHANGHAI B-SHARE INDEX CLOSES DOWN 0.09 PTS AT 98.54



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Sep 29 3:20 AM: Italy Sept preliminary NIC CPI up 0.2 pct from Aug; up 2.8 pct yr-on-yr

ROME (AFX) - Preliminary consumer prices according to the NIC index, including tobacco prices, were up 0.2 pct in September from August and were up 2.8 pct from a year earlier, statistics bureau ISTAT said. In August, NIC CPI, including tobacco, was up 0.2 pct from July and was up 2.8 pct from a year earlier. Preliminary consumer prices according to Italy's EU harmonised index were up 0.8 pct in September from August and were up 2.9 pct from a year earlier. In August, they were down 0.4 pct from July and up 2.7 pct from a year earlier. nr/jlw

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Sep 29 3:19 AM: *OMEGA PHARMA OPENS UP 9 PCT AFTER FORTIS UPGRADES TO 'HOLD'

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Sep 29 3:18 AM: *PECHINEY SHARE TRADING DELAYED UNTIL 9.20 AM - EURONEXT PARIS

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Sep 29 3:17 AM: *CAC-40 INDEX OPENS 1.10 PTS LOWER AT 3,215.66

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Sep 29 3:16 AM: Milan shares AFX at a glance outlook

MILAN (AFX) - Share prices are expected to open lower on the back of Friday's weak Wall Street close, brokers said. Friday, the Mibtel index was down 0.67 pct at 18,736 points, while the Mib30 fell 0.77 pct at 25,155. Volume was an estimated 2.570 bln eur.

FORTHCOMING EVENTS - Italy provisional Sept CPI (9.00 am) - Italy August PPI (10.00 am) - Telecom Italia wireline chief news conference (11.30 am) - Autostrada Torino-Milano EGM on share buy-back - Govt scheduled to meet on 2004 budget, pension reform - Alitalia board meeting on alliances (6.00 pm)

TODAY'S PRESS - Bulgari CEO says selling less watches (La Repubblica) - Industry chief sees 100 mln eur power cut damage (La Repubblica) - Tod's Della Valle cool on trade protection vs China (Corriere della Sera) - ENI CEO seeking divestments, not acquisitions (Corriere della Sera) - ENEL CEO says grid system too fragile (Corriere della Sera) - Industry minister seeks quick vote on energy law (Corriere della Sera) - Electric grid operator chief defends role (Corriere della Sera) - Prada FY opg, sales to match 2002 (Financial Times)

WEEKEND PRESS - TF1 enters Italian market (La Repubblica, Sat) - EU's Prodi says could punish France oENEL's Terna could have higher rate of return in planned IPO - broker - Unipol cap hike, acquisition comments in line with expectations - broker - RAS 'outperform' unchanged by Centrosim ahead of next wk's business plan nt/jfr

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Sep 29 3:15 AM: STOCKWATCH Electrolux seen pressured as Danske Equities reiterates 'sell'

STOCKHOLM (AFX) - Shares in Electrolux AB could come under pressure in opening trade, as Danske Equities reiterated its 'sell' rating and 177.5 skr target price, pointing to margin contraction at the white goods giant. "We reiterate our 'sell' rating on Electrolux after its capital markets day (last week) and raise estimates slightly. We believe the focus has shifted to the 2004 outlook and we still expect modest revenue growth will bring margin contraction," Danske Equities said. The brokerage increased its 2003 EPS estimates by 1 pct to 16.90 skr, and its 2004 estimate by 2 pct to 14.80 skr. Last week, Electrolux B lost 5 pct and closed on Friday at 173.50 skr last traded. hc/vs

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Sep 29 3:14 AM: *DAX OPENS 0.85 POINTS LOWER AT 3,324.00

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Sep 29 3:13 AM: *ITALY SEPT PRELIMINARY HICP UP 0.8 PCT FROM AUG; UP 2.9 PCT YR-ON-YR

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Sep 29 3:12 AM: *ITALY SEPT PRELIMINARY NIC CPI UP 0.2 PCT FROM AUG; UP 2.8 PCT YR-ON-YR

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Sep 29 3:11 AM: Australian shares close weaker on banks, gold; key resources firmer - UPDATE

(Adds analyst comments, share prices) SYDNEY (AFX-ASIA) - Share prices closed weaker, taking their lead from a negative close offshore, with banks and gold stocks under pressure while there were modest gains among key resources, dealers said. The S&P/ASX 200 index closed down 7.2 points or 0.23 pct at 3,164.3 off a high of 3,171.8 and a low of 3,157.5. The All Ordinaries index was down 5.4 points at 3,170.3. Independent broker Geoffrey Hill said the market lacked any clear themes today, with a few news drivers and a generally cautious stance among investors. "There is a lack of solid data coming out and while the data we are getting is of a positive tilt it is not totally optimistic. The Dow and Nasdaq have come off a bit and there is a feeling we are overdue for a bit of consolidation," he said. Hill said the bank sector continues to be sold off although there are signs they may rally after being oversold in recent sessions. Volume totaled 791.7 mln shares worth 1.43 bln aud, with 488 gainers and 630 losers, while 337 stocks closed unchanged. The S&P/ASX 200 December futures was down 7.0 points at 3,166.0. The yield on the 10-year benchmark government bond was down 0.06 at 5.305 pct while the 90-dah Newcrest falling 0.37 to 10.53, Newmont down 0.17 at 5.78, Sons of Gwalia down 0.10 at 3.15 and Lihir losing 0.08 to 1.65. Peter Lehmann was down 0.01 at 4.03 while Foster's was up 0.04 at 4.50 and Lion Nathan was up 0.01 at 5.36. Orica lost 0.27 to 11.98 after being issued with a clean-up notice by Environment Protection Authority for pollutants at its Botany site in Sydney.

(1 usd = 1.47 aud) robert.fenner@afxasia.com rjf/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:10 AM: Milan bourse sees normal opening, trading after yesterday's power cut

MILAN (AFX) - The bourse expects a normal opening and trading session after yesterday's power cut, which hit most of Italy, bourse officials said. The power cut began yesterday morning at 3.30 am. Power returned in Milan Sunday morning, with a countrywide return later in the day. nt/vs

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Sep 29 3:09 AM: Euronext.liffe offers 6-mths fee holiday for Spanish stock futures

LONDON (AFX) - Euronext.liffe, the international derivatives business of Euronext NV, said that for six months from Oct 1 it will not charge for the trading and clearing of Spanish-based Universal Stock Futures. The launch of this initiative follows the announcement of the listing of three new USFs based on Spanish stocks bringing the total to 11 Spanish USFs, representing 77 pct by market capitalisation of the IBEX Index, the company said. The new USFs, based on Altadis SA, Banco Popular Espanol SA and Industria de Diseno Textil SA (Inditex) will be available from Oct 27, it said. Euronext.liffe said it already lists a total of 115 USFs and this will be expanded to 140 on Oct 27. equitynext@afxnews.com For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:08 AM: STOCKWATCH ProSiebenSat.1 pref shares lower prebourse on reported Saban offer

FRANKFURT (AFX) - The MDAX-listed ProSiebenSat.1 Media AG preference shares were lower in prebourse trade as investors mulled a report that US media businessman Haim Saban wants to make an offer of about 6.00 eur/shr for them -- which would mark a significant discount to Friday's close at 9.92 eur, dealers said. At 8.46 am, ProSiebenSat.1 shares were trading between 9.60-9.88 eur in prebourse trade, according to Lang & Schwarz. The Frankfurter Allgemeine Sonntagszeitung said Saban's proposal was contained in a document he filed last Friday with the securities supervisory agency BAFin. Last August, Saban acquired 36 pct of shares in ProSiebenSat.1 and nearly 72 pct of the voting rights. The report said Saban's latest offer, which he is obliged to make under Germany's takeover rules, is valid only for preference shares. BAFin will now have 10 working days to examine Saban's proposal, it added. joe.brennan@afxnews.com jcb/cmr



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Sep 29 3:07 AM: China Southern signs agreement to buy 4 Airbus A330-200s

BEIJING (AFX-ASIA) - China Southern Airlines (SH A 600029; HK 1055; ADR ZNH) has signed an agreement with Airbus to buy four A330-200s, with deliveries scheduled to start in 2005, Airbus said in a statement. The agreement is part of a General Terms Agreement signed between Airbus and China Aviation Supplies Imp & Exp Group Corp on April 25 for a bulk order of 30 Airbus aircraft, to be operated by China Southern and several other Chinese carriers, Airbus said. The A330-200s have 276 seats each, with a range of up to 12,300 km, it added. "We will mainly put the A330-200s into operation on medium- and long-range routes, especially on new international routes that we plan to open," said Liu Mingqi, vice president of China Southern Airlines group. China Southern connects more than 80 cities around the globe with more than 300 routes, operating a fleet of over 120 aircraft, including 20 Airbus A320s. yan.fang@xfn.com fy/ng/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:06 AM: *EURONEXT.LIFFE OFFERS 6-MTHS FEE HOLIDAY FOR SPANISH STOCK FUTURES

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Sep 29 3:05 AM: Danish shares AFX at a glance outlook

COPENHAGEN (AFX) - Share prices are expected to open lower after Wall Street's losses on Friday in the wake of falling consumer confidence, brokers said. On Friday, the KFX index closed 0.70 points lower at 245.53 and the KBX Benchmark index was 0.63 points lower at 208.88. The KAX All Share index closed 0.68 points lower at 213.96 and total turnover amounted to 2.22 bln dkr.

FORTHCOMING EVENTS TODAY'S PRESS -AP Moeller-Maersk offers to pay 2 bln dkr/yr more in oil-related taxes -- sources close to government (Boersen) -AP Moeller-Maersk's EU cartel case can be expensive -- EU competition expert (Boersen) -Lundbeck CEO Braestrup stops Cipramil copy war (Boersen)

MARKET NEWS/SENTIMENT -Novo Nordisk ADRs closed at a higher level Friday, but unchanged compared with closing prices in Copenhagen when converted to Danish kroner -TDC ADRs closed at a higher level -Lundbeck seen lower after Goldman Sachs cut rating to 'underperform' from 'in-line' michael.delaine@afxnews.com mdl/cmr



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Sep 29 3:04 AM: Amsterdam shares AFX at a glance outlook

AMSTERDAM (AFX) - Share prices are expected to extend last week's losses following Wall Street's lower close on Friday amid continued dollar weakness, dealers said. Friday, the AEX index finished down 4.26 points or 1.34 pct at 313.98.

FORTHCOMING EVENTS Today -Prolion AGM

TODAY'S PRESS -KLM, Air France alliance likely to be announced Tuesday (Telegraaf) -Ahold CEO Moberg to invest 12 mln eur in Sweden's Clas Ohlsen, to become supervisory board member.

WEEKEND PRESS -Temp agencies agree new labour agreement (various)

COMPANY NEWS -Buhrmann senior implied rating upgraded to Ba3, outlook stable - Moody's

MARKET SENTIMENT -KPN is expected to open slightly higher on the back of an upgrade to 'outperform' from Goldman Sachs. -KLM will remain in focus ahead of long-waited news of an alliance with Air France amsterdam@afxnews.com mrk/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:03 AM: Moneyline Telerate places funds disputed by Reuters into escrow account

NEW YORK (AFX) - Moneyline Telerate said it placed the 18.3 mln usd that Reuters Group PLC claims in a lawsuit it is owed by the company into an escrow account. Moneyline Telerate said the transfer of funds into the escrow account is permitted by an agreement between the two companies. The Reuters lawsuit alleges that Moneyline Telerate has not paid Reuters the full amount it owes the company. Reuters has said it will terminate all services provided to Moneyline Telerate on Dec 19. Moneyline Telerate said that by opening the escrow account, it has removed the sole purported basis for Reuters' termination of their contract. newsdesk@afxnews.com vs



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Sep 29 3:02 AM: Stockholm shares AFX at a glance outlook

STOCKHOLM (AFX) - Share prices are expected to open little changed, but could come under further profit-taking with little upward momentum left in the market at the moment, dealers said. On Friday, the Stockholmsboersen All-Share index closed up 0.60 pct at 176.02, while the Attract40 closed up 0.88 pct at 52.64. The OMX index closed up 0.84 pct to trade at 581.65. Total turnover amounted to 9.163 bln skr.

FORTHCOMING EVENTS Tomorrow -Swedish Sep consumer confidence (8.30 am)

PRESS HEADLINES -Sweden to tighten insider trading law in 2004 (Svenska Dagbladet) -Skandia acting CEO says bigger focus on costs, better risk control and less capital demanding R&D will return firm to positive cash flow (Dagens Industri)

BROKER RECOMMENDATIONS -Danske Equities reiterates 'Buy' rating, 49.2 skr target price on Teleca; reiterates 'Sell', 177.5 skr target price on Electrolux

MARKET SENTIMENT -Among Swedish shares traded on Wall Street on Friday, Ericsson B closed little changed compared with Stockholm closing levels, AstraZeneca flat, SKF B around 1 lower, Tele2 around 3 higher, Swedish Match slightly lower, Volvo around 1 lower, and Electrolux little changed. -Nokia A closed slightly lower in New York than it did in Stockholm. stockholm@afxnews.com hc/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:01 AM: Severn Trent says 'pleased' with H1; Biffa, Services profits up

LONDON (AFX) - Severn Trent PLC, the water and waste management group, said it is "pleased" with its performance in the first half of the current year despite tough trading conditions. In a trading statement, the group said the half-year period to September 2003 benefited from the IDOK (interim determination of K) and cost reductions. "Overall, the board is pleased with the group's first half-year performance," it said. It had a "good start" to the 2003/04 capital spending programme and as part of the AMP4 price review, the draft business plans were submitted to regulator OFWAT last August. Turning to divisional performance, Severn Trent said Biffa's turnover -- excluding the impact of Hales but including Biffa Belgium -- for the first half is expected to be ahead of the first half of last year. Biffa's profit before interest, tax, goodwill amortisation and exceptional items -- excluding Hales and pension scheme valuations but including Biffa Belgium, is expected to be around 4-8 pct ahead of the first half of last year. "Biffa is pleased with the acquisition of Hales. The integration process to date is ahead of plan and is expected to deliver the anticipated synergies," the company said. Services' total PBITA for the half-year is expected to be more than 20 pct ahead of previous year's, partly following the acquisition of P&K Microbiology Services. The group is to publish interim results on Dec 9. mbe/rf For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 3:00 AM: Euroshares opening - Generali upgraded, Alleanza cut at Goldman Sachs

LONDON (AFX) - The Italian insurance sector could draw attention in morning trading after Goldman Sachs upgraded its rating on Generali to 'in-line' from 'underperform' and cut its recommendation on Alleanza to 'underperform' from 'in-line' on valuation grounds, dealers said. The US broker maintained its 'attractive' rating saying it preferred life insurance plays. Its top picks remain ING, AXA, Prudential and ZFS. dlh/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:59 AM: German shares AFX at a glance outlook

FRANKFURT (AFX) - Shares are expected to open lower, following the weak performance seen on Wall Street on Friday, dealers said. At 8.27 am, Lang & Schwarz brokerage was indicating the DAX 30 index to open at 3,308, down some 16 points from Friday's close at 3,324.85, which had marked a decline of 1.42 points on the day.

