Ladbrokes to be World Cup winners

EVEN strait-laced American investment house JP Morgan is getting swept up in World Cup fever. Its analysts have upgraded their view of Hilton because of the expected betting bonanza in its Ladbrokes shops from the competition.

Ladbrokes estimates that £200m will be placed with UK betting firms. One punter has laid out £43,000 on Brazil at 8/1. 'It will be the biggest betting event ever,' said chief executive Chris Bell.

The tournament in Japan and South Korea will also be the first major test for the internet businesses set up by the bookies. Estimates are that £20m will be bet online although that could be on the conservative side.

The economic impact of a World Cup, which can attract global audiences of 50bn, can be huge. A big rise in sales of sportswear is certain. That should benefit companies such as JJB Sports - formed by former footballer Dave Whelan - with its nationwide coverage and supermarket style stores.

The Centre for Economics and Business Research believes the amount spent on football-related items could top £30m, against £20m during the last tournament. World Cups attract new supporters to the game, which should be reflected in Premiership gates next season.

Euro 96 proved to be the catalyst for a flood of soccer clubs listing on the stock market - but sadly almost all the flotations left big holes in investors' wallets.

Electrical chains such as Dixons could gain as fans upgrade their television sets for the tournament. One retailer said: 'We are already seeing forward orders picking up, particularly for widescreen TVs.'

Expect heavy supermarket promotions on beers, crisps and other snacks. Beleaguered television companies such as Granada and Carlton - reeling from the collapse of ITV Digital - should gain from higher advertising revenues. These should increase by at least 10%, although audiences are expected to be down because of the time difference with South-East Asia, which means morning and lunchtime matches.

That could also leave publicans crying into their beer. Any gain from a full-house earlier in the day is likely to be offset by a quieter session in the evening.