Week Ahead

Monday, December 3, 2012 UK Reporting:- Balfour Beatty Plc, BBY, (SM), Bp Plc, BP, (SM), Glaxosmithkline Plc, GSK, (SM), Henderson Fledgling Trust Pl, HFT, (SM), Randgold Resources Ltd, RRS, (SM), Wpp Plc, WPP, (Pr) S&P 500 Reporting:- None Detailed Euro Stoxx 600 Reporting:- None Detailed Economic Data:- 09:00 November PMI Manufacturing, 46.2 exp. 46.2 previous 09:30 UK November PMI Manufacturing, 48.0 exp. 47.5 previous 15:00 US November Manufacturing ISM, 51.4m exp. 51.7 previous Economic Events:- 11:30 Euro-Area Finance Ministers meet in Brussels IPO:- Browave Corp, (3163), 5.431m, TWD 23

Tuesday, December 4, 2012 UK Reporting:- Anite Plc, AIE, (R), Anite Plc, AIE, e, (CC), Ite Group Plc, ITE, (R), Northgate Plc, NTG, (R), Tesco Plc, TSCO, (Pr), Tui Travel Plc, TT, (R), Tui Travel Plc, TT, e, (CC), Vodafone Group Plc, VOD, (Pr), Wolseley Plc, WOS, (R), Wolseley Plc, WOS, (R), Yule Catto & Company Plc, YULC, (SM) S&P 500 Reporting:- AutoZone Inc, Q1, 5.39, Big Lots Inc, Q3, -0.251 Euro Stoxx 600 Reporting:- Elekta AB, Q2, 0.789, TUI Travel PLC, R, 0.24 Economic Data:- 00:01 UK November BRC Sales, -0.1% previous 09:30 UK November PMI Construction, 50.9 previous 10:00 Eurozone PPI, 0.0% exp. 0.2% previous 14:00 Bank of Canada Rate Announcement, 1.0% exp. 1.0% previous Economic Events:- EU-27 Finance Ministers Meet in Brussels IPO:- WhiteHorse Finance LLC, (WHF), 6.6667m, USD 15

Wednesday, December 5, 2012 UK Reporting:- Arm Holdings Plc, ARM, (Pr), Aveva Group Plc, AVV, (Pr), Brewin Dolphin Holdings Plc, BRW, (R), Consort Medical Plc, CSRT, (R), Innovation Group Plc, TIG, (R), Intl Consolidated Airline-Di, IAG, (R), Middlefield Canadian Inc Tst, MCT, (SM), Paragon Group Companies Plc, PAG, (Pr), Provident Financial Plc, PFG, (Pr), Randgold Resources Ltd, RRS, (Pr), Sage Group Plc/The, SGE, e, (CC), Sage Group Plc/The, SGE, (R), Stagecoach Group Plc, SGC, (R), Tesco Plc, TSCO, (R) S&P 500 Reporting:- Brown-Forman Corp, Q2, 0.782, SAIC Inc, Q3, 0.34 Euro Stoxx 600 Reporting:- Sage Group PLC/The, R, 0.198, Stagecoach Group PLC, S1, 0.163 FTSE 100 Ex dividends (net): Aberdeen Asset Management PLC, ADN, (7.10),  Associated British Foods PLC, ABF, (20),  Carnival PLC, CCL, ($0.50),  Land Securities Group PLC, LAND, (7.4g),  SABMiller PLC, SAB, ($0.24),  Severn Trent PLC, SVT, (30.34) FTSE 250 Ex dividends (net): Big Yellow Group PLC, BYG, (5g),  British Empire Securities and General Trust PLC, BTEM, (3.50),  British Empire Securities and General Trust PLC, BTEM, (7.50),  Britvic PLC, BVIC, (12.40),  Cranswick PLC, CWK, (9.40),  De La Rue PLC, DLAR, (14.10),  Debenhams PLC, DEB, (2.30),  Electrocomponents PLC, ECM, (5),  Grainger PLC, GRI, (1.37),  Homeserve PLC, HSV, (3.63),  Investec PLC, INVR, (7.521),  London Stock Exchange Group PLC, LSE, (9.70),  N Brown Group PLC, BWNG, (5.45),  PayPoint PLC, PAY, (10.20),  Perpetual Income and Growth Investment Trust PLC, PLI, (2.55),  Personal Assets Trust PLC/Fund, PNL, (140),  Shanks Group PLC, SKS, (1.10),  TR Property Investment Trust PLC - Ordinary Shares, TRY, (2.65),  TR Property Investment Trust PLC - Sigma Shares, TRYS, (1.05),  WS Atkins PLC, ATK, (10) FTSE Small Share Ex dividends (net): F&C Capital & Income Investment Trust PLC/Fund, FCI, (2.85),  Fuller Smith & Turner, FSTA, (5.35),  Greencore Group PLC, GNC, (2.50),  Headlam Group PLC, HEAD, (4.65), Hogg Robinson Group PLC, HRG, (.60),  Invesco Income Growth Trust PLC, IVI, (2),  IRP Property Investments Ltd, IRP, (1.80),  Management Consulting Group PLC, MMC, (.23),  Norcros PLC, NXR, (.155),  Phoenix IT Group Ltd, PNX, (3.70),  Tarsus Group PLC, TRS, (2.20),  UK Mail Group PLC, UKM, (6.40),  Value and Income Trust PLC, VIN, (4),  Vp PLC, VP/, (3.25) Economic Data: 09:00 Eurozone November PMI Composite, 45.8 exp. 45.8 previous 09:30 UK November PMI Services, 51.1 exp. 50.6 previous 10:00 Eurozone October Retail Sales, -0.8% exp. -0.8% previous 15:00 US Factory Orders, 0.0% exp. 4.8% previous Economic Events:- EU to adopt proposals against Tax Evasion IPO:- Potash Ridge Corp, (0611977D), 14.9447m, CAD 1 Zhengzhou Coal Mining Machinery Group Co Ltd, (564), 221.122m, HKD 10.38