FORTHCOMING EVENTS TODAY -GfK Sept consumer confidence index (0800 GMT)

TOMORROW -German Aug wholesale sales (0800 GMT) -Adidas-Salomon Investor Day

WEEKEND'S PRESS -Bewag wants to cut 800 jobs in 2004-2005 (Tagesspiegel) -Saban to offer about 6.00 eur for ProSiebenSat.1 preference shares (Frankfurter Allgemeine Sonntagszeitung) -Beiersdorf's Kunisch keen on US acquisitions, especially in skincare market (Sueddeutsche Zeitung) -Deutsche Post plans IPO for Postbank in next 18 months (Boersen-Zeitung) TODAY'S PRESS -Porsche FY pretax 950 mln eur vs 828.9 mln (Spiegel) -WestLB aims to sell 22 pct Pubmaster stake for over 1 bln stg to Punch (Der Spiegel) -Three insurers win 9/11 'single occurrence' verdict in US appeals court (Wall Street Journal) -DaimlerChrysler about to sell MB Lenkungen to ThyssenKrupp Automotive - report (Handelsblatt) -MG Technologies' supervcom jcb/cmr







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Sep 29 2:58 AM: Tokyo shares close lower on strong yen; Nikkei ends at 4-week low

TOKYO (AFX-ASIA) - Share prices closed lower, as the strong yen triggered not only accelerated selling of major exporters such as Sony and Honda Motor, but also of cyclical stocks on concern over the muscular yen's effect on the export-led recovery of the Japanese economy, dealers said. The yen jumped to 111.16 to the dollar in Tokyo trading, down from 111.67 late Friday and not much above the 3-year high of 110.91 struck last week. The Nikkei 225 index finished down 88.87 points or 0.86 pct at 10,229.57, a four-week closing low. During trading it fell to 10,148.36, a six-week low, and has now dropped 8.3 pct since hitting 11,160.19 on Sept 19, its high for the year. The broader TOPIX index of all first-section shares fell 10.24 points or 1.0 pct to 1,010.82. Decliners outnumbered advancers by a ratio of more than two to one - 939 to 446 - on volume of 918 mln shares, down from 1.1 bln shares Friday. "Investors were reluctant to take new positions ahead of the end of fiscal first half (tomorrow) and the release of the central bank's Tankan quarterly corporate sentiment survey (on Wednesday)," said Kenji Karikomi, a general manager at Hinode Securities. robin.elsham@afxasia.com rte/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:57 AM: Wolverhampton & Dudley performance to date in-line; H2 trading satisfactory

LONDON (AFX) - Wolverhampton & Dudley Breweries PLC said its performance for the year to date is in line with expectations and trading has been satisfactory in the second half of the year. In a trading update for the 51 weeks ended Sept 20 2003, the brewer said that this performance was achieved against strong comparatives last year, including The Queen's Golden Jubilee holiday period and the World Cup. But the group warned of rising costs going forward, as the industry faces continued pressure from rising employee and regulatory costs, including the increase in the national minimum wage. The one-off cost of implementing licensing reform next year is estimated at 1 mln stg. And following a recent actuarial valuation, the group also announced a 2.5 mln stg increase in company contributions to the pension scheme with effect from Sept 1, 2003. Turning to the performance of its separate divisions, total like-for-like sales during June, July and August were 5.2 pct ahead of last year in the managed pubs division Pathfinder Pubs. The Union Pub Company tenanted pub division also saw strong trading, with like-for-like sales up 4.1 during June, July and August, and 2.7 pct higher for the 51-week period as a whole. WDB Brands traded in line with expectations, with return on capital continuing to improve, Wolverhampton & Dudley said. A recent improvement to the range of lager brands should generate additional profits of approximately 1 mln stg a year going forward, and the group said that contractual obligations related to Harp Irish Lager have been settled at a cost of 3.2 mln stg. "Although costs will rise further in the current year, we aim to maintain margins through further investment in our pubs and beer brands, and increased efficiencies. I am confident that our proven strategy, high quality assets and local expertise will enable us to continue delivering value for our shareholders," Chief Executive Ralph Findlay commented. Preliminary results for the 52 weeks to Sept 27 are due to be reported on Dec 3. etain.lavelle@afxnews.com el/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:56 AM: Close Brothers sees better trade conditions as FY pretax rises to 85.4 mln stg

LONDON (AFX) - Merchant banking company Close Brothers Group PLC predicted some improvement in trading conditions as it posted a rise in pretax profit before goodwill to 85.4 mln stg for the year to July from 75.1 mln a year earlier. The full year dividend was unchanged at 26.0 pence. "The long storm in the stock market appears to have blown out, presenting a more positive outlook for our three investment banking divisions," said chairman Sir David Scholey. "However, the general economic situation remains uncertain. In these circumstances, we remain prudently cautious about the prospects for our investment banking activity, while expecting some improvement in the immediate trading environment in which we operate." newsdesk@afxnews.com cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:55 AM: Madrid shares AFX at a glance outlook

MADRID (AFX) - Share prices are expected to open lower, depressed by losses Friday on Wall Street and weakness across Asia, with TMTs seen extending their recent falls on the Nasdaq's sharp drop, while defensives like Altadis should outperform, dealers said. Friday, the IBEX-35 index closed down 86.3 points or 1.25 pct at 6,809.4, after trading in a range of 6,790-6,890. The IBEX-NM shed 12.1 points to 1,760.4. The LatIBEX slipped 0.1 points to 677.0

FORTHCOMING EVENTS TODAY -Banco Zaragozano shareholders approve stock market de-listing

TOMORROW -BAMI, Metrovacesa EGMs to approve merger -BBVA holds board meeting in New York -Avanzit makes strategy presentation -Spain Aug large store sales TODAY'S PRESS -Banesto seeks buyer for 51 pct stake in Urbis (Cinco Dias) -Fidelity buys 3.4 pct stake in Jazztel (cinco Dias, elconfidencial.com, ABC) -SCH, Total required by law to make public secret shareholder pact in Cepsa (Cinco Dias) -SCH agrees to retain 10 pct of Antena 3 until 2006; currently has 16 pct (la Gaceta de los Negocios) -Dragados wins two water management contracts for 9.8 mln eur (Cinco Dias) -Spanish risk capital fund Nazca buys 96 pct of Cosecheros for 118 mln eur (Expansion reports that Pemex is about to place its 5 pct stake in the Hispano-Argentine oil and gas group. afxmadrid@afxnews.com fb/cmr



For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:54 AM: Endesa, Iberdrola want stakes in Portugal's REN power network - report

LISBON (AFX) - Spain's Endesa SA and Iberdrola SA have told the Portuguese government that they are interested in taking stakes in power distribution network Red Electrica Nacional, which the government plans to privatise next year, Diario Economico reported. REN is 70 pct owned by the government and 30 pct owned by Electricidade de Portugal. On Friday, EDP chief executive Joao Talone said the company may reduce its holding in REN to 5 pct. equitynext@afxnews.com For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:53 AM: Paris shares AFX at a glance outlook

PARIS (AFX) - Share prices are expected to open lower, extending a six-session run of lower closes amid investor concerns about the impact of the weaker dollar and the outlook for the economy in general, dealers said. On Friday, the CAC-40 index ended down 13.78 points at 3,216.76, as consolidation of equity gains chalked up since June continued ahead of the weekend, although an upwards revision to US second quarter GDP pulled the market off intraday lows. On the Matif, September CAC-40 futures were trading off 19.5 points at 3,197 ahead of the official opening, while the euro stood at 1.1453/56 usd compared with 1.1486/92 usd late on Friday.

FORTHCOMING EVENTS TODAY -Deadline for EU Phase 1 ruling on Alcan's Pechiney bid -LVMH-Morgan Stanley hearing in Paris

TOMORROW -Sept business confidence, 8.40 am -Final Q2 GDP, 8.50 am -Aug unemployment, 8.45 am

TODAY'S PRESS -French government to announce creation of French language 24-hour news TV station, owned 50:50 by State-owned France Televisions and Bouygues unit TF1. -Arcelor to sell Pum Plastiques division, valued at 150-200 mln eur (La Tribune) -Aventis, Baxter Intl win 18 mln usd SARS vaccine funding from US govt (Wall Street Journal) WEEKENDis sound; backs Bull -EU Commission president Romano Prodi says will punish France over deficit if necessary -France's grid operator RTE denies fault in Italian blackout -French government to announce creation js/jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:52 AM: Euroshares opening - Lundbeck cut to 'underperform' at Goldman

LONDON (AFX) - Shares in H Lundbeck AS could lose ground after the opening bell after Goldman sachs cut its rating to 'underperform' from 'in-line' as it believes the shares current high valuation has not taken into consideration the likely negative newsflow in the fourth quarter, dealers said. Analysts at the US bank said they expect consensus forecasts for 2004 to be trimmed in the coming months amid new generic challenges. dlh/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:51 AM: mmO2 sees O2 UK H1 service rev growth in mid-teens, but slowing sharply in H2

LONDON (AFX) - The UK's fourth largest mobile phone operator mmO2 PLC expects O2 UK to deliver service revenue growth in the mid-teens for the first half, but it is expected to slow significantly in the second half as the termination rate cuts imposed by the regulator take effect. The expected growth in the first six months is driven by strong growth of the customer base and higher average revenue per user (ARPU), it said in a pre-close update. The EBITDA margin during the period is expected to demonstrate further steady progress towards the full-year target of 30 pct, while reflecting the costs of growing the business. mmO2 said the termination rate cuts will impact the second half EBITDA margin, which is however expected to continue to improve, enabling O2 UK to deliver its full-year target of 30 pct, and 10 pct service revenue growth. In Germany, O2 will show strong customer and ARPU growth, which is expected to continue through the second half. It expects to achieve a mid-teens EBITDA margin, ahead of its target for the full year. "The momentum it has built up in the market is expected to enable O2 Germany to sustain this EBITDA margin through the second half," it said. The company had previously stated it expected O2 Germany to achieve a double-digit EBITDA margin in the current year. mmO2 also expects the total expenditure in the full year will be 5-10 pct below previous guidance. The capex profile is expected to be weighted towards the second half of the year, reflecting acceleration of the UMTS investment programme. Chief Executive Peter Erskine commented: "Capex and cash-flow continued to be tightly controlled in the first half, and investment efficiencies identified. "We expect 3G investment to increase during the second half, as we move towards the initial launch of UMTS-based services, when the conditions in our markets are right for this." The group will release its first half to Sept 30 results on Nov 17. newsdesk@afxnews.com shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:50 AM: Swiss shares AFX at a glance outlook

ZURICH (AFX) - Share prices are expected to open slightly lower continuing last week's downward trend, with investors awaiting a raft of economic data from the US this week, dealers said. In pre-bourse trading, the Swiss Market Index was 4.90 points lower at 5,126.40. Shares of Swiss Re were 1.5 pct higher, with the reinsurer set to benefit from US federal appeals court ruling saying three insurers of the WTC are bound by documents that define the Sept 11 terror attacks as a single occurrence requiring only one payment. On Friday, the Swiss Market Index closed 29.3 points lower at 5,131.3 and the Swiss Performance Index closed 20.17 points lower at 3,684.26.

FORTHCOMING EVENTS TODAY -Rewe bid for Bon Appetit ends

TOMORROW -Swiss business economist consensus forecasts over Swiss economy -GenSci EGM over merger with Isotis -Tamedia CEO Coninx holds speech at Efficiency club -Crealogix AGM -Sulzer listing in SMI index ends -Jomed to be delisted from SWX Swiss Exchange

TODAY'S PRESS/WEEKEND PRESS -Swiss Life chairman says capital base too thin; needs to improve earnings -'Swiss' to cut a third of managers, reportedly may have to cut capital in a year COMPANY NEWS -Atel says Italy blackout may have Swiss source, but blames Italy grid operator -Swiss Re says US Court of Appeals conclusively rejected WTC leaseholder Silverstein's case on appeal

MACROECONOMIC NEWS -SNB sets Lombard rate at 2.125 pct, unchanged

MARKET NEWS/SENTIMENT -Focus this week will be on macroeconomic news from the US, for further indications of the state of the economic recovery. zurich@afxnews.com at/jfr

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:49 AM: Reuters, Microsoft to connect instant-messaging services - report

LONDON (AFX) - Reuters Group PLC and Microsoft Corp are expected to announce tomorrow a deal to connect their instant-messaging services, the Wall Street Journal reported. This marks the first time that Microsoft has connected its MSN network, which has more than 100 mln users, to another messaging network. The change will take effect in the first quarter. Reuters Messaging, launched last year, is based on Microsoft's Live Communications Server, a collaborative-communications platform scheduled for release in October. The service has about 50,000 active users, mostly in the financial-services industry. newsdesk@afxnews.com jms

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:48 AM: Australia's Qantas appeals regulator opposition to Air NZ alliance

SYDNEY (AFX-ASIA) - Qantas Airways Ltd said it has appealed to the Australian Competition Tribunal for review of a decision by the competition regulator to oppose its proposed alliance with Air New Zealand Ltd (Air NZ). In a statement, Qantas said it has lodged an application for the tribunal to review the Australia Competition and Consumer Commission (ACCC) decision. Qantas proposed taking a 22.5 pct equity stake in Air NZ with the two companies to joint-operate services within New Zealand and across the Tasman Sea. Earlier this month, the ACCC said the alliance would be highly anti-competitive and offer little benefit to the Australian public.

robert.fenner@afxasia.com rjf/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:47 AM: Helsinki shares AFX at a glance outlook

HELSINKI (AFX) - Share prices are expected to open flat to slightly lower in cautious trade, following lower closing prices on Wall Street Friday, dealers said. On Friday, the HEX All-share index closed 0.74 pct higher at 5,650.80 points on volume of 681 mln eur. The HEX-portfolio index ended 0.29 pct higher at 2,620.71, with the HEX-25 index up 0.19 pct at 1,387.69.

