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Hitt og þetta 9. febrúar 2006

DJ EUROPEAN MORNING BRIEFING: Stocks Likely To Rebound

US SUMMARY: Shares Jump On Lower Oil Prices, Cisco

DJIA 10858.62 gain 108.86 up 1.0%
NASDAQ 2266.98 gain 22.02 up 1.0%
S&P 500 1265.65 gain 10.87 up 0.9%
Dow Future 10865.00 loss 8.00 dn 0.1%
NASDAQ Future 1674.00 loss 1.50 dn 0.1%
S&P Future 1267.25 loss 1.00 dn 0.1%
10-Yr US Treasury: 4.59% up 0.02
(Futures values as of 0550 GMT)
A drop in oil prices and strong earnings at PepsiCo Inc. and Cisco Systems Inc. propelled stocks higher Wednesday, with the Dow Jones industrial average surging more than 100 points. Reports that Pfizer Inc. might sell its consumer products business contributed to the advance. Treasurys fell in price as investors brace for government auctions.

STOCKS: Wall Street's major indexes built momentum throughout the afternoon, climbing higher as the close neared. But with investors still concerned about interest rates, analysts viewed the market's jump with caution.

"The market was a little oversold," said Russ Koesterich, senior portfolio manager at Barclays Global Investments in San Francisco. "I think this (the run-up) is mostly technical. I don't think you can read too much into it, since there weren't a lot of drivers."

Cisco, which closed up 7.2 percent, led tech and telecom stocks higher after its earnings exceeded analysts' expectations. An upgrade of Dell Inc. also helped the tech sector.

Investors who had lost patience with drug maker Pfizer applauded news it was mulling a sale or spin off of the consumer business, which includes Listerine mouth wash, Visine eye drops and Lubriderm skin lotion. Its stock rose 5.7 percent.

The indexes moved sharply higher after the S&P 500 pierced 1,260, said Ryan Larson, equity trader at Voyageur Asset Management, a subsidiary of RBC Dain Rauscher. Traders had been seeing 1,260 as a "resistance level" for the index - a price ceiling that has, in past sessions, triggered a selloff. "Once the S&P broke through that, it was kind of a herd mentality: One goes, they all go," Larson said.

Sentiment also improved as crude oil prices declined for the second day. Crude oil settled at $62.55 a barrel, down 54 cents, on the New York Mercantile Exchange. Crude oil fell $2.02 a barrel Tuesday.

BONDS: U.S. government bond prices fell Wednesday, shrugging off a better-than-expected 10-year note auction. Unlike in Tuesday's three-year note sale - the first leg of the government's $48 billion quarterly debt refunding - foreign buyers were fairly aggressive in bidding for the new 10-year notes.

But with another $14 billion in supply due Thursday, this time in the form of the first 30-year bond sale in more than four years, investors were taking a cautious approach and continuing to make room for new supply, traders said.

The decent auction result also does little to alter an overall bearish tone among Treasurys investors, who feel beset by new supply, continued strong economic data and rising odds of a 5% federal funds rate by May. The fed funds rate is currently at 4.50%.

"The market's been trending weaker lately, and there hasn't been any fundamental shift that suggests that's changed," said Ian Lyngen, interest rate strategist at RBS Greenwich Capital in Greenwich, Conn. "If we had seen a weaker auction, the move would probably have been more pronounced, but people are cautious nonetheless," he said.

ASIAN SUMMARY: Tokyo Shares Rally On Bargain Hunting

USD-Yen 118.58 gain 0.07 up 0.05%
AUD-USD 0.7397 gain 0.0010 up 0.1%
Nikkei 225 16417.11 gain 144.40 up 0.9%
Hang Seng 15436.63 gain 63.19 up 0.4%
Taiwan Index 6630.13 gain 6.02 up 0.1%
S.Korea Kospi 1322.68 gain 11.69 up 0.9%
JGB Yield 1.5600% down 0.0050
(All values as of 0550 GMT)
STOCKS: Japanese stocks rose Thursday as investors bought a broad range of issues following steep losses the day before. Other Asian markets also gained.

Issues sensitive to the domestic economy bounced back strongly. Financial issues, oils, pharmaceutical, insurance and real-estate stocks gathered steam on hopes that the government may increase its economic assessment in a report due later Thursday.