Thursday, December 6, 2012 UK Reporting:- Balfour Beatty Plc, BBY, (Pr), City Natural Resources Hi Y, CYN, (SM), Ds Smith Plc, SMDS, (R), Ds Smith Plc, SMDS, e, (CC), Easyjet Plc, EZJ, (R), International Personal Finan, IPF, (Pr), Micro Focus International, MCRO, (R), Premier Farnell Plc, PFL, e, (CC), Premier Farnell Plc, PFL, (R), Pz Cussons Plc, PZC, (R), Sabmiller Plc, SAB, (SM), Standard Chartered Plc, STAN, (R), Telecity Group Plc, TCY, (Pr), Vectura Group Plc, VEC, (Pr) S&P 500 Reporting:- CareFusion Corp, Q1, 0.429, H&R Block Inc, Q2, -0.405 Euro Stoxx 600 Reporting:- DS Smith PLC, S1, 0 Economic Data:- 09:30 UK October Trade Balance, -£3100 exp. -£2699 previous 10:00 Eurozone Q3 GDP, -0.1% exp. -0.1% previous 12:00 UK Bank of England Rate Announcement, 0.5% exp. 0.5% previous 12:45 ECB Rate Announcement, 0.75% exp. 0.75% 13:30 US Weekly Jobless Claims, 380k exp. 393k previous Economic Events:- EU's Rehn Speaks at Brussels Think Tank IPO:- IBJ Inc, (6071), 0.276m, JPY 1450 ZEUS Resources Ltd, (ZEU), 67.65m, AUD 0.2

Friday, December 7, 2012 UK Reporting:- Associated British Foods Plc, ABF, (SM), Bellway Plc, BWY, (R), Berkeley Group Holdings, BKG, (R), Carillion Plc, CLLN, (Pr), Photo-Me International Plc, PHTM, (R), Rit Capital Partners Plc, RCP, (SM) S&P 500 Reporting:- None Detailed Euro Stoxx 600 Reporting:- Berkeley Group Holdings PLC, S1, -0.001 Economic Data:- 09:30 UK October Industrial Production, m/m, 0.8% exp. -1.7% previous 09:30 UK October Manufacturing Production, m/m, -0.2% exp. 0.1% previous 13:30 US November Change in Non Farm Payrolls, 90k exp. 171k previous Economic Events:- ECB's Weidmann Speaks in Berlin IPO:- Ananda Development PCL, (ANAN), 1333m, THB 4.2 Paringa Resources Ltd, (PNL), 33.3333m, AUD 0.3 People's Insurance Co Group of China Ltd, (1339), 6898.21m, HKD 3.48 Sino Horizon Holdings Ltd, (2923), 39.1m, TWD 19 - 22 Tecnos Japan Inc, (3666), 0.55m, JPY 1540

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Footnotes All times BST Dividends :- (g) gross dividend, otherwise net UK Results Key:- (CC) Conference Call, (Pr) Press Event, News Conference, (R) Results, Interims/Finals, (SM) Shareholder Meeting,  e - estimated date of event US Results Key: (BMO) - Before Market Open (AMC) - After Market Close