FORTHCOMING EVENTS TODAY -SAS unit Air Botnia news conference (noon)

TOMORROW -Finnish Sept consumer confidence index (8.00 am) -Finnish Sept industry confidence index (8.00 am) -Finnish Aug industrial output (8.00 am) -Foex pulp and paper benchmark prices (noon)

TODAY'S PRESS -If listing at earliest in May 2004 - Sampo's Stadigh (Kauppalehti) -Finnair ends cooperation with Amex, to name new partner in 3 weeks (Kauppalehti) -Some 50 pct of Finns support unions vs 65 pct 10-yrs ago - poll (Valitut Palat)

WEEKEND PRESS -No-frills airline V-Bird to start flights between Germany and Finland on Oct 27 (Helsingin Sanomat) -Phoenix stake in Tamro now over 90 pct (Helsingin Sanomat) -Fortum's CEO Lilius appointed to Hafslund board (Helsingin Sanomat)

MARKET NEWS/SENTIMENT -On Friday in New York, Nokia's ADRs closed up 1.26 pct at 15.26 usd, the equivalent of 13.34 eur and 0.05 eur lower than in Helsinki. -Deutsche Bank reiterated its 'buy' recommendation and 11.5 eur target price on Metso, after meeting with management assured analysts that market conditions have not changed recently. -Shares in Elektrobit Group are expectated to rise in early deals after company revised upwards its Q3 earning expectations. Elektrobit said its Q3 opg will be above 3.6 mln eur vs earlier estimate over 1.6 mln, based on "good" profit development in Testing and Automation Solutions business units. tarmo.virki@afxnews.com tv/vs

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:46 AM: Brussels shares AFX at a glance outlook

BRUSSELS (AFX) - Shares are expected to open slightly lower on Wall Street losses, with Mobistar in focus after it lowered termination rates by less than expected, brokers said. Friday, the Bel 20 closed down 3.36 points or 0.16 pct at 2,077.61 but was supported by Mobistar which closed up 2.20 eur or 5.39 pct at 43 eur after news leaked out ahead of the market close that it was lowering termination rates by less-than-expected.

FORTHCOMING EVENTS TODAY -Belgian Sept CPI TOMORROW -Global Graphics Q3 results

WEEKEND PRESS -Kinepolis will not quit Polish, Swiss market (De Financieel Economische Tijd)

COMPANY NEWS -Mobistar says to lower termination rates by average 6 pct as of Nov 1 afxbrussels@afxnews.com ed/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:45 AM: Compass Group says FY results to be in line with internal forecasts

LONDON (AFX) - Compass Group PLC, the contract caterer which owns the Moto roadside cafe chain, said full-year turnover would increase 6 pct, while profit margins would be up by 20-30 basis points. As a result, profits will be in line with management's predictions, the company said in a pre-results trading statement. The figures were in line previous performance forecasts for the year ended Septemeber and the company said it is retaining the same financial benchmarks for the coming 12 months. The group's confidence further out is underpinned by the fact Compass has already achieved around half its targeted sales for 2003/04. As for free cash, the business services giant had 400 mln stg by the year end. ijl/cw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:44 AM: Euroshares opening - KPN upped to 'outperform' from 'in-line' at Goldman

LONDON (AFX) - Shares in KPN could get a boost in opening deals after Goldman Sachs upped its rating on the shares to 'outperform' from 'in-line', dealers said. The US broker said the recent government placing has relieved a significant technical pressure on the stock and the near-term fundamental outlook continues to look attractive. dlh/cmr



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Sep 29 2:43 AM: SABMiller says 5 mths performance strong; organic volume lager growth up 4 pct

LONDON (AFX) - SABMiller PLC said group's financial performance in the five months to August was strong, with European, South African and Africa and Asian businesses delivering good earnings growth. The performances of its North and central American operations have been in line with its previously announced expectations, the company said in a trading update. Strong business performance assisted by favourable currency movements have led to adjusted earnings per share for the group showing a satisfactory increase compared with the previous year. Organic volume growth in lager was almost 4 pct across the group, with volume up 8 pct in Europe, driven by a strong performance in Russia and higher sales in Czech. Satisfactory progress is being made with integrating the recent Peroni acquisition into the group, it added. The Africa and Asia business delivered a 3 pct rise in organic volume growth over the prior year despite the negative impact of SARS in China and economic turmoil in Zimbabwe. "The East African restructuring initiatives have enhanced the performance of our operation in this region." In South Africa, beer volumes for the period to mid-September were up by 2.5 pct, year-on-year, after adjusting for the timing of Easter. In North America, Miller Brewing Co volumes trended lower, down some 4.5 pct, for the period to mid-September, in line with expectations. "Further restructuring initiatives were commenced during the period, which will assist the cost base going forward," the company added. It said economic conditions in both Honduras and El Salvador remain subdued. "Whilst beer volumes have grown by almost 3 pct, competitive pressure in the carbonated soft drink market continues to impact our Central American business, with volumes down 8 pct. "The focus has been on re-energising the CSD brand portfolio and repositioning and re-launching our beer brands, whilst previous cost rationalisation activities are yielding benefits," SABMiller added. newsdesk@afxnews.com ra For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:42 AM: Thomson's Dehelly says no plans to build brand image for consumer electronics

PARIS (AFX) - Thomson SA chief executive Charles Dehelly said he does not intend to invest in the development of the Thomson brand image for its televisions and other consumer electronics products, in an interview with the International Herald Tribune. Dehelly said the use of different brand names in different areas of the world better reflects the expectations of consumers. "The industry is global, but the consumer is not," he said. "I believe the Thomson brand in Europe is great, RCA in the States is fantastic, and if we succeed with our Chinese project, having a Chinese brand in China is the best. People are buying the brand they know," Dehelly said. Thomson announced in July a deal to purchase TV production equipment from Dongguan Xinyuan Highway Co Ltd, to expand Thomson's presence in the Chinese market. paris@afxnews.com js/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:41 AM: Euroshares opening - Deutsche Telekom raised to 'outperform' at Goldman

LONDON (AFX) - Shares in Deutsche Telekom could rise after Goldman Sachs raised its rating on the group to 'outperform ' from 'in-line' on valuation grounds after recent underperfomance, dealers said. dlh/vs

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:40 AM: Australian shares close weaker on banks, gold stocks; key resources firmer

SYDNEY (AFX-ASIA) - Share prices closed weaker, taking their lead from a negative close offshore, with banks and gold stocks under pressure while there were modest gains among key resources, dealers said. The S&P/ASX 200 index closed down 7.2 points or 0.23 pct at 3,164.3 off a high of 3,171.8 and a low of 3,157.5. The All Ordinaries index was down 5.4 points at 3,170.3. robert.fenner@afxasia.com rjf/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:39 AM: Euroshares opening - Infineon cut to 'hold' from 'buy' at Deutsche Bank

LONDON (AFX) - Shares in Infineon could be pressured in opening deals as Deutsche Bank cut its rating on the shares to 'hold' from 'buy' on fears hopes of DRAM pricing increases have been overplayed, dealers said. The broker cut its target to 12 eur from 15 eur. dlh/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:38 AM: Euroshares opening - Infineon cut to 'hold' from 'buy' at Deutsche Bank

LONDON (AFX) - Shares in Infineon could be pressured in opening deals as Deutsche Bank cut its rating on the shares to 'hold' from 'buy' on fears hopes of DRAM pricing increases have been overplayed, dealers said. The broker cut its target to 12 eur from 15 eur. dlh/jfr

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:37 AM: Euroshares opening - Union Fenosa upped to 'neutral' at JP Morgan

LONDON (AFX) - Union Fenosa shares could get some support in opening deals after JP Morgan raised its rating on the utility group to 'neutral' from 'underweight' and said last week's investor's day was the first step towards improving visibility, dealers said. The US broker lifted its target price to 14 eur from 12 eur. dlh/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:36 AM: Sagem wins 96 mln eur navigation system contract from France's DCN shipyard

PARIS (AFX) - Sagem said it won a 96 mln eur order to supply the French state-owned DCN shipyards with an electronic navigation system to be used on France's "Le Terrible" nuclear submarine. paris@afxnews.com js/vs

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:35 AM: *CLOSE BROTHERS EXPECTS SOME IMPROVEMENT IN TRADING ENVIRONMENT

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Sep 29 2:34 AM: Euroshares opening - seen lower ahead of key data on Friday's Wall St losses

LONDON (AFX) - Europe's leading shares are expected to open lower after Wall St losses on Friday drew an end to a week of equity market misery as investors await for a slew of data before deciding whether now is a good time to pile back into the market, dealers said. On Friday, caution ahead of the data and the upcoming third quarter earnings season led many investors to take to the sidelines, dragging the DJIA 30.88, or 0.3 pct, to 9313.08 and the Nasdaq 25.14 points lower to 1,792.10. The Dow fell 3.5 pct for the week and the Nasdaq was off about 5.5 pct. In Asia, the Nikkei 225 ended the morning down 143.93 points at 10,174.51 and the Hang Seng fell 105.15 points at 11,185.00. In contrast to last week, it will be a busy week on the economic front, with Friday's US labour market report and tomorrow's US consumer confidence and Chicago PMI the main macro pointers. Today will see the release of US personal income and consumer spending data for August. Personal income is seen rising by 0.3 pct in August, from July's 0.2 pct rise. Consumer spending is forecast to have jumped 0.8 pct in August, the same rate of increase reported in July. Things are quieter on the corporate front. Vivendi Universal isght amid reports it is planning to list its unit Postbank in the next 18 months. The market value of Postbank is estimated at 5 bln eur. Aventis could see some activity after the Wall Street Journals said the French pharmaceuticals group and Baxter International will receive 18 mln usd to develop vaccines against SARS. Each company will use the funds to manufacture a killed, or inactivated, form of the virus that can be used to inoculate those at risk of catching the infection. Testing in volunteers could begin in as little as two years. dlh/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:33 AM: *AUSTRALIA'S QANTAS APPEALS ACCC OPPOSITION TO AIR NZ ALLIANCE



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Sep 29 2:32 AM: *COMPASS TO ACHIEVE MARGIN GROWTH OF 20-30 BASIS POINTS IN NEW FINANCIAL YR



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Sep 29 2:31 AM: *ALL ORDS CLOSES DOWN 5.4 PTS AT 3,170.3



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Sep 29 2:30 AM: *CLOSE BROTHERS FY DIV UNCHANGED AT 26.0P/SHARE

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Sep 29 2:29 AM: *COMPASS HAS ALREADY ACHIEVED HALF TARGETED TURNOVER FOR NEW FINANCIAL YR



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Sep 29 2:28 AM: *SABMILLER SAYS MILLER BREWING VOLUME DOWN SOME 4.5 PCT

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Sep 29 2:27 AM: *S&P/ASX 200 CLOSES DOWN 7.2 PTS AT 3,164.3



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Sep 29 2:26 AM: *CLOSE BROTHERS FY PRETAX PRE-GOODWILL 85.4 MLN STG VS 75.1 MLN

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Sep 29 2:25 AM: *COMPASS SAYS 2003/04 LFL TURNOVER WILL RISE 6 PCT



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Sep 29 2:24 AM: *MMO2 EXPECTS 3G INVESTMENT TO INCREASE IN H2

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Sep 29 2:23 AM: *WOLVERHAPTOM & DUDLEY PENSION CONTRIBUTION UPPED TO 2.5 MLN STGP PER YR

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Sep 29 2:22 AM: *MMO2 SEES FY TOTAL CAPEX 5-10 PCT BELOW PREVIOUS GUIDANCE

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Sep 29 2:21 AM: *SABMILLER SAYS ORGANIC LAGER VOLUME GROWTH ALMOST UP 4 PCT

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Sep 29 2:20 AM: *SEVERN TRENT SERVICES H1 PRETAX PRE-EX, PRE-GOODWILL SEEN UP OVER 20 PCT

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Sep 29 2:19 AM: *COMPASS FY PROFITS IN LINEW WITH MGT'S FORECASTS



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Sep 29 2:18 AM: *WOLVERHAPTOM & DUDLEY PERFORMANCE TO DATE IN-LINE; H2 TRADING SATISFACTORY

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Sep 29 2:17 AM: *SABMILLER SAYS 5 MTH FINANCIAL PERFORMANCE STRONG

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Sep 29 2:16 AM: *COMPASS WILL GENERATE FREE CASH OF 400 MLN STG



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Sep 29 2:15 AM: *WOLVEHAMPTON & DUDLEY SAYS COSTS TO RISE FURTHER IN CURRENT YEAR

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Sep 29 2:14 AM: *MMO2 STILL EXPECTS O2 FY EBITDA MARGIN UP 30 PCT, SERVICE REV UP 10 PCT

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Sep 29 2:13 AM: *COMPASS SEES MARGIN GROWTH OF 20-30 BASIS POINTS



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Sep 29 2:12 AM: *SEVERN TRENT SAYS HALES INTEGRATION PROCESS AHEAD OF PLAN

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Sep 29 2:11 AM: SCH, Total required by law to make public secret shareholder pact in Cepsa

