Tate & Lyle fell 1.2% as the sugar and sweetner maker cautioned that profit growth in the second half was likely to be lower than in the first six months of the year due to the impact of EU sugar reform and higher European cereal prices.

International Power announced the acquisition of a portfolio of wind farms in Germany and France with an enterprise value of 379 million pounds from Christofferson Robb & Co. International Power dipped 0.7%.

Morgan Stanley downgraded Smirnoff-owner Diageo to equal-weight as part of a wider note on the drinks sector, arguing that the potential for any upgrades are limited relative to peers in the sector. Diageo lost 0.15%.

Other news

Strong domestic demand helped the UK manufacturing sector deliver its fifteenth successive month of expansion, a trend that has encouraged producers to continue raising prices at the factory gate, a report released on Wednesday showed. The latest survey produced by the Chartered Institute of Purchasing and Supply and the Royal Bank of Scotland showed its index of manufacturing activity at 53.7 in October.


9:00AM Stock futures turned higher on employment data.
U.S. stock market futures turned higher after a survey report showed that the U.S. economy added about 128,000 private-sector jobs in October, a modest rebound in employment, according to the monthly ADP employment report released Wednesday. Automakers are also expected to report higher October U.S. sales compared to the same month a year ago.

On the earnings news front, Time Warner Inc. (TWX: chart), the world''s largest media conglomerate, posted sharply higher Q3 earnings of 57 cents a share, up from 18 cents last year due to several asset sales and adjustments related to its deal to acquire cable systems from Adelphia. Revenues rose 7% to $10.9 billion from $10.2 billion. However, profit and revenue came in slightly below estimates. Time Warner held to its 2006 outlook. The stock dropped 1.45% in pre-market trading. Burger King Holdings Inc. (BKC: chart), the world''s second-largest burger chain, reported Q1 earnings jump of 82% to 30 cents per share from 19 cents per share a year ago on sales increase. Revenue rose 8% to $546 million. Quarterly results beat expectations of a profit of 26 cents per share on revenue of $538.1 million. Insurer Cigna (CI: chart) reported a 15% profit increase and lifted its 2006 earnings outlook.

In merger-and-acquisition news, CVS (CVS: chart), the second largest drugstore chain in the U.S., confirmed that it is in merger talks with Caremark Rx (CMS: chart), a leading pharmacy benefits manager. S&P 500 futures were up 3.70 points, above fair value. Dow Jones industrial average futures rose 36 points, and Nasdaq 100 futures were up 6.25 points.


8:00AM R.R. Donnelly & Sons agreed to buy Banta for $1.3 billion.
R.R. Donnelley & Sons Co. announced late Tuesday it will acquire Banta Corp. in a deal worth $1.3 billion. The cash deal is valued at about $1.3 billion, or $36.50 per share after a special dividend of $16.00 per share already declared by Banta. The offer, equal to $52.50 per share, represents a premium of 18.6% over Banta''s closing share price Tuesday on the Nymex of $44.28. The deal was unanimously approved by boards of directors of the two companies. The transaction is expected to complete in Q1 of 2007.

Chicago-based R.R. Donnelley, which prints the Yellow Pages, said the acquisition will allow it to expand its range of products and services for customers and also enhance its services in magazine, catalog and book printing and in direct marketing. R.R. Donnelley has 47,000 employees worldwide and had 2005 revenues of $8.43 billion.

Banta, based in Menasha, Wis., has operations in the United States, Europe and Asia. It produces books and provides supply chain management services. Banta, with 1,585 employees in Wisconsin''s Fox Valley and 8,000 worldwide, reported 2005 revenues of $1.54 billion. Banta said in September that it would declare a $16 per share special dividend payable in November.


7:30AM Asian stocks advance broadly Wednesday, South Korea, Singapore lead.
Asian markets ended mostly higher on Wednesday. Nikkei 225 Index in Japan ended 0.2% lower to 16375.26. Gains in the yen weighed down Japanese export-oriented shares, leaving Toyota Motor flat. Honda fell 0.2%. Shares of Nissan Motors bucked the downtrend to finish up 3.4%.

The banking sector in Tokyo closed mixed with Mitsubishi UFJ, largest bank by assets in Japan, up 1.4%, while Softbank, which acquired the Japanese mobile cellular business of Vodafone Group PLC earlier this year, plunged 4.9%.

The Kospi index in South Korea rose 0.7% and Taiwan Weighted Price Index fell 0.1%. Shares listed in Singapore advanced, with the benchmark Straits Times Index advancing 0.9%. Hang Seng Index in Hong Kong ended 0.7% higher at 18,453.65. The China Enterprises Index of shares listed in Hong Kong, added 1.1% to 7,568.19.

Australia S&P/ASX 200 rose 0.6% to close at a record 5416.40, lifted by gains in mining and banking shares. National Australia Bank edged higher 0.9% on upbeat expectations ahead of results due Friday. Shares of BHP Billiton gained 0.9%.


6:30AM Strong metal shares and banking mergers help Europe higher Wednesday.
European markets were marginally higher in early trading on Wednesday. The FTSE 100 in London gained 0.2% to 6,138.4, Frankfurt Xetra Dax climbed fractionally to 6,270.62, and the CAC 40 in Paris was flat at 5,348.88.