Regulatory Disclaimer This market commentary note (“note”) has been issued by Cantor Index Limited (“Cantor Index”), which is authorised and regulated by the Financial Services Authority (“FSA”). This note is defined by the FSA as a marketing communication. This note has been prepared and distributed for information purposes only.  This note may contain information obtained by Cantor Index from third parties; the source of information will usually be disclosed.  Cantor Index makes no representation and gives no warranty as to the accuracy or completeness of the contents of this note. Any person placing reliance upon this note does so at their own risk. Investors should consider this note as only a single factor in making their investment decision. The investment discussed in this note may be unsuitable for investors depending on their specific investment objectives and financial position. Cantor Index, its officers, employees and affiliates shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in this note or any reliance on this note. The recipient is strongly recommended to see independent legal, tax and financial advice. Past performance is not necessarily a guide to future performance. Income from investments may fluctuate The price or value of the investments to which this note relates; either directly or indirectly, may fall or rise against the interest of investors. This note should not be considered to be a solicitation nor an offer of advice for the purposes of the sale or purchase of any security, investment or derivative.  The information contained in this note is not intended to form the basis of any investment decision and should not be considered a recommendation by Cantor Index or any other person in relation to any of the companies, stock, commodities, currencies or other markets mentioned / referred to in this note. All the information contained herein is based upon information available to the public and has been obtained from sources believed to be reliable. However, the information contained in this note has not been verified by Cantor Index and Cantor Index undertakes no obligation to provide recipients of this note with any additional information or any update to or correction of the information contained in this note. This note is provided by Cantor Index and may be forwarded unamended and in its entirety. This note may not be used in whole or in part to create any other work. All rights reserved. Cantor Index Limited is authorised and regulated by the FSA under Firm Reference Number 194414 Registered in England No. 03489923 Registered Address: One Churchill Place, Canary Wharf, London, E14 5RD

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Day Ahead

Cantor Opening Call The FTSE is called to open up around 25-30 points higher this morning

UK Corporate Announcements Kingfisher reports a Q3 total retail profit of £257m, against forecasts of £259m seen, and states that it has delayed some capital spending to next financial year Pennon Group announces an H1 operating profit of £136.3m on revenues of £633.7m and that it had £459m in cash end September Dixons states that it remains cautiously optimistic about the outlook, as H1 LFL sales gained 3% and details an H1 underlying pre-tax loss of £22.2m Marston’s announces full year revenues of £719m up 5.5% and an underlying pre-tax profit of £157.9m and states that it has made an encouraging start to the New fiscal year Hogg Robinson states that the full year is seen broadly in line with the expectations Shaftesbury announces a full year adjusted pre-tax profit of £31.2m and portfolio value up to £1.828bn, up 8.9%

UK Market News The latest Bloomberg poll has the world economy in its ‘best shape’ for 18 months, as the US is expected to avoid the fiscal cliff, albeit with political manoeuvres expected before hand, and as China’s prospects improve BP has been accused of acting with a ‘lack of business integrity’ by US authorities and has been barred from bidding for US Federal contracts Burberry gained yesterday on circling M&A talk French press suggests that Thomas Cook has hired Aforge to advise on a sale of its French unit Invensys late in yesterday’s trading announced that it was selling its rail signalling division to Siemens and plans to return £625m to shareholders The media will continue its self feeding frenzy as the Leveson Inquiry publishes its report at 13:30 UK mortgage approvals gained in October, up to 52.9k from 50.4k in September, but still well under the 100k/month average in the 10 years leading up to 2007 Nationwide announces that UK November House prices were unchanged for the month, and stand down 1.2% year on year, and sees prices falling modestly next year Rio Tinto states that it was targeting additional savings of $5bn by the end of 2014 to ‘roll back the unsustainable cost increases of the past few years’ Assange is likely to get back in the headlines as he has a ‘chronic lung infection’ ‘which could get worse at any moment’ according to the Ecuadorean ambassador and that he was suffering from living ‘in a confined space’

FTSE 100 Movers

UK Analyst Upgrades Invensys Pt Raised To 295P Vs 230P At Deutsche Bank United Utilities Raised to Equalweight at Barclays Invensys Raised To Overweight From Equalweight At Barclays

UK Analyst Cuts BSkyB Cut to Underperform from Hold at Jefferies Mitchells & Butlers Cut to Neutral from Buy at Nomura Man Group Pt Cut To 73P Vs 80P At Morgan Stanley

UK Insider Buying Bp Plc, (BP/), 1 insider(s) bought 11630 shares, £4.3 Cape Plc, (CIU), 1 insider(s) bought 15000 shares, £1.85 Cls Holdings Plc, (CLI), 1 insider(s) bought 9487 shares, £6.6 F&C Asset Management P, (FCAM), 1 insider(s) bought 54142 shares, £0.99 Grainger Plc, (GRI), 1 insider(s) bought 100000 shares, £1.13 Johnson Matthey Plc, (JMAT), 1 insider(s) bought 2000 shares, £22.74 Mitchells & Butlers Plc, (MAB), 1 insider(s) bought 45800 shares, £3.18 Sdl Plc, (SDL), 2 insider(s) bought 175532 shares, £4.39 Thomas Cook Group Plc, (TCG), 1 insider(s) bought 500000 shares, £0.23