MADRID (AFX) - The secret shareholder pact between Banco Santander Central Hispano SA and Total SA, giving them control over Cia Espanola de Petroleos SA, must be made public under Spanish securities legislation, Cinco Dias reported. According to the so-called transparency law, in the event of a takeover bid being made these types of pacts must be made public "immediately." On Friday, SCH launched a tender offer to buy a further 16 pct of Cepsa at 28 eur a share, a move which if successful would give the Spanish bank control over Cepsa. Analysts believe the decision is purely financial, aimed at forcing Total's hand to make a counter bid for Cepsa, or possibly, though less likely, to sell the controlling stake it hopes to acquire to a third party, most likely another oil major. Total said Friday that SCH's bid is in breach "of mutual accords governing their relations in Cepsa since 1990." The French company added that it will take "necessary steps to protect its rights and the interests of its shareholders," but did not detail whether this could include a counter bid or legal action. According to Cinco Dias, SCH believes the existing pact with Total over the control of Cepsa is inefficient. The shareholder pact governing management control over Cepsa was initially signed with Banco Central Hispanoamericano SA, later acquired by Santander to create SCH. afxmadrid@afxnews.com fb/jfr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 2:10 AM: *COMPASS SEES LIKE-FOR-LIKE TURNOVER GROWTH OF AT LEAST 6 PCT



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Sep 29 2:09 AM: *SCOTTISH RADIO SAYS FY LIKE-FOR-LIKE SALES IN CONSTANT CURRENCY UP 5 PCT

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Sep 29 2:08 AM: *SEVERN TRENT SAYS BIFFA H1 TURNOVER EXPECTED TO BE AHEAD OF YR-EARLIER

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Sep 29 2:07 AM: *COMPASS TO DELIVER ON FULL-YEAR TARGETS



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Sep 29 2:06 AM: *MMO2 SEES H1 O2 SERVICE REVENUE GROWTH SLOWING SIGNIFICANTLY IN H2

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Sep 29 2:05 AM: *SCOTTISH RADIO SAYS FY RADIO, PRESS SALES ESTIMATED 18 PCT AHEAD LAST YR

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Sep 29 2:04 AM: *MMO2 SEES H1 O2 EBITDA MARGIN PROGRESSING TOWARDS FY TARGET OF 30 PCT

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Sep 29 2:03 AM: *SEVERN TRENT SAYS OVERALL PLEASED WITH H1 PERFORMANCE

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Sep 29 2:02 AM: *MMO2 SEES H1 O2 SERVICE REVENUE GROWTH IN MID-TEENS

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Sep 29 2:01 AM: *NIKKEI 225 INDEX CLOSES DOWN 88.87 PTS AT 10,229.57

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Sep 29 1:58 AM: NTL plans to ask investors for extra 1 bln usd in cash - report

LONDON (AFX) - Cable group NTL Inc has confirmed that it will make a 1 bln usd share issue to strengthen its debt-laden balance sheet, the Guardian reported. Details of the issue were filed with US regulator the securities and exchange commission on Friday night. The proceeds will be used to pay off a 582.6 mln usd, seven-year bond arranged when the US-listed group emerged from bankruptcy, and 340 mln of a 650 mln working capital facility. ijl/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:55 AM: Sainsbury to challenge Safeway ruling - report

LONDON (AFX) - J Sainsbury PLC is expected to ask the competition commission for clarification of its ruling that the big three grocers can only buy 53 stores from the Safeway PLC estate, the Guardian said without citing sources. The paper said that limit could preclude a financial buyer snapping up Safeway and selling off a larger slices of its estate. ijl/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:52 AM: Aventis, Baxter Intl win 18 mln usd SARS vaccine funding from US govt

WASHINGTON (AFX) - Aventis SA and Baxter International Inc will receive 18 mln usd to develop vaccines against SARS, the Wall Street Journal quoted US officials as saying. Each company will use the funds to manufacture a killed, or inactivated, form of the virus that can be used to inoculate those at risk of catching the infection. Testing in volunteers could begin in as little as two years. The two companies were chosen because of their experience producing similar vaccines for influenza and polio, the newspaper quoted Linda Lambert, a program officer at the National Institute of Allergy and Infectious Diseases, as saying. newsdesk@afxnews.com jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:48 AM: Global Aug chip sales 13.42 bln usd, up 4 pct vs July, up 12.5 yr-on-yr - SIA

SAN JOSE, CA (AFX) - Global sales of semiconductors were 13.42 bln usd in August 2003, up 4.0 pct from July, and up 12.5 pct from the year earlier period, the Semiconductor Industry Association (SIA) said. Sales in July 2003 were 12.90 bln usd, and 11.93 bln in August 2002. The August sales confirm the broad-based strength of the semiconductor market, lead by demand in the consumer, computer and wireless sectors, said SIA President George Scalise. "This rise in end-market demand is generating stronger third quarter sales than normal seasonal patterns." In the month of August, sales in Japan rose 1.6 pct from July, Asia Pacific was up 6.4 pct, Europe up 3.8 pct, and the Americas increased 2.5 pct. "With the exception of the peak year of 2000, this is the strongest monthly increase in August since 1990," added Scalise. newsdesk@afxnews.com jfr/vs



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Sep 29 1:47 AM: London shares outlook - lower after weak Wall Street Friday

LONDON (AFX) - Leading shares are expected to open on a cautious note this morning after yet another weak performance on Wall Street late Friday, dealers said. According to spread-betting groups, the FTSE 100 will open around 10 points lower this morning. On Friday, the DJIA closed down 30.88 points at 9,313.08 and the Nasdaq composite slipped 25.17 points to close at 1,792.07 on the back of some mixed economic data. The selling continued in Asia, with the Nikkei 225 index ending the morning session at 10,174.51, a loss of 143.93 points. In contrast to last week, it will be a busy week on the economic front, with Friday's US labour market report and tomorrow's US consumer confidence and Chicago PMI the main macro pointers. Today will see the release of US personal income and consumer spending data for August. Personal income is seen rising by 0.3 pct in August, from July's 0.2 pct rise. Consumer spending is forecast to have jumped 0.8 pct in August, the same rate of increase reported in July. Before then a steady flow of domestic economic news will keep investors on their toes ahead of this afternoon's speech to the Labour Party Conference by Chancellor of the Exchequer Gordon Brown. The brewing sector will likely be at g merger. sd/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:43 AM: Poll shows 74 pct of British 'very unhappy' with Blair, govt

LONDON (AFX) - A large majority of British people no longer trust Tony Blair, new opinion polls showed on the eve of a much-awaited speech the prime minister is to make to the Labour party annual conference in Bournemouth in the south of England. A YouGov poll in the Daily Telegraph showed 74 pct of the 2,300 people questioned were fairly or very unhappy with the prime minister and his government. Blair and his ministers received only 24 pct of favourable or very favourable opinions, down 11 pct over 2002 and 32 pct over 1999. The Labour party itself won the support of only 31 pct, the lowest since Blair took over the leadership in 1994. Asked what they did not like about Labour, 71 pct cited the "culture of deceit and spin" in the government, with the same proportion saying that Labour had been unable to improve the public services such as health and education. Seventy percent said that "New Labour," rebuilt and modernised by Blair in the 1990s, had lost touch with the working class, while 54 pct were against the use of British troops in the Iraq war. In The Times, a Populus poll showed that Blair suffered a major crisis of confidence: less than a quarter of Britons saw Labour as an "honest and principled" party while 41 pct of the 1,012 adults questioned said "New Labour" was "just about spin and presentation." et/bm/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:41 AM: Fidelity Investments buys 3.4 pct stake in Jazztel

MADRID (AFX) - Fidelity Investments, through its FMR Corp and Fidelity International Ltd funds, has bought 17.7 mln shares, or a 3.4 pct stake in Jazztel PLC, elConfidencial.com reported, citing a statement from the Spanish telecoms operator. Over recent months Fidelity has been increasing its equity holdings in a number of Spanish companies, and now has 2.1 pct of both Indra Sistemas SA and Iberia Lineas Aereas de Espana SA, as well as 6.2 pct of Altadis SA and 2.0 pct of Repsol YPF SA. afxmadrid@afxnews.com jr/fb/vs

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Sep 29 1:36 AM: Laurel, Nomura pull out of Scottish & Newcastle bidding - report

LONDON (AFX) - Privately owned pub group Laurel and Japanese bank Nomura, which is also one of the UK's biggest landlords, have pulled out of the 2.5 bln stg auction for Scottish & Newcastle PLC's hostelries, the Financial Times said without citing sources. It leaves a consortium led by Spirit Group, which also includes venture capitalists Texas Pacific Group and Blackstone, in pole position to acquire the S&N pub portfolio, the paper said. ijl/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:35 AM: Three insurers win 9/11 'single occurrence' verdict in US appeals court

NEW YORK (AFX) - A federal appeals court ruled that three insurers of the destroyed World Trade Center complex are bound by documents that define the Sept 11, 2001 terror attacks as a single occurrence requiring only one payment, the Wall Street Journal reported. The ruling, which endorsed an earlier district court verdict, was handed down Friday by the Second Circuit Court of Appeals in Manhattan. The court said the three insurers - units of Royal & Sun Alliance, St. Paul Cos and Hartford Financial Services Group Inc - had agreed to documents, known as WilProp, that explicitly defined a single occurrence to include "a series of similar causes," like the events of Sept. 11 The ruling marks a major setback for the Trade Center's leaseholder, Larry Silverstein, and the government agencies hoping that more than the 3.5 bln usd face value of the Trade Center's insurance policy would be available for rebuilding Ground Zero. Silverstein has argued that the attack involving two airliners constituted two "occurrences" obliging insurers to pya double that sum. Silverstein said the appeals court ruling involves only three of 22 insurers for the Twin Towers that had responsibility for only 3 pct of the coverage. Silverstein said a jury will decide whether insurers with the bulk of the coverage, led by a US unit of Swiss Reinsurance Co, effectively agreed in the weeks preceding the attacks to a new set of documents that left "occurrence" undefined and open to the interpretation. Swiss Re, while not involved in the appeal, said the ruling affirms its position that most insurers agreed to the WilProp documents limiting their exposure. newsdesk@afxnews.com jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:30 AM: *SIA SEES 'STRONGER Q3 SALES THAN NORMAL SEASONAL PATTERNS'

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Sep 29 1:28 AM: *GLOBAL AUG CHIP SALES 13.42 BLN USD, UP 4 PCT VS JULY, UP 12.5 YR-ON-YR - SIA

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Sep 29 1:25 AM: Spain govt sees wages growing 3.2 pct yr-on-yr in 2004 vs 3.4 in 2003

MADRID (AFX) - The government expects wages, set through collective agreements, to grow 3.2 pct in 2004 from a year earlier, or at 1.2 percentage points above its official inflation forecast of 2.0 pct, Expansion reported Saturday citing the draft budget. In August, annual inflation was running at 3 pct. For 2003, salary increases reached through collective agreement are forecast to grow 3.4 pct, down from the 3.8 pct recorded in 2002. The total number of people in work is seen growing 3 pct in 2004 from a year earlier, with net job creation forecast at 300,000, Expansion reported. afxmadrid@fxnews.com fb/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:21 AM: Power restored in Italy following massive blackout

ROME (AFX) - Power was restored across Italy yesterday evening after the worst power blackout in the country's history caused havoc, leaving thousands stranded on trains and in elevators, and led to the death of at least three people. Only the island of Sardinia was unaffected by the cut, which left about 50 mln of Italy's 57 mln inhabitants without power from about 3.30 am (0130 GMT) and up to 30,000 passengers trapped in trains. Within 15 minutes virtually the entire country, from the Alps mountains in the north to Sicily in the south, was plunged into darkness. Power gradually returned across Italy by late afternoon, although many areas in the south of the country had to wait until evening for the lights to come back on. At least three deaths were being blamed on the blackout. Two elderly women in the southeastern region of Puglia died after falling down their stairwells, while a third died after her clothes caught fire on a candle. The company in charge of Italy's power supply, GTRN, said the power system shut down almost instantaneously in a disastrous "domino effect" across most of the country. "We lost control of the electricity grid in four seconds," a spokesman for the company said. Italy's industry minister Antonio Marzano said the blackout "wasn't due to the Italian network, but a combination of events which began in Switzerland." French electricity distribution network RTE (Reseau de Transport d'Electricite) said its link to the country failed due to a cut on the Italian side the loss of the Swiss supply. The delay in getting power restored was complicated because imported electricity was being used at the time of the blackout. Italian power stations needed time to take up the reins once the emergency became clear. "Our system is vulnerable because we depend on foreign supply," said Andrea Bollino, president of GRTN. Bollino said it would take until Tuesday for the situation to return to completely normal, and that the utility would remain on heightened alert on Monday. csg/rl/jlw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:11 AM: Asian markets summary

BEIJING (AFX-ASIA) - Asian markets at 0500 GMT: Stocks:

-Bangkok: SET index 577.07 (down 3.80 pts) -Bombay: BSE-30 index 4,404.68 (up 22.11 pts) -Hong Kong: Hang Seng index 11,185.00 (down 105.15 pts) -Jakarta: Composite index 592.807 (down 7.033 pts) -Kuala Lumpur: Composite index 739.75 (down 2.47 pts) -Manila: Composite index 1,310.36 (down 3.49 pts) -Seoul: Composite index 697.62 (up 0.22 pts) -Shanghai: A index 1,425.25 (down 11.13 pts) B index 98.35 (down 0.28 pts) -Singapore: Straits Times index 1,626.63 (down 0.91 pts) -Sydney: All Ords 3,173.70 (down 2.00 pts) -Taipei:Weighted index 5,645.83 (down 4.28 pts) -Tokyo: Nikkei 225 index 10,230.05 (down 88.39 pts)

-Gold: 380.50-381.00 usd (Hong Kong)

-Dollar/yen: 111.20 -Euro/dollar: 1.1442

-Japanese govt bond 253: yielding 1.385 pct -Japanese govt bond 252: yielding 1.430 pct

ivy.cheng@xfn.com ic/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 1:02 AM: Japan Aug auto output drops 5.6 pct yr-on-yr; exports fall 3.4 pct - JAMA

TOKYO (AFX-ASIA) - Automobile production fell 5.6 pct in August from a year earlier to 681,973 vehicles, the Japan Automobile Manufacturers Association (JAMA) reported. Exports of cars, trucks and buses dropped 3.4 pct year-on-year to 339,401 vehicles, JAMA said. Vehicle exports declined for the fourth straight month, despite a third month of expanding shipments to Asia, because of slumping exports to the US, where Japanese automakers now produce more vehicles to insulate sales against fluctuations in the yen-dollar exchange rate and trade friction pressure. robin.elsham@afxasia.com rte/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:56 AM: Forex - US dollar weaker in afternoon Tokyo ahead of economic data

TOKYO (AFX-ASIA) - The US dollar was weaker in afternoon trade, with the market focusing on a flurry of global data releases due out this week to test the US unit's downside, dealers said. At 1.40 pm, the dollar was trading at 111.16 yen. The dollar has traded in a range of 111.16-74 yen so far in Tokyo. Japan expects a string of key economic data out this week, including August industrial output, jobless figures and the Ministry of Finance's foreign exchange intervention figures for September on Tuesday, while the widely-watched Bank of Japan's quarterly 'Tankan' short-term survey of business sentiment is due early Wednesday. Among several key figures, the BoJ Tankan survey and the US non-farm payrolls on Friday are the focus this week, said Junya Tanabe, a forex strategist at JP Morgan Chase. In afternoon trade, the yen was higher against the dollar, hitting a high of 111.16, with some traders testing the dollar's downside on speculation that the Bank of Japan's quarterly 'Tankan' survey of short-term business sentiment will provide a brighter outlook for Japan. Expectation was growing that the Bank of Japan's quarterly tankan short-term survey of business sentiment on Wednesday could show its diffusion index rising to orervening this year in an effort to prevent the yen from appreciating and endangering an export-led recovery from 13 years of stagnation. So far, the Bank of Japan, acting on behalf of the Ministry of Finance, is estimated to have spent about 11 trln yen. The previous 12-month record was 7.64 trln yen in 1999. However, risks of intervention remain unchanged, but the Japanese authorities' inability or unwillingness to instruct intervention could lead speculators to test the yen's upside this week, dealers said.

