MARKETS
Tokyo: Nikkei closed
Hang Seng (midday) 13,563.17 down 11.69

BREAKING NEWS - MONDAY
* Blair and Brown try to paper over cracks; no sign that arguments over election have been settled - FT
* STANDARD CHARTERED enters into an agreement to buy Korea First Bank for about 3.3 bln usd in cash
* STANDARD CHARTERED preparing a share placing to raise around 1 bln stg after the UK-listed emerging markets bank last night looked set to win the auction for Korea First Bank with a bid that values South Korea's eighth-largest bank at about 1.78 bln stg - FT
* GLAXOSMITHKLINE launching a 3.5 mln stg Italian marketing campaign for anti-smoking products as pharmaceutical groups gear up to cash in where their rivals in the tobacco sector are losing out - FT
* Canary Wharf's owners may sell more than 1 bln stg of property in the next few months to take advantage of strong market conditions - FT
* UNITED CARPETS, the UK's third-largest retail flooring group, preparing to float on AIM early next month with a valuation of about 20 mln stg, bucking the trend for retailers to go private - FT
* New rules spark higher premiums fear; Norwich chief warns FSA insurance regime will ad pages of paperwork and cost customers 2.80 stg per policy - Telegraph
* NATIONAL GRID TRANSCO threatened with na fine of as much as 12 mln stg a year if there are other major power cuts like the ones experienced in London and Birmingham last year - Telegraph

MONDAY PRESS COMMENT
FT
THE LEX COLUMN comments on Oil acquisitions, US Treasuries, IPO auctions
Independent
Small Talk: Stephen Foley comments on UNITED CARPETS (planning stock market flotation), BELGRAVIUM TECHNOLOGIES (wins its biggest ever single order, worth in the region of 750,000 stg), SECTORGUARD (watch out for news of a maiden dividend), MATRIX COMMUNICATIONS (full-year results today), ONETV (starts broadcasting next Monday), Tips from Dresdner: T CLARKE, NSB RETAIL, ABACUS, BRAMMER, UBC MEDIA

Morning all.

Shares in Allied Domecq PLC and Pernod Ricard SA have been downgraded to 'hold' from 'buy' at Deutsche Bank, dealers said.

In a note to clients on the beverages sector, the German broker said that for the first time since 1999, it was turning more cautious on the spirits sector after a significant re-rating of the industry, hence the downgrade on Allied and Pernod.

Deutsche Bank reduced its estimates for the spirits industry by 2-4 pct to account for recent US dollar weakness and cut its stance on the sector to 'neutral'.

In contrast, Deutsche Bank argued that the brewing sector 'offers investors the scope to participate in buoyant economic conditions in many emerging markets this year'.

It said it recommends an 'overweight' position in the sub-sector and remains positive on InBev and Scottish & Newcastle PLC, as the likelihood of earnings upgrades in 2005 'should ensure their continued outperformance'.

At 8.15 am, shares in Allied Domecq lost 2 pence to 501 and Pernod Ricard dropped 0.7 eur to 113.5, while shares in InBev were up 0.08 eur at 28.98 eur, and Scottish & Newcastle was unchanged at 433 pence.

Shares in Diageo PLC fell in early trade after Dresdner Kleinwort Wasserstein downgraded its rating on the stock to 'hold' from 'add' after a strong run, dealers said.

STOCKWATCH RWE, Centrica upgraded, Scottish & Southern downgraded by WestLB

Good morning all. BARC doing well this morning. Wells Fargo rumours??

Morning all,

Lots to read - all very useful and interesting, thanks all.

Looks like you scared them all off for the day Little Woman? And they are not in the T Rooms either!!!!

Yes - it seems to becoming a habit of mine! :-)