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LONDON (AFP) – The stock market made strong advances on Thursday, reassured by the European Central Bank's announcement that it will continue to purchase European government bonds.

The ECB left its key interest rate at a record low of 1.0 percent and said it would extend cheap emergency funding for the commercial banks through the first quarter of 2011.

The FTSE 100 index of leading shares jumped 2.22 percent to 5,767.56 points at close.

Lloyds Banking Group (LGB) was the most traded stock in London, seeing 217 million shares switch owners, followed by Royal Bank of Scotland which saw 129 million units change hands.

Technology firm GKN made the biggest gains of the day, adding 15 pence -- or 7.68 percent -- to end at 210.4 pence, followed by Europe's biggest tourism operator TUI Travel, which gained 15.6 pence -- or 7.28 percent -- to finish at 230 pence.

Earlier on Thursday, the company had announced net losses of 104 million pounds in the year to September after a loss after tax of 67 million pounds in 2008-2009.

Satellite company Inmarsat made the day's greatest losses, shedding 0.85 percent -- or 5.5 pence -- to end at 644.5 pence, followed by investment company Resolution, which wasdown 0.51 percent -- or 1.1 pence -- to close at 213.8 pence.

Sterling was down against both the dollar and the euro.

At 17.17 GMT, the pound was trading at 1.5601 dollars, down from 1.5612 dollars at 17.05 GMT on Tuesday.

The currency fell from 1.1873 euros to 1.1800 over the same period.

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FTSE 100 rose from 2 2pc at 5,767, led by topic 4pc rises in Lloyds Banking Group and Royal Bank of Scotland, as Germany and France, indices also gathered momentum. The euro is a beginning to the dollar slide to three-quarters of a percent to $1.3228 due to actions of the ECB.

Recovery defied the predictions of a rout after the ECB have resisted pressure to launch a "money-printing" programme to bail weaker members of the euro area.

Jean-Claude Trichet, President of the ECB, which held the rate their weak record of 1pc and ceased to quantitative easing, but sought to reassure the markets concerned by extending the installation of liquidity of emergency of the Bank for the Bank until the end of the month of March. Traders said that the ECB has immediately began his most aggressive buying sovereign bonds since may erase the debt off-balance sheet of banks and to artificially create strong demand returns.

Yields Portuguese bond 10 years has fallen from 6 148pc 0.497, Irish sovereign yields 10 years dropped from 0.447 Spanish 10 years passed to 5 077pc 0.212 8 496pc and bond yields.

Traders said that the scale of the action appears to be an attempt to allay concerns that the authorities are reluctant to take the necessary measures to assist at the periphery of the troubled euro. Some market participants had hoped that the ECB will announce as much as EUR 1 billion (￡ 847bn) of the quantitative easing.

"I say we are constantly alert." We strive constantly to the situation of the markets. The program of the securities market is underway. I repeat, current... I will comment on the comments of participants in the market, "said Mr Trichet."

Decision of the ECB was soon after that Fund currency International Director, Dominique Strauss-Kahn warned that Europe stands on the edge of a cliff and faces "slow" growth at best.

"The crisis in Europe is still strong," said business leaders and ambassadors in Delhi.

The Greece Ireland received bailout, and "at the edge of the cliff", while others are "not far from the edge", he added. The whole region euro "now has to deal with the budgetary consolidation in the medium term", said.

Official figures added to concerns with the eurozone with slowing economic growth in the third quarter of 0 4pc of 1pc, in the second, according to the Agency for statistics Eurostat. For the 27-Member from entire European Union, growth was 0 5pc in the third quarter – a revision to the increase in the first estimate of 0 4pc.

Fears are mounting that the euro area will be drilling an economy two-speed with the strategy defined to meet the needs of the Germany to the detriment of others.

German, Rainer Bruederle, economy Minister said before the meeting of the ECB only additional liquidity does not solve problems of Europe and describes 600bn United States $ (￡ 386bn) its quantitative easing as excessive stimulus package. He said: "Silver continuous printing is not the solution".

Head of the German Bundesbank, Axel Weber has to go away and criticized the liquidity of the ECB emergency support.

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Fingers: a warning by Mr Jean-Claude Trichet, the President of the ECB, not underestimate Europe? s determination to solve the growing softer temporarily euro area financial markets crisis.

A warning to the markets of Jean-Claude Trichet, President of the ECB, not underestimate Europe's determination to solve the growing crisis of the zone euro was taken as a signal that the Central Bank will step.

