MARKETS

FTSE 100 4,982.0 up 19.9

FTSE 250 7,266.60 up 35.2

DJIA 10,774.36 down 77.15

Nasdaq Comp 2,041.60 down 18.12

S&P 500 1,200.08 down 9.17

Gold 446.32 usd (441.05 usd)

Oil - Brent Apr 53.10 usd (52.66 usd)



BREAKING NEWS - WEEKEND

* 'UK will run out of gas if cold snap returns' as manufacturers fear

forced shutdowns, analysts warn prices will soar 30 pct - Sunday

Telegraph

* BRITISH AIRWAYS about to stun the industry by becoming the world's

most profitable airline for an unprecedented second successive year; the

company will report operating profits of more than 525 mln stg for the

year ending March 31 when it announces final results in May - Mail on

Sunday

* Staff at BRITISH AIRWAYS bracing themselves for a savage round of job

cuts under the airline's new chief executive, Willie Walsh - Observer

* Rod Eddington to place merger with Iberia in new BA boss's in-tray -

Independent on Sunday

* International bidders led by French games maker Ubisoft circling Lara

Croft-founder EIDOS since last week's news that it could soon be game

over for the company; various trade players - also including Activision,

Electronic Arts and THQ - thought to be interested - Sunday Express

* J SAINSBURY lines up young guns for the board; those thought to be in

the frame are Darren Shapland, the 37-year-old finance director at

CARPETRIGHT, Judith McKenna, chief financial officer at Asda, and Phil

Dutton, group finance director of MATALAN - Observer

* VODAFONE expected early this week to make an agreed cash offer of

about 2 bln stg for controlling stakes in Mobilfon of Romania and Oskar

Mobil of the Czech Republic - Sunday Times

* Gazprom, the recently nationalised Russian gas giant, about to muscle

in on SHELL's 12 bln usd pipeline Sakhalin-2 oil and gas project; but

the move will help Shell to placate the Russian government and possibly

ensure that it escapes unwelcome political interference - Observer

* Investors in PEARSON warning that it must appoint a chairman willing

to push through radical reforms if it is to avoid pressure for a

break-up of the business - Observer

* MARKS & SPENCER buying supremo Lesley Torson quits, leaving the

retailer struggling to find a replacement and fill other key vacancies -

Sunday Express

* Lord Hollick expected to sell UNITED BUSINESS MEDIA's stake in

television station Five - valued at 220 mln stg by ABN Amro - to

German-owned media company RTL within weeks - Mail on Sunday

* Brown's spending spree threatening UK growth - Bank of America - The

Business

* The Treasury has privately pledged up to 3 bln stg of the 10 bln

total needed to build Crossrail, the vital new train link across London,

according to the capital's mayor, Ken Livingstone - Sunday Express

* LONDON STOCK EXCHANGE working on a 'plan B' to return substantial

amounts of capital to its investors if merger talks with Euronext fail -

Sunday Times

* Long, drawn-out takeover of the LONDON STOCK EXCHANGE in danger of

falling apart because chief executive Clara Furse wants Euronext to pay

at least 6 stg a share - The Business

* Euronext will refuse to bid for the LONDON STOCK EXCHANGE unless

chief executive Clara Furse drops her demand for at least 590 pence a

share - Mail on Sunday

* The Children's Investment Fund, the aggressive hedge fund, sends a

warning to Euronext that it believes 'all of the largest shareholders'

