P205 CEEFAX 2 205 Sat 13 Dec 22:34/17 IMPORTANT NOTICE Legal & General Investment Management Limited is regulated by IMRO. Past performance is not necessarily a guide to the future and the value of investments can go down as well as up. Investors may not recoup the full value of their original investment. Specific advice should always bj sought prior to investment based on the particular circumstances of the investor. 1/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Weather YourMoney Main MenuP205 CEEFAX 2 205 Sat 13 Dec 22:31/40 PROBABLY SAFE AND SURE Source: Legal & General Investments We expect stable underlying inflation next year, interest rates to peak at 7.5%, but economic growth to slow to 2.3%. Fundamentals are sound for the equity market and earnings and dividend growth of around 7% is anticipated for 1998. Under these conditions the FUSE 100 could rise to 5,500. 2/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Weather YourMonjy Main MenuP205 CEEFAX 2 205 Sat 13 Dec 22:32/22 PROBABLY SAFE AND SURE Source: Legal & General Investments Clouds on the horizon are the continuing strength of sterling causing further profit downgrades for exporters, the possibility of@a sjvjre downturn in global economic activity emanating from the current Asian troubles and a squjezj on corporate margins caused bz higher labour costs. On the other hand, international investors will see the London equity market as a safe haven. So despite the clouds, we remain cautiously optimistic of prospects for 1998. 3/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Weathjt YourMonjy Main MenuP205 CEEFAX 2 205 Sat 13 Dec 22:35/46 IMPORTANT NOTICE Legal & General Investment Management Limited is regulated bz IMRO. Past performance is not necessarily a guide to the future and the value of investments can go down as well as up. Investors may not recoup the full value of their original investment. Specific advice should always bj sought prior to investment based on the particular circumstances of the investor. 4/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Weather YourMonjy Main MenuP205 CEEFAX 2 205 Sat 13 Dec 22:33/01 IT'S AN ILL WEND... Source: Legal & General Investments Smaller companies have had a rough time this year. Share prices have tumbled as forecasts of profits growth have declined. The FUSE Small Cap index has under- pjrformjd the FUSE 100 bz over 18%. The increasing value of sterling versus the currencies of the UK's European neighbours is the main culprit. 5/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Wjathjr YourMonjy Main MenuP205 CEEFAX 2 205 Sat 13 Dec 22:36/12 IT'S AN ILL WIND... Source: Legal & General Investments The rise in sterling versus the German mark from DM 2.61 at the beginning of January to DM 2.95 now is undermining export efforts of successful companies like Veto. And small engineering firms have seen their share prices fall en massj. But it's not all gloom and doom. Weak shari prices can look good value to predators. 6/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Weather YourMonjy Main MenuP205 CJEFAX 2 205 Sat 13 Dec 22:33/55 @ E IT'S AN ILL WEND... Source: Legal & General Investments Last Wjdnjsdaz, Canadian company Quebecor's bid for Watmoughs sent thu UK printing company's shari price jumping by 45% on the day. Bridon, Peek and Menvier-Swain have also been on the receiving end of bids. Other weak share price pjrformjrs may also find thjmsjlvjs being targeted. So, for gloom-ridden shareholders of firms who have already sjin shares plummet, the further downside may bj limited, and the upside potential of a bid could bring welcome sunshin 7/7 Unit Trust Panel 207 Mortgages 250 TV Listings 600 Front page 100 Stocks Weathjt YourMonjy Main Menu