Tokyo 1.00 pm Sydney 11.45 am Dollar yen 111.16 down from 111.43 sfr 1.3466 up from 1.3464 Euro usd 1.1440 down from 1.1461 stg 0.6907 down from 0.6920 yen 127.17 down from 127.58 sfr 1.5405 down from 1.5421 Sterling usd 1.6563 down from 1.6578 yen 184.11 down from 184.68 sfr 2.2303 down from 2.2321 Australian dollar usd 0.6711 down from 0.6735 stg 0.4051 down from 0.4062 yen 74.60 down from 75.047 nozomi.toyama@afxasia.com nt/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:54 AM: AFX economic and business calendar to Friday Oct 3

LONDON (AFX) - Key items expected until Friday, Oct 3 (approx GMT times): MONDAY SEPT 29 ASIA -Australia Aug trade -Hong Kong Q2 balance of payments data

CENTRAL/EASTERN EUROPE -Slovak Aug PPI -Hungarian July PPI GERMANY -GfK Sept consumer climate index (0800 GMT) BELGIUM -Sept CPI

EU -ECB main refi announcement (1330 GMT) -Deadline for EU phase 1 ruling on Alcan's Pechiney bid

FRANCE -LVMH-Morgan Stanley hearing in Paris -Deadline for EU phase 1 ruling on Alcan's Pechiney bid

ITALY -Sept CPI (0700 GMT) -Aug PPI (0800 GMT) -Telecom Italia press conference on land line services (0930 GMT) -Cabinet expected to examine 2004 draft budget, pension reform

SWITZERLAND -SAP CEO Kagermann holds news conference on innovations and technologies in Basel (0630 GMT) -ECB's Issing speech in Zurich (0730 GMT) -Rewe bid for Bon Appetit ends (1400 GMT)

SCANDINAVIA -SAS unit Air Botnia news conference (0900 GMT) UNITED KINGDOM -HMV Group AGM -Compain Sept unemployment -EdF H1 results

newsdesk@afxnews.com vs





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Sep 29 12:50 AM: UK's Brown to say pre-Budget report will signal next stage of economic reform

BOURNEMOUTH, England (AFX) - Chancellor Gordon Brown will tell Labour's annual conference that the pre-Budget report (PBR) will be the next landmark in reforming the domestic economy, according to extracts of his speech released by aides here. He will ask party members to support the initiatives, which include "employment service reform, planning reform, Labour market reform, competition policy reform and regional reform as the road to full employment". "I am asking you to support them, not because I am asking you to do so right or wrong, not because of reform for reform's sake, but reform for a purpose," Brown is expected to say. Some observers will see the reference to regional reform as a sign that Brown is committed to introducing a system of regional pay bargaining for public sector workers. He raised the idea in the Budget last March, but local government employers and senior personnel officers called for national negotiations to remain in place. A cross-cutting government review of the public sector labour market revealed that public sector wages were regionally far less varied than wages in the private sector. Brown is expected to reiterate the position on potential UK membership of the euro. The government in June decided that the economy had not met all its tests for membership and promised a progress report in next year's Budget. He will also tell delegates that the UK can be a "beacon" towards forging a new transatlantic partnership between Europe and the US. "Rather than allowing Europe and America to look inwards and stand apart, we will promote a new transatlantic economic partnership," he is expected to say. "Where America is enterprising, but not today seen as fair (and) the rest of Europe more socially cohesive but not today seen as enterprising, we in Britain can be the first country to combine a vibrant enterprising economy awash with dynamism with a strong public realm where public services are not based on vouchers or charges but are free to all." "Britain can be more than a bridge between Europe and America. Our British values should make us a beacon for Europe, America and the rest of the world." newsdesk@afxnews.com fp/hjp

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Sep 29 12:49 AM: OUTLOOK Brown set to talk up UK growth at Labour Party conference

---- by Pan Pylas ----

LONDON (AFX) - Chancellor of the Exchequer Gordon Brown is set to talk up the UK economy at this week's Labour Party conference but say as little as possible about an impending budgetary squeeze in light of Prime Minister Tony Blair's current difficulties, analysts said. Brown is expected to hail his stewardship of the UK economy during the recent global slowdown, and point to the UK's relatively strong growth performance, in contrast to the parlous growth rates in the euro zone and Japan. Given the pick-up in the state of the global economy and the recent data provided by official statistics, there are growing expectations that Brown will meet what were thought of as optimistic growth projections for this year. In April's budget he predicted UK GDP growth of between 2.0-2.5 pct this year, only to be greeted by widespread scepticism among UK economists. Tuesday's revisions to GDP data by National Statistics could give him an even better chance of meeting those projections, economists said. "It could bring his (Brown's) forecast for the year back within his grasp," said Investec economist Philip Shaw. However, Brown is unlikely to alert the party faithful to the likelihood of a tighter spngland's rate-setting Monetary Policy Committee will put the brakes on the economy sooner than previously anticipated because the output gap is less than previously imagined. "He will conceal the extent of what is going on underneath," Smith said. "What he's going to do is talk up economic growth, talk tough on inflationary expectations and consolidate his base in the party," Smith added. pan.pylas@afxnews.com pp/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:46 AM: SEC reportedly eyes Morgan Stanley over insider trading

WASHINGTON (AFX) -- Two Morgan Stanley mutual funds have come under Securities and Exchange Commission scrutiny over possible insider trading in connnection with the acquisition of Dean Foods in a deal announced in April 2001, according to a WSJ.com report. The agency is looking at purchases of Dean Foods stock a month before the deal, during which time Morgan Stanley was advising Suiza Foods, a company that was negotiating to acquire Dean Foods, said WSJ.com, citing people familiar with the probe. The funds -- the Morgan Stanley Strategist Fund and Mthe organ Stanley 21st Century Trend Fund -- reportedly may have pocketed more than $5.4 million as a result of the acquisition of Dean Foods. A Morgan Stanley spokeman told WSJ.com that the firm doesn't believe any insider trading took place.

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Sep 29 12:45 AM: Canada's Manulife buys John Hancock for $11 billion

SAN FRANCISCO (AFX) -- Canada's Manulife Financial Corp. will pay $11 billion for John Hancock Financial Services, a deal that would create one of North America's largest individual life insurers, the companies said Sunday. The boards of directors have approved the merger, which takes the form of a tax-free, stock-for-stock deal valued at $25.6 billion (C$34.7 billion). Under the terms of the merger, John Hancock common shareholders will receive 1.1853 Manulife shares for each John Hancock share, representing a price of $37.60 -- a premium of 18.5 percent based on Sept. 24 closing stock prices, Manulife said. Hancock's shares went public in January 2000 at a price of $17. Manulife's Dominic D'Alessandro will be chief executive officer of the combined company, which will be headquartered in Toronto. Last winter, Manulife was thwarted in its bid to acquire Canada Life Financial, which accepted a white-knight buyout offer from Great-West Lifeco. For its part, Hancock has been mentioned from time to time as a potential merger parter. Starting last Thursday, speculation about a possible merger resurfaced after a Boston Globe report suggested Hancock Chairman and CEO David D'Alessandro had revived talks with Manulife and MetLife , res fell $1.13 to close at $30.20. Shares of John Hancock rose $2.25 to close at $34.30 as rumors of a deal swirled in financial circles. This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com.

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Sep 29 12:35 AM: *HK'S HANG SENG INDEX ENDS MORNING DOWN 105.15 PTS AT 11,185.00



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Sep 29 12:34 AM: OUTLOOK - UK data in coming week to show continued uptick in business activity

LONDON (AFX) - UK data to be released in the coming week will show a continued uptick in business activity in both the service and manufacturing sectors, economists said. While almost no one believes the Bank of England will raise interest rates in October, analysts will be closely watching key purchasing manager surveys and consumer borrowing data this week. If economic activity did appear to be safely in the expansion zone, at the same time as consumer borrowing continued at record levels, the Bank could be tempted to raise rates even by the year's end, in part to help ease the rise in borrowing, analysts said. The Chartered Institute of Purchasing and Supply (CIPS) indexes for manufacturing and services are likely to show small increases on the month, with both indicating a faster pace of expansion. The composite index for the CIPS PMIs are already at the same level as last year's peak, and a further increase would provide more evidence that the sluggishness of the first half has been left behind. The manufacturing PMI is forecast to come in at 52.4 for September from 51.9 the previous month. A reading above 50 indicates expansion. The services PMI is expected to tick up to 57.1 from 57.0 in August. Consbe on a "chain weighted basis," which is a more sophisticated way of adjusting for price changes throughout the economy in order to gauge real -- inflation adjusted -- output. "Recent economic history could be rewritten," said Philip Shaw, economist at Investec securities. Meanwhile, some rebound in the GfK consumer confidence index is expected for September's release, after the index showed its first drop last month for four months. The UK is also expected to run a 2.1 bln stg current account deficit for the second quarter, compared with a surplus of 2.4 bln in the first quarter. This is fairly modest, economists concluded, and should have no impact on the currency market. chris.anstey@afxnews.com cxa/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:25 AM: Bank of Tokyo-Mitsubishi bad loan ratio falls to below 4 pct - report

TOKYO (AFX-ASIA) - Bank of Tokyo-Mitsubishi, Japan's third-largest lender, is expected to report that it halved its ratio of nonperforming loans to credits outstanding to less than 4 pct at the end of this month, from 7.9 pct as of March 2002, the Nihon Keizai Shimbun reported. That is 18 months earlier than the March 31, 2005 target date set by the government under its financial revitalization program, compiled at the end of October 2002, the leading Japanese business daily said. Bank of Tokyo-Mitsubishi is expected to return to the black this fiscal year, and has forecast a net profit of 150 bln yen, due in large part to the decline in losses associated with cleaning up bad loans. "The balance of nonperforming loans at Bank of Tokyo-Mitsubishi stood at some 1.9 trln yen as of March 31 (2003), but the figure appears to have since dropped by around 500 bln yen to 1.4 trln to 1.5 trln yen, with the bad-loan ratio falling below 4 pct," the newspaper said without citing sources. It said the bank's bad-loan ratio had fallen because BOTM sold a big chunk of its bad loans to the Resolution and Collection Corp and accelerated moves to remove bad loans from its balance sheet. Additionally, the bank has seen some nonperforming loans turn sound after it helped ailing borrowers get back on their feet, while only a small number of large-scale bankruptcies have occurred recently, curbing the creation of new nonperforming loans. robin.elsham@afxasia.com rte/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:20 AM: OUTLOOK UK economic indicator forecasts for this week

LONDON (AFX) - The following are the consensus forecasts of UK economists polled by AFX News for economic indicators to be released this week:

Forecast Previous

Monday, Sept 29

Aug consumer credit +1.6 bln stg +1.5 bln stg GfK Sept consumer confidence -2 -3

Tuesday, Sept 30

Q2 revised GDP growth month-on-month 0.8 pct 0.8 pct year-on-year 1.3 pct 1.3 pct Q2 current account balance -2.1 bln stg +2.4 bln stg

Wednesday, Oct 1

CIPS manufacturing PMI 52.4 51.9

Friday, Oct 3

CIPS services PMI 57.1 57.0

chris.anstey@afxnews.com cxa/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:12 AM: OUTLOOK - SABMiller's Miller Lite boosted by 'low-carb' diet fad

LONDON (AFX) - Today's trading update by the world's second-largest brewer, SABMiller PLC, will show that the group's 'low-carb' marketing focus for Miller Lite has paid off, analysts said. "Miller Lite has been a low-carbohydrate beer since the beginning, but recently, in the wake of the Atkins diet fad and Anheuser Bush Inc pushing its low-carb beer, Michelob Ultra, SABMiller has gone back to its roots and started advertising the low-carb aspect of Miller Lite," according to Goldman Sachs analyst Mike Gibbs. Grant Swanepoel, analyst at Citigroup Smith Barney, said the AC Nielsen data for the four weeks to Sept 6 showed that Miller Lite grew volumes by 4.0 pct, while Bud Lite, also an Anheuser Bush brand, grew by only 2.7 pct. However, Bud Lite's year-on-year price increase was 1.7 pct ahead of Miller's. SABMiller, which began as South African Breweries before becoming the world's second-largest brewer after acquiring Miller Brewing Co in 2002, is also due to update the market on the integration of the Miller business. This follows a warning in May that the integration of Miller was taking much longer than originally planned. SABMiller said then it would be two-to-three years before any real meaningful progress on volumes and profitability would be evident. In a trading update in July, chief executive Graham Mackay said adjusted earnings per share in the three months to June 30 2003 showed a "satisfactory" increase over the comparable period last year, helped by favourable currency movements. The company saw "good" contributions from its businesses in Europe, where the warm summer weather boosted sales, South Africa and Africa and Asia. But in North America, Miller Brewing Co's profitability was lower than the comparable prior-year period, but in line with the group's expectations. Since then, SABMiller has raised some 2 bln usd through bond issues for both Miller Brewing Co and SABMiller. SABMiller said the proceeds from the issue will be used to refinance a substantial portion of existing Miller bank debt, while the funds raised by the SABMiller issue will be used for general corporate purposes. anna.boekstegen@afxnews.com acb/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 29 12:05 AM: OUTLOOK - mmO2 set to brush aside 3 UK threat

