Hello traders!

In the US tonight, the Dow was up 27.31 points at 12,827.49, while the S&P500
added 4.55 points at 1,416.18.

The Nasdaq Composite slipped again, down 5.19 points at 2,499.46.

See you in the morning with the latest........

G.

Morning all. Market reports:

Telegraph
The Times
The Times (Need to know)
FT
The Guardian
The Independent
This is Money

The US has entered its first full-blown economic recession in 16 years, according to investment bank Merrill Lynch. Merrill, itself one of Wall Street's biggest casualties of the sub-prime crisis, is the first major bank to declare that a recession in the world's biggest economy is now underway.
US recession is already here, warns Merrill

Martin Feldstein, the Harvard economist credited with being one of the fathers of the Bush administration tax cuts, says the U.S. economy is now likely to slip into a recession, and that avoiding one will take a new round of tax cuts and interest rate cuts from the Federal Reserve.
Father of Bush tax cuts: Recession likely

Crude oil, which last week hit $100 (50) a barrel, fell more than $2 on expectations that demand will drop because of slowing economies in the US and Europe and as warm weather slowed fuel use in north-east America.
Crude oil dips over slowdown fears

The high street has suffered its worst Christmas for three years as hard-pressed families cut back on their festive spending, new figures show today.
Bleak figures herald consumer slowdown

The Bank of England will come under intense pressure to cut interest rates this week as figures out today show that the high street suffered its worst Christmas for three years. The British Retail Consortium will report that like-for-like sales across the sector rose by only 0.3 per cent in December, almost three times lower than the bleakest City forecasts.
Pressure for rate cut grows as high street reports grim sales

One in five banks has failed to pass on the cut in interest rates to mortgage borrowers after the Bank of Englands reduction of the base rate last month. About 18 of 103 mortgage lenders, including Intelligent Finance, Newcastle Building Society and Skipton Building Society, have not reduced their standard variable rates, and 16, including Alliance & Leicester, Egg and Northern Rock, have cut rates by less than 0.25 per cent, according to moneysupermarket.com, the price comparison website. The findings will add pressure to the Bank of England to announce a further rate cut when its Monetary Policy Committee (MPC) meets on Thursday.
One fifth of banks fail to pass on cut in interest rate to customers

Some of Britain's biggest banks have unscrupulously exploited last month's base rate cut by failing to pass on the benefits to mortgage holders, yet at the same time imposing even bigger cuts on interest accruing to savings accounts.
Revealed: a new bank rip-off

The Bank of England has given its clearest indication yet that it is preparing the ground for the end of the credit market turmoil by pledging to tighten up its rules on how banks manage their money market operations.
Bank could tighten money market rules

Britains embattled building societies could be forced into a fresh round of mergers and acquisitions, amid paralysed wholesale lending markets and with their profits crumbling, it is predicted today.
Cash squeeze may force building societies to accept mergers, CBI says

Legions of company directors have been piling into the market to buy shares, defying fears that the credit crunch will be bad for their businesses. An exclusive study for The Daily Telegraph shows that the average ratio of executives buying their companies' shares to those selling doubled in the last quarter of 2007 compared with the first six months of the year.
Director dealings defy impact of credit crunch

Think oil at $100 a barrel seems expensive? Speculators are already betting that the price will double to $200 by the end of the year. On the floor of the New York Mercantile Exchange (Nymex), the number of options purchased to buy oil at $200 has leapt 10-fold in the past two months to 5,533 contracts.
Speculators bet on $200 a barrel oil

China has defended the role of sovereign wealth funds, responding to fears that its own fund, China Investment Corporation, might destabilise global markets.
China attempts to allay fears over sovereign wealth funds

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

Australian shares close lower on concerns about US economy - UPDATETFN economic and business calendarAustralian shares close lower on concerns about US economy, reporting seasonThomson Financial Europe AM at a glance share guide: Shares, oil mixed

Good morning traders!

In Asia today, the Nikkei closed up 28.12 points at 14,528.67, while the Hang
Seng reached midway ahead 283.34 points at 27,462.83.

New York's main oil contract, light sweet crude for February delivery gained 52
cents to $95.61 a barrel from $95.09 in late US trades Monday.

Happy trading!

G.

Shell (RDSA) is being sued for polluting Houston, but BP. has been cleared of polluting Kansas.

