At 12:00 p.m., the FTSE 100 index was up 69.9 points at 5,549.8, while the FTSE 250 index had dropped 102.0 points at 8,818.8.

In the United States, Wall Street is on track to open higher, helped by a media report that Microsoft is considering a fresh takeover bid for Yahoo, with Starbucks also in focus after the coffee chain said it would close several hundred stores in the United States.

According to spread bettors IG Index, the Dow Jones Industrial Average is expected to open up 20 points at 11,402. Separately, S&P 500 futures were up 2.10 points at 1,288.30 while Nasdaq 100 futures climbed 4 points to 1,873.

On the U.S. economic calendar, an ADP report on private-sector employment will be used by some as a gauge on what to expect when the government releases its own monthly employment data on Thursday, a day ahead of schedule due to the Independence Day holiday.

Among shares, mining sector strength helped to buoy the FTSE 100 as metals prices, notably gold, stayed near recent highs.

Anglo American was 83 pence higher at 3,484, Vedanta Resources was up 63 at 2,147, Xstrata added 86 at 3,916, Kazakhmys climbed 40 at 1,497 and BHP Billiton rose 47 to 1,888.

Oil prices, though below records, were still relatively high, fuelling gains in the oil sector. Royal Dutch Shell ticked up 6 at 1,987, Cairn Energy rose 92 to 3,250, while Tullow Oil was up 34-1/2 at 940-1/2.

AstraZeneca was the biggest FTSE 100 riser, however, up 119 at 2,249, after it confirmed it has avoided the need for a full trial to defend its Seroquel patent from generic company Teva Pharmaceutical Industries. This was after being granted its request for a summary judgement.

Sector peer GlaxoSmithKline added 41 at 1,144.

On the downside, Marks & Spencer plunged over 20 percent lower, down 63-1/4 at 254-3/4 after a disappointing and unscheduled trading statement unsettled investors.

The retailer said UK like-for-like sales were down 5.3 percent in the 13 weeks to June 28 as consumer confidence levels deteriorated markedly.

Retail and supermarket stocks followed, with Next down 71 at 838-1/2, Kingfisher 4.4 lower at 102.3, Sainsbury down 20-1/4 at 290 and Tesco shedding 12.7 at 350.3.

Elsewhere, Diageo lost 14 at 885-1/2, hit by a UBS downgrade to 'neutral' from 'buy' with the price target cut to 1,000 pence from 1,300.

The broker pointed to worries about rising unemployment in the U.S. and emerging market consumption.

On the second tier, housebuilders slumped after a gloomy statement from Taylor Wimpey.

The company, which said on Monday it was in talks to raise additional equity, said it has been unable to conclude a satisfactory transaction in light of current market conditions.

Also, it expects the UK housing market will remain weak at least through 2008 and does not anticipate any recovery in the short-term. Its UK order book was 33 percent lower in value at June 29 than at the comparable point in 2007.

Taylor Wimpey's shares plummeted almost 54 percent, down 32-1/4 pence at 27-3/4, giving it a value of just over 300 million pounds.

Fellow housebuilders Barratt Developments fell 16-3/4 at 40, Persimmon lost 54-1/2 to 237 and Bellway dropped 56-1/4 to 361.

Economic news did not help the sector. The UK construction sector PMI came in at 38.8 versus 43.9 in May and below the forecast of 42.5, while the Bank of England said the amount of money homeowners took out of their homes in the first quarter slumped to its lowest level for seven years.

Away from housebuilders, Johnston Press slipped 3 to 43-3/4 after Citigroup cut its recommendation to 'sell' from 'hold', reduced its target price to 43 pence from 88 and lowered its EPS forecasts, in the wake of Trinity Mirror's profit warning Monday.

Similarly, Tomkins was off 9 at 135-1/4 after Cazenove downgraded the car parts and building products maker to 'underperform' from 'in-line' and cut its EPS forecasts.

Among mid-cap risers, a number of M&A stories helped fuel gains. Informa was 44 higher at 422-1/4 after it confirmed it has been approached by a private equity consortium led by Providence Equity with a 506 pence per share offer.

Market research and information group Taylor Nelson Sofres, looking to merge with GfK, but still a potential target for WPP Group, was up 17-1/2 at 237.

Aegis Group added 1-1/2 to 108-1/4 as investors cheered news it has acquired research agency Steadman Group in order to bolster the African operations of its Synovate unit. holly.cook@thomsonreuters.com hco/wj

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For Prisa, Citigroup slashed its price target to 5.5 euros from 18 euros to reflect weakening advertising trends and higher interest costs from the acquisition of Sogecable S.A.

It also trimmed its price target for WPP Group to 600 pence from 640 pence as it upgraded it to 'buy'.

The broker sees its mix of earnings resilience and valuation as attractive and thinks a resolution of the TNS bid situation could also be a catalyst.

Elsewhere, Citigroup recommends buying defensive stocks Vivendi S.A., Pearson and Reed Elsevier.

Its long recommendations are ITV Plc., Daily Mail and General Trust, Yell Group, Aegis Group -- whose price target it trimmed to 140 pence from 160 pence -- Lagardere SCA and United Business Media Plc.