BONDS: Prices of Japanese government bonds were little changed after the Bank of Japan policy board members Thursday voted seven to two to hold monetary policy steady as the Japanese economy has yet to escape from deflation. Investors waited for comments from BOJ Governor Fukui due at 0630 GMT to find hints of when the central bank will finally tighten policy.

OIL: Crude oil prices rose 13 cents to $62.68 after Washington reported that U.S. stockpiles of crude and distillates fell in the last week.

Analysts expected market sentiment to remain bearish on a lack of major new developments on the political front with Iran, the second-largest oil producer in the Organization of Petroleum Exporting Countries, coupled with relatively mild winter weather in the United States, the world's largest energy consumer.

"Consumers have been given an economic boost with no astronomical heating bills to pay," said Phil Flynn of Alaron Trading Corp. in a research note. "We know this fact has been the main reason energy prices have stayed somewhat grounded and have fallen short of bullish expectations."

EUROPEAN OUTLOOK: Positive Start For Stocks

Euro-USD 1.1980 gain 0.0016 up 0.1%
Stlg-USD 1.7450 gain 0.0032 up 0.2%
USD-Franc 1.2974 loss 0.0016 dn 0.1%
(All values as of 0550 GMT)
Stocks are likely to open higher, while government debt prices and the euro struggle to make ground.

STOCKS: European markets are set for a robust opening session following a strong performance on Wall Street overnight. Tom Hougaard of U.K. spreadbettor City Index expects the gains to be fairly broad in nature "as many stocks are due a bounce."

Hougaard is calling the FTSE up 15 points to 5740, the DAX up 30 to 5696 and the CAC up 20 to 4915.

In a busy earnings schedule, resource stocks are likely to remain in focus for many investors.

"Mining stocks are cyclical, and have been even more overbought than markets overall," noted analysts at Fortis Private Investment Management.

Investors in the mining sector could also be eyeing the next round of steel pricing amid concerns that Chinese steel capacity will increase this year.

Speaking about the current wave of M&A activity in the U.K. market, Robert Parkes, a U.K. equity strategist at HSBC Investment Bank said that the type of buyers in the market - foreign purchasers and private equity firms - indicate that valuations in the U.K. are low.

"We see 2006 as being another good year for M&A, probably better than 2005....only a handful of companies are too big to be bought but everything else is up for grabs," he said.

On the U.K. market in general he said that the themes of strong profitability and low valuations continue.

European stocks declined Wednesday, pressured by the resource sector as lower commodity prices undermined sentiment.

BONDS: Prices of European government debt might attempt a try higher, supported by technical factors, but the try may prove to be feeble.

In the euro zone, dealers have doubts about any bullish sentiment as a heavy consensus has built behind expectations for the European Central Bank to raise rates further in the coming months. "We still see the market in a bear mood over the medium-term," said a dealer in Frankfurt. The expectations of further monetary tightening in the euro zone limit the upside potential in bunds, he said. "The hike in March seems a done deal, and the market sees further hikes down the road," he said. RBC Capital Markets.

U.K. investors now await the Bank of England's interest rate decision, due at 1200 GMT Thursday, although market participants widely expect the central bank to continue its wait-and-see stance and leave rates unchanged at 4.50%.

"The next major event is certainly next week's inflation report, which will provide more insights into the BoE's thinking," said RBC Capital Market's McGuire. "The BoE rate decision is nothing to get excited about, because there'll be no surprise at all."

European government bond prices held in positive territory Wednesday for most of the session on losses in global equity markets.

FOREX: The euro is little changed at the start against the dollar, as investors continue to weigh U.S. and euro zone growth.

"A lot of people are sitting on the sidelines and waiting to see whether the (U.S.) economy is really growing as fast as some think it is," and whether Federal Reserve policymakers will indeed raise rates further than markets are currently priced for, said Anton Pil, global head of foreign exchange at JPMorgan Private Bank in New York.

Others, meanwhile, say the dollar's gains have run their course, and are suggesting that it is time to start selling, suggesting that the dollar could soon start to fall based on concerns about U.S. external trade and investment imbalances.

