BP UPGRADED TO 'BUY' FROM 'HOLD' AT ING, TARGET UPPED TO 620P FROM 617P

IMPERIAL TOBACCO UPGRADED TO 'OUTPERFORM' FROM 'IN-LINE' BY GOLDMAN SACHS

CARPHONE WAREHOUSE UPGRADED TO 'NEUTRAL' FROM 'UNDERWEIGHT' BY JP MORGAN

ARM UPGRADED TO 'OVERWEIGHT' VS 'EQUAL-WEIGHT' AT MORGAN STANLEY

PILLAR PROPERTY UPGRADED TO 'BUY' FROM 'NEUTRAL' BY MERRILL LYNCH

AFX UK at a glance share guide - 2

MARKETS
FTSE 100 4,845.5, down 19.4
FTSE 250 6,953.7, down 63.1
DJIA 10,151.10, down 91.40
Nasdaq Comp 1,927.44, down 23.34
S&P 50 1,151.75, down 10.35
Tokyo: Nikkei closed at 11,005.42, down 30.41
Hang Seng midday 13,830.38, down 29.20
Gold 435.97 usd (433.40 usd)
Oil - Brent June 54.14 usd (54.40 usd)

BREAKING NEWS
* Howard galvanises Tory vote; poll shows Conservative leader is motivating supporters; Blair lead down to two percentage points among those certain to vote - FT
* PRUDENTIAL to refuse to pay "claims handlers", the unregulated firms that take on customers' mis-selling claims in return for up to half of the compensation payments - FT
* ROYAL DUTCH/SHELL could lose out on the right to develop an Omani oilfield just months after it signed a deal with the sultinate to develop its deposits for the next 40 years - FT
* TESCO leaves open the possibility of a bid for Tansas, one of the top three Turkish supermarket chains - FT
* Lenders reject demand from EUROTUNNEL for 4 bln stg write-off - Independent
* Sky (BSKYB) facing increased threat after E4 channel switches to Freeview - Independent
* LAND SECURITIES poised to announce sale of 30 Gresham Street for more than 300 mln stg - Times

PRESS COMMENT
FT
THE LEX COLUMN comments on ALLIED DOMECQ (Constellation not seen as a credible cheerleader for a rival bid), Corporate investment, UK supermarkets, BP (remains an attractive investment) - SURFCONTROL (seem expensive, unless you see the company as an eventual acquisition target for a bigger security consolidater)
Express
MARCH NETWORKS (traders expect a strong market debut today) - SHARE WHISPER: BROWN & JACKSON (prospects for new financial year being talked down because of the worsening retail climate and fading impact of store conversions) - WHO'S DEALING: DURLACHER (two directors pick up 25,200 shares each at 112-1/2 pence)
Mail
WYNDEHAM PRESS (Numis remains bullish, advising a switch out of ST.IVES
Independent
THE INVESTMENT COLUMN: TAYLOR WOODROW (hold for the long term, or for a takeover bid), CARPETRIGHT (avoid), SURFCONTROL (avoid) - ID DATA (whispers it is putting the finishing touches on a major fund raising)
Guardian
OXFORD BIOMEDICA (speculation that it is in America discussing a takeover with either Genentech or Johnson & Johnson) - KINGFISHER (speculation that rival Home Depot might be tempted to take advantage of its low share price to launch a bid)
Telegraph
QUESTOR: BP (keep holding on), IMPERIAL TOBACCO (not cheap and far from risk free, but still worth holding), CARPETRIGHT (take those reduced profits now)
Times
MARCH NETWORKS (tipped to trade at a 10 pct premium when it makes its AIM debut today) - DIRECTORS' DEALINGS: SYGEN INTERNATIONAL (director buys 30,000 shares at 40-1/4 pence) - TEMPUS: IMPERIAL TOBACCO (worth holding), RUGBY ESTATES (buy), ML LABORATORIES (buy)

Good morning all.

Morning all.

Good Morning all

Well, one of those days when do really well, lose a fortune, or, probably more wisely, sit on your hands. A mix of all three for me. ;-)

With the US rallying a little, it will make for an interesting follow-up session tomorrow.

See you then.

G.