** EU WRAP **

** EUROPEAN MARKETS **
S&P future 0,12%; Bund future -0,13%; Crude future 70,61; €/$ 1,27675; Gold
702,24

** HEADLINES **
– Gold Reaches 25Year High, Oil Exceeds $70 on Iran Nuclear Dispute Concern
- Credit Suisse to Pay Enron $90 Million to Resolve Bankruptcy-Related Case
- Deutsche Bank Hires Citigroup’s Murai to Expand in High-Yield Debt in Asia
- French Industrial Production May Have Increased in March as Exports Rose

** IN PLAY TODAY **

- Euronext reported 1Q net income more than doubled to E107.1m YoY (E90m
expected). 1Q revenue rose 20.5% to E268m (E278m). The group declared it was
“set for an excellent performance in 2006”.

- K+S reported a 14% increase in 1Q EBITDA to E113m on revenue up 8% to E855m.
1Q ex-item profit rose 17% to E71.2m. The group remains “favourable” in its 2006
outlook.

- Fraport reported flat 1Q net income E27.5m (inline with expectations) on
revenue up 1.5% to E487.4m (E484m). The company forecasts a “clear gain” for
net income in 2006.

- Altadis 1Q net income dropped 9% to E103.7m (E107m expected) on sales up 3.5%
to E2.9bln.

- Mediaset reported a 27% drop in 1Q net income to E145m (E147m consensus) on
revenue up 5% to E955m. The group targets higher ad revenue in 2H as well as
higher EBITDA in 2006.

- Adecco posted a 59% rise in 1Q net income to E100m (E82m expected) on
increased revenue from France. The company confirmed its annual revenue growth
target of 7-9%.

- Swisscom reported 1Q net income of CHF460m (CHF447m expected) on revenue of
CHF2.38bln (CHF2.36bln). The company reaffirmed its outlook for 2006 and that it
planned to invest CHF1.4bln during the year.

- Other earnings reports of note today: Aegon, Carlsberg, Wereldhave, Wolters
Kluwer, Enagas and E.ON.

** UPS & DOWNS **
+ TUI AG PRICE ESTIMATE RAISED TO EU16.5 FROM EU15.6 AT DEUTSCHE
+ KPN PRICE ESTIMATE RAISED TO EU8.5 FROM EU7.65 AT DEUTSCHE
+ CORUS PRICE ESTIMATE RAISED TO 110P FROM 100P AT DEUTSCHE
+ DAIMLERCHRYSLER RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ VOESTALPINE ADDED TO JPMORGAN’S `ANALYST FOCUS LIST’
+ ADIDAS-SALOMON PRICE EST. RAISED TO EU180 VS EU165 AT LEHMAN
+ KPN PRICE ESTIMATE RAISED TO EU10 VS EU9.2 AT LEHMAN
+ INTL POWER PRICE EST. RAISED TO 340P VS 290P AT MERRILL LYNCH
+ USG PEOPLE PRICE ESTIMATE RAISED TO EU87 FROM EU80 AT MERRILL
+ EADS PRICE ESTIMATE RAISED TO EU40 FROM EU38 AT UBS

- SMITHS GROUP LOWERED TO `SELL’ FROM `HOLD’ AT ABN AMRO
- HMV GROUP PRICE ESTIMATE CUT TO 185P VS 200P AT DEUTSCHE
- SECURITAS CUT TO `NEUTRAL’ FROM `BUY’ AT UBS
- INTERNATIONAL POWER CUT TO `REDUCE’ FROM `NEUTRAL’ AT UBS
- NEC ELECTRONICS STOCK CUT TO `UNDERWEIGHT’ AT MORGAN STANLEY