LONDON (AFX) - The UK's fourth largest mobile phone operator mm02 is set to brush aside the threat from new entrant 3 UK with a strong six month trading update today. "We would expect a bullish mood in the management meetings as H3G has had significant short term difficulties which are likely to have benefited mmO2," said Deutsche Bank analyst Gareth Jenkins. Hutchison 3G UK, 65-pct owned by Hong Kong-based Hutchison Whampoa Ltd, was the first UK operator to launch third generation mobiles in March. A new low-priced UK tariff from 3 in July hit mmO2 stock as investors saw it as a sign of increased competition for O2. But sales have been held back by the poor availability of handsets and their relatively short battery life. Customers have also voiced scepticism about the technology's video capabilities. Hutchison 3G has a target to sign up 1 mln users in each of its two European markets - the UK and Italy - by the end of 2003. Many analysts think this is over ambitious. "While 3 UK continues to advertise heavily, we believe shortage of handsets have severely reduced take-up," said Morgan Stanley in a research note. At the end of the first half of 2003 3 UK had only 155,000 subscribers. But the company has ordered 3 mln handsets to sell into Italy and the UK in a big push ahead of Christmas. Also, T-Mobile is set to become the next mobile operator to launch 3G services in the UK, with plans to sell phones in the run-up to Christmas. This will see the Deutsche Telekom-owned company trumping its larger UK rivals - Vodafone, Orange and O2 - which have delayed their 3G roll-outs until next March at the earliest. mmO2 reported it had added 258,000 UK customers in the first three months of the year. An AFX News poll of four brokers showed they expect, on average, the company to add 100,000 new UK customers in the second quarter as mmO2 focuses more on improving its margins to meet a 30 pct full year target. It is expected to add some 220,000 customers in Germany. Six month revenues are seen growing, on average, 9 pct to 2.56 bln stg and a 42 pct rise in EBITDA is seen to 540 mln stg. tf/slm/



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Sep 28 11:40 PM: China Telecom to buy Atlantic marine cables for about 1 bln usd - report

BEIJING (AFX-ASIA) - China Telecommunications Corp (China Telecom), the country's largest fixed-line telephone service operator, will acquire international cable capacity along the Atlantic coast off Europe for about 1.0 bln usd, the 21st Century Business Herald reported. The newspaper quoted China Telecom vice-president Chang Xiaobing as saying his company has reached preliminary agreements with BT Group and Deutsche Telekom for the deal, but final agreements have not yet been signed. The newspaper said China Telecom had already been able to purchase cable capacity at prices between one-third and one-fifth of their original construction cost, giving it a powerful transmission network potentially linking several continents. delia.liu@xfn.com dl/ap/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 11:32 PM: DRAMeXchange - 256/128Mb DDR DRAM spot prices steady in morning session

TAIPEI (AFX-ASIA) - The average spot price of 256Mb, 400MHz DDR DRAMs was steady from the previous session at 4.62 usd apiece, according to DRAMeXchange's latest tallies as of 11.30 am. The average spot price of 256Mb, 333MHz DDR DRAMs was steady at 4.52 usd, it said. The average spot price of 256Mb, 266MHz DDR DRAMs was steady at 4.55 usd while that of 128Mb DDR DRAMs was steady at 2.48 usd, it added. philip.wang@afxasia.com pw/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 11:30 PM: US govt bond prices flat to higher in afternoon Tokyo trade

TOKYO (AFX-ASIA) - US government bond prices were flat to higher in afternoon trade, with the benchmark 5-3/8 pct 30-year bond up 2/32 at 106.21, yielding 4.93 pct as of 12:30. The 4-1/4 pct 10-year bond was up 1/32 at 102.02, yielding 3.995 pct, while the price of the 1 5/8 pct two-year note was unchanged at 100.05, yielding 1.54 pct. nt/ng For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 11:29 PM: OUTLOOK Euro zone data to show optimism returning, inflation stubborn

BRUSSELS (AFX) - Euro zone economic figures in the coming week will show that optimism is slowly returning, but that inflation remains stubborn, economists said. The key releases amid a heavy flow of data will include the European Commission's confidence indicators for August and September, due out on Tuesday, and purchasing managers' indices for both the manufacturing and service sectors this month, to be released on Wednesday and Friday. "The commission's survey of business and consumers should show an improvement across the board over the August to September period," Citigroup Global Markets economists said. "In that respect, the survey -- which had been soft again in July -- would echo the more positive readings recently shown by the manaufacturing and services PMI, the OECD's leading indicator as well as business surveys in Germany and Italy," they said. UBS Warburg economist Ed Teather said: "Expectations of an upturn have risen, and the market is waiting for this to be confirmed. We're hoping to see that this week." The euro zone PMI for manufacturing is forecast to have risen for the third consecutive month in September, although it is expected to remain below 50, the dividing line between contractio 51.5 51.8 French Sept services PMI 52.2 52.0 Italian Sept services PMI 52.8 52.4

ALSO EXPECTED German Aug retail sales month-on-month -0.4 -1.5 year-on-year -3.1 -2.2

The AFX consensus is the median of a range of forecasts gathered by AFX News from a broad sample of private sector economists. vm/kl For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 11:01 PM: Tokyo shares end morning lower on strong yen, Wall St decline

TOKYO (AFX-ASIA) - Share prices finished morning trading lower, due to Wall Street's drop on Friday and the stronger yen, dealers said. At the lunch break, the Nikkei 225 Index was down 143.93 points or 1.39 pct at 10,174.51, a four-week low. The broader TOPIX index of all first-section shares was down 8.28 points or 0.81 pct at 1,012.78. Decliners outnumbered advancers 806 to 547 on volume of 457 mln shares, down from 525 mln shares Friday morning. "There were few fresh buying incentives," said Kenji Karikomi, a general manager at Hinode Securities, adding investors were thus curbing their market exposure ahead of several key upcoming events. "Investors were reluctant to take new positions ahead of the end of fiscal first half (tomorrow) and the release of the central bank's Tankan quarterly corporate sentiment survey (on Wednesday)," Karikomi said. Declines were widespread among contractors, food and beverage, textile, pulp and paper, chemical, oil, tire, microchip, auto and transport stocks. Blue chip exporters fell after the yen jumped to 111.29 to the dollar in Asian morning trading, from 111.67 late Friday. Sony was down 2.75 pct and Canon by 0.7 pct. Among automakers, Honda, which derives 90 pct of its operao September to break-even from the initial 1.0 bln yen estimate. Sumitomo Chemical tumbled 5.1 pct to 394 yen after it cut its group net profit forecast for the full year to March to 33 bln yen from the initial estimate of 35 bln, blaming a slump in its petrochemical and basic chemical business. jiwon.chung@afxasia.com jc/rte/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 11:00 PM: European Forex Trading Preview

At 2:00 AM Germany October GfK Consumer Sentiment (exp n/f, prev 4.8) At 3:00 AM Italy September preliminary CPI m/m (exp n/f, prev 0.2%) Italy September preliminary CPI y/y (exp n/f, prev 2.8%) At 4:00 AM Italy August PPI m/m (exp 0.2%, prev 0.2%) Italy August PPI y/y (exp n/f, prev 1.3%) At 4:30 AM UK September Gfk Consumer Confidence UK August Consumer Credit (exp 1.6 bln sterling, prev 1.5 bln sterling)

The dollar held near its lows against majors in early Tokyo trading, slipping further to 111.40 versus the yen. A barrage of data is scheduled for release in the week ahead, with markets likely to focus on both manufacturing and services PMI numbers from the Eurozone, UK and the US. Also of note will be the US labor report, Japan's BoJ Tankan Survey, and the ECB monetary policy meeting. The currency continues to trade near its lows as traders await the economic reports.

Euro slides lower against dollar and yen

The euro fell across the board in early Monday trading, falling lower against the dollar and yen. EURUSD slipped to 1.1438, with support starting at 1.14, followed by 1.1340 and 1.13. A move lower will target 1.1250, backed by 12 and 1.1160. Gains will face interim resistance at 1.1450, backed by 1.15 and 1.1525. Subsequent ceilings will target 1.1548 - a previous peak from July 25.

EURJPY dropped to a two-week low at 127.35. Support starts at 127, followed by 126.70 and 126.30. A move lower will target 126, 125.50 and 125. On the upside, resistance starts at 127.75, followed by 128 and 128.50. Subsequent ceilings are eyed at 128.90, followed by 130.30 and 130.80.

Yen edges higher despite continued warnings

Japan MoF's Mizoguchi reiterated his warning on the forex markets saying the yen's recent ascent has been too strong, adding that the government will act appropriately as needed. Mizoguchi also said that given the relative strength of the US economy to Japan's, there is no reason for the yen to rise so sharply. Nevertheless, the BoJ has yet to show its hand in curbing the currency's steep ascent against the dollar leading traders to question where the government's threshold is.

USDJPY drifted slightly lower, slipping to 111.40. Support starts at 111.30, followed by 111 and 110.65. A breach below will target 110.30 and 110. On the upside, resistance starts at 111.70, backed by 112 and 112.50. Subsequent ceilings are eyed at 113, followed by 113.60 and 114.

Aussie slips to one-week low

Australia's August trade deficit came in less than expected at A$1.86 bln, lower than forecasts of a A$2.3 bln deficit and down from the previous month at A$2.28 bln. Leading the trade deficit lower was the 5% jump in exports.

The Aussie drifted to a one-week low against the greenback, falling to 0.6724. Support starts at 0.67, followed by 0.6640 and 0.66. Subsequent floors will target 0.6570, followed by 0.6540 and 0.65. Resistance is seen at 0.6780, followed by 0.68 and 0.6845 - the pair's multi-year peak from July 7. Additional ceilings are seen at 0.6880, followed by 0.69 and 0.6940.

USDCHF edged up off its multi-week lows

The pair bounced off its lows, rising to 1.3470. Gains will face resistance at 1.35, backed by 1.3620 and 1.37. Subsequent resistance is eyed at 1.3750 and 1.38. On the downside, support is seen at 1.3425, followed by 1.3370 and 1.33. Additional losses will target 1.3250 and 1.3175.

Cable

Cable continues to trade just beneath the 1.66-hangle. Support is seen at 1.6550, followed by 1.65 and 1.6460. A breach below will target 1.6420, backed by 1.64 and 1.6340-50. On the upside, interim resistance starts at 1.66, followed by 1.6640 and 1.67. Subsequent ceilings will emerge at 1.6750 and 1.68.

Sep 28 10:47 PM: Japan, SKorea, US officials meet in Tokyo on NKorea nuclear crisis

TOKYO (AFX-ASIA) - The United States, South Korea and Japan are to start two days of closed-door meetings here on their policy towards the North Korean nuclear crisis, the foreign ministry said. Informal talks were due to get under way late today with the South Korean and US delegations arriving in Tokyo, a ministry official said. The gathering will bring together the three allies' top negotiators on North Korea for the first time since last month's six-way talks held in Beijing, which included China, North Korea and Russia. Key participants in the Tokyo talks are Mitoji Yabunaka, head of the Japanese foreign ministry's Asian and Oceanian affairs bureau, the South Korean Deputy Foreign Minister Lee Soo-Hyuck, and James Kelly, US assistant secretary of state for East Asian and Pacific affairs. "As they will discuss measures to (stem) the crisis, preparations for a new round of six-way talks are of course expected to be among items on the agenda," the ministry official said. A weekend report in the Yomiuri Shimbun daily said Japan would ask the US at the Tokyo meeting to state the specific terms under which it would provide North Korea with a "security guarantee". Pyongyang has demanded a non-aggression promise by the United States as a prerequisite for abandoning its nuclear weapons ambitions. Senior officials from the six nations met in Beijing from Aug 27-29 to explore ways to settle a prolonged crisis over Pyongyang's nuclear ambitions. But the talks ended without a tangible agreement with the delegates agreeing to meet again but failing to fix a date for the next round. mis/ja/nj/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 10:22 PM: Australia's PM reshuffles ministry; communications minister to retire - UPDATE

(Updating with other key ministerial changes) CANBERRA (AFX-ASIA) - Prime Minster John Howard has announced a reshuffle of his ministry a little more than a year before he is due to face the polls. Speaking to reporters, Howard said the changes cover the early retirement of Minister for Communications Richard Alston who has been publicly leading efforts to privatize the government's remaining 51 pct stake in Telstra Corp Ltd. Alston's Senate term is not due to expire until June 2008, having entered the country's upper house in 1986. "Recently Senator the Honorable Richard Alston had indicated to me that he intended to retire from the Senate in the near future and that in the event of any ministerial changes his Cabinet position should become available," Howard said. Amanda Vanstone will be the new immigration and indigenous affairs minister, replacing Philip Ruddock who will become Attorney-General, while Daryl Williams will succeed Alston in Communications. Kevin Andrews will enter the Cabinet as employment and workplace relations minister, replacing Tony Abbott who will take over the portfolio of health and ageing. Kay Patterson shifts from health to become Minister for Family and Community Services and Minister Assisting the Prime Minister on the Status of Women. Ian Campbell and Julie Bishop will join the outer ministry and Christopher Pyne and De-Anne Kelly will become parliamentary secretaries. Finance minister Nick Minchin has been appointed Deputy Leader of the Government in the Senate while Territories minister Wilson Tuckey has been dropped from the ministry. The new ministry will be sworn in on Oct 7 and Howard does not expect to make any further reshuffles before the next election. robert.fenner@afxasia.com at/rjf/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 10:03 PM: *HK'S HANG SENG INDEX OPENS DOWN 34.09 PTS AT 11,250.00



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Sep 28 10:02 PM: *NIKKEI 225 INDEX ENDS MORNING DOWN 143.93 PTS AT 10,174.51

