Wednesday Morning View From Europe

by: Dealing Floor

From DealingFloor:

** UPS & DOWNS **

+ BOUYGUES PRICE ESTIMATE RAISED TO EU42.8 AT CREDIT SUISSE
+ XSTRATA RAISED TO `BUY’ FROM `HOLD’ AT MERRILL LYNCH
+ EURONEXT PRICE ESTIMATE RAISED TO EU62 VS EU51 AT CITIGROUP
+ LVMH SHARE-PRICE ESTIMATE RAISED TO EU92 VS EU87 AT CITIGROUP
+ INTL POWER PRICE EST. RAISED TO 285P VS 260P AT MORGAN STANLEY
+ DEUTSCHE POST RAISED TO `OVERWEIGHT’ AT JPMORGAN
+ REUTERS RAISED TO `OVERWEIGHT’ AT MORGAN STANLEY
+ ARRIVA PRICE ESTIMATE RAISED TO 550P FROM 495P AT CITIGROUP

- ADECCO CUT TO `HOLD’ FROM `BUY’ AT CITIGROUP
- FRANCE TELECOM PRICE EST. CUT TO EU20 VS EU21 AT CREDIT SUISSE
- SWISS RE PRICE ESTIMATE CUT TO SF108 VS SF110 AT DEUTSCHE BANK

** TRADING HEADLINES **

- OPEC May Keep Oil Production Near Two-Decade High on Nigeria, Iran Concern
- Enel Is Ready to Make $48 Billion Bid for French Utility Suez, WSJ Reports
- U.K. Consumer Confidence Fell to 4-Month Low in February, Nationwide Says
- Fraport’s Schulte Says Interested in Operating a U.K. Airport, FT Reports
- Gold Drops as Dollar Gains on Prospect of Higher Interest Rates in U.S.

** IN PLAY TODAY **

- Earnings of note: EADS, VNU, SwissCom, Credit Agricole, Accor and Atos Origin.

- Credit Agricole SA said profit more than doubled in the fourth quarter as
rising stock markets fueled earnings from fund management and investment
banking. Net income rose to 1.01 billion euros from 441 million euros in the
year-earlier period. Profit beat the 921 million-euro median estimate of 13
analysts surveyed by Bloomberg News. Revenue advanced 24 percent to 3.68 billion
euros.

- European Aeronautic, Defence & Space Co., Europe’s biggest aerospace company,
reported a 13 percent decline in fourth-quarter profit, the first in two years,
as its Airbus SAS unit increased spending on the A380 cargo jet. Net income fell
to 405 million euros from 466 million euros a year earlier. Sales rose 4 percent
to 10.8 billion euros. The figures beat the estimates of 10 analysts surveyed by
Bloomberg News.

- Dutch media company VNU NV was locked in negotiations late yesterday to reach
a deal to sell itself to a group of six private-equity firms for about $8.5
billion or slightly more, but any deal they reach must still be accepted by
shareholders that have been deeply at odds with the company for months.

- Atos Origin SA, France’s second- largest computer-services company, said full-year profit more
than doubled, lifted by demand for its consulting and computer- services businesses
Net income rose to 235.4 million euros from 113.3 million euros a year earlier.
The company said it expects like-for-like sales to increase 5 percent in 2006. These results are in-line
with consensus.

- Accor FY05 in line with guidance but below market ests. Unveils FY05 EBITDAR of EUR 1.986bn, +8.8% (+6.3% LFL);
EBITDAR margin 26.1%; net profit EUR 333m, +42.9%; PTP before non recurring items EUR 603m, +17.6%. Co.’s
guidance was EUR 300m for net profit and EUR 590-EUR 610m for PTP. Says opportunities for acquisitions exist
in order to increase market share or procure skills and expertise or even sign partnerships. To optimise hotel
portfolio, Co. plans to divest between 2005 and 2008, around EUR 1.50bn of assets.

- Lehman is holding its Nith Annual Global Healthcare Conference the remainder of this week in Miam Beach, Florida. Lots of companies are featured here, amongst others Novo Nordisk and Qiagen today.

- Swisscom AG, Switzerland’s largest telephone company, said fourth-quarter profit fell 18 percent as
fixed-line sales declined and the company cut the fees it charges wireless competitors. Net income dropped to 372 million Swiss francs ($284million) from 455 million francs a year earlier. Sales fell to 2.43 billion francs from 2.53 billion francs. Analysts had
anticipated profit of 361 million francs on sales of 2.38 billion francs, the medians of eight estimates in a Bloomberg survey.