LONDON (AFX) - The FTSE 100 is set for a modestly positive start to the session, mirroring solid gains in US indices on Friday, with results from O2 and further M&A speculation likely to provide focus for investors, said dealers.
CMC Markets is indicating the FTSE 100 to open up 7 points at 5,472, having closed up 41.6 points at 5,465.1 on Friday.

MARKETS
Tokyo: Nikkei 14,116.04 down 39.02
Hang Seng midday 14,717.27 down 23.33

TODAY'S PRESS
* Microsoft steps up EU fight; software group seeks US support in antitrust battle; memo asks companies to lobby White House and Department of Justice - FT
* Hopes of a deal between Saint-Gobain and BPB quashed as the French company is again rebuffed in its attempt to gain a recommendation for its takeover bid - FT
* Investors fear the growing use of the internet and digital distrbution will erode business models for cable, satellite, telecoms and media groups - FT
* US group Koch buys Georgia-Pacific, the paper and packaging company, for 13 bln usd
* ROYAL DUTCH SHELL and its partners in Nigeria's largest liquefied natural gas project face delays that could cost them more than 1.2 bln usd - FT
* Drax Power disputes suggestions that it has received a bid worth 2.25 bln stg from a consortium led by Constellation Energy - FT

PRESS COMMENT
FT
THE LEX COLUMN comments on bird flu (while the risk of a deadly pandemic is still not great, given the potential damage, it cannot be dismissed lightly, Oil services (investors should still be mindful of the sector's capricious nature), European bonds (bond markets and "conundrum" have become almost synonymous)
Times
Rumour of the day: TAGHMAN ENERGY (understood to have reached a deal to obtain two operating licences and take an option on a third; it is expected to take a 50 pct stake in blocks in belize and Guatemala, with the option on 50 pct of a field in eastern Guatemala
Independent
Small Talk: Michael Jivkov comments on LANGBAR INTERNATIONAL (cash in question: Langbar risks wrath of investors), HITCHENS, HARRISON (will announce it has hired Robyn Harte-Bunting as a technology analyst), BEMA GOLD (takeover target), MEDITERRANEAN OIL & GAS (comes to AIM on Wednesday), CYAN (takes AIM for 27 mln stg market value)

SKYEPHARMA TO REVIEW STRATEGIC OPTIONS, INCLUDING OFFERS FOR THE COMPANY

Morning all.

Midday Market Summary

Good Afternoon all

End-of-day Market Summary