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Sep 28 9:56 PM: Forex - US dollar mixed in morning Sydney as focus shifts to economic data

SYDNEY (AFX-ASIA) - The US dollar was mixed in morning trade with some gains against the euro but falls against the yen as the market focus shifts to a number of global data releases due out this week, dealers said. A dealer at ANZ Bank said this week will be extremely important for the US dollar on the economic front, culminating in Friday's September payrolls data. Against the euro, US dollar support at 1.142 usd is expected to hold today while Japanese data due this week should assist in strengthening the yen. "The major level of 110.20 will be a tough level to break on first attempt," he said. National Australia Bank strategists believe the week ahead is important in that the G7 has been full assimilated by the market while the data vacuum of recent weeks is ending. "The US data schedule is heavy this week and should accordingly go a long way in suggesting the near term direction of the US dollar," they said in a note They said the euro's inability on Friday to close above 1.15 usd increases the downside risk for the single currency. "While above 1.1400-20 the euro is safe from filling the post-G7 gap but any move through here increases the likelihood of a move to 1.1350 in the first inst to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 9:40 PM: Australia Aug adj trade deficit 1.859 bln aud vs consensus deficit 2.3 bln

SYDNEY (AFX-ASIA) - The trade balance for goods and services in August was in deficit by a seasonally-adjusted 1.859 bln aud, compared with a revised deficit of 2.278 bln in July, the Australian Bureau of Statistics said. The July deficit was previously reported as 2.389 bln aud. The consensus of analysts' forecasts for the goods and services balance in August was for a deficit of 2.3 bln aud, with deficit forecasts in the range of 1.9-2.5 bln. The ABS released the following table (figures in bln aud unless stated): (Adjusted) Aug 2003 July June Goods/services -1.859 -2.278 -1.992 Total credits 11.596 11.078 11.440 Total debits 13.455 13.356 13.432 (Trend) Goods/services -2.104 -2.155 -2.151 Total credits 11.217 11.237 11.350 Total debits 13.321 13.392 13.501 (1 usd = 1.48 aud) robert.fenner@afxasia.com rjf/ng For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 9:30 PM: *AUSTRALIA AUG ADJ TRADE DEFICIT 1.859 BLN AUD VS CONSENSUS DEFICIT 2.3 BLN



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Sep 28 9:29 PM: Australia's Howard reshuffles ministry; communications minister to retire

CANBERRA (AFX-ASIA) - Prime Minster John Howard has announced a reshuffle of his ministry a little more than a year before he is due to face the polls. Speaking to reporters, Howard said the changes cover the planned departure of Communications Minister Richard Alston who has been publicly leading efforts to privatize the government's remaining 51 pct stake in Telstra Corp Ltd. robert.fenner@afxasia.com at/rjf/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 9:05 PM: STOCK ALERT - Samsung Electronics lower on selling by foreign investors

SEOUL (AFX-ASIA) - Samsung Electronics was sharply lower on continued selling by foreign and institutional investors, falling for the third straight session, dealers said. At 9.59 am, Samsung Electronics was down 8,000 won at 380,000. The composite index was down 5.28 points at 692.12. jaehyon.cho@afxasia.com jhc/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 9:02 PM: STOCK ALERT - Sumitomo Chemical lower after cutting FY net profit forecast

TOKYO (AFX-ASIA) - Shares of Sumitomo Chemical Co Ltd tumbled after it cut its group net profit forecast for the full year to March to 33 bln yen from the initial estimate of 35 bln, blaming a slump in its petrochemical and basic chemical business. At 9.45 am, Sumitomo Chemical shares slid to 393 yen, down 22 yen or 5.3 pct. Some 5.1 mln shares changed hands, against a full-day average of 6.4 mln in the previous 10 trading days. The major chemical manufacturer said after trading hours Friday that it slashed its group ordinary profit estimate to 64 bln yen against the earlier 70 bn projection for the full year, while its group sales of 1.16 bln yen remains unchanged. For the first half to September, it cut its group ordinary profit estimate to 22 bln yen from 24 bln earlier, while its group sales of 570 bln yen as well as its group net profit of 10 bln yen remain unchanged. nozomi.toyama?afxasia.com nt/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:59 PM: Singapore's UOB, Goldman Sachs complete 1.50 bln usd CDO deal

SINGAPORE (AFX-ASIA) - United Overseas Bank (UOB) said it and Goldman Sachs completed last week a 1.50 bln usd managed synthetic collateralised debt obligation (CDO) called United Global Credits CDO. United Global Credits CDO is a diversified portfolio consisting of US, European and Asian corporate default swaps across a broad spectrum of industries. UOB said it is issuing 60.00 mln usd five-year credit-linked notes, repayment of which will be tied to the performance of the portfolio. (1 usd = 1.73 sgd) singapore@afxasia.com jb/mh For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:41 PM: Japan's Aozora Bank chief plans management changes, restructure balance sheet

TOKYO (AFX-ASIA) - The new chairman of Aozora Bank, which was recently taken over by US investment fund Cerberus, indicated that a turnaround was in the works for the bank under his watch, the Financial Times reported. Edward Harshfield, an American who was appointed Friday to lead the bank, said he would reshuffle management, restructure the bank's balance sheet and possibly acquire a local retail bank, according to the report. "There are a moderate number of changes that need to be made at the senior management level," he told the economic daily. Harshfield planned to appoint a new Japanese chief operating officer to be designated his successor, the daily said. He also plans to shift part of Aozora's balance sheet offshore "where spreads are different, meaning US and British paper," he told the paper. Acquiring a retail banking operation, such as a key regional bank strong in consumer banking, was also a possibility, the paper said. "Normally, when you do a turnaround, you are the boss and when you tell people to turn left, they turn left -- or they get fired," he was quoted as saying. US investment fund Cerberus said in late August it was completing its takeover of Aozora Bank by buying some 50 pct of the shares from major Internet investor Softbank and others for 881 mln usd. With the purchase, Cerberus was to become the biggest shareholder in Aozora Bank by controlling a total of 61.85 pct of the shares, it said. Aozora, formerly called the Nippon Credit Bank, received 3.5 trln yen in taxpayers' money five years ago to cover liabilities after it collapsed, and to clear the way for its sale to a consortium led by Softbank. rn/nj/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:33 PM: STOCKWATCH-Japan banks surge in early trading on bargain-hunting

TOKYO (AFX-ASIA) - Japanese banks surged in early trading, adding to big gains on Friday, on bargain-hunting after falling sharply the two previous days, analysts said. After the first 15 minutes of trading, Mizuho Financial Group Inc, parent of the nation's largest bank by assets, was up 4.85 pct or 11,000 yen at 238,000 yen. Mitsubishi Tokyo Financial Group, parent of the third-largest bank, was up 4.2 pct at 693,000 yen, while UFJ Holdings, parent of the fourth-largest lender, was up 3.7 pct at 446,000 yen and Sumitomo Mitsui Financial Group, parent of the nation's second-largest bank, was up 3.2 pct at 467,000 yen. Resona, the fifth-largest lender which received a 1.9 trln yen government bailout in June, was up 4.55 pct or 7 yen at 161. Hironari Nozaki, a bank analyst at HSBC Securities, said banking issues declined sharply last Wednesday and Thursday amid concern they had risen too much over recent weeks, but the correction was too great, prompting bargain-hunting which began lifting bank shares widely last Friday. On Friday Mizuho surged 8.1 pct, SMFG climbed 4.9 pct, UFJ Holdings added 4.6 pct, MTFG gained 3.9 pct and Resona was up 2.0 pct. robin.elsham@afxasia.com rte/wk For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:21 PM: Power Corp of Canada to buy 28 pct stake in China's Penghua Fund - report

BEIJING (AFX-ASIA) - Power Corp of Canada is in talks with shareholders of China's Penghua Fund Management Co Ltd to buy a combined 28 pct stake in the fund management firm, the 21st Century Business Herald reported, citing industry insiders. The insiders said Guosen Securities Co Ltd, Penghua Fund's current largest shareholder with a 50 pct stake, plans to sell a 22 pct stake to Power Corp. Penghua Fund's three other shareholders, namely, Founder Securities Co Ltd, Anshan Trust & Investment Co Ltd and Guoyuan Trust & Investment Co Ltd, will each sell a 2.0 pct stake to the Canadian investment firm. After the sales are completed, Guosen Securities and Power Corp of Canada will become Penghua's largest shareholders, with each holding a 28 pct stake. Penghua Fund was established in 1998 with registered capital of 150 mln yuan, and has become one of the six domestic fund managers selected by the government to manage the Social Security Fund's investment in the securities markets. (1 usd = 8.3 yuan) shaq.wang@xfn.com sw/ng/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:19 PM: Japan MoF's Mizoguchi says yen's recent rise a little too strong, adding that Japan will act appropriately as needed. Reiterates that US economic recovery is faster relative to Japan's.

Sep 28 8:17 PM: DRAMeXchange - 256Mb DDR DRAM spot prices mixed; 128Mb steady

TAIPEI (AFX-ASIA) - The average spot price of 256Mb, 400MHz DDR DRAMs was down 0.12 pct from the previous session at 4.62 usd apiece at the close on Friday, according to DRAMeXchange statistics. The average spot price of 256Mb, 333MHz DDR DRAMs was down 0.78 pct at 4.52 usd, it said. The average spot price of 256Mb, 266MHz DDR DRAMs was steady at 4.55 usd while that of 128Mb DDR DRAMs was steady at 2.48 usd, it added. philip.wang@afxasia.com pw/skb For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:12 PM: *ALL ORDS DOWN 13.2 PTS AT 3,162.5



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Sep 28 8:11 PM: *S&P/ASX 200 DOWN 13.6 PTS AT 3,157.9



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Sep 28 8:09 PM: *NIKKEI 225 OPENS DOWN 23.43 PTS AT 10,295.01



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Sep 28 8:06 PM: Samsung Electronics develops 4-gigabit NAND flash memory

SEOUL (AFX-ASIA) - Samsung Electronics Co Ltd said it has developed an array of next generation memory technologies including the world's first 70 nanometer 4-gigabit NAND flash memory and an 80 nanometer DRAM device. In addition, the company announced a single chip memory solution, called fusion memory, which takes the multi-chip package and system-in-package concepts one step further to deliver a single design combining memory and logic, it said. Samsung's world first 4Gb NAND flash, used for mobile applications, is the fourth generation of NAND flash memory, it said. "Samsung's bullish strategy of investing heavily in next generation design and manufacturing technologies has enabled the company to offer a unique portfolio of advanced memory devices designed to meet the challenges of convergence and mobility in tomorrow's digital marketplace," said Hwang Chang-Gyu, president of Samsung's memory division. jaehyon.cho@afxasia.com jhc/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 8:05 PM: Australia's Qantas, Patrick form JV to acquire former Ansett engine facility

SYDNEY (AFX-ASIA) - Qantas Airways Ltd and Patrick Corp Ltd said they have formed a joint venture known as Engine Services Co (ESCO) to acquire the former Ansett engine maintenance facility near Melbourne Airport. No financial details were released. Patrick owns a 50 pct stake in discount carrier Virgin Blue while the facility is controlled by the administrator to Ansett Airlines, which collapsed in September 2001. In a statement, Qantas chief executive Geoff Dixon said the airline's fleet has grown significantly over the past two years and the company has been assessing a range of options for future maintenance needs. "We are delighted that ESCO will enable us to provide additional specialised engine maintenance jobs in Australia and achieve this with a business structure that will be competitive and sustainable," he said. (1 usd = 1.48 aud) robert.fenner@afxasia.com rjf/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 7:53 PM: *QANTAS/PATRICK JV TO ACQUIRE FORMER ANSETT MAINTENANCE FACILITY



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Sep 28 7:52 PM: *AUSTRALIA'S QANTAS, PATRICK FORM JOINT VENTURE



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Sep 28 7:49 PM: *S&P/ASX 200 DEC FUTURES DOWN 6.0 PTS AT 3,167.0



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Sep 28 7:46 PM: Tokyo shares outlook - Lower after Wall St losses

TOKYO (AFX-ASIA) - Share prices are expected to open lower following the weaker close on Wall Street last Friday, with investors cautious ahead of the corporate earnings season to start next month, to be closely watched for validation of multimonth peaks for the major averages. The Dow Jones Industrial average closed down 30.88 points, or 0.3 pct, at 9,313.08. The technology-oriented Nasdaq finished down 25.17 points, or 1.4 pct, at 1,792.07. Last Friday, the benchmark Nikkei 225 index closed up 8.4 points or 0.08 pct at 10,318.44. Over the week the blue-chip indicator fell 5.7 pct. The broader Topix index of all first-section stocks rose 0.36 pct or 3.67 points to 1,021.06. Both the Nikkei and Topix indices fell to four-week closing lows on concern over the impact of the strong yen on Japan's export-led recovery. In Chicago, the Nikkei December futures contract finished at 10,205, below the closing price of 10,320 in Osaka. Early Friday, a massive earthquake measuring 8.0 on the Richter scale struck northern Japan, but caused little damage, barely influencing Tokyo trading. Investors sold defensive stocks such as drugmakers, food and beverage stocks and utilities, and bought banks and hi-techs which had fallen substantlong with a sales fall in its construction materials units. Brother Industries may attract some investors after boosting its group net profit forecast for the year to March to 19 bln yen, compared with the initial estimate of 18.5 bln, citing lower operating costs. The top-tier sewing machine manufacturer also boosted its full year group ordinary profit estimate to 34 bln yen from 32.5 bln earlier while its group operating profit is seen growing to 36 bln yen against the initial forecast of 35 bln. nt/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 7:45 PM: Australia's Leighton - Consortium wins 560 mln aud Malaysian contract

SYDNEY (AFX-ASIA) - Construction group Leighton Holdings Ltd said its Asian unit is part of a consortium awarded a 560 mln aud Malaysian highway contract for Maju Holdings Sdn Bhd. Other members of the consortium are Maju Construction and Engineering Sdn Bhd and Perwaja Steel Sdn Bhd, with Leighton's share of work estimated at around 450 mln aud. In a statement, Leighton said the contract is its largest ever in Asia and will see it design and build 26 kilometres of two- and three-lane highway between Kuala Lumpur and Putrajaya, the new federal capital of Malaysia. The project will commence immediately and is scheduled for completion in March 2006.