in the Paris-based group oppose it making an offer for the LONDON STOCK

EXCHANGE 'materially above' 400 pence a share, or 1.02 bln stg - Sunday

Telegraph

* BOC set to conclude the 300 mln stg sale of Afrox Healthcare to a

consortium of Black Economic Empowerment investors led by Brimstone

Investment Corporation and Mvelaphanda Strategic Investments - Sunday

Express

* Restaurant chain PIZZAEXPRESS to join forces with ASK CENTRAL when it

returns to the market later this year in a deal thought to be worth 800

mln stg - Sunday Express

* CHRYSALIS puts its books division up for sale - Sunday Express

* Malcolm Glazer, the American tycoon who is trying to buy MANCHESTER

UNITED, seeking guarantees from his lenders that they will provide

funding for a bid regardless of whether he secures a recommendation from

the board - Sunday Times

* Malcolm Glazer close to launching his long-awaited 800 mln stg bid

for MANCHESTER UNITED, according to City sources - Observer

* Some of the world's leading nuclear companies lining up UK partners

to prepare bids for an 8 bln stg reactor-building programme, which is

expected to be announced after the election - Independent on Sunday

* Howard Dodd, the finance director of BOOTS, the ailing health and

beauty retailer, resigns following a series of earnings downgrades at

the group - Sunday Telegraph

* MM02 close to securing a 350 mln stg contract to provide a new secure

communications system for the UK ambulance service - Sunday Telegraph

* Standard Life will reveal this week that its solvency has only

marginally improved in the past 12 months, despite cutting more than

2,000 jobs, slashing bonus rates to policyholders and benefiting from a

stock market recovery - The Business

* France Telecom to step up its price war against BT by offering

low-cost quadruple-play services; its two subsidiaries in the UK -

Orange and Wanadoo - will undercut BT with unlimited phone calls,

television, video on demand and broadband internet services over the

same line - The Business

* Blair relents over terror bill; crucial compromise on call for

'sunset clause'; liberty of suspects to be limited without trial; new

law can be voted on again in year's time - Saturday FT

* Demand for venture capital funds slows - Saturday FT

* Increase in global oil demand illustrates need for alternatives, says

International Energy Agency - Saturday FT

* Consumer demand for foreign goods widens US trade deficit to 58.3 bln

usd

* Unless the government can cut a deal over changes to the public

sector retirement age, industrial action is planned for March 23 in what

could be the biggest one-day walkout since the General Strike in 1926 -

Saturday FT

* Tony DeNunzio, chief executive of Asda, becomes the latest retail

executive to go into private equity as he quits the Wal-Mart chain to

join Royal Vendex

* WHITBREAD says it could sell its entire UK chain of Marriott Hotels,

raising hopes of a large cash windfall for shareholders; the company

confirms it might sell its 52 Marriotts, which are worth an estimated 1

bln stg - Saturday FT

* BRITISH AMERICAN TOBACCO and its European rivals facing a

multi-million pound flood of compensation claims from smokers following

a landmark legal defeat in the Italian courts Saturday Mail

* Internet poker to light up screens; PARTYGAMING considering a

flotation as the popularity of the card game soars; bankers who have

seen the group's accounts say it could be worth at least 2.3 bln stg -

Saturday FT

* BRITISH VITA under growing pressure to open its books after a hint

from Texas Pacific that it may raise its 658 mln stg takeover offer -

Saturday Express

* Watchdog calls for beer-pricing probe; move comes after the

Competition Commission stops the merger between Serviced Dispense

Equipment, owned jointly by SCOTTISH & NEWCASTLE and Carlsberg UK, and

the services arm of Carling brewer Coors - Saturday Express

* PO NA NA, the bar chain that also owns the Hammersmith Palais

nightclub, put on the market; the chain's main backer, Avanti Capital,

hopes to raise 15 mln stg from the sale - Sunday Times

* Television production company ENTERTAINMENT NOW planning to bring ITV

show Stars In Their Eyes to the stage - Sunday Express

* American radio and pop concert giant Clear Channel Communications

preparing a takeover bid for MEAN FIDDLER; Vince Power, Mean Fiddler's

founder and 34.9 pct shareholder, agrees to sell his stake to Clear

Channel for 60 pence a share, valuing the business at 37 mln stg -

Saturday Independent

* FKI sees its credit rating downgraded to junk status amid concerns

about its ability to service 310 mln stg of debt



SATURDAY PRESS COMMENT

FT

THE LEX COLUMN comments on the new wave of property sales by the likes

of Accor and INTERCONTINENTAL, Thales (political horse trading mitigates

against a big takeover premium amd often produces highly unpredictable

results), Billionaires, General Motors bonds (the debt markets have paid

more attention to GM's problems than Ford's or Fiat's; whatever the

long-term outlook, that has made GM's short-dated bonds look cheap

compared with rivals) - Weekend share watch: CRYPTOLOGIC (for now, the

shares may not be worth the gamble), CENTER PARCS (if no upturn

materialises, a predator may well), BIOFUELS (with oil prices likely to

stay high, the market for alternatives can only expand) - Market report:

