Wednesday Morning View From Europe

by: Dealing Floor

From DealingFloor:

** EUROPE: UPS & DOWNS **

+ MARKS & SPENCER PRICE ESTIMATE RAISED TO 600P VS 550P AT UBS
+ XSTRATA PRICE ESTIMATE RAISED TO 2400P FROM 2000P AT UBS
+ UBS PRICE EST. RAISED TO SF171 FROM SF164 AT MORGAN STANLEY
+ SERONO RAISED TO `BUY’ FROM `SELL’ AT SOCIETE GENERALE
+ LVMH PRICE ESTIMATE RAISED TO EU100 FROM EU90 AT MERRILL LYNCH
+ RIO TINTO PRICE ESTIMATE RAISED 5.9% TO 3,600P AT LEHMAN
+ BHP BILLITON PRICE ESTIMATE RAISED 8.3% TO 1,300P AT LEHMAN
+ NOKIA PRICE ESTIMATE RAISED TO EU18 FROM EU15 AT LEHMAN

** EUROPEAN MARKETS **

S&P future 0,09%; Bund future 0,12%; Crude future 69,04; €/$ 1,21475; Gold
597,39

** EUROPE: HEADLINES **

- U.K. March Jobless Claims Probably Rose to a Three-Year High, Survey Shows
- ITV Leads Rally in European Media Bonds as Leveraged Buyout Threat Recedes
- Oil Trades Near Seven-Month High on Iran Standoff, U.S. Gasoline Stockpile
- IEA’s Mandil Says OPEC Must Meet Russian Supply Gap, Financial Times Says
- Oil-Tanker Rates May Fall in Second Quarter as Fleet Grows, Demand Slows

** EUROPE: IN PLAY TODAY **

- Allianz AG shares of Europe’s may be active. Citigroup Inc.sold shares worth
as much as 105 million euros ($127 million) in the Munich-based insurer,
according to traders involved in the transaction who declined to be identified.

- Carrefour SA publishes first-quarter figures after the market close that will
probably show sales gained 4.2 percent to 20.5 billion euros, according to
the median forecast of five analysts.

- Iberia Lineas Aereas de Espana SA said March passenger traffic rose 3.4
percent from a year earlier, led by African and Middle Eastern routes. The
carrier also raised seating capacity 4.5 percent.

- London Stock Exchange Plc may be active. Nasdaq Stock Market Inc. bought 15
percent of the London-based exchange operator for 447.5 million pounds ($781.5
million), less than two weeks after withdrawing its takeover offer for Europe’s
biggest equity market.

- Roche Holding AG: Genentech Inc., the U.S. biotechnology subsidiary of the
world’s biggest maker of cancer drugs and diagnostic tests, declined in extended
trading after it said first-quarter U.S. sales of its biggest drug, the Rituxan
treatment for the blood cancer non-Hodgkin’s lymphoma, increased 8.4 percent to
$477 million. That trailed the approximately $500 million expected by analysts.

** US MARKETS **

Dow -0,46%; Nasdaq -0,98%; S&P -0,77%; Soxx -1,47%; Russel2k -1,44%; DJAIG
0,45%; 10yr Bond 0,09%; 10yr Yield 4,91%; Crude future 69,04; Gold 597,39

¦ Industrials -0,3%¦ Energy -0,56%¦ Materials -0,67%¦ Technology -0,71%¦
ConsDisc -0,72%¦ ConsStaples -0,76%¦ Financials -0,88%¦ Healthcare -1,05%¦
Utilities -1,05%¦ Telecom -1,63%

** US HEADLINES **

- Meiji Yasuda, Dai-Ichi Will Buy More Japanese Bonds, Avoid Overseas Debt
- General Electric Predicts Overseas Sales to Match Revenue in U.S. by 2008
- Boeing Targets Orders for 20 More Planes in China to Hold Lead on Airbus
- Trade Deficit Probably Narrowed in February on Oil Price, Economists Say
- Microsoft Says China 3G Will Help Drive `Dramatic’ Mobile Software Sales
- Oil-Tanker Rates May Fall in Second Quarter as Fleet Grows, Demand Slows
- Legg Mason to replace Guidant in S&P 500


** US AFTER HOURS **

- Genentech (-1.35% after hours) Surpassing analysts’ expectations by two cents,
Genentech reported Q1 (Mar) GAAP earnings of $0.39 per share. Total revenues
rose 35.8% year/year to $1.99 bln (consensus $1.96 bln). DNA also reported
non-GAAP EPS of $0.46 vs. $0.41 non-GAAP First Call consensus.

** US IN PLAY TODAY **

MBA Mortgage Applications (13:00 CET) and Trade Balance (14:30 CET). Reporting
before the bell: Circuit City (NYSE:CC), Harley-Davidson (HDI) and Gannett (NYSE:GCI).
After the market closes, Advanced Micro Devices (NASDAQ:AMD) will steal the spotlight
The Energy Department’s weekly inventories data (16:30 CET), especially with
crude oil futures near historic highs, will also be a noteworthy report.

** ASIAN MARKETS **

Nikkei -1,47%; Kospi -0,3%; HSI -0,9%; Taiwan 0,76%; China -0,25%; India -0,1%;
Thailand -0,87%; Australia -0,82%

** ASIAN HEADLINES **

- Asian Stocks Decline on U.S. Rate Concern; Canon, Samsung Electronics Fall
- Japan’s Bank Lending Accelerates, Bolstering Case for Interest Rate Rise
- Seven & I Pays $728 Million for Rest of Millennium; Predicts Profit Jump
- Dollar Drops Against Yen; Speculation U.S. Trade Deficit Held Near Record
- Meiji Yasuda, Dai-Ichi Will Buy More Japanese Bonds, Avoid Overseas Debt
- China Agrees to Lift Beef Ban, Counter Piracy in Trade Summit With U.S.
- Microsoft Says China 3G Will Help Drive `Dramatic’ Mobile Software Sales
- Sri Lanka Unexpectedly Keeps Benchmark Rate Unchanged at Three-Year High