LONDON (AFX) - MARKETS
FTSE 100 4,787.7, up 10.3
FTSE 250 6,873.00, up 29.5
DJIA 10,827.12, up 11.23
Nasdaq Comp 2,160.62, up 3.59
S&P 500 1,210.13, up 0.56
Tokyo: Nikkei closed at 11.365.48, up 156.04
Hang Seng midday: 14,194.90, down 40.39
Gold 440.67 usd (440.05 usd)
Oil - Brent Feb 40.71 usd (40.64 usd)

BREAKING NEWS
* US threat to UK defence groups over China arms; Pentagon decries
European plans to lift embargo imposed after Tiananmen Square; 'They're
talking about helping the Chinese kill Americans more effectively. This
is not what Europeans should be doing' PENTAGON OFFICIAL - FT
* HSBC set to buy Korea First Bank in a 1.56 bln stg deal which will
give it a foothold in one of the fastest-growing Asian economies and put
it head to head with its US rival Citigroup - Independant
* Britain's mobile phone industry bringing in a voluntary code of
conduct next month to stop consumers being ripped off by misleading
premium-rate entertainment services - FT
* The three founders of Ocado plan to float the oneline retailer, which
sells Waitrose food, in 18 months time, valuing their combined
shareholding at almost 100 mln stg and establishing the company as one
of the UK's most financially successful e-tailers - FT
* Tensions between the Dutch arm of CORUS and the steel group's
London-based board flare into open conflict again over the dismissal of
the chairman of the Dutch management board - FT
* HSBC will be the first bank to open on a public holiday and hold a
"January sale" offering special deals on mortgages and loans - FT
* Way cleared last night for a 3 bln stg flotation of 3, the mobile
phone business, after Hutchison Whampoa, its parent, announces plans to
list an Italian subsidiary - Times
* BRITANNIC ASSURANCE switches two-thirds of its 1,118.5 mln stg staff
pension scheme from equities into bonds - FT
* Euronext will 'struggle' to justify LONDON STOCK EXCHANGE bid; BNP
Paribas report says a successful takeover would need to extract a
mountain of cost savings - Telegraph
* The biggest hotel in Monte Carlo becomes the first acquisition by a
new 800 mln stg joint venture between HBOS, Fairmont, the Canadian hotel
operator, and Prince Alwaleed bin Talal, the Saudi billionaire - FT
* Iraq awards its first post-Saddam Hussein oil contract to a
Turkish-British Iraqi consortium - FT
* Fresh snag hits split caps deal; last-minute wrangle risks derailing
agreement on investor compensation; COLLINS STEWART could pull out over
legal-action clause - FT
* HOLIDAYBREAK buys Djoser, a privately-owned Dutch adventure company,
for 15.9 mln stg
* Prospect of Allders, the department store group, being broken up
comes closer as parent Scarlett Retail reveals that a number of
interested parties from the UK and abroad have begun due diligence - FT
* THE TELEVISION CORPORATION sells sports facilities arm, Visions, to
US outside broadcast firm NEP for 16.8 mln stg
* A company which has invented a revolutionary treatment for premature
ejaculation is going public; PLETHORA SOLUTIONS will float on the stock
exchange at an expected value of 25 mln stg - Sun
* P&O bids adios to La Manga for 100 mln stg - Times

PRESS COMMENT
FT
THE LEX COLUMN comments on the purchase by state-owned oil group
Rosneft of Yuganskneftegaz, the main production unit of Yukos (investors
should consider the risk that re-nationalisation will not stop at
Yukos), UK property (caution is definitely warranted after this year's
strong showing; but it may be too early to write off the repricing in UK
commercial property), North Atlantic travel (unless price cuts are
matched by cost cuts, US and European airlines are going to have another
tough year)
Independent
LONDON CLUBS (market tips the casino operator to be bought by Malaysian
conglomerate Genting Berhad in the new year) - GOOCH & HOUSEGO (talk it
is enjoying strong demand for its optical products) - OVOCA RESOURCES
(talk that a number of mining sector heavy hitters may be about to join
its board)
Times
RUMOUR OF THE DAY (DEAL GROUP MEDIA (rumours that Durlacher has cleared
an overhang of five mln shares) - DIRECTORS' DEALINGS: TRAVIS PERKINS
(chief executive sells stock for 1.35 mln stg after exercising options)
- BAE SYSTEMS (dips on prospect of higher spending in Saudi Arabia) -
FRENCH CONNECTION (suggestions that Stephen Marks or a private equity
house may look to take it private)
Express
WHO'S DEALING: PENNA CONSULTING (director snaps up 600,000 shares at
135 pence) - SHARE WHISPER: FRENCH CONNECTION (vague bid speculation) -
BROKER'S VIEW: REUTERS (Morgan Stanley positive)
Mail
MM02 (Dresdner Kleinwort positive)
Guardian
ARC INTERNATIONAL (word it is set to announce a contract for its
configurable processor cores with a leading American company) - GAMES
WORKSHOP (talk it has enjoyed a bumper Christmas) - IMMUNODIAGNOSTIC
SYSTEMS HOLDINGS (tipped for a solid market debut this morning)

Morning all,digger i thought you would of had the day off today,merry christmas and a happy new year,and be lucky,thanks for all the updates.

Morning all. Morning Dave and Digger. Have a good Christmas
to everyone on the Traders' Thread and thanks for all the
comment :-)

Morning all,

I seem to have become a lurker! I drop into the site several times a day, but don't have time to post.....