UK Insider Selling Compass Group Plc, (CPG), 5 insider(s) sold 778386 shares, £7.19 Kcom Group Plc, (KCOM),  insider(s) sold 456725 shares, £0.69

Global Footprint

Major European Companies Reporting National Bank of Greece, Q3, -0.010

European Market Summary The FT details that Deutsche Bank has now made a provision for a possible settlement with regulators on the Libor allegations The Dutch prime minister has stated that Greece may need additional financial help if it is to stay in the euro, seemingly softening his previous hard stance that included a willingness to let Greece exit the euro Italy is to sell up to €6bn in bonds today at 11:00, Sweden sells Sek5bn at 11:03

Major US Stock Movers After Hours Abbot Labs announces that it is to spin off its Abbvie unit, with trading to start on January 2nd (ABBV) with Abbot Labs shareholders getting one for one Disney gained 1% as it announced it was increasing its annual dividend by 25% Infoblox gained 12% after hours as it announces that it sees its full year earnings well ahead of the forecasts Tivo fell 3% despite announcing an unexpected Q3 profit, as it posts a Verizon Patent Settlement, the stock had gained 6% in regular hours on early suggestions of a surprise boost Aeroposatle states that it was not satisfied with the overall trend in business and falls 6% in late trading as it details Q4 numbers under the forecasts La-Z-Boy came off 13% as the furniture maker misses estimates for Q2 sales

S&P 500 Companies Reporting Kroger & Co, Q3, 0.427, Tiffany & Co, Q3, 0.630

US Market News President Obama has stated that he still belives that parties can agree on a budget framework and the House speaker also states that he remains optimistic that they will avert the fiscal cliff ‘sooner or later’ Hewlett Packard has been cut to Baa1 from A3 by Moody’s with a negative outlook citing increased competition and ‘execution challenges’ NCR announces it is to buy Retalix for $650m

Overnight Market News Toyota details that October production in October fell by 61% to 30,591 units, while Nissan saw production down 44%, as the Chinese economic siege mentality on the disputed islands continues to put pressure on the Japanese government People’s Insurance Company is due to start trading in Hong Kong tomorrow, it is expected to raise around $3.6bn and be the largest IPO in Hong Kong for two years A Chinese think tank has called the US warnings that Chinese technology firms pose potential threats to security were a ‘barrier to trade’

Major Global IPOs Due Today Future Land Development Holdings Ltd, (1030), 1418m, HKD 1.45 - 1.79 Maple Leaf 2012-II Energy Income LP, (0611898D), 0.142747m, CD 100

FX Summary Argentina has won a US court decision to postpone the effect of the earlier US court ruling that it would be required to pay holders of defaulted bonds next month, if its makes $3bn in scheduled payments on its restructured debt, the court gives February 27 for oral arguments as Argentine appeals the initial ruling Brazil’s central bank leaves interest unchanged at 7.25% ending the run of 10 consecutive rate cuts The US dollar is just off the lows of the month ahead of Geithner’s meeting with Congressional leaders today to discuss the fiscal cliff

Economic Data Due 10:00 Eurozone November Consumer Confidence, -26.9 previous 13:30 US Q3 GDP annualised 2.8% exp. 2.0% previous 13:30 US Weekly Initial Jobless Claims, 410k previous 15:00 US October Pending Homes Sales, m/m, 0.8% exp. 0.3% previous

Economic Events EU Trade Ministers meet on pacts with Japan, Canada, Singapore

Eurozone Consumer Confidence

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Footnotes All times given are BST Cantor Call, as at 7:15am S&P Companies Reporting: (BMO) - Before Market Open (AMC) - After Market Close Analyst Changes, as at 6:45am Insider Deals data compiled from Director/PDMR Shareholding forms published in the past 24 hours (ex weekends). Major European Companies defined as those companies in the STOXX Europe 600 Index FTSE 100 Movers, Blue >0.25%, Green <0.25%, Red <-0.25%, Font size dependent on percentage size of move This note is compiled using information / charts from financial data providers such as Bloomberg and Reuters, as well as from the general financial / business media