J SAINSBURY (speculation that Carrefour or Target of the US could move

for the supermarket retailer), TAYLOR WOODROW (talk of a bid from

PERSIMMON) - ANALYST WATCH: ROYAL BANK OF SCOTLAND (Scot should be

flying higher; while it retains a reputation as an aggressive bidder

there may be no upside for shares) - MY PORTFOLIO: Peter Temple comments

on ERINACEOUS, CANTERBURY FOODS and PHYTOPHARM



Express

MARKET REPORT: COMPASS GROUP (gossips say a major US buyout group might

be interested), WOOLWORTHS (talk that Apax Partners will return next

week with a fresh offer)



Independent

No Pain, No Gain: Derek Pain comments on MACLELLAN (even if SPICE turns

out to be the bidder and gains support of the MacLellan board, I would

caution against rushing to accept; rival support groups could be tempted

to chance their arm; they include ISS, a Danish operation, and MITIE),

PROFILE MEDIA (facilities extension could indicate that Profile's

directors, as well as its banker, believe there is a strong chance a

solution is within reach), CHORION



Independent

Market report: MONTERRICO METALS/ANTOFAGASTA (both touted as possible

targets for XSTRATA), J SAINSBURY (Target bid speculation), COOKSON

(chart break-out), DAT GROUP (rumours it is close to a major deal with

Microsoft)



Guardian

Market forces: WOOLWORTHS (traders says Apax Partners is expected to

return with an offer of 55 pence next week), J SAINSBURY (continued talk

that a shell is being formed to make a bid), DATAMONITOR (talk of a

recent positive analysts' visit), DAT GROUP (investors shown a new email

device DAT has been perfecting as part of its Tabella joint venture with

Dangaard Telecom)



Times

TEMPUS: Richard Irving comments on biotech minnows (if the price of

success for the next generation of drug developers is a share register

littered with risk-takers, then it is a price worth paying) - Market

report: BLOOMS OF BRESSINGHAM (chairman buys 100,000 shares at 51-1/2

pence), WELLINGTON HOLDINGS (murmurs that full-year figures on March 30

will beat forecasts), CORAC GROUP (stock overhang cleared), MONDAS

(stock overhang cleared)



Telegraph

THE MARKET: J SAINSBURY (talk of a bid as high as 350 pence a share,

possibly from a consortium, including the likes of former Asda chairman

Archie Norman), BRAEMAR SEASCOPE/CLARKSON (dealers hoping for

consolidation in shipping sector), DAT GROUP (shows new product to rival

the Blackberry at housebroker Durlacher's offices) - QUESTOR COLUMN:

ASSOCIATED BRITISH FOODS (keep the shares in your cupboard), ALLIANCE &

LEICESTER (worth holding for income investors; but anyone looking for

capital gains should look elsewhere), OTTAKAR'S (investors who like a

nail-biting story and risky punt should take a look)



Mail

MARKET REPORT: EVOLUTION (leading shareholders just have to wait for a

cash bid to materialise for the cash-rich group, or look forward to the

prospect of a possible hefty cash handout - a special dividend; it could

be announced with the annual results on March 22), PROVIDENT FINANCIAL

(talk of a pending bullish circular ahead of next Wednesday's figures),

TOUCHSTONE (broker Hardman & Co bullish) - INVESTMENT EXTRA: Brian

O'Connor comments on ASIA ENERGY/CAMBRIAN MINING (after such a huge

rise, should you chase the shares higher? Probably not; JAMES LATHAM (a

solid share to tuck away)



SUNDAY PRESS COMMENT

The Business

THE ALCHEMIST: Clem Chambers describes SHERWOOD as a classic value

investment - THE BEST OF THE BROKERS: Pernod-Ricard (Pernod's plans for

ALLIED DOMECQ deal fall flat; but Absolut vodka could be next target),

BOVIS (Bovis heads for record in fickle homes market), HOUSE OF FRASER

(HoF set for payoff from card deal) - INSIDE THE MARKET - FUND OF THE

MONTH: BAILLIE GIFFORD JAPAN TRUST (one way to enjoy what we believe

could be an exciting year in Japan); SMALL-CAP INVESTOR: WINDSOR (a

solid long-term buy); AIM INVESTOR: HUVEAUX (buy) - BENCHMARK: Grant

Clelland comments on Vivendi Universal (the best course might be to flog

the remaining assets piecemeal and give the cash to investors;

otherwise, Vivendi will just look like a vehicle to keep directors in

their jobs), BRITISH AIRWAYS (appointment of Willie Walsh is a good one

and leaves the airline well placed for the challenges ahead), BAE

SYSTEMS (BAE is behaving exactly like a global company should, seeking

out new markets where it can), Toys 'R' Us (Wall Street may have gone

M&A crazy this year, but this deal suggests property valuations are

grounding many of those deals in reality)



