Thursday Morning View From Europe

by: Dealing Floor

From DealingFloor:

** EUROPE: UPS & DOWNS **

+ ABB PRICE ESTIMATE RAISED TO CHF15.5 FROM CHF14 AT LEHMAN
+ HEIDELBERGER DRUCK RAISED TO `NEUTRAL’ AT JPMORGAN
+ RENAULT PRICE ESTIMATE RAISED TO EU105 FROM EU100 AT LEHMAN
+ NOVARTIS PRICE ESTIMATE RAISED TO SF84 FROM SF81 AT UBS
+ ADECCO PRICE ESTIMATE RAISED TO SF80 VS SF74 AT CREDIT SUISSE
+ HOLCIM RAISED TO `OVERWEIGHT’ AT MORGAN STANLEY
+ RWE RAISED TO `BUY’ FROM `HOLD’ AT ING
+ CORUS RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ ELECTROLUX PRICE ESTIMATE RAISED TO SK230 FROM SK200 AT LEHMAN
+ HYPO REAL ESTATE PRICE ESTIMATE RAISED TO EU64.75 AT HSBC
+ ALSTOM PRICE ESTIMATE RAISED TO EU73 FROM EU60 AT LEHMAN
+ INVENSYS PRICE ESTIMATE RAISED TO 17P FROM 14P AT LEHMAN

- EASYJET PRICE ESTIMATE CUT TO 300P FROM 335P AT HSBC
- CREDIT SUISSE CUTS EUROPEAN CAR INDUSTRY TO `MARKET WEIGHT’
- DAIMLERCHRYSLER CUT TO `UNDERPERFORM’ AT CREDIT SUISSE
- SCHNEIDER CUT TO `NEUTRAL’ FROM `OUTPERFORM’ AT CREDIT SUISSE
- FRANCE TELECOM CUT TO `HOLD’ FROM `BUY’ AT DEUTSCHE BANK

** EUROPEAN HEADLINES **

- Trichet May Indicate ECB Is Ready to Increase Benchmark Rate Next Month
- Bank of England Will Keep Its Benchmark Rate at 4.5 Percent, Survey Shows
- Oil Analysts Raise 2006 Forecast to $63-Barrel on Iran, Nigeria Concern
- Glaxo Vaccine Protects Against Cervical Cancer-Causing Virus, Study Shows

** EUROPE: IN PLAY TODAY **

- ABB Ltd., the Swiss maker of power networks,
doesn’t need acquisitions for growth and will focus on expanding
its business this year by itself, Handelsblatt said, citing
Chief Executive Officer Fred Kindle.

- BNP Paribas SA lifted its stake in Banca Nazionale del Lavoro SpA,
the Italian lender it agreed to acquire for 9 billion
euros, to 50.4 percent of the shares.

- Nestle SA will hold its annual shareholder meeting starting
at 2:30 p.m. Swiss time.

- Novartis AG’s Ciba Vision unit, the world’s second-largest maker of contact
lenses, sued to block Johnson & Johnson from selling a new line of Acuvue
lenses that Ciba says violates its patents.

- Technip SA, Europe’s biggest oil-services company
is among 12 companies pre-qualified to build Kuwait’s new $6
billion refinery, the largest in the Persian Gulf, according to
Ahmad al-Jemaz, the manager of the new refinery.

- ECB decides on interest rates today at 13:45 CET, no change expected.

** US MARKETS **

Dow 0,32%; Nasdaq 0,61%; S&P 0,43%; Soxx 2,76%; Russel2k 0,52%; DJAIG 1,23%;
10yr Bond -0,1%; 10yr Yield 4,85%; Crude future 67,44; Gold 589,96

¦ Energy 1,41%¦ Materials 1,09%¦ Technology 0,95%¦ Utilities 0,89%¦ ConsDisc
0,68%¦ Financials 0,26%¦ ConsStaples 0,07%¦ Telecom 0,04%¦ Industrials -0,04%¦
Healthcare -0,37%

** ASIAN MARKETS **

Nikkei 1,33%; Kospi 0,91%; HSI 1,02%; Taiwan 1,43%; China 0,25%; India 0,94%;
Thailand 3,54%; Australia 0,66%

** US HEADLINES **

- Microsoft to Add 15 Xbox 360 Games in Japan, Sell World-Cup Themed Console
- Bush’s Budget Cuts Target Federal Support for Small Businesses He Touts
- Merck Shares May Fall in Europe After New Jersey Vioxx Payment Verdict
- Oil Analysts Raise 2006 Forecast to $63-Barrel on Iran, Nigeria Concern
- Van Eck Hard Assets Buys Zinc, Gold, Oil to Beat Commodities-Fund Market

** ASIAN HEADLINES **

- Asian Stocks Post Longest Rally in a Month; Honda and Samsung Lead Advance
- Australian Jobless Rate Declines to 29-Year-Low as Retailers Hire Workers
- Macquarie Bank Raises $800 Million in Dyno Nobel Initial Public Offering
- Asian Development Bank Raises Region’s 2006 Growth Forecast to 7.2 Percent
- Indonesia Expects to Pass Foreign Investment Law This Year, Minister Says

** US: IN PLAY TODAY **

Weekly jobless claims (US) at 14:30 CET. Research in Motion reporting after the
close.