(1 usd = 1.48 aud) robert.fenner@afxasia.com rjf/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 7:27 PM: Australian shares outlook - Weaker on Wall St fall/ahead of trade data

SYDNEY (AFX-ASIA) - Share prices are expected to open weaker, taking their lead from Friday's negative Wall Street activity, with investors adopting a cautious stance as the market remains slightly below its recent 14-month highs, dealers said. With little corporate news expected this week, dealers said the focus will shift to economic developments and their possible impact on monetary policy while offshore market movements will continue to impact. August international trade data are due later this morning with the market expecting the balance to remain clearly in deficit with a consensus forecast of 2.3 bln aud, down slightly from July's 2.389 bln deficit. On Friday, the S&P/ASX 200 index closed down 1.3 points or 0.04 pct at 3,171.5 and the All Ordinaries index was down 4.5 points at 3,175.7 as concerns about the global economy wwighed on News Corp and key resource stocks. In New York, News Corp ADRs lost 1.8 pct and National Australia Bank eased 0.3 pct. In London, BHP Billiton was down 1.5 pct and Rio Tinto fell 0.8 pct while Brambles added 0.4 pct. The S&P/ASX 200 December futures is down 5.0 points at 3,168.0.

(1 usd = 1.48 aud) robert.fenner@afxasia.com rjf/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 7:01 PM: UK wage settlements in service, manufacturing sectors broadly similar - CBI

LONDON (AFX) - Wage settlements in the service and manufacturing sectors are now broadly equal, according to the Confederation of British Industry. In its quarterly Pay Settlements Survey, the CBI found that weak market conditions have prompted the more equal outcome. Over the past six years, service sector pay awards have been higher. Service sector pay awards averaged 3 pct in the three months to July, compared with 2.9 pct in the previous quarter and 3.6 pct in the same quarter a year ago. Meanwhile, manufacturing settlements averaged 2.8 pct in the three months to July, compared with 3 pct last quarter and 2.6 pct cent in the same quarter a year ago. Ian McCafferty, CBI chief economic advisor, said the noticeably higher service sector settlements "appear to be over for now", with earnings across the private sector now broadly equal. "The problems of intense competition and poor demand have dogged manufacturing for some time, but now seem to have spread to the service sector as well," he said. "Increasingly difficult selling conditions have dragged down pay settlements throughout the service sector." The CBI said low profits and price constraints remain important factors pushing manufacturing pay down, but have become more important factors pushing service sector pay down. The CBI pay survey is not directly comparable to the official average earnings figures. It only includes bonuses if changes to bonus schemes are made as an integral part of the pay award. The data also excludes any salary increases due to changes in hours worked or promotions. pan.pylas@afxnews.com pp/ak For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 7:00 PM: UK's Brown to say pre-Budget report will signal next stage of economic reform

BOURNEMOUTH, England (AFX) - Chancellor Gordon Brown will tell Labour's annual conference that the pre-Budget report (PBR) will be the next landmark in reforming the domestic economy, according to extracts of his speech released by aides here. He will ask party members to support the initiatives, which include "employment service reform, planning reform, Labour market reform, competition policy reform and regional reform as the road to full employment". "I am asking you to support them, not because I am asking you to do so right or wrong, not because of reform for reform's sake, but reform for a purpose," Brown is expected to say. Some observers will see the reference to regional reform as a sign that Brown is committed to introducing a system of regional pay bargaining for public sector workers. He raised the idea in the Budget last March, but local government employers and senior personnel officers called for national negotiations to remain in place. A cross-cutting government review of the public sector labour market revealed that public sector wages were regionally far less varied than wages in the private sector. Brown is expected to reiterate the position on potential UK membership of the euro. The government in June decided that the economy had not met all its tests for membership and promised a progress report in next year's Budget. He will also tell delegates that the UK can be a "beacon" towards forging a new transatlantic partnership between Europe and the US. "Rather than allowing Europe and America to look inwards and stand apart, we will promote a new transatlantic economic partnership," he is expected to say. "Where America is enterprising, but not today seen as fair (and) the rest of Europe more socially cohesive but not today seen as enterprising, we in Britain can be the first country to combine a vibrant enterprising economy awash with dynamism with a strong public realm where public services are not based on vouchers or charges but are free to all." "Britain can be more than a bridge between Europe and America. Our British values should make us a beacon for Europe, America and the rest of the world." newsdesk@afxnews.com fp/hjp For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 6:56 PM: Japanese & Australian Trading Preview

At 9:30 PM Australia August Trade Balance (exp A$-2.3 bln, prev A$-2.4 bln)

In the coming week, currencies are expected to take their direction from the barrage of economic data scheduled for release. The dollar continues to trade on weak footing against the majors as markets sold-off on the currency following last weekend's G-7 meeting. The greenback remains weighed against the yen at 111.60 and the euro at 1.1459.

Speculators continue to avoid dollar longs

According to the CFTC IMM futures data, speculators extended their net selling of dollars for the week ending September 23. Net longs in euro contracts surged to 8,777 contracts, up 250% from the previous week at 4,727 contracts. Speculators pushed up their net longs in cable contracts to its highest level since July at 10,046 contracts, up sharply from a week earlier at 1,521 contracts. Speculative net longs in yen contracts hovered near its multi-year highs at 53,548 contracts, albeit down slightly from the previous week at 54,647 contracts. Net selling in Swiss franc contracts declined by more than half at 9,503, versus 19,934 contracts in the prior week. Speculators boosted their net purchases of Canadian dollars slightly, buying a net 22,307 contracts, up from 20,132. Lastly, net longs in Aussie contracts edged lower to 9,845 contracts from 9,897 a week earlier.

Yen maintains strength as BoJ stays on sidelines

Traders remain wary of government intervention despite the BoJ's lack of action in recent weeks. With the yen hovering near multi-year highs against the greenback, the currency's strength threatens to derail the nation's nascent recovery. The week ahead will see several key reports from Japan, including industrial production, unemployment, and the BoJ's Q3 Tankan survey. August industrial production is expected to rise 1.0%, up from 0.5% a month earlier. Meanwhile, the BoJ's Tankan large-manufacturing diffusion index is seen rising to 0, up from the previous quarter at -5.

USDJPY trades at 111.56 heading into the Asian session. Support starts at 111.30, followed by 111 and 110.65. A breach below will target 110.30 and 110. On the upside, resistance starts at 111.70, backed by 112 and 112.50. Subsequent ceilings are eyed at 113, followed by 113.60 and 114.

EURJPY holds steady just beneath the 128-mark. Interim support starts at 127.75, followed by 127.50 and 127. Additional losses will target 126.70, followed by 126.30 and 126. On the upside, gains will target 128, followed by 128.50 and 128.90. A breach above will target 130.30 and 130.80.

Aussie trades sideways

AUDUSD holds steady at 0.6760. Support is eyed at 0.6730, backed by 0.67 and 0.6640. Subsequent floors are eyed at 0.66 and 0.6570. Resistance is seen at 0.68, followed by 0.6845 the pair's multi-year peak from July 7 and 0.6880. A breach above will target 0.69 and 0.6940.

EURUSD

EURUSD hovers at 1.1460. Interim support is seen at 1.1450, backed by 1.14 and 1.1340. Subsequent floors are seen at 1.13, followed by 1.1250 and 1.12. Resistance is seen at 1.15, followed by 1.1525 and 1.1548 - the high from July 25. Subsequent ceilings emerge at 1.16, backed by 1.1650 and 1.1685.

Sep 28 6:43 PM: Toyota begins production of Lexus SUVs in Canada - report

TOKYO (AFX-ASIA) - Toyota Motor Corp started building the Lexus RX330 sport utility vehicle at a Canadian factory Friday as part of its new strategy of expanding North American production, the first time the company has made any model of Lexus outside Japan, the Nihon Keizai Shimbun reported. Toyota has invested 650 mln cad to expand the factory's lines to produce 60,000 units of the RX330 a year and has taken on 700 additional workers, boosting the work force at the factory to 3,900. It will raise the factory's annual production 15 pct from last year's level to 250,000 vehicles next year, including Corollas and other models, the report said.

nozomi.toyama@afxasia.com nt/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 6:40 PM: Oil pipeline explosion in Nigeria; triggered by oil thieves, says co official

LAGOS (AFX) - Workmen were battling a blaze on a petrol pipeline owned by the state-run Nigerian National Petroleum Corp (NNPC) which exploded late Saturday on the outskirts of the harbor district of Lagos. The blast was triggered when thieves attempted to tap into the pipeline at a point where it runs along a creek near Atlas Cove, a few kilometers outside the port, the state oil company said. There were no confirmed reports of deaths in the explosion, although local boatmen told Agence France Presse they believed that some police officers had been burned to death. Lagos police spokesman Emmanuel Ighodalo could not confirm this, saying simply: "Our deputy commissioner for operations has gone to the scene, but we still do not have his report." A huge column of smoke was still rising from the site of the blast Sunday. Witnesses said an explosion had ripped through a pipeline late Saturday near the suburb of Ilashe. There were no buildings in the immediate vicinity of the blast, and no sign of any casualties. A similar explosion two years ago at almost the same spot near Atlas Cove led to the death of 50 people. Ndu Ughamadu, spokesman for NNPC told AFP that the blast had been triggered accidentally by oil thieves. "It's still burning, but we have engineers at the scene working to put it out," he said. "No bodies have been reported yet." The pipeline had been carrying refined petrol, which is much more volatile and dangerous than the crude oil which is Nigeria's main export. Theft from pipelines is serious problem in Nigeria -- Ughamadu said that Saturday's attack was the fourth on NNPC facilities in a week -- and often leads to tragedy. Nigeria is Africa's largest exporter of crude oil, but an inefficient domestic distribution system often causes crippling shortages of refined fuels such as petrol and diesel. dc/sjw/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 6:22 PM: Al-Qaeda number two calls on Pakistanis to overthrow Musharraf - report

DUBAI (AFX) - Arab satellite television stations aired Sunday a new audiotape attributed to Osama bin Laden's second-in-command Ayman al-Zawahiri in which he called on Pakistanis to overthrow President Pervez Musharraf and on Muslims to resist the US-led "crusade." "Muslims in Pakistan must unite and cooperate to topple this traitor and install a sincere leadership that would defend Islam and Muslims," the speaker said in the tape broadcast by Dubai-based Al-Arabiya and Qatar's Al-Jazeera. "It is Musharraf who enabled America to topple the (Taliban's) Islamic emirate in Afghanistan. Had it not been for his tremendous help, America would not have been able to do this, nor would it have been able to kill thousands of innocents in Afghanistan," the voice purported to be Zawahiri's said. The claim was a reference to the US-led war on Afghanistan launched in October 2001, a month after the Sept 11 attacks on the United States, to root out bin Laden, who Washington believed was being sheltered by the Taliban. The speaker suggested that both bin Laden, whose al-Qaeda network was blamed for the suicide hijackings, and Taliban leader Mullah Mohammad Omar, whose whereabouts have been unknown since the Taliban regime was ousted, were alivedi government from printing and distributing the holy Koran. Why? Because it contains verses that call for hatred of Jews and Christians," it said. lg/loc/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 6:17 PM: Four more patients hospitalized in new SARS alert in Hong Kong

HONG KONG (AFX-ASIA) - Four more patients have been admitted to two Hong Kong hospitals suffering fever and chest infections, key symptoms of the deadly SARS virus, a hospital spokesman said over the weekend, raising fears of a new outbreak of the disease. A 79-year-old man from an old age home in Kowloon, was admitted to Queen Elizabeth Hospital Friday suffering a chest infection. Tests for influenza and the SARS-causing coronavirus were being conducted on the man, who was in an isolation ward receiving treatment, the spokesman said. Five elderly patients admitted earlier from the same elderly home remained in hospital. All six patients were in a stable condition while four had already tested negative for the coronavirus, he said. Meanwhile, tests were continuing on another three elderly female patients, aged 81 to 86, from an old age home in Hung Hom had who were recently admitted to the hospital with chest infections. One woman also had a fever. Tests were still being carried out on the three, he added. The cases are the latest in a string of SARS alerts over the past two weeks in which the first stage of a new three-tier warning system for the disease has been raised amid heightened fears the deadly virus could return as the weather turns cooler. The World Health Organisation (WHO) has warned SARS could return with the onset of the northern hemisphere winter. Many experts believe the disease could be seasonal like other viruses, such as flu. In the early part of the year SARS struck more than 8,000 people and left more than 900 dead in 32 countries, with some 349 of the fatalities and 5,327 of the infections recorded in China. Hong Kong was the second worst-affected region with 297 SARS-related deaths and nearly 1,800 infections. al/mfc/mas For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Sep 28 5:08 PM: MusicMatch to offer 99-cent downloads

SAN FRANCISCO (AFX) -- In yet another sign that music labels are increasingly embracing the Internet to distribute their songs, MusicMatch will be the latest company to open up an online music store. MusicMatch will sell music for 99 cents a download and albums for $9.99. The San Diego, Calif.-based MusicMatch says it has agreements with the five major music labels and is has 200,000 tracks available. An announcement is expected on Monday. Since Apple began offering 99-cent downloads for Apple users back in April, several companies, like RealNetworks and have offered consumers downloads for as low as 79 cents a song. The rise of legitimate music stores reflects the record industry's intent to offer music lovers an affordable way to buy music online, in order to prevent them from using Web sites where they can get music for free. While each new music store appears to have fewer restrictions, the labels have demanded that some restrictions remain in place in the MusicMatch service. For instance, there is still a limited number of times a person can burn a list of songs onto a CD. These restrictions are designed to prevent a person from creating CDs beyond his or her circle of friends. But unmusic store as well. Apple is expected to have its I-Tunes service available for personal computer users and not just Mac users. Roxio said this past summer that it intends to start a service with 500,000 tracks by this Christmas. Amazon.com , Viacom's MTV and Wal-Mart may also consider opening up online music stores, observers have said. But even as the online music stores compete for holiday dollars, MusicMatch's Mudd believes the 99-cent price will hold as consumers seek quality and reliability of service over price. Let the online music price wars begin. Receive this column via e-mail. at CBS.MarketWatch.com. You can also subscribe to Bambi Francisco's Net Sense, a weekly commentary. See the latest column: and This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com. For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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