DO POP IN PUB. ALL ARE WELCOME

City sources predict FTSE 100 will open down 9 points from yesterday's close of 6,199

Stocks to Watch

The UK's largest homebuilder Persimmon said this morning it should report another set of record results in line with expectations following the successful integration of Westbury and a big hike in sales revenue.

In a trading update for the year to 31 December it repeated that the integration of Westbury will achieve synergy savings for 2007 above the £40m forecast, with gearing reduced by some 35% by year end.

Specialist printer St Ives said finance director Ray Morley will be retiring on March 31st 2007. A handover period will commence in the New Year at which time interim arrangements to cover his role will be in place.

Yell Group said it will accept the Competition Commission's decision to allow the directories group to raise advertising prices from April 2008 but will have to continue cutting prices in the meantime.

Troubled discount retailer Instore had more bad news for weary investors this morning as it warned that a significant shortfall in sales volumes for November will mean lower than expected full year profits.

It blamed the gloom on deteriorating market conditions and distribution centre supply difficulties resulting from new warehouse management software, introduced in September as part of a crucial systems upgrade.

In the Press

Lord Browne, BP's chief executive, will play a role but not have the final say in choosing the company's new chief operating officer, the executive who will be expected to succeed him at the end of 2008, says the FT.

Ryanair's attempt to buy its rival, Aer Lingus, received a further setback last night after the European Commission began an in-depth investigation into the takeover proposal, reports the Independent.

The Telegraph meanwhile says Ryanair is to drop its current €1.4bn (£990m) hostile takeover bid for rival Aer Lingus following the regulatory scrutiny.

Vodafone's board is set to meet to consider a proposed $13.5bn-plus offer for Hutchison Essar, the fourth biggest mobile operator in India, in a move likely to spark a bidding war with Reliance Communications, writes the FT.

Newspaper Tips

It remains too early to say whether Park Group will snatch success from the jaws of failure. Investors should wait for some clarity. Avoid, says the Independent and the Telegraph.

Playtech has no exposure to the troubled US market. Trading on 14 times 2007 forecast earnings the shares, up 10½p at 235p last night, look good value, buy says the Times.

Pinewood Sheperton said yesterday that trading for this year is in line with expectations, sending its shares up more than 8 per cent. With prospects for the year ahead looking encouraging, now is the time to buy, says the Independent.

US close

Wall Street lost its grip on slim gains with dealers reluctant to open big positions so near to the Christmas holidays.

The Dow was down 7 points at 12,463, the broader S&P 500 index fell 2 to 1,423 while the tech-heavy Nasdaq composite slipped 1 to 2,427.

Parcel delivery firm FedEx said second quarter net income rose a less than expected 8% to $511m. Diluted earnings per share went up to $1.64 from $1.53 a year ago, but fell short of market expectations, while guidance for the year was tightened to between $6.35 and $6.65 a share.

Pepsi Bottling slipped after it said 2007 earnings would come in below forecasts as it cited slower sales in the US and higher raw material costs. The group now expects to earn between $1.92 to $2 per share in 2007.

In M&A news, casino giant Harrah's Entertainment has succumbed to a $17.1bn approach from private equity outfits Apollo Management and Texas Pacific.