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