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From DealingFloor:

** EUROPE: HEADLINES **

- Euro’s Rebound May Let Trichet, ECB Hold Off on Interest-Rate Increases
- Russian Oil Output Grew at Fastest Pace This Year in April; Exports Fell
- Iberdrola’s Galan Says He Plans U.S. Investments to Keep Wind Energy Lead
- Tesco’s $9 Billion Real Estate Sale, U.K.’s Biggest, Threatens Bondholders
- European Car Stocks May Drop as Higher Prices for Oil, Metals Hurt Profits

** EUROPE: IN PLAY TODAY **

- Earnings of note: Qiagen, Credit Suisse, Danske Bank and Numico;

- Credit Suisse Group, Switzerland’s second-biggest bank, said profit in the
first quarter advanced 36 percent as fees from advising wealthy clients increased and equities trading rebounded. Net income rose to 2.6 billion Swiss francs ($2.1 billion) from 1.91 billion francs a year earlier, the Zurich-based bank said in an e-mailed statement today. Profit exceeded the median estimate of 2.04 billion francs in a survey of 11 analysts.

- Royal Numico NV, Europe’s largest maker of baby food, said first-quarter profit gained, helped by acquisitions in Asia. Net income increased to 47 million euros ($59 million) from 45 million euros a year earlier, the Schiphol, Netherlands-based company said today in an e-mailed statement. Numico was expected to earn 51 million euros, according to the median estimate of 13 analysts surveyed by Bloomberg.

- Allianz AG said after markets closed on April 28 that it won’t cut any staff for operational reasons until the end of 2007, ending concern that the planned reorganization of its German business might lead to as many as 10,000 job losses.

- AstraZeneca Plc received clearance from U.S. regulators yesterday to use its heartburn drug Nexium on teenagers.

- BASF AG extended a $4.94 billion bid for Engelhard Corp. for what it said will be the last time and nominated three more candidates for Engelhard’s board as it tries to win control of the world’s biggest catalytic-converter maker.

- Brisa-Auto Estradas de Portugal SA: The operator of Portugal’s biggest toll-road network said on April 28 after markets closed that first-quarter profit dropped 31 percent from a year earlier to 27.6 million euros, as toll revenue fell and the company spent money cutting jobs.

- Carrefour SA: The South Korean offices of Europe’s largest retailer were searched overnight by tax authorities, who seized documents related to the French retailer’s sale of its local operations, online news agency E-daily reported.

- DaimlerChrysler AG expects demand for trucks in 2007 to beat the low expectations of some analysts, the Financial Times Deutschland reported, citing Andreas Renschler, the management board member responsible for trucks.

- Sanofi-Aventis SA: Questions have been raised over the reliability of a study of Sanofi-Aventis’ Ketek antibiotic, which has been linked to liver damage, the Wall Street Journal reported, citing documents, including internal Aventis emails, that it’s reviewed.

- SAP AG: The world’s largest maker of business- management software plans to expand its acquisitions spending while focusing on smaller purchases, Euro am Sonntag reported on April 30, citing Chief Financial Officer Werner Brandt.

- Suez SA: France’s second-largest utility and Gaz de France SA will say they can save 1 billion euros, twice the amount previously announced, by merging, the Sunday Times reported, without saying where it got the information. Separately, Enel SpA Chief Executive Officer Fulvio Conti said the company he runs is still interested in Suez, Italian newspaper La Repubblica reported.

- Total SA: Europe’s third-largest oil company and ConocoPhillips will sign an agreement later this month with Saudi Aramco, the world’s biggest oil company by output, to build and operate two new refineries in the kingdom at a cost of $12 billion, a Saudi official said.

