** MORNING WRAP **

** US MARKETS **
Dow -0,07%; Nasdaq -1,46%; S&P -0,3%; Soxx -3,86%; Russel2k -1,34%; DJAIG
-0,78%; 10yr Bond 0,01%; 10yr Yield 4,75%; Crude future 50,4; Gold 628,9

| Telecom 1,51%| ConsDisc 0,59%| Healthcare 0,28%| ConsStaples -0,03%|
Industrials -0,14%| Utilities -0,15%| Financials -0,3%| Materials -0,48%| Energy

-0,74%| Technology -1,78% – Morgan Stanley Real Estate to Buy CNL Hotels & Resorts for $6.6 Billion – Boeing to bid for $2.5 Billion South Korean Fighter Order, McNerney Says – IBM fell $5.21, or 5.2 percent, to $94.24 in extended trading. The world’s
biggest computer-services company said fourth-quarter computer hardware sales
rose 4.3 percent, less than the 5.5 percent increase predicted by analysts. – JDS Uniphase Corp. rose $1.74, or 11 percent, to $17.53 in extended trading.
The telecommunications equipment maker said second-quarter sales were $360
million to $365 million, exceeding an earlier forecast of as much as $352
million. – Today University of Michigan Confidence (16:00 CET). Dow components General
Electric (GE) and Citigroup© head a list that also includes notable names
like Johnson Controls (JCI), KeyCorp (KEY), Motorola (MOT), Schlumberger (SLB)
and SunTrust Banks (STI) on the earnings side.

** ASIAN MARKETS **
Nikkei -0,35%; Kospi -1,64%; HSI 0,13%; Taiwan -0,7%; China 2,14%; India -0,77%;

Thailand -0,27%; Australia 0,02% – Toyota Recalls 533,000 Tundra Trucks, Sequoia SUVs to Repair Steering Flaw – Asian Stocks Drop, Led by Samsung Electronics, Tokyo Electron on IBM Sales – Satyam Computer’s Third-Quarter Profit Declines 22 Percent to $76 Million – Barclays Says Yen to Fall to 125 as Bank of Japan Vote Hurt Credibility – China Telecom Added 12.95 Million Users in 2006, Subscriber Growth Slows – Reliance Industries Shares Rise After Profit Beats Estimates of Analysts – South Korea Oil Refinery Shutdowns to Peak at 19 Percent in June and July

** EUROPE: IN PLAY TODAY **

– Oil Is Little Changed, Set for Fifth Weekly Decline, on Stockpile Increase – Macquarie Picks UBS, Goldman for Boart Share Sale, Financial Review Says – Switzerland, which has attracted millionaires from Ikea founder Ingvar Kamprad
to ex-Formula One champion Michael Schumacher, may raise taxes on rich
foreigners after French singer Johnny Hallyday’s move to the Alpine nation
sparked criticism on both sides of the Franco-Swiss border. Foreigners with no
local income pay tax according to their spending on rents or mortgages. Finance
ministers from the country’s 26 regions will meet today in Bern to discuss
revising the system, said Kurt Stalder, who oversees the conference. If
approved, taxation on 3,600 residents could more than double. – Cie. de Saint-Gobain SA: Europe’s biggest supplier of building materials
bought six companies with combined sales of more than 230 million euros to
expand in emerging markets. – DaimlerChrysler AG: The world’s second-biggest maker of luxury vehicles
expects the new entry-level Mercedes-Benz C-Class sedan to help boost profits,
Chief Executive Officer Dieter Zetsche said. Separately, the rating on
DaimlerChrysler shares was raised to ``overweight’’ from ``equal weight’’ at
Morgan Stanley. – Vinci SA: The world’s biggest construction company may be active after French
billionaire Francois Pinault bought a 5 percent stake for about 1 billion euros. – Schneider Electric SA, the world’s biggest maker of circuit breakers, said
fourth-quarter sales rose 12 percent, driven by European growth and
acquisitions. Revenue climbed to 3.66 billion euros ($4.75 billion) from
3.26 billion euros a year earlier, the company said today in a statement in
French financial daily La Tribune. Analysts surveyed by Bloomberg had expected
3.57 billion euros. The company said it’s confident that organic sales growth in
2007 will exceed its previous target of at least 5 percent.