MARKETS
FTSE 100 4,777.4, up 44.4
FTSE 250 6,843.5, up 32.6
DJIA 10,815.90, up 56.50
Nasdaq Comp 2,157.03, up 6.12
S&P 500 1,209.55, up 4.10
Tokyo: Nikkei closed
Hang Seng midday 14,158.07, up 6.99
Gold 440.05 usd (441.20 usd)
Oil - Brent Feb 40.64 usd (42.37 usd)

BREAKING NEWS
* Microsoft loses EU appeal; blow to US giant as court upholds immediate implementation of sanctions; Judge's ruling is boost for Europe's antitrust watchdog - FT
* Rosneft takes control of Yukos unit in Russian oil re-nationalisation move - FT
* JARVIS sells its European Roads business to French roads company Somaro for 24.5 mln stg and confirms it is in talks with Spain's Ferrovial Group to sell its stake in Tube Lines - FT
* New indicative bid proposal for QXL RICARDO; Kenn Robson and Andrin Bachmann put forward an indicative cash offer of 800 pence per share, trumping a previous offer of 700 pence from Tiger Acquisition Corporation - FT
* DAVIS SERVICE GROUP confirms talks to sell Elliott, its modular buildings division
* Deutsche Borse chief executive Werner Seifert curries favour with City grandees; representatives to be invited to join the board if Deutsche pulls off its LONDON STOCK EXCHANGE takeover - Telegraph
* A fire at photo booth firm PHOTO-ME INTERNATIONAL destroys "millions of pounds" worth of stock, although it says losses will be covered by insurance - Telegraph
* Mis-selling BRADFORD & BINGLEY fined and told to pay out 6 mln stg - Mail

PRESS COMMENT
FT
THE LEX COLUMN comments on Microsoft, Fannie Mae, Christmas markets
Telegraph
QUESTOR: GEORGE WIMPEY (worth holding), HOLIDAYBREAK (about right), ASOS (most should avoid until the shares have calmed down)
Mail
WH IRELAND (revived takeover hopes)
Times
DIRECTORS' DEALINGS: MORSE (three directors buy stock) - WYEVALE GARDEN CENTRES (Laxey Partners has built a 12.4 pct stake) - TEMPUS: HOLIDAYBREAK (buy), SAVILLS (lock in some profits), AMVESCAP (hold) - ITV (investors switch out of ITV on back of audience data)
Independent
REUTERS (traders convinced that group's trading update next month will impress) - DOMINO PRINTING (whispers a US player is poised to table a bid)
Guardian
DWYKA DIAMONDS (talk of a tie-up with De Beers)
Express
ANKER (traders expect a strong debut today) - WHO'S DEALING: HEADLAM (chief executive exercises options over 300,000 shares at 128 pence before selling them at 405 pence each) - SHARE WHISPER: GAMING INSIGHT (speculation an acquisition is on the cards) - BROKER'S VIEW: ISOFT (ABN Amro maintains buy support)

Morning all.

UK and European brokers' recommendations issued today, as collated by AFX News from a range of market sources.


CSFB
Downgrade Neutral from outperform George Wimpey -- Downgrade Neutral from outperform EDP

MORGAN STANLEY
Downgrade Underweight from equal-weight Acciona, prefer ACS -- Reiterate Equal-weight Reuters, ups target to 400 pence from 345, cuts estimates

UBS
Downgrade Neutral from buy Mayr-Melnhof -- Reiterate Neutral Invensys, ups target to 16 pence from 15 -- Neutral Arriva, ups target to 500 pence from 440 -- Neutral Helical Bar, ups target to 1,160 pence from 1,085 -- Neutral Confinimo, ups target to 114 eur from 106 -- Buy Beni Stabli, ups target to 86 eur from 80 -- Buy EFG Eurobank, ups target to 30.0 eur from 25.5

BRIDGEWELL SECURITIES
Specialist Financials: Key buys for 2005 are Close Brothers and Brewin Dolphin; key sell Amvescap; Upgrade Buy from overweight ICAP; Upgrade Neutral from underweight London Stock Exchange, switch to ICAP; Upgrade Overweight from neutral Kensington; Downgrade Sell from neutral Amvescap, switch to HHG; Downgrade Neutral from overweight Collins Stewart Tullett, switch to ICAP; Downgrade Neutral from overweight F&C Asset Management, switch to ICAP; Downgrade Neutral from overweight Provident Financial, switch to Cattles; Downgrade Neutral from overweight London Scottish Bank, switch to Cattles; Downgrade Neutral from overweight Rensburg, switch to Brewin Dolphin

DEUTSCHE BANK
Downgrade Hold from buy Zapf Creation

ABN AMRO
Downgrade Sell from reduce Zapf Creation

SG SECURITIES
Downgrade Hold from buy Boiron, fair value 27 eur

ARBUTHNOT
Upgrade Buy from hold Holidaybreak, ups estimates

SEYMOUR PIERCE
Downgrade Outperform from buy Dobbies Garden Centres

MERRILL LYNCH
Reiterate Buy SIG, ups target to 600 pence

GOLDMAN SACHS
Reiterate Outperform Actelion, ups fair value to 195 sfr

CITIGROUP SMITH BARNEY
Reiterate Buy VNU, ups target to 26 eur from 24.5

PANMURE GORDON
Reiterate Buy Capital Radio, 430 pence target under review

EVOLUTION
WH Smith, ups target to 300 pence from 285