Regulatory Disclaimer This market commentary note (“note”) has been issued by Cantor Fitzgerald Europe (“CFE”), which is authorised and regulated by the Financial Services Authority (“FSA”). This note is defined by the FSA as a marketing communication. This note has been prepared and distributed for information purposes only and represents the personal views and opinions of the sender. This note is not “investment research”, a “research recommendation” or a product of the Research Department. Please be aware that the CFE Research Department may issue a formal recommendation and target price on the stocks mentioned, which may differ from the opinion given here.  This note may contain information obtained by CFE from third parties; the source of information will usually be disclosed.  CFE makes no representation and gives no warranty as to the accuracy or completeness of the contents of this note. Any person placing reliance upon this note does so at their own risk. Investors should consider this note as only a single factor in making their investment decision. The investment discussed in this note may be unsuitable for investors depending on their specific investment objectives and financial position. CFE, its officers, employees and affiliates shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in this note or any reliance on this note. The recipient is strongly recommended to see independent legal, tax and financial advice. Past performance is not necessarily a guide to future performance. Income from investments may fluctuate The price or value of the investments to which this note relates; either directly or indirectly, may fall or rise against the interest of investors. This note should not be considered to be a solicitation nor an offer of advice for the purposes of the sale or purchase of any security, investment or derivative.  The information contained in this note is not intended to form the basis of any investment decision and should not be considered a recommendation by CFE or any other person in relation to any of the companies, stock, commodities, currencies or other markets mentioned / referred to in this note. All the information contained herein is based upon information available to the public and has been obtained from sources believed to be reliable. However, the information contained in this note has not been verified by CFE and CFE undertakes no obligation to provide recipients of this note with any additional information or any update to or correction of the information contained in this note. This note is provided by CFE and may be forwarded unamended and in its entirety. This note may not be used in whole or in part to create any other work. All rights reserved. Cantor Fitzgerald Europe is authorised and regulated by the FSA under Firm Reference Number 149380 Registered in England No. 02505767 Registered Address: 17 Crosswall, London, EC3N 2LB

Risk Warning Trading CFDs carries a high level of risk to your capital and is not suitable for all customers. Furthermore, margined products use leverage to increase the level of exposure to the product, and as a result your losses may substantially exceed your initial deposit and require you to make additional deposits at short notice. Prior to trading leveraged CFDs, you should carefully consider your investment objectives, experience and risk appetite and should not invest money that you cannot afford to lose. You should ensure you fully understand the risks and seek independent financial advice if in doubt.

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TODAY’S FAYRE

TODAY’S FAYRE – Wednesday 28^th November 2012

“The Frost performs its secret ministry,
Unhelped by any wind. The owlet's cry
Came loud—and hark, again! loud as before.
The inmates of my cottage, all at rest,
Have left me to that solitude, which suits
Abstruser musings: save that at my side
My cradled infant slumbers peacefully.
'Tis calm indeed! so calm, that it disturbs
And vexes meditation with its strange
And extreme silentness. Sea, hill, and wood,
This populous village! Sea, and hill, and wood,
With all the numberless goings-on of life,
Inaudible as dreams! the thin blue flame
Lies on my low-burnt fire, and quivers not;
Only that film, which fluttered on the grate,
Still flutters there, the sole unquiet thing.
Methinks, its motion in this hush of nature
Gives it dim sympathies with me who live,
Making it a companionable form,
Whose puny flaps and freaks the idling Spirit
By its own moods interprets, every where
Echo or mirror seeking of itself,
And makes a toy of Thought.”

T

Samuel Taylor Coleridge  – Poet – 1772-1834

As per normal I am probably a million miles behind the curve when it comes to television series. In the last few days we have spent many hours in a torpor watching series 2 of “The Killing.” Even though Danish is not my second language I am totally enraptured by Sara Lund and her colleagues in their quest to solve copious murders in the most complicated of plots – enjoying it hugely!  Part of the Christmas holiday has every chance of being a totally decadent period of intrigue and fantasy as we have been recording Series 3! – Just cannot wait!

The US retail sector had a Thanksgiving weekend to purr over. Spending per shopper nationwide averaged $423 -- $25 more than last year -- from Thursday to Sunday, while total spending increased nearly 13 percent, to an estimated $59.1 billion, according to a survey by the National Retail Federation. Yesterday Cyber Monday's results collated up 3 p.m. showed that online shopping was up a whopping 25.6 percent compared with the same time period a year ago, according to figures by IBM Benchmark.

Lord Patten tells a Commons committee that former Director General George Entwistle wanted more than 12 months' salary to resign following Newsnight's bungled child sex abuse report. He says that anything less than a 12-month payoff on his terms would have resulted in a constructive dismissal action which would have cost considerably more than the £450,000 he was given to leave. I did not care for Philip Davies’s MP’s demand to Lord Patten that he should set out his personal daily time table as to how the Chairman allocates his time for scrutiny - Impertinence personified! Perhaps if the question had been asked less aggressively with some good grace Lord Patten’s response may have been less disdainful. It is fair to say that a representative of the people has the right to hold a public servant to account.  However there is a correct and incorrect way to gain acquiescence.

I just cannot wait for Tony Blair’s supportive speech on the future of the EU and the necessity for a President of Europe.  Achieving that goal on a personal basis would of course mean of straight royal flush of cards for the illustrious attention seeking Mr Blair!

