Yet not withstanding a disappointing Christmas, the business is operationally still on an improving trend. RETAIL SALES suffered an unexpected fall last month but confidence rose sharply among consumers and home buyers, according to the latest batch of mixed figures for the new year. The number of retailers reporting a fall in sales outnumbered those seeing a rise by 3 per cent, the worst January for six years according to the CBI, The employers' group said this was a sharp drop from the strong balance of plus 33 per cent in December and reinforced its call for interest rates to stay on hold. "January has proven slightly disappointing for many retailers, after the mixed performance in the run-up to Christmas," Ian McCafferty, its chief economic adviser, said.

"The Bank is likely to want more evidence before changing its stance on interest rates."The message from the survey was contradicted by three surveys on confidence. The main measure of optimism among consumers rose to a two-year high. GfK Martin Hamblin, an analysis firm, said the change was mainly driven by a greater willingness among households to make a major purchase. "There is probably a bit of new year optimism contributing to the improved consumer mood at the start of 2005," Reza Chady, a GfK director, said.Perceptions of people's own personal finances and the general economic situation improved, according to results of a poll of more than 2,000 people. A similar-sized poll for Lloyds TSB found that three-quarters were at least secure about their employment prospects as they did 12 months ago. Meanwhile propertyfinder said the number of house hunters expecting prices to rise had risen.More than half of those polled forecast continued increases in prices compared with 30 per cent in December It is the most positive reading since June last year.. CITIGROUP announced plans yesterday to radically scale back its insurance business by selling Travelers Life & Annuity to the US provider MetLife for $11.5bn (pounds 6.1bn).

The move marks the latest reversal of Citigroup's approach of the late 1990s to be a one-stop shop for clients wanting corporate banking, brokerage and insurance services. The deal also severs ties with the insurer which used to be headed by Sandy Weill, who was chief executive of Travelers until he sold it to Citicorp in 1998. He went on to be the chairman and chief executive of the financial powerhouse created by the deal, Citigroup.In more recent years, Citigroup submitted itself to a plan to sell off businesses not deemed to be growing fast enough. It began to reduce its exposure to insurance in 2002, spinning off Travelers Property Casualty, which subsequently merged with another insurer, St Paul Companies.Mr Weill was succeeded as chief executive of Citigroup by Charles Prince in 2003. Mr Prince has repeatedly told analysts that Citigroup, the largest financial services provider in the world, would consider selling businesses not considered to be core to its future strategy. Last November he sold a truck-leasing business to General Electric for $4.4bn.. HEART, THE flagship Chrysalis radio station in London, is to jettison the long-standing host of its breakfast show in favour of Jamie Theakston, in an attempt to revive its audience figures. The company will spend up to pounds 1m promoting Mr Theakston, 34, a former children's TV presenter and ex-Radio 1 DJ.