** MORNING WRAP **

** US MARKETS **
Dow 0,17%; Nasdaq -0,96%; S&P -0,39%; Soxx -4,19%; Russel2k -1,01%; DJAIG
0,87%; 10yr Bond 0,03%; 10yr Yield 5,03%; Crude future 70,22; Gold 653

| Utilities 0,82%| ConsStaples 0,24%| Industrials -0,19%| Financials -0,24%|
Energy -0,38%| Healthcare -0,45%| Technology -0,7%| ConsDisc -0,8%| Telecom
-0,82%| Materials -1,91%

** US HEADLINES **
– Deutsche Boerse Offers $11.1 Billion for Euronext Exchange, Tops NYSE Bid
- Hellman & Friedman May Buy LondonBased Gartmore Investment, People Say
- Fannie Mae’s Federal Regulator to Censure Company Directors, People Say
- Ford Credit to Pay Highest-Ever Bond Yields to Conserve Cash in Debt Swap
- U.S. Notes May Advance as Investors Seek Safety on Worldwide Stocks Slump
- Dollar May Advance on Speculation Traders Are Seeking Safety of Treasuries
- Google, Seeking to Lure Brand Advertisers, Will Sell Video Advertisments

** US: IN PLAY TODAY **
Even in the absence of notable economic data, investors will
remain focused on any and all inflation indicators to set the tone of trading
for the day. On the earnings front, Toll Brothers (TOL) and Tech Data (TECD) are
among the biggest names reporting before the bell while Medtronic (MDT) and
Computer Sciences (CSC) head a limited list of names posting quarterly results
after the close.

** ASIAN MARKETS **
Nikkei 1,34%; Kospi -0,87%; HSI -0,04%; Taiwan -1,36%; China -0,68%; India
0,42%; Thailand -0,29%; Australia -0,25%

** ASIAN HEADLINES **
- Asian Stocks Fall to TwoMonth Low on Rate Concern; Canon, Hyundai Slide
- Mitsubishi UFJ Shares Fall on Forecast Profit to Slip 37 Percent This Year
- Toyota Says It Plans to Start Making Camry Sedans in China to Raise Sales
- Indian Stocks, Still Expensive, May Extend Three-Day, 14 Percent Plunge
- Coles Myer Plans $750 Million Share Buyback to Boost Returns; Stock Rises
- China Social Welfare Fund Completes Its $1.3 Billion Investment in ICBC
- Australian Uranium-Explorer Shares May Face Meltdown After Initial Offers
- Unilever Indonesia to Buy Makers of Vanilla Tea, Food, Finance Chief Says

Markets across the region are still weak following yesterday’s slide, but the
underlying tone does not seem as negative. Although broader markets were down,
it looks as we are seeing some signs of bargain hunting/short covering,
particularly in oils and commodities.

BBG Pan Asia/Pacific 0.3%
BBG Pan Asian Sectors BBG Pan Asian top/bottom 15
Pharm + 2.3% CHINA PETROL + 4.0% RESONA HOLDI -4.0%
Oil servs + 1.3% CHINA PETROL + 3.9% TELECOM NEW -4.1%
Oil&Gas Pr + 1.2% EISAI CO LTD + 3.7% PUBLISHING & -4.1%
Telecoms + 0.5% COLES MYER L + 3.0% POSCO -4.3%
Semis + 0.5% RAKUTEN INC + 2.6% SMC CORP -4.9%
Airlines -0.2% SHIZUOKA BAN + 2.4% MATSUS ELEC -5.0%
Financials -0.9% INDIAN OIL C + 2.2% MITSUBISHI U -5.5%
Computers -1.0% WIPRO LTD + 2.2% KEYENCE CORP -6.1%
Banks -1.2% MALAYAN BANK + 1.9% SOMPO JAPAN -6.4%

** EUROPEAN MARKETS **
S&P future 0,24%; Bund future 0,45%; Crude future 70,22; €/$ 1,28625; Gold 653

** EUROPE: IN PLAY TODAY **
- Cap Gemini SA : Societe Generale, France’s
thirdbiggest lender, increased its stake in Europe’s largest
computer-services company to about 7.7 percent, overtaking
Chairman Serge Kampf as the company’s biggest shareholder.

- Dexia SA: The world’s biggest lender to local
government is scheduled to release first-quarter results at 3
p.m. Brussels time.

- Societe Television Francaise 1: The owner of
France’s most-watched television channel said first-quarter
earnings rose 22 percent from a year earlier to 74.5 million
euros as pay-TV venture Television par Satellite had a profit.
That beat the median estimate of 65.5 million euros from six
analysts surveyed by Bloomberg News.

- STMicroelectronics NV: Europe’s top semiconductor
maker is scheduled to hold its annual investors’ day in London.

- Deutsche Boerse AG bid 8.62 billion euros ($11.1 billion) in cash and shares
for Euronext NV, topping a rival offer by NYSE Group Inc. as it seeks to create
Europe’s biggest stock market and expand in derivatives.
The offer for Paris-based Euronext, operator of four European stock exchanges,
values the company at 76.6 euros a share. The bid tops a 71 euro offer made
yesterday by the New York Stock Exchange, and is 13 percent higher than
yesterday’s closing price for Euronext.

- Royal Philips Electronics NV agreed to buy the U.K.’s Avent Holdings Ltd. for
460 million pounds ($868 million) to add baby soothers and bottle warmers to the
appliances division.

- BP Plc, the world’s third-biggest maker of solar cells, expects Asian sales to
accelerate as 1 billion people seek access to electricity and developed nations
such as Japan target lower fuel imports.
Sales in the Asian market may grow 50 percent a year by
2016, from a maximum of 30 percent now, driven by increased
demand in China, South Korea and Japan, Mark Twidell, BP Solar’s
director for Asia, said without giving a value estimate. BP
expects global solar manufacturing revenue to double by 2008
from almost $500 million in 2005.

** EUROPE: UPS & DOWNS **
+ CREDIT SUISSE RAISES EUROPEAN DRUG STOCKS TO `BENCHMARK’
+ ZURICH FINANCIAL RAISED TO `BUY’ FROM `HOLD’ AT ING
+ LAND SECURITIES RAISED TO `BUY’ FROM `NEUTRAL’ AT MERRILL
+ ASML RAISED TO `NEUTRAL’ FROM `SELL’ AT MERRILL LYNCH
+ PORSCHE RAISED TO `OVERWEIGHT’ AT MORGAN STANLEY
+ RANDSTAD RAISED TO `BUY’ FROM `NEUTRAL’ AT UBS
+ OUTOKUMPU RAISED TO `NEUTRAL’ FROM `REDUCE’ AT UBS

- CREDIT SUISSE LOWERS EUROPEAN AUTO STOCKS TO `BENCHMARK’
- CREDIT SUISSE CUTS EUROPE CAPITAL GOODS STOCKS TO `BENCHMARK’