Initially the news of the Greek bail-out caught the imagination of investors in Europe at the start of yesterday’s trading.  However once folk ruminated on the terms, perhaps it wasn’t as great a deal as it was cracked up to be.  Add the overhang from the US Fiscal Cliff and the threat of a Spanish bank bail-out, the situation began to look quite toxic.  So some risk came off the table and sentiment took a tumble.  Spain announced that the Banca de Valencia was to be bailed-out by the government slipped under the radar.  Frankly it makes me very nervous indeed.  This the 4^th Spanish bank to hit the rocks and be nationalised. Talking of politicians I do not like the cut of Harry Reid’s jib.  He may be US House leader, but frankly he’s a sour-puss.  I am sure he will get over it that I am not a fan.  However his belligerent attitude will not bring the GOP to the negotiating table. His patronising comments that ‘Happy Talk’ is over and it is time to negotiate will be met with some ambivalence. There is only about 2 weeks to go before we shall have to wait until January before any progress on the grave issue is made.

Yesterday’s ONS GDP figures made slightly less than awful reading.  There was confirmation of 3^rd quarter GDP at 1%, with manufacturing and industrial production both growing by 0.9%. However for GDP in the UK to only expand by 1.4% in 2014 is a worry.  However the OECD’S forecasts for Europe made dispiriting reading.  Their forecast for 2012 has been cut from 2% to +0.6% and for 2013 2%.  Without Germany and a touch of France, Europe’s plight looks unappetising.  That 2013 2% will take a bit of getting!

This morning the results of MegaFon’s IPO in Moscow and in London will be posted.  Trading starts today.  Shares will be issued at $20 – the lower end of expectation. The shares are expected to yield 7-8%.  MegaFon will be the 2^nd largest Russian mobile operator to MTS.  Corporate governance remains an issue for global investors to support Russian companies – a reason why Goldman Sachs did not participate as a lead manager.  Clearly Morgan Stanley, Sberbank, Citi, Credit Suisse and VTB were not fazed by the challenge.  About $1.7 billion will be raised through this issue, valuing the company at $11.2 billion.  Alisher Usmanov, who owns just over 29% of Arsenal FC will be the main beneficiary. He is purported to be worth $18 billion and probably directly and indirectly will bring influence to bear on 20% of the company. Global Investment Fund, which Usmanov is associated may have subscribed for $280 million of shares.  As a result of the IPO Telia Sonera will have cut its ownership in MegaFon down from 35% to 25%. The issue was oversubscribed at the bottom end of the range.  Market conditions will have some influence in early skirmishes. Lord Myners, hardly the most popular man within the square mile, though respected as a fund manger whilst at Gartmore, is on the board.  Having also been a government minister MegaFon will be hoping that Lord Myners will be able to broaden the shareholder register, adding credence to this issue. 

The press for Mark Carney, the Governor of the Bank of England elect, has been gracious and positive. Without stating the obvious Mr Carney is not Moses – the English Channel will not part and the UK’s economy is in the cack and will take more than his considerable input to improve the status quo!  He will not bring much in the way of influence to the table until next year.  In the meantime its business as usual with Sir Mervyn King scrapping with the Treasury over the £37 billion profit from QE not heading to cut the borrowing requirement.  In the meantime what of Paul Tucker?  The dignified silence has been not surprisingly deafening.  I suspect that the Deputy Governor will set about his business in his own inimitable selfless manner until next Summer.  He is a team player and will not be seen to rock the boat by leaving precipitously. Optics and credibility are very important. Then I suspect he will bow out into the commercial jungle.  Good luck to him!  He has been a first class servant to the community. He steadied the ship in 2008/9 when all seemed loss.  Thank you!

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The information contained in this email is not intended to form the basis of any investment decision and should not be considered a recommendation by Cantor Index or any other person in relation to any or the companies, stock, commodities, currencies or other markets referred to in this email.  The information contained in this email has not been verified by Cantor Index and Cantor Index undertakes no obligation to provide recipients of this email with any additional information or any update to or correction of the information contained in this email.

Any views or opinions expressed in this email are the personal views and opinions of David Buik and do not necessarily represent the views, opinions or position of Cantor Index.

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Day Ahead

Cantor Opening Call The FTSE is called to open around unchanged to down 5 points today

UK Corporate Announcements Thomas Cook announces full year revenues of £9.5bn from £9.8bn and also just under the forecasts with a full year pre-tax loss of £485m from £398m, and states it was taking measures to boost its cash and profitability, but that the results mask a material Q4 improvement United Utilities reports H1 revenues of £822.9m and a pre-tax profit of £153.9m Daisy Group announces an H1 adjusted EBITDA of £27.3m from £26.6m Telford Homes announces H1 revenues of £78.3m and a pre-tax profit of £6.5m and sees further significant growth ahead