** EUROPE: UPS & DOWNS **

+ ERSTE BANK PRICE ESTIMATE RAISED TO EU55 FROM EU53 AT UBS
+ CAIRN ENERGY PRICE ESTIMATE RAISED TO 2800P VS 2550P AT UBS
+ RECKITT BENCKISER PRICE EST. RAISED TO 2410P VS 2380P AT UBS
+ ALCATEL RAISED TO `BUY’ FROM `NEUTRAL’ AT UBS
+ HEINEKEN RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ AEGON PRICE EST. RAISED TO EU17 FROM EU15.5 AT LEHMAN
+ ROYAL BANK OF SCOTLAND PRICE EST. RAISED TO 2328P AT MERRILL

- SIEMENS PRICE ESTIMATE CUT TO EU87 FROM EU89 AT CREDIT SUISSE
- BBA CUT TO `NEUTRAL’ VS `OVERWEIGHT’ AT JPMORGAN

** US HEADLINES **

- Manufacturing, Spending Reports Show Expanding U.S. Economy; Prices Climb
- Treasuries Decline on Concern Economic Strength Will Spur Faster Inflation
- U.S. Stocks Drop, Erasing Gains, on Inflation Concern, CNBC Report on Fed
- Oil Rises on Supply Concern as U.S. Urges UN to Impose Sanctions on Iran
- Aramark, Food Vendor at Stadiums, Schools, Gets $5.8 Billion Buyout Offer
- Microsoft’s Ballmer to `Redouble’ Financial Controls After Stock Plunge
- NYSE Shares Fall, Erasing Last of Gains From Archipelago Purchase in March
- Nightmare on Wall Street: Commercial Banks Win More Big Real Estate Deals

** BERNANKE REMARKS **

Financial markets were blindsided yesterday after CNBC anchor Maria Bartiromo reported that Bernanke told her investors were wrong in thinking he’s done lifting interest rates. Stocks surrendered gains, bonds fell and the dollar jumped in response to the remarks, which Bartiromo said were part of a conversation at the White House Correspondents Association dinner in Washington on April 29. It isn’t clear exactly what Bernanke said; a Fed spokeswoman declined any comment. What is clear, Fed watchers say, is that Bernanke underestimated the scrutiny that anything he says, even in a social situation.

** US: IN PLAY TODAY **

Dow component Verizon (NYSE:VZ) will be Tuesday morning’s headliner accompanying blue chips like Archer-Daniels Midland (NYSE:ADM), Alcan Inc. (NYSE:AL), Caremark Rx (CMX), Emerson (NYSE:EMR), Masco (NYSE:MAS), RR Donnelley &Sons (NASDAQ:RRD), Hilton Hotels (NYSE:HLT), Molson Coors Brewing (NYSE:TAP), and St. Paul Travelers (STA).

Utilities companies, however, will be the most widely represented industry group posting quarterly results before the bell. Notables include Duke Energy (NYSE:DUK), Entergy (NYSE:ETR), FPL Group (NYSE:FPL), NICOR (NYSE:GAS), Sempra Energy (NYSE:SRE), and TXU Corp (TXU).

After the close, Electronic Data Systems (NASDAQ:EDS), Starbucks (NASDAQ:SBUX), Lincoln
National (NYSE:LNC) and Allied Waste (AW) are among only a few noteworthy companies
reporting results. Separately, auto stocks will be in focus throughout the
session as investors digest monthly sales figures.

** ASIAN MARKETS **

Nikkei 1,45%; Kospi 0,78%; HSI 0,97%; Taiwan 0,39%; China 1,66%; India 1,75%; Thailand 0,42%; Australia -0,52%

** ASIAN HEADLINES **

- Asian Stocks Climb to 16-Year Highs; Bridgestone, Acer Advance on Earnings
- Acer Plans to Sell LCD TVs Worldwide to Counter PC Slowdown, Lanci Says
- China Less Likely to Be Named Currency Manipulator, Bank of America Says
- Aristocrat Leisure Shares Slump After Profit Forecast Similar to Last Year
- Sojitz to Raise Investment in Oil, Gas Assets to Lift Profit by 30 Percent
- Altria’s Plans for Marlboro in India Challenged by Ad Ban, Change in Habit
- New Zealand Currency’s Decline, $4.10 Gasoline Steer Drivers to Biofuels
- Asian Stocks May Outperform U.S., Europe as Earnings Grow at Faster Pace

Source: Tuesday Morning View From Europe