Taking stock: Market news in brief

By Mickey Clark for MailOnline
Updated: 05:33 EDT, 15 March 2007

The Evening Standard's stock market expert presents an at-a-glance sector-by-sector briefing on the latest news.

Banking & finance
The High Street banks were among the biggest fallers yesterday, at one stage accounting for about 33 points of the Footsie 100's fall. Brokers blame worries about the US economy and the knock-on effect of the subprime lending crisis.

Property & building
Morgan Stanley has raised Taylor Woodrow from equalweight to overweight and lifted its target from 394p to 474p. It says cost cuts, better efficiency and strategic land swaps could be the key to unlocking savings of £75.5m.

Consumer
JPMorgan says the market has overreacted to news US raider Nelson Peltz has bought a near-3% stake in Cadbury Schweppes. It warns against jumping on the break-up bandwagon and repeats its underweight call.

Economics
China's industrial production surged at the beginning of the year, heightening speculation that Beijing will increase interest rates. Factory output in January and February leapt 18.5% on a year earlier. Bank lending and exports have also surged.

Engineering
Profits at Foseco, engineer to the steel industry, jumped 18% last year, and today declared it had strong prospects for 2007. However, it admitted that the strength of the pound would affect its performance.

Health
Pharmaceuticals giant Bayer's profits surged 12.5% in the fourth quarter thanks to its takeover of Schering and strong healthcare sales. Underlying profits jumped to €622m (£426m) from €553m on sales up 25% to €7.97bn.

Industrials
Dresdner Kleinwort has upgraded Cookson from hold to add after Tuesday's full-year profit news. The shares trade at a 20% discount to the sector and now look cheap as the outlook improves. The broker has tweaked its target from 644p to 650p.

Leisure
Heavy turnover was recorded among the online gamblers with PartyGaming extending its recent rally. Part of the rise was attributed to talk the US may relax its regulations relating to gaming payments. But brokers warn any such move may be some way off.

Media
AOL today withdrew its $900m (£467m) bid for online marketing company TradeDoubler after shareholders of the Swedish target failed to endorse the offer. Making the bid in January, AOL said it would not increase it.

Natural resources
Indago Petroleum is selling its production and development and half its exploration assets to RAK Petroleumfor £194m. It plans to return £160m, or about 60p a share, to shareholders. Chief executive Peter Sadler is stepping down.

Retailing
Deutsche Bank is telling clients to buy retailer Next ahead of next week's trading update. It says the fashion retailer is about to embark on a 'convincing recovery phase' and has jacked up its target from 2100p to 2450p.

Support services
Support housing specialist Connaught has made three bolt-on acquisitions for a total of £8.7m to help with its development of the business. Dresdner Kleinwort has raised its rating from add to buy and its target from 310p to 335p.

Technology
Seymour Pierce has raised Photo-Me International from outperform to buy with an 80p target, despite a recent profits warning and directors' share sales. The broker says a strategic review can deliver value to shareholders.

Telecoms
Nokia has won an order to roll out Sprint Nextel'sWiMAX next-generation wireless network, deploying infrastructure in four Texas cities. Sprint plans to invest up to $2.8bn (£1.45bn) on developing a network covering 100m people.

Transport
Broker Collins Stewart has given the thumbs-up to the trading update and return to shareholders of £700m by buses and trains operator Stagecoach. It continues to rate the shares a buy with a 182p target.

Utilities
BP executive Herbert Vogel warned today that rising production costs will dampen the growth of the liquefied natural gas market. He blamed the spiralling cost of turning gas into liquid - about $1000 a tonne - and a lack of skilled labour and equipment.