Fears that Portugal can follow the Ireland and the Greece receive a solid international financial bailout has sent the euro sinking for a period of two months low less $1.30 Tuesday.

Single currency recovered somewhat Wednesday, standing at $1.3098 just before noon on the London market, compared to $1.2983 at the end on Tuesday in New York.

"The euro has stabilised during the night after the comments of the President of the ECB Trichet, noting that the ECB could consider expanding its sovereign debt purchasing program" said Lee Hardman, analyst at the Bank of Tokyo-Mitsubishi UFJ in London.

Government bond rates eased a day after 10 years borrowing costs Government Spanish and Italian, is passed to a great record gap area euro reference rates that Germany had to pay.

The price of the Portuguese 10-year bonds continued to rally the news that the ECB is an active buyer.Rate loan of 10 years for the Spain eased to 5 285pc reaching 5 5pc Tuesday, such as those on the obligations of Italian, Italian, Belgian, Hungarian and irlandaises.Seulement Greek 10-year bond yields has continued to increase.

Despite improved sense European debt crisis has always dominated with Portugal on credit watch by standard & Poor, ratings agency who saw "risks to the solvency of the Government.

Traders have been prudents.Harry Sebag, head of sales trading at Saxo Bank, said: "we are going to a certain technique.Un rebound number indicator shows as"oversold"index and some investors started in search of bargains .but we will keep a close eye on performance bond spreads to see if this stock rebound legs."

Commerzbank analyst, Ulrich Leuchtmann said: "markets are still concerned about the debt crisis is spreading to other countries.

FTSE 100 in London was increased by 1. 6pc Frankfurt advances 1. 8pc and 1pc in trade in the morning and Paris.Madrid shot up to 3. 3pc and share price also acquired Italy and the Portugal.

"For the misfortunes of the moment, the equity markets continue to be reasonably strong," said Simon Denham, head of exchange differences in capital of the group.

Analysts noted that ECB plans aboard to normal monetary policy of the Board of Directors meets Thursday could have blown off course by the Irish debt crisis.

When the Greek crisis ready markets markets freeze in April, the ECB started to provide unlimited banks loans short term low levels.

As lending markets in most eurozone countries return to normal, the ECB started to look for an "exit strategy" at the end, its exceptional measures, but the Irish crisis awakened concerns.

"The ECB will need to continue to provide outstanding support, despite earlier indications" ABN-Amro analysts said in a research note.

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"Heaven forfend that we create a Fox News here at United Kingdom," said Smith, Lord of Finsbury. "We must ensure the plurality of media and therefore media voice property"

Lord Puttnam and Lord Birt referred to BSkyB obscures the BBC United Kingdom .Lord said Puttnam turnover of the BSkyB is the time to 163pc BBC and this could increase to 220pc by 2016.

"Nowhere it the same degree of cross ownership of media given that United Kingdom," said lord Puttnam, describing other UK active News Corp., including leading journals such as The Times and The Sun "this is nothing less than the sovereignty of the 21st century."

Lord Borrie wondered why a debate was then more accepted that News Corp. should not be allowed to buy all BSkyB.Il said that seeing the subject of the Lords debate as used to provide advice to the OFCOM ahead of its media come plurality investigation.

Lord Borrie said he does not accept the argument that News Corp currently owns 39pc BSkyB and James Murdoch is its Chairman, have that extra 61pc will make little difference.

"Legally there [is there a difference] as you move from a position of influence sensitive to actual control", he said.

Lord Myners said it, it is difficult to see the benefits of News Corp taking full ownership of BSkyB, saying: "it will lead to an elimination choice made Beaver."

"The consequences of OFCOM, the wrong decision could be deeply harmful", said Lord Myners, a former President of the Guardian Media Group.

"My Lords, I feel this story still has a long way to run,", concluded the Lord Razzall.

Conglomerate media, which already has four national newspapers in United Kingdom, including The Times and the Sun and is the largest broadcaster by turnover, wants to buy 61pc satellite television chain that does not have.

Mr. Cable, which made the order under the Enterprise Act has said in a statement: "on the basis of information and the sub-missions I had, I decided it appropriate to issue a notice of intervention in this case,"

"Independent experts to OFCOM will now be investigate and report me on plurality of the media which may arise from this acquisition project issues."

News Corp today all concerns, issued a brief statement saying "trust" the proposed acquisition would have no impact on media pluralism.

OFCOM has until 31 December to submit its report on the question of whether the News Corp should be allowed to take control of television via satellite.

