STOCKS NEWS EUROPE-Dexia shares down after MBIA fall

STOCKS NEWS Reuters Results diary Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY] 09:05GMT 26Oct2007-Dexia shares down after MBIA fall ---------------------------------------------------- Shares in Belgian banking group Dexia fall 3.5 percent to 20.90 euros in the wake of U.S. peer MBIA's share price plunge on Thursday. "Dexia is suffering from the general climate... but the share price fall is exaggerated," Fortis analyst Kurt de Baenst says. MBIA Inc, the world's largest bond insurer, posted a third-quarter loss on Thursday, hurt by the plunging market value of its insured credit derivatives portfolio. Dexia is one of the world's largest municipal lenders. Reuters Messaging rm://[e-mail] 08:24GMT 26Oct2007-Merrill says go domestic, upgrades retail, telecoms ---------------------------------------------------------------------- Merrill Lynch, taking a contrarian view for year end trading ideas, says investors should go for consumer plays because of higher real wages, a healthy saving ratios, a rising euro and a potential peak in the economic cycle. "We make a decisive move towards growth that is less reliant on the business cycle and more about the consumer (late-cycle play). We are comforted by a turn up in disposable income and still robust savings ratios in old Europe," Merrill analysts say in a report. It upgrades retail, telecoms and media to "overweight". "While the first two are fundamental moves, media is more tactical given its valuation has hit 20 years lows and earnings are moderating," Merrill says. "We also take travel and leisure up to neutral. Airlines have almost never been cheaper and airports still look busy." On the other hand, it downgrades healthcare and UK banks to "underweight". Reuters Messaging rm://[e-mail]