Mail on Sunday

COMPANIES AND MARKETS: CHAPELTHORPE (rebels close in on 'fat cat'

directors), TEXAS OIL & GAS (investors whose shares have been frozen by

a fraud inquiry and bankruptcy, invited to an extraordinary general

meeting), ENTERTAINMENT RIGHTS (will tomorrow announce it has won the

distribution rights to the latest Barbie film, Barbie And The Magic of

Pegasus, in an agreement with Mattel), NORD ANGLIA (founder has made

nearly 10 mln stg from recent share sales) - MIDAS: AVEVA (buy); MIDAS

UPDATE: CARILLION (we are happy to take handsome profits), MARSHALLS (we

are happy to bank a small profit and sell at 304 pence)



Sunday Telegraph

Equity view - BLUE CHIP VALUES: ANTOFAGASTA (sell), AVIVA (buy); Look

who's trading: ARRIVA (two senior directors have been cashing in; after

a strong run in the shares, investors should bank some profits); SMALL

CAP COMMENT: HOUSE OF FRASER (sell and bank the decent 32 pct profit),

MANAGEMENT CONSULTING GROUP (keep buying), AFRICAN DIAMONDS (buy), UK

BETTING (buy) - NUMBERS GAME: Tony Jackson says buy PEARSON when they're

friendless



Independent on Sunday

MARKET MOVER: WMC RESOURCES (does not expect a rival offer to emerge

and is no longer seeking other proposals)



Sunday Times

JUDGMENT DAY: SHOULD YOU BUY SHARES IN BLACKS LEISURE? Andy Brough,

fund manager at Schroders, says hold, while Tim Steer, fund manager at

New Star, says buy - INSIDE THE CITY: John Waples comments on AVIVA

(good for the long term), REGUS (private investors should stay away);

MARKET MOLE: EMI (Old Mutual's Ashton Bradbury sold his UK Select Mid

Cap Companies fund's entire 950,000-share holding; GAM's AA-rated

recovery expert Andrew Green offloaded 580,000 shares and AA-rated Tony

Willis sold 850,000 of the Lazard UK Alpha fund's share stake to leave

it with 1.9 mln; AA-rated Ted Scott sold the F&C Stewardship Growth

fund's 880,000 shares) - DIRECTORS' DEALS: HBOS (chairman buys 76,000

shares at 831-1/2 pence for about 650,000 stg; BAA (departing retail

director sells nearly 24,000 shares at 601 pence to raise just over

140,000 stg)



Observer

THROG STREET: Richard Wachman comments on KINGFISHER (crunch time for

Gerry Murphy; acquiring Kingfisher would be an ideal way for US rival

Home Depot to launch into Europe; whether it will happen is anyone's

guess, although the hedge funds are betting on it), REUTERS (those

looking for a quick fix to Reuters' problems are likely to be

disappointed)



Sunday Express

BROKERS' NOTES: COUNTRYWIDE (Shore Capital reiterates sell), CARNIVAL

(Morgan Stanley reiterates its overweight rating and 35 stg price

target), ROYAL & SUN ALLIANCE (Shore Capital buy at 86 pence), BARCLAYS

(Teather & Greenwood buy), TRINITY MIRROR (Numis sets a target price of

795 pence)

evening all,

Wanted to check out companies going ex-div this week - but info is not here! Better try somewhere else :-(

little woman - You can pick up the info from the Calendar. Hit the "all messages" button to find it higher up the thread.... :-)

Good morning traders!

In Asia this morning, the Nikkei closed down 73.64 points at 11,850.25, declining for a third day in five sessions.

Back with UK news in a mo...

Happy trading!

G.

KELDA UPGRADED TO 'OVERWEIGHT' FROM 'EQUAL-WEIGHT' BY LEHMAN, NEW TGT 625P

MMO2 UPGRADED TO 'OVERWEIGHT' VS 'NEUTRAL' AT JP MORGAN

Redstone (RED) shares suspended ahead of potential reverse takeover

ALFRED MCALPINE CUT TO 'REDUCE' FROM 'NEUTRAL' BY UBS, TARGET 290P

Morning all.