Mr. Cable will decide then refer the matter to the Competition Commission.

The question of a plurality of the media in the light of the proposal by News Corp get more attention to the Parliament today one debate in the House of lords to the plurality of the media directed by lord Puttnam unfolds with a long list of prestigious peer who fréquentent.Plus 20 peer are planned, including Lord Myners, Lord Birt and Lord Razzall.

There was growing opposition to submission of Deputies, but in recent weeks, the Cabinet was split on his views on News Corp bid.

Some, including Mr. Cable thought from the beginning that there are grounds for a test of public interest, while others questioned if there is a significant difference if News Corp full property - he has already 39pc BSkyB and James Murdoch, who directs the operations of European and Asian News Corp, is currently Chairman of BSkyB.

Mr. Cable track owners of media across News Corp position on the British market concerns, take total control of BSkyB.

Groups of media, including the BBC, Channel 4 and the owners of the Daily Telegraph and Daily Mail, has written to Mr Cable last month urging to return the submission to OFCOM.

Mr. Cable said that intervention was made on the basis of the presentations and information the Secretary of State has received regarding the proposals.

It follows formal notification of News Corp in Brussels yesterday its intention to take complete control of BSkyB.La European Commission will make a decision for reasons of competition by December 8.

News Corp is a 700 p-a-share offer of BSkyB who evaluated the company approximately ￡ billion - a character described as undervaluing significantly the assets by the Board of BSkyB.

Nicholas Ferguson, Deputy Chairman of BSkyB, stated that no figure below 800 p is acceptable.Il has the full agreement of the Council in this approach, including Allan Leighton, former President of the Royal Mail and Executive Director of ASDA.

Some institutional shareholders have stated that they would like to see a considerably higher than 800 p offers.

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Dechra Pharmaceuticals
p 528-11, 5 p
Questor says BUY

At the end of last week, listed in London Dechra Pharmaceuticals announced the acquisition of the US group DermaPet.Il resembles a move cunning group of veterinary products.

Not only it make some important new products in the enterprise, but it the shores of the Group us sales team thus, closer to mass critical operations across the pond.DermaPet develops and markets a range of dermatological products for animals, such as shampoos, conditioners and ear.

The maximum payment for company is $ 64 million (￡ 40 4 m), with 42 million money right from the start. The rest of the counterparty is a deferred payment - and depends on respected revenue objectives.

Payments for 1 m $ are due on the second and the fourth anniversaries of the date of completion, with 15 m $ becomes payable between the second and sixth birthdays completion should DermaPet realizes income of more than 15 m $ for a rolling 12-month period after the first anniversary of the fin.Si income of the same criteria exceed 20 m $, another $5 m will become due.

For the six months to June 30, DermaPet revenue was $6.9 m and taxes profit a 3 m $.

To finance the purchase, Dechra has agreed a new ￡ 78 m four - year Bank facility to replace facilities actuelles.Dette at the end of June stood at only ￡ 6.7 m, the balance sheet is strong enough to be able to cope with a transaction of this size.

DermaPet was created in 1991 by American Dr. Steve Melman, who appeared on US television regularly and is the author of several well received books on veterinary care.This transaction represents the output of an undertaking, which he spent the better part of the construction of the last two decades.

The company expects that the purchase will be "sensitive" win improvement in its first full year of the property.

Questor recommended actions about one year there is reason the Dechra moving towards United States where companion animals market is significantly greater is the United Kingdom.

United Kingdom, there are 8 m of dogs, cats 8.4 m and 1 m.Aux United States horses he has even more - 75 m dogs, cats 82 m and 10 m horses '.the acquisition has accelerated the process of tapping this vast market and, although not without execution risk, is a sound strategic move.

Purchase brings a number of interesting products in the groupe.Ceux note is TrizUltra antifungal treatment and antibacterial skin DermaLyte, a shampoo for bathing and MalAcetic, allergic pets for cleaning of infected animals ears.

Dechra will also acquire a five additional sales representatives and it is expected that approximately 1 m $ synergies can be extracted from the two opérations.Co?ts restructuring are expected to be of the order of 1 m $.

Actions had lower market since their initial recommendation, as Quaestor indicated in the last update on September 9, but they began to perform after the news of this strategic acquisition.

Shares are trading on June 2011 multiple 16.1 times earnings falling to 14.3 2012.Les actions are 2 1pc.

Shares were initially recommended October 25 year p 427.9 last and they are now 23pc 8pc.La market versus rating on the shares still buy.

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