** MORNING WRAP **

** US MARKETS **
Dow 0,23%; Nasdaq -0,76%; S&P -0,28%; Soxx -1,03%; Russel2k -0,63%; DJAIG
-0,36%; 10yr Bond -0,07%; 10yr Yield 4,44%; Crude future 63,3; Gold 647,1

| Energy 0,47%| Utilities 0,34%| Healthcare 0,12%| ConsDisc -0,14%| Telecom
-0,16%| ConsStaples -0,27%| Financials -0,43%| Industrials -0,46%| Materials
-0,65%| Technology -0,94%

Pending Home Sales at 16:00 CET.
- U.S. Stocks Decline Second Week on Concern About Inflation, Slowing Growth
- Microsoft Says Mobile Software Sales to Rise When China Issues 3G Licenses

- Analysts have reduced forecasts for fourth-quarter earnings growth at S&P 500
companies to 9.4 percent from 12.8 percent at the start of October, according to
Thomson Financial. S&P 500 profits have risen more than 10 percent for 13
quarters in a row, Thomson said. For next year, analysts expect growth of 9.3
percent on average, down from 14.3 percent overall for 2006.

** ASIAN MARKETS **
Nikkei 0,11%; Kospi -0,55%; HSI 0,19%; Taiwan 0,44%; China 2,09%; India 0,25%;
Thailand -0,11%; Australia -0,05%

- Insurance Australia Agrees to Buy U.K.’s Equity Insurance for $1.1 Billion
- Asian Exporter Stocks Fall After U.S. Manufacturing Shrinks; Honda Drops
- Australian Takeovers Replace Commodity Boom as Catalyst for Stock Rally
- Rubber Rebound Is Coming on China, Oil, Says Goldman; Goodyear Threatened
- Thailand Increases Economic Growth Forecast for 2006 on Exports, Politics
- Ericsson’s Svanberg, Nortel Networks Turning to China and India for Growth

Crude Oil Trades Near a TwoMonth High After Iran Urges OPEC to Cut Output
- Gold Gains in Asia as Higher Oil Price Fuels Speculation About Inflation
- Aluminum in Shanghai Rises After Drop in Inventories Stokes Supply Concern

** EUROPE: IN PLAY TODAY **

- ECB May Raise Rate to 3.5 Percent, Prepare Ground for Increase Next Year
- Crude Oil Trades Near a Two-Month High After Iran Urges OPEC to Cut Output
- Yen Falls to Record Against Euro as Japan Rate Increases May Lag Europe’s

- Alitalia SpA: Italian investors led by billionaire financier Carlo De
Benedetti may put in an offer for a controlling stake in Alitalia, Repubblica
reported without saying where it got the information.

- Bayerische Motoren Werke AG: The world’s largest luxury carmaker said U.S.
vehicle sales fell 3.6 percent in November as demand for the company’s sport
utility vehicles dropped.

- Deutsche Boerse AG: Trading on Germany’s stock exchanges rose 43 percent in
November, according to Deutsche Boerse, the operator of the Frankfurt exchange.

- European Aeronautic, Defence & Space Co.: France plans to block a sale of
DaimlerChrysler AG’s stake in EADS to a group of German investors, Der Spiegel
reported, citing a German government official.

- Ericsson AB: Ericsson Chief Executive Officer Carl-Henric Svanberg told daily
Dagens Nyheter in an interview that the company will keep growing its cash
holdings to give it flexibility for acquisitions and investments. He also said
the reserves won’t be paid out as an extra dividend to shareholders.

- Lafarge SA: The world’s biggest cement maker plans to invest more than $500
million to almost double its production capacity in India by 2009, The Economic
Times reported, citing Chief Executive Officer Bruno Lafont.

- Novartis AG: Europe’s third-largest drugmaker aims to become one of the three
biggest vaccine makers in the next five years, newspaper Basler Zeitung
reported, citing the head of the company’s vaccines unit, Joerg Reinhardt.

- Porsche AG: The world’s most profitable carmaker said North American sales
fell 2.5 percent in November as demand for its sport-utility vehicle dropped.

- Royal Philips Electronics NV: Europe’s largest television-set maker was sued
by an Italian businessman who claims he was misled when he bought 200 million
euros of notes in a joint venture that failed.

- RWE AG: Chief Executive Officer Harry Roels is mulling a plan for the company
to buy back shares or pay out a special dividend to defend the German utility
against possible hostile takeovers, Der Spiegel said.

- Volkswagen AG: Europe’s largest carmaker is considering spinning off its
unprofitable Seat unit, AutomobilWoche reported, citing unidentified managers.
Designated Chief Executive Officer Martin Winterkorn has ``lost patience’‘
with Seat, which hasn’t made money since Volkswagen bought it in 1986.