** MORNING WRAP **

** US MARKETS **
Dow 0,21%; Nasdaq -0,2%; S&P 0,08%; Soxx -1,24%; Russel2k -0,35%; DJAIG -0,8%;
10yr Bond 0,01%; 10yr Yield 4,74%; Crude future 51,57; Gold 624,6

| Industrials 0,61%| Utilities 0,36%| ConsDisc 0,34%| Healthcare 0,33%|
Materials 0,29%| ConsStaples 0,28%| Financials 0,26%| Telecom -0,21%| Technology

-0,34%| Energy -1,11% – General Motors Corp.: The world’s largest automaker is ``legitimately’’
interested in a stake in Proton Holdings Bhd, the Malaysian automaker, as it
looks to expand in Asia, GM’s Chief Financial Officer Fritz Henderson said in
Dearborn. – Intel Corp. fell 97 cents, or 4.3 percent, to $21.33 in trading after the
official close of U.S. exchanges. The world’s largest computer-chip maker said
gross margin, or the share of sales left after manufacturing costs, will narrow
to about 50 percent in 2007 because of competition. That missed some analysts’
estimate of 51.5 percent.

With earnings news dominating market action this week, the bulk of reports
today will come from Financials. Dow component JP Morgan Chase (JPM)
headlines a group that also includes Mellon Financial (MEL), Northern Trust
(NTRS), State Street (STT) and Progressive Corp (PGR). Other notables before the
bell include Southwest Airlines (LUV) Lennar (LEN) and Parker-Hannifin (PH).
After the close, Apple (AAPL) leads a list that also includes Lam Research
(LRCX), Washington Mutual (WM), and Sovereign Bancorp (SOV).

On the economic front, the December PPI report will provide investors with an
update on inflation at the wholesale level (14:30 CET). December Industrial
Production and Capacity Utilization will hit the wires at 15:15 CET followed by
the Fed’s Beige Book at 20:00 CET.

** ASIAN MARKETS **
Nikkei 0,34%; Kospi -0,74%; HSI 0,46%; Taiwan 0,54%; China -1,41%; India -0,16%;
Thailand -0,23%; Australia -0,43%

– Bank of Japan Faces Credibility Test After Reports It Will Delay Rate Rise – CSR Says It’s Unaware of Any Imminent Takeover Bid; Shares Pare Early Gain – Asian Technology Stocks Fall, Led by LG.Philips; Mitsubishi Estate Climbs – General Motors Is `Legitimately’ Interested in Proton, Holding Discussions – Japan’s Current Account Surplus Widens 21.5 Percent on Lower Costs of Oil – Woolworths Seeks Antitrust Clearance to Bid for New Zealand’s Warehouse – New Zealand Consumer Prices Fall for First Time in Almost Six Years on Gas – Baoshan Shares Jump After First Takeover in Nine Years; Steel Stocks Surge – Japan Bonds Gain, Yen Trades Near 13-Month Low as BOJ May Not Raise Rates

** EUROPE: IN PLAY TODAY **

– ASML Holding NV, Europe’s largest maker of semiconductor equipment, said
fourth-quarter profit almost quadrupled on increased sales of its machines, the
most expensive in chip production. Net income jumped to 205.5 million euros
($265.7 million), or 42 cents a share, from 51.6 million euros, or 11 cents a
share, a year earlier, the company said in a statement sent by e-mail today.
Sales surged 95 percent to 1.07 billion euros. Both profit and revenue beat
analysts’ estimates. – ASM International NV: Europe’s second-largest semiconductor-equipment maker
said after the close of trading it received multiple orders from Taiwan. In the
fourth quarter the total value of orders amounted to more than $30 million, the
company said. – Beiersdorf AG: Deutsche Bank AG, Europe’s biggest securities company, said
it’s selling shares of Beiersdorf worth as much as 1.26 billion euros ($1.6
billion). – Ericsson AB: Sony Ericsson Mobile Communications Ltd., the world’s
fourth-largest mobile-phone maker, may say fourth-quarter pretax profit more
than doubled to 439 million euros ($567.1 million) on higher sales of handsets,
according to an analyst survey by SME Direkt. Sony Ericsson is a joint venture
between Ericsson and Sony Corp. – Fugro NV: The world’s largest surveyor of deep-water oil fields said sales
rose about 20 percent in 2006 to 1.4 billion euros ($1.8 billion). Fugro had net income of at least 135 million euros in 2006, more than 35 percent higher than
the previous year, Chief Executive Officer Klaas Wester said in a statement,
reiterating a November forecast. ``The markets in which Fugro operates have a
positive outlook,’’ Wester said. – Telekom Austria AG: Austria’s largest telephone operator said business during
Christmas was ``excellent’’ and the number of wireless customers increased 14
percent to 10.2 million at the end of last year. – Volkswagen AG: The carmaker’s Audi luxury-vehicle unit plans to raise
worldwide annual sales to 1.4 million by 2015, a 55 percent increase from last
year, in part by attracting more U.S. customers. – Airbus SAS, the world’s largest maker of commercial aircraft, posted a loss
last year after delays to the A380 superjumbo jet increased costs and led
customers to buy Boeing Co. planes. Charges for penalty payments to customers,
impairment of assets and the impact of the Power8 cost-cutting plan originally
expected to occur from 2007 will now be recognized as early as 2006, resulting
in a loss before interest and tax, Airbus parent European Aeronautic, Defence &
Space Co. said today in a statement.