UK Market News Mark Carney of course dominated the headlines yesterday, although Mervyn King’s testimony to the parliamentary hearings would have been headline news on any other day, in what has been described as a ‘fractious’ discussion, he was put under pressure to explain the institution’s culture and confirm its independence UK media itself will be eyed today as Lord Leveson is due to report his findings tomorrow, and as a new poll suggests that 79% of voters back an independent press regulator that is established by law Mike Lynch stays in the news as he escalates the recent war of words as he writes an open letter challenging the HP board to explain the recent allegations, that Autonomy misled investors, HP has declined the request and stated it is leaving the matter with government officials, but this will put pressure on Meg Whitman to justify the multi-billion dollar writedown BAE Systems gained yesterday after market talk of possible interest from Lockheed Martin Smith & Nephew announces it is to buy Healthpoint Biotherapeutics for $782m William Hague is due to speak in UK Parliament  today on whether the UK should support a UN motion to give Palestinians statehood Tony Blair is expected to state today that moves by the UK to move outside the EU would lead to a loss of British influence internationally FTSE 100 Ex dividends (net): Amec, AMEC, (11.7), Johnson Matthey, JMAT, (15.5), National Grid, NG/, (14.49), Tate & Lyle, TATE, (7.4) FTSE 250 Ex dividends (net): Alliance Trust PLC/The, ATST, (2.3175),  Diploma PLC, DPLM, (10.20),  Dunelm Group PLC, DNLM, (10),  Intermediate Capital Group PLC, ICP, (6.30),  JD Sports Fashion PLC, JD/, (4.30),  Telecom Plus PLC, TEP, (13),  Utilico Emerging Markets Ltd, UEM, (1.375) FTSE Small Share Ex dividends (net): Anglo Pacific Group PLC, APF, (4.45),  E2V Technologies PLC, E2V, (1.30),   Hansa Trust PLC, HANA, (3.50),  Helical Bar PLC, HLCL, (1.85),  Investors in Global Real Estate Ltd, IGRE, (1.05),  JPMorgan Japanese Investment Trust PLC, JFJ, (3.65),   Scottish American Investment Co PLC/fund, SCAM, (2.45),  Sepura PLC, SEPU, (.51),  St Ives PLC, SIV, (4),  Standard Life Equity Income Trust PLC, SLET, (9)

FTSE 100 Movers

UK Analyst Upgrades Debenhams Raised To Overweight From Neutral At Hsbc G4S Raised To Buy From Hold At Jefferies Severn Trent Raised to 'Sector Perform' at RBC Capital Ultra Electronics Rated New Buy At Citi, Pt 1750P

UK Analyst Cuts Resolution Cut To Neutral Vs Buy At Ubs Vodafone Cut To Hold From Buy At Berenberg WPP Cut to 'Hold' at Pivotal Research

UK Insider Buying Bovis Homes Group Plc, (BVS), 1 insider(s) bought 13 shares, £5.2 Cairn Energy Plc, (CNE), 1 insider(s) bought 1090 shares, £2.65 Cape Plc, (CIU), 1 insider(s) bought 15000 shares, £1.85 F&C Asset Management P, (FCAM), 1 insider(s) bought 47505 shares, £0.99 Fiberweb Plc, (FWEB), 1 insider(s) bought 15000 shares, £0.64 Howden Joinery Group P, (HWDN), 1 insider(s) bought 14000 shares, £1.65 Johnson Matthey Plc, (JMAT), 1 insider(s) bought 2000 shares, £22.74 Sdl Plc, (SDL), 1 insider(s) bought 170532 shares, £4.4

UK Insider Selling Burberry Group Plc, (BRBY),  insider(s) sold 5000 shares, £12.32 Bodycote Plc, (BOY),  insider(s) sold 7332 shares, £3.95 British Land Co Plc, (BLND), 1 insider(s) sold 2007 shares, £5.37 Compass Group Plc, (CPG), 5 insider(s) sold 1017231 shares, £7.19

Global Footprint

Major European Companies Reporting Lundbergforetagen, Q3, Raiffeisen Bank, Q3, 0.605

European Market Summary France’s Hollande has demanded that Lakshmi Mittall guarantee the long term future of workers at a plant in Northern France An exiled Russian ‘supergrass’ who was helping Swiss authorities unravel a multi-million pound money laundering scheme by the Klyuev Group, has died ‘in mysterious circumstances’ outside his home in Surrey, the fourth person in the investigations to have died Bloomberg sued the ECB in December 2010 to obtain documents describing how Greece used derivatives to hide its debt, the court ruling is expected tomorrow and could ‘illuminate’ the ECB’s role in the process Italy sells €7.5bn in bills at 11:00 Germany is to sell €3bn in 5 year notes at 11:30

Major US Stock Movers After Hours Analog Devices came off 3% as it announced it was cutting its EPS outlook for Q1 Green Mountain Coffee gained a solid 23% after hours as it announces stronger profits buoyed by K-Cup sales

