UBS starts U.S. entertainment sector with neutral bias - Entertainment News

* Sees cable network assets as organic growth opportunity
* Starts Time Warner, Discovery Comm, Viacom with "buy"
* Starts Scripps Networks, Walt Disney with "neutral"
Sept 21 (Reuters) - UBS began coverage of the U.S.
entertainment sector with a neutral bias and said it considers
cable network assets as one of the few organic growth
opportunities in media.
The brokerage started coverage of Time Warner Inc (TWX.N),
Discovery Communications Inc (DISCA.O) and Viacom Inc (VIAb.N)
with "buy" ratings.
"Investment in programming has been a driver of growth in
audience share over the past few years, with cable ad growth
significantly outperforming the TV networks," analyst John
Janedis said in a note to clients.
The analyst, who started Scripps Networks Interactive Inc
(SNI.N) and Walt Disney Co (DIS.N) with "neutral" ratings,
said technology is making the film business model more
challenging.
"Properly responding to these changes will be a key factor
in maintaining the health of the business model," Janedis
said.
Last week, Credit Suisse said streaming video offerings
from Netflix (NFLX.O), Apple Inc (AAPL.O) and Google TV will
catch on with consumers eager to cut the cable cord and
downgraded the U.S. entertainment sector to "underweight."
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anne
Pallivathuckal)
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UK Lib Dem leader calls for patience on coalition - Celebrities

LIVERPOOL, England (Reuters) - Liberal Democrat leader Nick Clegg urged party members on Sunday not to panic about a slide in poll ratings after he led them into Britain's first coalition government since World War Two.
Clegg's Lib Dems have seen their support slump since they became junior partners in a Conservative-led administration following the general election in May.
The government will next month announce spending cuts of up to 25 percent in many departments as it seeks to erase a budget deficit running at 11 percent of national output.
Those measures are likely to prove deeply unpopular and some critics say the fresh-faced Clegg, 43, who is deputy prime minister, risks leading the Lib Dems into oblivion.
"This is a marathon, not a sprint. We are condemned to take as a government some very, very difficult decisions on sorting out the public finances," Clegg told BBC television in an interview at the start of his party's annual conference in Liverpool, northwest England.
"You have to hold your nerve and play it long and see the benefits of what we're doing over a period of time," he added.
No one expects the Liberal Democrats to quit the coalition immediately, but the partnership could be jeopardised if they fail to secure cherished electoral reform in a referendum next year or perform poorly in local elections.

TRIDENT TENSIONS
The left-leaning Lib Dems and the centre-right Conservatives were not regarded as natural partners before the general election in May which ended 13 years of Labour rule.
However, they reached a coalition agreement within five days after the Lib Dems signed up to swift spending cuts because of the financial crisis in the neighbouring euro zone.
Tension remains. The Lib Dems argued for alternatives to a planned multi-billion-pound renewal of the Trident nuclear deterrent, and are also uneasy with planned school reforms and the construction of new nuclear power plants.
Clegg said the government had to examine Trident in the same way as it assessed other expensive government schemes.
"The two coalition parties don't see entirely eye-to-eye on this," he said. "I don't think people would understand why we would exempt Trident from the same financial pressures when people are having some of their benefits qualified."
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