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From DealingFloor:

** EUROPE: HEADLINES **

- Gold Reaches 25-Year High, Oil Exceeds $70 on Iran Nuclear Dispute Concern
- Credit Suisse to Pay Enron $90 Million to Resolve Bankruptcy-Related Case
- Deutsche Bank Hires Citigroup’s Murai to Expand in High-Yield Debt in Asia
- French Industrial Production May Have Increased in March as Exports Rose

** EUROPE: IN PLAY TODAY **

- Euronext reported 1Q net income more than doubled to E107.1m YoY (E90m expected). 1Q revenue rose 20.5% to E268m (E278m). The group declared it was “set for an excellent performance in 2006″.

- K+S reported a 14% increase in 1Q EBITDA to E113m on revenue up 8% to E855m. 1Q ex-item profit rose 17% to E71.2m. The group remains “favourable” in its 2006 outlook.

- Fraport reported flat 1Q net income E27.5m (inline with expectations) on revenue up 1.5% to E487.4m (E484m). The company forecasts a “clear gain” for net income in 2006.

- Altadis 1Q net income dropped 9% to E103.7m (E107m expected) on sales up 3.5% to E2.9bln.

- Mediaset reported a 27% drop in 1Q net income to E145m (E147m consensus) on revenue up 5% to E955m. The group targets higher ad revenue in 2H as well as higher EBITDA in 2006.

- Adecco posted a 59% rise in 1Q net income to E100m (E82m expected) on increased revenue from France. The company confirmed its annual revenue growth target of 7-9%.

- Swisscom reported 1Q net income of CHF460m (CHF447m expected) on revenue of CHF2.38bln (CHF2.36bln). The company reaffirmed its outlook for 2006 and that it planned to invest CHF1.4bln during the year.

- Other earnings reports of note today: Aegon, Carlsberg, Wereldhave, Wolters Kluwer, Enagas and E.ON.

** EUROPE: UPS & DOWNS **

+ TUI AG PRICE ESTIMATE RAISED TO EU16.5 FROM EU15.6 AT DEUTSCHE
+ KPN PRICE ESTIMATE RAISED TO EU8.5 FROM EU7.65 AT DEUTSCHE
+ CORUS PRICE ESTIMATE RAISED TO 110P FROM 100P AT DEUTSCHE
+ DAIMLERCHRYSLER RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ VOESTALPINE ADDED TO JPMORGAN’S `ANALYST FOCUS LIST’
+ ADIDAS-SALOMON PRICE EST. RAISED TO EU180 VS EU165 AT LEHMAN
+ KPN PRICE ESTIMATE RAISED TO EU10 VS EU9.2 AT LEHMAN
+ INTL POWER PRICE EST. RAISED TO 340P VS 290P AT MERRILL LYNCH
+ USG PEOPLE PRICE ESTIMATE RAISED TO EU87 FROM EU80 AT MERRILL
+ EADS PRICE ESTIMATE RAISED TO EU40 FROM EU38 AT UBS

- SMITHS GROUP LOWERED TO `SELL’ FROM `HOLD’ AT ABN AMRO
- HMV GROUP PRICE ESTIMATE CUT TO 185P VS 200P AT DEUTSCHE
- SECURITAS CUT TO `NEUTRAL’ FROM `BUY’ AT UBS
- INTERNATIONAL POWER CUT TO `REDUCE’ FROM `NEUTRAL’ AT UBS
- NEC ELECTRONICS STOCK CUT TO `UNDERWEIGHT’ AT MORGAN STANLEY

** US MARKETS **

Dow 0,48%; Nasdaq -0,29%; S&P 0,04%; Soxx -1,02%; Russel2k -0,11%; DJAIG 1,55%; 10yr Bond -0,07%; 10yr Yield 5,13%; Crude future 70,61; Gold 702,24

¦ Materials 0,82%¦ Energy 0,7%¦ ConsDisc 0,31%¦ ConsStaples 0,26%¦ Financials 0,17%¦ Industrials 0,17%¦ Telecom 0,1%¦ Technology -0,5%¦ Healthcare -0,61%¦ Utilities -0,82%

** US HEADLINES **

- Fed’s Campaign Succeeds in Lifting Borrowing Costs, Fails to Slow Economy
- U.S. Criticism of China Yuan Policy May Stop Short of Manipulation Charge
- Gold Reaches 25-Year High, Oil Exceeds $70 on Iran Nuclear Dispute Concern
- Credit Suisse to Pay Enron $90 Million to Resolve Bankruptcy-Related Case
- Dollar May Slide on Speculation Federal Reserve to Indicate Pause on Rates

** US AFTER HOURS **

- Cisco Systems (-1.5% after hours) reported Q3 (Apr) non-GAAP earnings of $0.29 per share. That excludes option expense but includes a $0.02 tax benefit but may not be comparable to the Reuters Estimates consensus of $0.26. Total revenues rose 18.0% year/year to $7.3 bln vs. the $7.16 bln consensus. Cisco reported non-GAAPgross margin 65.7% vs. the 66.2% Street expectation.

- Walt Disney (+2.8% after hours) reported Q2 (Mar) earnings of $0.37 per share, six cents better than the Reuters Estimates consensus of $0.31. Total revenues rose 2.5% year/year to $8.03 bln vs. the $8.19 bln consensus.

- Excluding non-recurring items, Symantec (+3.1% after hours) reported Q4 (Mar) earnings of $0.26 per share, a penny better than the Reuters Estimates consensus. Total revenues rose 1.0% year/year to $1.30 bln vs. the $1.27 bln consensus. Co issued downside guidance for Q1, sees EPS of $0.20-0.21 (consensus $0.24) and revenues of $1.22-1.25 bln (consensus $1.25 bln). Co issued in-line guidance for FY07, sees EPS of $1.05-1.15 (consensus $1.13) and revenues of $5.3-5.5 bln (consensus $5.41 bln).

** US: IN PLAY TODAY **

All eyes will be fixed on the FOMC meeting (20:15 CET), wherein the Federal Reserve is expected to raise rates another 25 basis points to 5.00% - the 16th consecutive increase since June of 2004. The weekly oil inventories report is on the roll at 16:30 CET.

On the earnings front, Federated Department Stores (FD), Aramark (RMK), Legg Mason (NYSE:LM), Mittal Steel (NYSE:MT), and Teva Pharmaceuticals (NYSE:TEVA) are among a few notable names posting results before the bell. After the close, Dow component American International Group (NYSE:AIG) and News Corp (NWS.A) are scheduled to report.

** ASIAN MARKETS **

Nikkei -1,23%; Kospi -0,2%; HSI -0,64%; Taiwan -0,87%; China 0,77%; India 0,69%;Thailand -0,25%; Australia 0,56%

** ASIAN HEADLINES **

- Citigroup Gives Way on China Bank Takeover to Keep $3 Billion Deal Alive
- Asian Stocks Fall Most in a Month on Dollar’s Decline; Honda, Samsung Drop
- Japan Air Reports First Loss in Two Years; Passengers Defect to All Nippon
- Japan’s Notes Slide on Concern Central Bank Will Soon Raise Interest Rates
- China Vows to Build Strategic Mineral Reserves to Ensure Stable Supplies
- Baidu Reports First-Quarter Profit Jump on Ad Sales; Sina Earnings Decline
- U.S. Criticism of China Yuan Policy May Stop Short of Manipulation Charge
- Australian Companies Lament Budget as Missed Opportunity For Tax Reform
- Singapore Airlines Shares Drop 6% after 4Q Profit Decline

Source: Wednesday Morning View From Europe