** MORNING WRAP **

** US MARKETS **
Dow 0,08%; Nasdaq 0,16%; S&P 0,2%; Soxx 0,37%; Russel2k 0,18%; DJAIG -1,07%;
10yr Bond 0,03%; 10yr Yield 4,74%; Crude future 58,58; Gold 572

| Energy 1,44%| Telecom 0,74%| Utilities 0,66%| ConsDisc 0,43%| Materials 0,42%|
Industrials 0,28%| Technology 0,04%| Financials 0,01%| ConsStaples -0,32%|
Healthcare -0,33%

AIG, Swiss Re Bonds Rally as Hurricane Season Passes Without Storm Damage
- Economists Lower U.S. Growth Forecasts; Fed May Cut Interest Rates by June

- Alcoa Inc. dropped $1.69, or 6 percent, to $26.60 in trading after the
official close of U.S. exchanges yesterday. The world’s biggest aluminum maker
said third-quarter net income jumped to 61 cents a share on higher prices and
demand. The average estimate of analysts surveyed by Thomson Financial was 77
cents.

- Legg Mason Inc. dropped $9.56, or 9.1 percent, to $95.75 in extended trading
yesterday. The money manager said fiscal second-quarter earnings were lower than
analysts’ estimates because of a decline in revenue and higher distribution
costs. Net income was 96 cents to $1.02 a share, the company said in a
preliminary statement. Analysts in a Thomson survey expected profit of $1.16.

- Genentech Inc. reported a 58% jump in third-quarter profit, but the company’s
long hot streak could be at risk as its products mature and pressures to
contain the cost of its high-priced drugs mount. The South San Francisco,
Calif., biotechnology company yesterday reported net income for the period of
$568 million, or 53 cents a share, compared with $359 million, or 33 cents a
share, in the year-ago quarter. Revenue rose 36% to $2.38 billion, compared with
$1.75 billion. Genentech also raised its 2006 earnings forecast for the third
quarter in a row.

- With earnings season having now officially begun with Alcoa’s Q3 report after
the bell, the market’s focus Wednesday and for much of the next three weeks will
be on quarterly financials. Minutes from the September 20 FOMC meeting will be
studied carefully for comments relating to the debate on inflation and the pace
of economic activity while the Treasury Budget will also be released at 20:00
CET.

** ASIAN MARKETS **
Nikkei 0,38%; Kospi -0,33%; HSI -0,07%; Taiwan 0,13%; China -0,48%; India
0,97%; Thailand -0,44%; Australia 0,61%

- Asian Stocks Slide, Led by Japan’s Mizuho Financial; LG.Philips Declines
- Bank of Japan Will Likely Keep Key Interest Rate at 0.25 Percent This Week
- Promina Shares Surge on Speculation SuncorpMetway May Make Takeover Bid
- Infosys Profit Beats Estimates; Sales Forecast Raised on Size of Orders
- India’s Exim Bank to Raise $750 Million to Make Acquisitions, Boost Trade
- Genting Gets $1.5 Billion Loan to Help Bid for Casino-Resort in Singapore
- Far Eastern, Taiwan Banks May Gain on Buyout Offers, Decline in Bad Loans

** EUROPE: IN PLAY TODAY **

- Spain, Shunning Nuclear Power, Ends Up Addicted to Imported Natural Gas
- New European Union Rules May Make Stock Exchanges Obsolete, LogicaCMG Says
- U.K. Companies Raised Employees’ Pay at Fastest Pace in Almost Six Years
- Crude Oil Trades Near Eight-Month Low on Speculation Stockpiles Will Rise
- Deutsche Bank, Macquarie Bid for Orient Overseas’ Ports, China Post Says

- Deutsche Lufthansa AG: Europe’s second-largest carrier plans to release
September traffic figures. The company last month reported a 0.9 percent decline
in August passenger traffic as travel across the Atlantic fell the most in more
than four years, wiping out gains in Europe.

- Iberia Lineas Aereas de Espana SA: Spain’s largest airline reported that
passenger traffic for September rose 5.7 percent compared with last year. Load
factor rose to 83 percent from 80 percent last year.

- Suedzucker AG: The world’s biggest sugar processor is scheduled to report
first-half sales and earnings. The company in July said fiscal first-quarter
profit fell 8.2 percent, the sixth consecutive quarterly decline, on the cost of
closing a sugar plant in Poland.

- Volkswagen AG: Europe’s biggest carmaker aims to convince suppliers to help it
cut 5 billion euros in material costs by 2008, Frankfurt Allgemeine Zeitung
reported. Volkswagen also said sales in China jumped 29 percent in the first
nine months from a year earlier, boosted by demand for new models.

- Siemens won a $1B power project in Argentina.