AFX TOP STORIES UK 1105 GMT.

(From AFX Europe (Focus))

LONDON (AFX) - Here are the top stories on AFX News Friends Provident FY pretax profit down 3 pct; 2008 targets in doubt LONDON (AFX) - Shares in Friends Provident PLC slumped after the UK insurer reported a 3 pct decline in full-year profit, blaming a weaker performance at its asset management division, and warned that "challenging" market conditions could jeopardise its 2008 earnings target. Friends, the UK's sixth-biggest life insurer, reported an underlying pretax profit for the year of 509 mln stg on an European Embedded Value Basis, down from 524 mln stg the previous year. UK Feb CPI inflation up unexpected 2.8 pct over yr, 2nd highest in 12 yrs LONDON (AFX) - The odds of another interest rate increase in the UK in the next couple of months may well shorten after official figures showed the …