MARKETS
FTSE 100 4,840.7, down 13.4
FTSE 250 6,957.2, down 6.8
DJIA 10,621.00, up 17.00
Nasdaq Comp 2,097.04, up 8.43
S&P 500 1,190.25, up 4.05
Tokyo: Nikkei closed at 11,539.99 up 106.75
Hang Seng midday 13,495.56, down 35.83
Gold 420.10 usd (418.45 usd)
Oil - Brent Feb 42.92 usd (43.18 usd)

BREAKING NEWS
* Key NHS reform scaled back; trials of hospital payment scheme found evidence of manipulation; fears of financial chaos prompt ministers to restrict plans - FT
* General Motors review asks if Saab has a future - FT
* News Corporation set to acquire full control of Fox Entertainment, its US TV and studio affiliate, in an all-share deal worth 3.14 bln stg
* MAN GROUP, the world's largest quoted hedge fund operator, set to issue an unprecedented quarterly trading statement to update the market on total funds under management - FT
* A last-minute shopping rush coupled with strong clearance sales were not enough to spare the high street its worst Christmas in a decade, according to the British Retail Consortium; like-for-like sales contracted by 0.4 pct in December after a fall of 0.2 pct in November, according to the BRC/KPMG retail sales monitor - FT
* Rock Pacific postpones plans for COUNTRYSIDE PROPERTIES bid
* ASTRAZENECA drug (Crestor) linked to patient's death - Guardian
* GLAXOSMITHKLINE stops selling Viagra rival that performs poorly - Guardian

PRESS COMMENT
FT
THE LEX COLUMN comments on STANDARD CHARTERED's acquisition of Korea First Bank, Uranium, BSKYB, News Corp/Fox - PACE MICRO (investors would do well to wait and see if the company can deliver on US promises before they get too excited) - MARKET MOVERS: XTL BIOPHARMACEUTICALS (get boost from EGM request)
Mail
PLANIT HOLDINGS (Daniel Stewart repeats buy) - SPORTINGBET (HILTON bid speculation)
Express
WHO'S DEALING: CAMBRIAN MINING (director buys 10,000 shares at 173 pence) - SHARE WHISPER: LONDON SCOTTISH BANK (renewed takeover talk) - BROKER'S VIEW: ICI (Merrill Lynch removes its buy advice)
Times
DIRECTORS' DEALINGS: EXPRO INTERNATIONAL (directors buy stock) - TEMPUS: WILLIAM HILL (buy), TAYLOR WOODROW (avoid), ANTISOMA (buy)
Telegraph
QUESTOR: EASYJET (for the long-haul investor, worth holding), PACE MICRO (not high, but a touch expensive, considering the risk of disappointment), DOMINO'S PIZZA (worth hanging on to)
Guardian
NXT (rumours it will take advantage of share price rise to raise fresh capital)
Independent
INVESTMENT COLUMN: MYTRAVEL (cannot, at this stage, be responsibly recommended), DOMINO'S PIZZA (worth owning for the long-term), ENTERPRISE (hold)

REUTERS UPGRADED TO 'BUY' VS 'NEUTRAL' AT UBS



Aviva PLC has been downgraded to 'underweight' from 'equalweight' by Morgan Stanley in a cautious report on the UK Life Assurance sector, dealers said.
Morgan Stanley said although growth is slowly returning to the UK life market, it believes this is largely discounted in stock prices.
Looking at individual stocks, Morgan Stanley highlighted Aviva as the best performing UK life stock in 2004. While Morgan Stanley believes general insurance results will be robust, in the broker's view, the valuation is stretched at current levels.
Morgan Stanley has also downgraded its recommendation on Legal & General Group PLC, cutting it to 'equalweight' from 'overweight'. Morgan Stanley said L&G continues to execute well and has strong sales momentum, but added it believes the stock offers limited upside at current levels.
Morgan Stanley advised investors looking to maintain UK life sector exposure should consider Skandia Insurance Co Ltd.
Morgan Stanley has 'equalweight' ratings on Royal & Sun Alliance Insurance Group PLC and Prudential PLC, while it maintained its 'underweight' stance on Friends Provident PLC.

Morning all

Morning all.

Someone is dumping Morrisons this morning, is it pre trading statement?

I need to look.................

Holders be aware.

I hope things have not gone quiet because posters are from the Carlise area - if they are, then my thoughts are with you.

Morning all,its a great day.

MRW in line, nothing to write home about so it's profit taking.

Morning all from a dry and windy North Wales.