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

THE WEEK JUST GONE
Risk appetite returned to the markets with equities reaching new highs and higher yielding currencies benefiting from a return to the carry trade.
Minutes from the last US Federal Reserve meeting showed that the vote for a cut in rates was unanimous and the Bank of Japan left interest rates unchanged at 0.5%. This led to further weakness in the Yen, whilst the US Dollar fell to a 10-year low against the Aussie Dollar.

Investors ignored further signs of weakness in the housing market and pushed equities to new highs in the US, and most Asian markets (with the exception of Japan). The Dax, Dow and S&P were up slightly, but a 72% rise in Northern Rock and near 10% rises from Oil and Mining stocks helped FTSE to a 2.0% rise. The Nikkei rose by 1.6%.

There was plenty of good news, from N Brown, Greggs, Thorntons and Hays in the UK, and Wal-Mart, CostCo, General Motors and McDonalds across the Atlantic. Cadbury Schweppes used a positive trading statement to announce plans to demerge its US drink business next year and Google shares broke above $600 for the first time.

On the M&A front Resolution rejected a joint offer from Pearl and Royal London Mutual, and the Sainsbury family threatened to scupper Delta Two’s bid unless agreement was reached with its pension trustees.

Irish drinks producer, C&C saw operating profits tumble 30% due to poor weather and competition affecting sales of its Magners cider.

The Euro enjoyed a quieter week, rising slightly to EUR/USD 1.418 and EUR/GBP 0.696. Sterling fell a fraction against the Dollar to GBP/USD 2.0360.

Fears that Turkey might invade Northern Iraq sent oil to a new high of $84; Brent Crude ended the week up nearly $2 at $80.55. Gold rose a further $10 to $747.5

UK Government bonds fell 0.7% as confidence returned to other markets.

THE WEEK TO COME
You’ll need a packed lunch, flask of coffee and a colostomy bag for this week; the US Q3 reporting really takes off, along with a wealth of economic data. It will be interesting to see how this week’s euphoric markets deal with the raft of data; will they continue to search for the bull case or will a touch of realism sink in? Expect plenty of rumours ahead of the meeting of G7 ministers, starting on Friday and working solidly through the World Cup Final weekend (Yeah right).
FTSE options expire at 10.15 on Friday.

Monday
Economic indicators
US: 13.00 Empire Manufacturing survey
Results
US: Citigroup

Tuesday
Economic indicators
UK: 09.30 CPI
EU: 07.00 German CPI, 10.00 German ZEW survey, EU CPI
US: 14.00 TIC capital inflows, 14.15 Industrial Production and Capacity Utilisation, 18.00 Housing Market Index
Results
UK: Bellway finals, Whitbread interims, Diageo agm
US: Domino’s Pizza, Intel, IBM, Johnson & Johnson, State Street, US Bancorp, Wells Fargo, Yahoo

Wednesday
Economic indicators
UK: 09.30 Bank of England minutes, Unemployment data, Average Earnings
EU: 10.00 Trade Balance
US: 13.30 CPI, Housing Starts and Building Permits, 19.00 Beige Book
Results
UK: Sportingbet finals, Legal & General quarterly results, Britvic trading statement
US: Abbott Laboratories, Coca-Cola, E-Trade, E-Bay, JP Morgan Chase and Manpower

Thursday
Economic indicators
UK: 09.30 Retail Sales, PSNCR (government borrowing) and Money Supply
US: 13.30 Weekly Jobless, 15.00 Leading Indicators, 17.00 Philadelphia Fed survey
Results
UK: Prudential quarterly reporting, Media Corp trading statement
US: Bank of America, Eli Lilly, Google, Pfizer and Southwest Airlines

Friday
Economic indicators
UK: 09.30 GDP Q3
EU: 07.00 German Producer Prices
Results
UK: Kazakhmys egm
US: Caterpillar, Honeywell, McDonalds, Schlumberger, Texas Instruments, Xerox

WHAT THE PAPERS SAID
Once again Northern Rock features prominently in the press. The Sunday Telegraph reports that the three submissions for the bank offer virtually nothing to shareholders. In a separate article the same paper questions whether the Virgin brand is out of date to this generation. The Sunday Times reports that Virgin are trying to recruit a new chairman for Northern Rock in the event of their bid succeeding. Names in the frame were Brian Pitman and Peter Ellwood, ex-Lloyds TSB and James Crosby, formerly of HBOS.

This week’s joint bidders for Resolution are Standard life and Swiss Re, according to the Observer. The paper believes that an eventual bid will need to top 750p per share, but only after a few sighting shots.

For those of you who fancy a heavier read, David Smith in the Sunday Times mulls over the figures behind the UK Pre-Budget and isn’t happy with the level of government borrowing.

Smithy also reports on the UK’s trade bodies joining forces to challenge the chancellor’s new 18% CGT rule
In addition to the CBI, BCC, Institute of directors and Federation of Small businesses, the Association of British Insurers isn’t happy either. The Independent
Reports that the new ruling would drive savers from with profits insurance products to more tax-efficient savings.

The Sunday Business Post reports that Ireland’s December budget is unlikely to produce the expected 1% cut in the higher rate of tax, due to a worsening of economic conditions.

The X-rated version of doom and gloom in the Irish economy comes from this week’s Economist

Health Service Executive plans to slash payments to pharmacies could have major repercussions for United Drug, according to the Sunday Business Post. The move could push the company into loss and result in the loss of some 200 jobs.