S&P 500 Companies Reporting Pall Corp, Q1, 0.663

US Market News ConAgra Foods announces that it is buying Ralcorp for $5bn, bringing to an end a 20 month long process to buy the own brands foods manufacturer Apple is reportedly set to fire its Maps Manager after the high profile initial flaws dented the release of its latest iPhone Moody’s may face a block on products issued by Berkshire Hathaway after EU moves on alleged conflicts of interests The board at Groupon is reportedly looking at a leadership change, on its first day after its IPO last year the company topped $30/share, yesterday it closed at $3.96, the stock gained 2% after hours on the news The Fed is reportedly looking to require US units of foreign lenders to comply with the more stringent capital rules Senate Majority Leader Harry Reid states that parties have made little headway in the negotiations on how to avoid the fiscal-cliff

Overnight Market News Muddy Waters stays in the news as Carson Block states that it was retreating on short sales of Chinese stocks listed in the US as China is seen limiting disclosures required, and as Olam states that it has no risk of insolvency Singapore’s prime minister has stated that increasing the population by encouraging citizens to have more children was the largest challenge confronting the nation Japan’s 10 year yields have fallen under 0.72% today, the first time since 2003

Major Global IPOs Due Today Ares Senior Credit Strategies Fund Inc, (ACS), USD 20 Daiwa House REIT Investment Corp, (3263), 0.1028m, JPY 500000 MegaFon OAO, (0615662D), USD 20 - 25

FX Summary The US Treasury has again held back from officially labelling China as a currency manipulator Argentina has had its ratings cut by Fitch, with international law bonds rating down to CC, 8 levels under investment grade, citing a risk of default following the recent US court ruling that it cannot make restructured debt payments without also including holders of defaulted debt

Economic Data Due 09:00 Eurozone October M3, 2.8% exp. 2.7% previous 15:00 US October New Home Sales, 386k exp. 389k previous

Economic Events 19:00 US Fed's Beige Book

Eurozone q/q M3

Contact Us For Spread Bet Sales:- 0044 (0) 207 894 8800 For CFD Sales/Traders:- 0044 (0) 207 894 8883 Email:- Sales@cantorcapital.com

Footnotes All times given are BST Cantor Call, as at 7:15am S&P Companies Reporting: (BMO) - Before Market Open (AMC) - After Market Close Analyst Changes, as at 6:45am Insider Deals data compiled from Director/PDMR Shareholding forms published in the past 24 hours (ex weekends). Major European Companies defined as those companies in the STOXX Europe 600 Index FTSE 100 Movers, Blue >0.25%, Green <0.25%, Red <-0.25%, Font size dependent on percentage size of move This note is compiled using information / charts from financial data providers such as Bloomberg and Reuters, as well as from the general financial / business media Regulatory Disclaimer This market commentary note (“note”) has been issued by Cantor Index Limited (“Cantor Index”), which is authorised and regulated by the Financial Services Authority (“FSA”). This note is defined by the FSA as a marketing communication. This note has been prepared and distributed for information purposes only.  This note may contain information obtained by Cantor Index from third parties; the source of information will usually be disclosed.  Cantor Index makes no representation and gives no warranty as to the accuracy or completeness of the contents of this note. Any person placing reliance upon this note does so at their own risk. Investors should consider this note as only a single factor in making their investment decision. The investment discussed in this note may be unsuitable for investors depending on their specific investment objectives and financial position. Cantor Index, its officers, employees and affiliates shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in this note or any reliance on this note. The recipient is strongly recommended to see independent legal, tax and financial advice. Past performance is not necessarily a guide to future performance. Income from investments may fluctuate The price or value of the investments to which this note relates; either directly or indirectly, may fall or rise against the interest of investors. This note should not be considered to be a solicitation nor an offer of advice for the purposes of the sale or purchase of any security, investment or derivative.  The information contained in this note is not intended to form the basis of any investment decision and should not be considered a recommendation by Cantor Index or any other person in relation to any of the companies, stock, commodities, currencies or other markets mentioned / referred to in this note. All the information contained herein is based upon information available to the public and has been obtained from sources believed to be reliable. However, the information contained in this note has not been verified by Cantor Index and Cantor Index undertakes no obligation to provide recipients of this note with any additional information or any update to or correction of the information contained in this note. This note is provided by Cantor Index and may be forwarded unamended and in its entirety. This note may not be used in whole or in part to create any other work. All rights reserved. Cantor Index Limited is authorised and regulated by the FSA under Firm Reference Number 194414 Registered in England No. 03489923 Registered Address: One Churchill Place, Canary Wharf, London, E14 5RD Risk Warning Spread Bets are leveraged products placing your capital at risk. Losses can quickly exceed your initial deposit and thus require you to make additional deposits at short notice to maintain your positions. Leveraged products are not suitable for all customers. Please ensure you understand the risks involved before opening an account. Cantor Index provides an execution only service and does not offer investment advice. You should ensure you fully understand the risks and seek independent financial advice if necessary. These products are not intended for people under the age of 18 or for US residents.

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