Morning folks. Here’s your Week Just Gone, Week To Come and What The Papers Said bulletin.

THE WEEK JUST GONE
Predictably, interest rates were left unchanged in Europe, the UK and Australia.

“Confused” would be a polite euphemism for the markets this week. Whilst politicians, investment banks and economists warned of the US slowdown spreading across the globe equities continued to push ahead, with the US markets joining the merry group hitting record highs. Friday’s US employment data suggested that fears of a slowdown had been overdone. The flip side of this was that interest rates might remain higher than the market had expected, but it didn’t stop the S&P hitting a new high at 1557. The FTSE, S&P, Dax and Nikkei were all up around 2%; the Dow lagged behind at +1.2%.

The European Central Bank offered a more balanced view than before, suggesting that although risks remained of higher inflation there was also the possibility of slower growth. The Bank maintained that it would closely monitor all data, but suggested a policy of ‘no change’ in rates in the immediate future.

This took some steam out of the Euro, coming off its recent highs against the Dollar to end the week at $1.414. Sterling edged higher to EUR/GBP 0.693 and GBP/USD 2.042.

The Irish Central Bank lowered its growth forecasts to 4.75% for this year and 3.25% for 2008.

UBS, Citicorp, Deutsche and Merrill Lynch all announced dreadful results, but were rewarded with a rise in their share prices as investors were reassured by the clarity of information on exposure to sub-prime loans.

Barclays lost out to the RBS consortium in the battle for ABN Amro.

Iceland’s Landsbanki was said to be preparing to table a bid for Irish Nationwide worth around Euro1 billion.

Tesco’s better than expected results included a dividend increase and positive outlook. Tesco commented on ‘another very good performance’ from Tesco Ireland, with improved profits and sales growth.
ICAP was the latest company to benefit from recent market volatility, reporting that increased activity in interest rate, FX and credit markets should ensure that profits hit the upper end of estimates.

Gold retreated from recent highs, falling $6 to $737; Brent Crude dropped a fraction to $78.90.
UK Government bonds rose by 0.5%

THE WEEK TO COME
Expect traders to use Monday’s US holiday as an excuse for reflection (and a long lunch). Not a massive week for figures, though all eyes in the UK will be on the new Chancellor’s inaugural Pre-Budget speech. Traders will be probing to see if US equities can build on their record highs and if the Euro can push higher or whether the European Central Bank’s more neutral stance will lead to further weakness from the recent highs. Trading statements from Northern Foods, Greggs and Cadburys will give an insight into the rising cost of food products, whilst N Brown, Sainsburys and WH Smith will report on the consumer’s willingness to spend.

Monday (US closed for Columbus Day)
Economic indicators
UK: 09.30 Industrial & Manufacturing Production. Producer Price Index
EU: 11.00 German Factory Orders
Results
UK: IG Group AGM

Tuesday
Economic indicators
UK: 09.30 Trade Balance, 11.00 BRC Retail Sales survey, 15.45 Pre-Budget Report
EU: 07.00 German and French Trade Balances, 11.00 German Industrial Production
US: 19.00 Minutes from last Federal Reserve meeting
Results
UK: Clinton Cards and Regent Inns finals, N. Brown and Rugby Estates interims, Greggs and Northern Foods trading statements
US: Alcoa Q3 earnings

Wednesday
Economic indicators
UK: 15.30 Leading Indicator
EU: 07.45 French Industrial & Manufacturing Production
BoJ: 04.00 Monetary Policy meeting
Results
UK: Experian, Sainsbury, Cadbury Schweppes and Carphone Warehouse trading statements
IRE: C&C Interims
US: Costco and Levi Strauss Q3 earnings

Thursday
Economic indicators
EU: 10.00 Trade Balance and GDP
US: 13.30 Weekly Jobless and Trade Balance
Results
UK: WH Smith and Gleeson finals, Hays, Sage, Thorntons and SAB Miller trading statements

Friday
Economic indicators
EU: 06.40 French CPI
US: 13.30 Retail Sales and Producer Price Index. 15.00 University of Michigan Confidence survey and Business Inventories
Results
UK: Renishaw AGM

WHAT THE PAPERS SAID
Not a very meaty press this weekend; with an election in the UK off the cards, there’s little speculation about Tuesday’s Pre-Budget speech. If anyone is interested click here
for the Telegraph’s guide to the ‘big’ speech.

Another weekend, another Northern Rock story. The Sunday Times talks of an offer from Citigroup, the world’s largest bank, to fund Northern Rock’s borrowing, to the tune of £10 bn in loans. This could help to keep the ‘Rock independent, but private equity groups JC Flower and Cerberus are still interested in bidding for the bank.

The Sunday Business Post says that GE Money, the banking subsidiary of General Electric, look set to buy Start Mortgages from Investec Bank. It appears that Investec decided to sell Ireland’s biggest sub-prime mortgage lender when accountants reported back the results after stress-testing its financial position.

The Telegraph reports on Vodafone’s first steps into the broadband business with the acquisition of Tele2’s phone companies in Spain and Italy.

The Independent reveals that Sainsbury’s board are set to recommend the £10.6 bn offer from Delta Two. The paper believes that the offer has the backing of Sainsbury’s pension trustees, who had been concerned about the consequences of a leveraged bid on the pension fund.
An announcement is expected towards the end of the week.

Talk in the papers of a joint bid for Resolution from Pearl and Standard Life. The Independent speculates that a bid could be worth 660p a share, higher than the proposed no-premium merger with Friends provident. The Observer
agrees, suggesting that the deal would reduce the chances of a bidding war and would be compatible as both parties are interested in different parts of Resolution. It highlights that under takeover rules 660p would have to be the minimum bid allowed.