** MORNING WRAP **
June 28th, 2006** US MARKETS **
Dow -1,09%; Nasdaq -1,57%; S&P -0,91%; Soxx -3,75%; Russel2k -1,67%; DJAIG
-0,2%; 10yr Bond 0,03%; 10yr Yield 5,2%; Crude future 72,17; Gold 582,55
| Energy 0,51%| Telecom -0,3%| Utilities -0,42%| ConsStaples -0,46%| Financials
-0,98%| Industrials -1,06%| Healthcare -1,3%| ConsDisc -1,31%| Materials -1,34%|
Technology -1,47%
** US HEADLINES **
- GM Counts on Generic Drug to Help Cut $200 Million Annual Cholesterol Bill
- Bernanke’s Early Stumbles Strengthen His Case for Setting Inflation Target
- Home Sellers Cut Prices, Add Lures as Once-Hot U.S. Market Turns Chilly
- FCC’s Martin Seeks Local Sports Concessions on Adelphia Sale, People Say
- Stocks Fall Worldwide in Quarter as Interest Rates Rise; More Losses Seen
- Allstate, Axis, Ace Borrowing Costs Increase as Hurricane Season Begins
- Dollar May Strengthen as Reports Signal Economy Can Withstand Higher Rates
- News Corp. May Make Second Bid for Hong Kong Phone Assets, Australian Says
- GE, HBOS Waive Fees, Cut Interest Rates to Sell Australians Credit Cards
** US: IN PLAY TODAY **
- Nike (-1.6% after hours) said 4Q/May EPS ex-item was $1.39 ($1.40 expected) on
revenue up 7.6% YoY of $4.01bln ($3.97bln). Expects 1Q gross margin to fall
more than one point and sales to rise in high single digit.
- Wells Fargo announced two-for-one stock split, increased 7.7% its quarterly
dividend and boosted its share buyback program.
- MBA Mortgage Applications are reported at 13:00 CET. From the earnings front
we’ll see reports from Paychex and Micron Technology.
** ASIAN MARKETS **
Nikkei -1,94%; Kospi -1%; HSI -0,47%; Taiwan -0,48%; China -0,29%; India -0,95%;
Thailand 0,38%; Australia -0,97%
** ASIAN HEADLINES **
- Asian Stocks Slide Most in Two Weeks on Rate Concern; Honda, Samsung Drop
- China Life Acquires 12 Percent Stake in Citic Securities for $406 Million
- Malaysian Airline to Get $231 Million From Government to Pay for Job Cuts
- News Corp. May Make Second Bid for Hong Kong Phone Assets, Australian Says
- Origin Energy Abandons Plan to Merge With Contact, Citing Lack of Support
- Baidu Plans Web Log Service in China to Increase Its Number of Subscribers
- Australian Government Won’t Discuss Pricing of LNG With China, Howard Says
- Bank of China Draws $84 Billion of Bids in Nation’s Largest Domestic IPO
- Karachi Stock Exchange to Open Three Overseas Branches by 2010, Chief Says
- Copper Futures Drop After Report Shows China’s First-Quarter Demand Fell
- Gold Gains In Asia Amid Speculation Fed May Be Nearing End of Rate Rises
** EUROPEAN MARKETS **
S&P future 0,03%; Bund future -0,03%; Crude future 72,17; €/$ 1,25725; Gold
582,55
** EUROPE: IN PLAY TODAY**
- DaimlerChrysler’s CEO said that its Mercedes unit is well on its way to
posting a 7% return on sales in 2007 (WSJ).
- Linde will have to delay the sale of its forklift unit until autumn due to
Credit Suisse, the manager of the sale, having difficulties showcasing the
transparency of the division as it consists of 3 different forklift producers
(Die Welt).
- Warner Music Group has offered 320p per share for British rival EMI Group,
valuing the company at £2.5bln, after it turned down a $4.23bln offer from EMI
back in May (FT).
- Autogrill agreed to buy Belgium-based Carestel Group for about E53m in bid to
boost its revenue from airports.
- Novartis won US approval to sell Exelon, the first drug aimed at treating
dementia in patients with Parkinson’s disease.
- Roche’s President declared the group was at a start of a strong and
sustainable phase of development (Finanz & Wirtschaft).
- Ericsson had its credit rating raised to Baa2 from Baa3 by Moody’s Investors
Service as it expects strong growth in the industry.
** EUROPE: UPS & DOWNS **
+ MERRILL LYNCH RAISES OIL PRICE FORECAST FROM $47 TO $65/BBL FOR 2007
+ MERRILL LYNCH RAISES OIL PRICE FORECAST FROM $59 TO 67.50/BBL FOR 2006
+ SCHNEIDER ELECTRIC RAISED TO `BUY’ FROM `HOLD’ AT CITIGROUP
+ TULLOW OIL PRICE ESTIMATE RAISED TO 450P FROM 380P AT MERRILL
+ DANA PETROLEUM PRICE EST. RAISED TO 1560P VS 1350P AT MERRILL
+ MONTE PASCHI PRICE EST. RAISED TO EU4.78 FROM EU4.4 AT LEHMAN
- VOSSLOH LOWERED TO `NEUTRAL’ FROM `OVERWEIGHT’ AT HSBC
- ATOS ORIGIN CUT TO `UNDERPERFORM’ AT CREDIT SUISSE
- SABMILLER PRICE ESTIMATE CUT TO 980P FROM 1060P AT LEHMAN