Monday Morning View From Europe

by: Dealing Floor

From DealingFloor:

** EUROPE: UPS & DOWNS **

+ TOMTOM PRICE EST. RAISED TO EU34 FROM EU32 AT MORGAN STANLEY
+ GUS PRICE ESTIMATE RAISED TO 1045P VS 1030P AT MORGAN STANLEY
+ TELE ATLAS RAISED TO `EQUAL-WEIGHT’ AT MORGAN STANLEY
+ RWE PRICE ESTIMATE RAISED TO EU75 FROM EU72 AT DEUTSCHE
+ EASYJET RAISED TO `BUY’ FROM `HOLD’ AT CITIGROUP
+ ROYAL DUTCH SHELL RAISED TO `OVERWEIGHT’ AT LEHMAN

- HENNES & MAURITZ PRICE EST. CUT TO SK280 VS SK285 AT DEUTSCHE
- CAPITALIA CUT TO `HOLD’ FROM `BUY’ AT CITIGROUP
- STATOIL LOWERED TO `EQUALWEIGHT’ AT LEHMAN
- NORSK HYDRO LOWERED TO `UNDERWEIGHT’ AT LEHMAN

** EUROPE: HEADLINES **

- Compass Shares May Rise After Travel-Services Unit Sale Beats Expectations
- Parexel Misled Subjects Sickened During London Drug Study, Ethicists Say
- Serono’s Bertarelli Plans to Seek Acquisitions After Failing to Find Buyer
- Bayer, European Drug Stocks May Outperform on Takeover Bids, New Products
- Asian Consumers, Giving Up Frugal Ways, Contribute More to Global Growth
- Global Stock Markets May Be Ready to Reverse Course After Three-Year Rally

** EUROPE: IN PLAY TODAY **

- Arcelor SA, Hedge fund investors in Arcelor, which is
defending a hostile $25 billion bid from Mittal Steel Co., may help
the steelmaker’s defense against the approach, the Sunday Times
reported.

- Compass Group Plc, the world’s largest caterer, agreed
to sell its travel-services business to investors led by Sweden’s
billionaire Wallenberg family and Macquarie Bank Ltd. for 1.82
billion pounds, more than analysts had expected.

- Eircom Group Plc: Babcock & Brown Capital Ltd., the
Australian fund that’s in talks with Ireland’s biggest telephone
company about a possible takeover, will bid 2.25 euros a share for
the Irish phone company this week, the Sunday Independent reported
without citing anyone.

- Eni SpA, Europe’s fourth-largest oil company,
forecasts a 5 percent increase in net income this year, after it
exceeded a production target in the first quarter, Il Sole/24 Ore
newspaper said on April 9 in a column written with the cooperation
of the company’s management.

- Euronext NV: London Stock Exchange Plc and
Euronext have held secret talks about a no-premium, all-stock
“merger of equals,'’ Britain’s Observer newspaper reported.
Some of the customers of Europe’s second-biggest exchange
operator plan to buy as much as 5 percent of Euronext to ensure a
say in decisions affecting its future, said DGM Conseil, a French
public relations firm representing large companies listed on
Euronext and “prominent institutional investors.'’

- Telefonica SA, Spain’s largest telephone company,
agreed to pay $369 million and assume debt for a controlling stake
in Colombia Telecomunicaciones SA, the nation’s biggest state
telephone company. Telefonica beat out the only other bidder, CA
Nacional de Telefonos de Venezuela, exceeding its offer by $17
million.


** US: HEADLINES **

- Parexel Misled Subjects Sickened During London Drug Study, Ethicists Say
- Dollar to Gain Against Euro on Forecast for Rate Increases, Survey Finds
- Global Stock Markets May Be Ready to Reverse Course After Three-Year Rally
- Treasuries May Extend Worst Decline Since 1996 as Japan’s Buyers Stay Away
- Gasoline Rises Toward $3 a Gallon in the U.S., Hurting Bush, GM, Wal-Mart

** US: IN PLAY TODAY **

Today the U.S. earnings season kicks off with Alcoa (NYSE:AA) and Micron Technology Inc. (NASDAQ:MU) among the companies reporting after the close.


** ASIAN HEADLINES **

- Singapore’s Economy Expanded at Annual 1.2 Percent Pace in First Quarter
- Asian Stocks Fall From 16-Year High; Exporters Slip on U.S. Rate Concerns
- Japan February Machinery Orders Rise, Adding to Rate Increase Speculation
- LG.Philips Probably Returned to Profit in First Quarter on LCD TV Demand
- Asian Consumers, Giving Up Frugal Ways, Contribute More to Global Growth
- Crude Oil Rises in New York on Concern Supply From Iran May Be Disrupted
- Copper Futures in Shanghai Rise to Record Amid Supply Concern, Disruptions
- Gold Rises in Asia as Investors Seek to Hedge Against Higher Oil Prices