Morning all. Market reports:

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

Troubled investment bank Merrill Lynch is to receive $6.6bn (3.3bn) of additional capital in a bid to shore up its balance sheet ahead of what are expected to be damaging fourth-quarter results.
Merrill Lynch raises $6.6bn to shore up sub-prime losses

The three wealthiest Japanese finance houses are set to step into the worsening sub-prime carnage as the silent investment partners of Wall Street and Europe's stricken banking titans.
Japanese banks stand ready to bail out stricken US firms

Rumours of an emergency rate cut over coming days by the US Federal Reserve have swept the global markets, setting off a fresh plunge in the dollar. Lorenzo Bini-Smaghi, a member of the European Central Bank's executive council, warned that the tumbling dollar may now start to foreclose the option of US rate cuts and force the Fed to keep monetary policy tighter than it would like.
ECB warns crashing dollar may stop Fed cuts

Stock indexes in Asia fell between 1-3 per cent and the dollar hit a 2-and-a-half-year low against the yen on Wednesday after a record loss at financial powerhouse Citigroup and weak U.S. retail sales entrenched fears the worlds top economy may slide into recession.
US recession fears sink Asian stocks

Inflation is above the Bank of England's target for the third month in a row, raising doubts that it will cut interest rates as fast as the market expects this year.
Inflation puts urgent rate cut in doubt

Falls in house prices across the country may now be at their most severe since the property slump of the early Nineties, according to bleak figures today suggesting that Britain's housing downturn is gathering pace.
RICS says that house price falls are worst since slump of early Nineties

Britain's property market was dealt a double blow yesterday as the prices of shops, offices and warehouses suffered their fastest monthly fall for 21 years and Taylor Wimpey, the country's largest housebuilder, said that the spring housing market would be late and subdued.
Property market reels as gloom descends on commercial and residential sectors

The shares of shipping companies have plummeted across the world on fears of a sharp economic slowdown as contagion from the US housing slump reaches Europe and Asia.
Baltic dry index spooks shipping shares

NIKKEI	AUSTRALIA	SHANGHAI	HANG SENG

TFN economic and business calendarAustralian shares close lower for eighth straight session on Wall St sell-offThomson Financial Europe AM at a glance share guide: Stocks, oil down

Australian shares close lower again on Wall St sell-off - UPDATE

Good morning traders!

In Asia today, the Nikkei closed down 468.12 points at 13,5044.51, while the Hang
Seng ended the morning down 1,022.17 points (3.96%) at 24,815.61.

New York's main oil futures contract, light sweet crude for delivery in February, fell
18 cents to $91.72 per barrel. The contract closed $2.30 lower at $91.90 in
trading at the New York Mercantile Exchange Tuesday.

Happy trading!

G.

Tokyo shares close sharply lower on subprime concernsTFN UK calendar and forecasts for today

BROKERWATCH Millennium & Copthorne downgraded to 'hold' from 'buy' at CitigroupLondon shares outlook - lower, miners in focus after Rio Tinto update; NY slumps

BROKERWATCH British Airways upgraded to 'buy' from 'neutral' at Goldman SachsThe Wednesday Press Roundup

BROKERWATCH Linde raised to 'buy' from 'neutral' at UBS, target upped to 120 eurBROKERWATCH Pearson upped to 'overweight' from 'equal-weight' at Morgan StanleyThomson Financial UK at a glance share guideTokyo shares close sharply lower on subprime concerns - UPDATE

BROKERWATCH Diageo upped to 'overweight' from 'equal-weight' at Lehman BrothersBROKERWATCH AstraZeneca upgraded to 'buy' from 'neutral' at Goldman SachsBROKERWATCH Tate & Lyle downgraded to 'neutral' vs 'buy' at UBS, target 515p

BROKERWATCH SABMiller cut to 'equal-weight' from 'overweight' at Lehman BrothersBROKERWATCH Telenor cut to 'underweight' in Lehman Brothers telecoms review

BROKERWATCH Wolters Kluwer upped to 'overweight' in sector review at JP Morgan

Experian (EXPN) say they see FY profit in line, but no improvement in Q4 trading conditions. Organic growth is below expectations and cantor are calling it lower. Rio Tinto (RIO) say their fourth quarter was strong. Soco (SIA) have been granted an extension in Vietnam.

AstraZeneca (AZN) has been upgraded to buy from neutral by Goldman Sachs. Vodafone (VOD) has been downgraded to equal-weight from overweight by Lehman Brothers, who have a negative sector note out today. Tate & Lyle (TATE) has been downgraded to neutral from buy by UBS with a 515 target after yesterday's 3% rise. Diageo (DGE) has been upgraded to overweight from equal-weight with at 1200 target by Lehman Brothers. British Airways (BAY) has been upgraded to buy from neutral with a lowered target of 330 from 350 by Goldman Sachs. Pearson (PSON) has been upgraded to overweight from equal-weight by Morgan Stanley with a 785 target. Millenium & Copthorne (CPG) has been downgraded to hold from buy by Citigroup.

Woolworths (WLW) are in-line, they say sales were up 11.2%, Christmas like-for-like 3.2%, and the retail division should return to profitability this year, but they are anticipating higher costs and lower margins. Cantor are calling it 0.5p higher. Mothercare (MTC) say they are at the upper end of expectations. Clarkson (CKN) say second half trading will be substantially ahead of expectations despite the weak dollar. Game Group (GMG) have had their takeover of Game Station cleared by the Competition Commission.

Among the small-caps, ClinPhone (CNP) say full year results will be materially ahead despite their disasters last year. Chinese software company Sinosoft (SFT) say revenue growth is less than anticipated but claim that changes in the Chinese tax system will not effect their business. There's a drilling update from Jubilee Platinum (JLP)confirming platinum findings. Rambler Metals & Mining (RMM) have found gold and copper.

The FTSE is currently being called down 36 at 5,989 by CMC. Dow futures are currently being called down 66 at 12,435 after yesterday's 277 point fall. Intel's results in the US were bad and they were down 14% after hours. The Nikkei closed down 3.3%, but the Hang Seng is currently down over 5.5% and falling.

UK smallcap opening - Summit Corp up as Phase 11 trials for sialorrhoea begin

First Day of Dealings

UK smallcap opening - Gold Frost adrift on FY profits warning

London shares open lower after Wall Street slump; Rio Tinto falls post updateUK smallcap opening - Food & Drink plunges on results delay, forecast

UK smallcap opening - C&C dips after FY revenue warning

UK smallcap opening - Mothercare off on post-update profit-taking

STOCKWATCH Scottish & Southern rises; windfarm consent; SG initiates with 'buy'