YELL has been downgraded to sell from neutral at UBS with a target of 330 versus 430. Liberty International (LII) has been downgraded to underperform from neutral by Credit Suisse, who have also downgraded the European telecoms sector to market weight from overweight.

Hochschild Mining (HOC) has announced in-line Q4 production figures which they are calling 'strong', but 2008 gross margins will be lower than current expectations. More deals for Autonomy (AU.), and they're potentially big ones, this time with EMC and Oracle. Domino's Pizza (DOM) are reporting they will beat expectations.

Amongst the small caps the Telegraph reports that a Portugese bank has taken a 10% stake in stock broker Evolution (EVG). nCipher (NCH) say they are trading in line. Jessops (JSP) are still talking lower sales and while Christmas trading was regarded as an 'encouraging step' much work remains to be done. VYKE are claiming strong growth in their trading update. Topps Tiles (TPT) are still reporting growth but the market is slowing and not just in the UK. European Nickel (ENK) have reported a significant increase in mineral resources.

FTSE is currently being called up 13 at 6,349 by CMC. Dow futures are currently being called up 3 at 12,830.

TFN UK calendar and forecasts for today

BROKERWATCH Johnston Press cut to 'sell' vs 'neutral' at UBS; price target 225pBROKERWATCH Yell cut to 'sell' vs 'neutral' by UBS; price target cut to 330pBROKERWATCH Liberty International cut to 'underperform' at Credit SuisseUK smallcap opening - Glen Group higher on 2.5 mln stg sale completion

UK smallcap opening - Silanis International slumps as warns of poor FY numbers

UK smallcap opening - Ascent Resources drops on disappointing update

BROKERWATCH European telecoms cut to 'market weight' at Credit SuisseUK smallcap opening - Univision Engineering boosted by 4.2 mln stg contract winUK smallcap opening - Just Retirement down as FY new business value below hopes

UK smallcap opening - Alexon Group tops smallcap risers on FY pretax profit hope

UK smallcap opening - Business Direct up on 6-year order win

London shares open higher, miners strong on higher commodity pricesUK smallcap opening - Landore Resources gains as it completes drill programme

STOCKWATCH Trigano higher as Q1 sales beat forecasts

BROKERWATCH Reed Elsevier target cut to 15.50 eur vs 16.50 at SNS; stays 'buy'London shares open higher

BROKERWATCH Persimmon and Taylor Wimpey cut to 'sell' from 'hold' at ABN Amro

UK small caps open higher; Univision Engineering top on 4.2 mln stg contract win

STOCKWATCH Eni higher as investors await Kashagan final deal

BROKERWATCH ABN Amro ups oil forecasts; lifts Royal Dutch Shell p/t to 2,400p

Metals - Gold hits all-time high above 875 usd on weak dollar, oil reboundMetals - Copper up as funds rebalance indices, dollar weakness prompts buying

OUTLOOK Premier Foods to confirm on track to meet FY expectations

STOCKWATCH SMG shares lower; SG cuts to 'sell'; ABN Amro cuts price targetBROKERWATCH Ipsos, Pearson added to Merrill's list of preferred media stocksMetals - Copper up as funds rebalance indices; dollar weakness UPDATELondon shares - midmorning features

STOCKWATCH Heineken lower as market awaits next step in S&N bid battleMetals - Gold hits all-time high above 875 usd on weak dollar, oil bounce UPDATE

STOCKWATCH Vodafone up as Morgan Stanley hikes price target to 215 pence

STOCKWATCH Reed Elsevier up after ABN Amro and UBS reiterate 'buy' stances

STOCKWATCH UK bank stocks fall on vague talk of RBS rights issue, broker gloom

WALL STREET OUTLOOK Higher open seen amid high-profile management shake-ups

FOCUS Premiere's shot at Bundesliga rights better after News Corp's stake buy

London shares - midday features

UK small caps higher midday as commodity stocks underpin gains

Precious Metals Summary - London AM Fixings

Metals - Copper rises in line with strong Asian session, higher equity markets

STOCKWATCH ARM Holdings lower as Morgan Stanley places 19 mln shares

London shares - midafternoon features

STOCKWATCH Whitbread higher; starts as 'buy' in Hotel sector initiation at UBS

Precious Metals Summary - London PM Fixings

Metals - Gold hits new record above 876 usd; softer dollar, higher oil supports

TFN economic and business calendar to Tuesday Jan 22

UK small caps close up; higher prices and strong updates aid commodity stocks