But it urges investors to sell shares in Trinity Mirror, Johnston Press and Seat PG. hannah.benjamin@thomsonreuters.com hmb/ms1

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RadioShack's MyMosaic creates a digital mosaic from a selected image. The image is made up of many smaller photos, forming one picture. Users can click on the mosaic and go deeper and deeper into additional image layers of the mosaic all made up of their friends' profile photos. The application is a great way to display many photos on a profile page in one small space. In addition, people can share their photo mosaic with friends and family.

Carat is a global independent media communications network that has worked with RadioShack for the last several years. The company initiated the project by partnering with Moma Labs to build the Facebook application for RadioShack. The social media initiative, designed to build awareness for RadioShack's digital imaging products, is also supported by an advertising program on Facebook.

"RadioShack MyMosaic creates a visually dynamic way for people to create and play with their own unique piece of digital photo art by zooming in and out with the click of their mouse," said Melissa Romig, Media Director at Carat. "This photo-intensive application showcases RadioShack's strong involvement in the digital imaging product category."

Peter Whitsett, RadioShack's executive vice president, general merchandising manager, added, "Through Facebook, we're helping raise our brand's awareness and create additional relevance with a younger customer base. Such an interesting and unusual application is a great testament to our 'Do Stuff' positioning by encouraging customers to create an enjoyable outcome that previously did not exist."

To download the new application, go to Facebook's application search page and search for "RadioShack MyMosaic." Or, visit http://apps.facebook.com/radioshackmymosaic to go to the MyMosaic page directly.

About RadioShack Corporation

RadioShack Corporation (NYSE: RSH) is one of the nation's most experienced and trusted consumer electronics specialty retailers. Operating from convenient and comfortable neighborhood and mall locations, RadioShack stores deliver personalized product and service solutions within a few short minutes of where most Americans either live or work. The company has a presence through almost 6,000 company-operated stores and dealer outlets in the United States and nearly 800 wireless phone kiosks. RadioShack's dedicated force of knowledgeable and helpful sales associates has been consistently recognized by several independent groups as providing the best customer service in the consumer electronics and wireless industries. For more information on RadioShack Corporation, or to purchase items online, visit http://www.RadioShack.com.

About Carat

Carat is a global independent media communications network, with over 100 offices in over 80 countries. Carat is transforming communications -- creating communications that transform clients' businesses and leading transformation of the communications world. Carat provides a full range of services -- including media and market research; communications planning; media planning and buying; multicultural communications; corporate trade; branded entertainment; direct and digital marketing; experiential and sponsorship services; and marketing analytics and consulting. Carat is part of the Aegis Group -- a leading marketing services company listed on the London Stock Exchange. For more information, visit the company's website at http://www.carat.com.

     CONTACTS:

     Charles Hodges
     RadioShack Corporation
     Media.relations@radioshack.com
     817-415-3300

     Dan Soine
     Carat
     dan.soine@carat.com
     415-541-2870

SOURCE Carat

http://apps.facebook.com/radioshackmymosaic

Goldman downgraded French TV broadcaster M6 and Antena 3 de Television SA and added the companies to its conviction sell list.

The following table lists the ratings and price target assigned by Goldman to the companies.

COMPANY NAME

RATING

PRICE TARGET CURRENT PRICE

New Old

Aegis Group

Neutral --

135 p*

114 p

Antena 3 de Television SA Sell Neutral 5.90 euros

6.25 euros

Axel Springer

Neutral --

79.3 euros

71.59 euros

British Sky Broadcasting Buy Buy

593 p 452.25 p

CTC Media

Buy Neutral $31.03

$19.59

Eniro

Neutral -- 30.93 Sek**

27.60 Sek

Havas

Buy Neutral 4.10 euros

2.58 euros

Independent News & Media Sell Neutral 1.59 euros

1.369 euros

ITV

Neutral Sell

48 p

41.8 p

JCDecaux

Sell Neutral 16.7 euros

14.81 euros

Johnston Press

Sell Neutral 44 p

48 p

Lagardere

Neutral --

43.4 euros

37.70 euros

M6-Metropole Television Sell Neutral 15.08 euros

15.04 euros

Mediaset

Neutral Sell 5.7 euros

4.80 euros

PagesJaunes Groupe

Neutral -- 11.20 euros

9.44 euros

ProSiebenSat1 Media Buy Neutral 7.93 euros

6.690 euros

Publicis

Buy Neutral 28.95 euros

21.97 euros

Seat Pagine Gialle

Sell -- 0.102 euros 0.1015 euros

Thomson Reuters

Neutral --

1861 p

1484 p

TradeDooubler

Neutral Buy 70.8 Skr 56.00 Skr

Trinity Mirror

Buy Sell 139 p 103.75 p

TVN

Neutral Buy 22.85 Pln*** 17.62 Pln

Vivendi

Neutral --

29.23 euros 25.58 euros

Wolters Kluwer

Buy Neutral 20.01 euros 16.00 euros

Yell Group

Buy Neutral 121 p 103.75 p

*p - pence

**Sek - Swedish Crown

*** Pln - Zloty (Reporting by Vidya L Nathan in Bangalore) Keywords: EUROPEANMEDIA/RESEARCH GOLDMAN SACHS

tf.TFN-Europe_newsdesk@thomsonreuters.com wj

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