Goldman Sachs Global Markets Strategist Jens Nordvig, said in a note Wednesday that "We now think that the bulk of the adjustment in Fed expectations is behind us...and we also judge that the dollar is vulnerable from a structural perspective at current levels."

Bank of England's interest-rate decision Thursday is expected to keep rates steady at 4.5%, although soft recent data have increased the risk of a future rate cut.

The dollar advanced modestly versus the euro and yen Wednesday,amid a rise in Treasury yields and a pullback in the price of oil, gold, and other commodities.



(MORE TO FOLLOW) Dow Jones Newswires

February 09, 2006 01:00 ET (06:00 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


9 Feb 2006 06:00 GMT =DJ EUROPEAN MORNING BRIEFING: Stocks Likely To Rebound -2-

CALENDAR: Thursday, Feb 9: Japan, England Central Banks

GMT Expected Previous
0600 JPN BOJ Economic Report
0630 JPN BOJ Gov Fukui's press conference
0900 GER Feb ECB Monthly Bulletin
0930 UK Dec Non-EU trade -2.8B -3.019B
0930 UK Dec UK trade -5.6B -5.966B
1000 EU Key indicators for the euro area
1200 UK Feb Bank of England MPC interest rate unch4.5% unch4.5%
decision
1330 US Feb 4 Jobless Claims +12K -11K
1330 CAN Dec. New House Prices +0.4% YY +5.5% YY
1500 US Dec Wholesale Trade +0.5% +0.4%
1500 US Jan 28 DJ-BTMU Business Barometer -0.4%
1500 US Prres Bush speaks on the war on terror
in Washington
1530 US Feb 3 US Energy Dept Natural Gas Stocks (in -58 -88
billion cubic feet)
1815 US Chicago Fed Pres Moskow speaks on the
economy in Chicago
2130 US Feb 4 Money Supply
2350 JPN Jan Corp Goods Price Index +2.5%YY +2.2%YY
N/A JPN BOJ Policy Board meeting Unch Unch
N/A UK traffic data

-By Dennis Baker; Dow Jones Newswires; dennis.baker@dowjones.com

(MORE TO FOLLOW) Dow Jones Newswires

February 09, 2006 01:00 ET (06:00 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


9 Feb 2006 06:00 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events

BG Group (BRG): 4Q Earnings
Average net profit (DJ, 4 analysts): GBP457M (GBP236M)
Note: The gains are expected to have been driven by the strength of oil and natural gas prices and positive production trends. Morgan Stanley says the focus will be on growth and profitability targets beyond 2006, capex plans and dividend policy.


Bouyuges (12050.FR): FY Revenue
Average revenue (JCF, 16 analysts): EUR24.05B (EUR23.4B)
Note: profit forecast in line with the EUR24B company guidance given in December. With strong revenue from Colas (12163.FR) road building unit and flat revenue from 43%-owned broadcaster TF1 (5490.FR) already out, roughly 50% of group revenue is already known. Leaves mobile telecom unit Bouygues Telecom, the main profit driver, and booming Construction division, as the key points to watch out for when company reports after market.


BT Group (BT): 3Q Earnings
Average revenue (Co, 14 analysts): GBP4.9B (GBP4.6B)
Average underlying pretax profit: GBP490M (GBP550M)
Note: Analysts expect a solid set of results despite recent profit warnings from France Telecom (FTE) and C&W (CW.LN). Underlying pretax profit is expected -11% due to higher costs related to staff leaving the company. Broadband progress expected as is a big uptick in IT services orderbook. Potential cost savings on network upgrade possible.


Buhrmann (BUH): 4Q Earnings
Average net profit (DJ, 4 analysts): EUR31M (EUR35.1M)
Forecast range: EUR23M - EUR35.7M
Average sales: EUR1.64B (EUR1.42B)
Note: Profit mostly seen down due to restructuring charges in US operations. Analysts have eye on performance of key unit Corporate Express North America and on a any signs of turnaround of Buhrmann's European operations. Company due to report pre-market.


Danske Bank (DANSKE.KO): 4Q Earnings
Average pretax profit (SME Direkt, 19 analysts): DKK4.467B (DKK4.216B)
Note: Profit boosted by volume growth and easing margin pressure. The result includes DKK500M capital gain in trading net, DKK427M reversals in insurance net. Analysts are watching for '06 guidance on net interest income, and individual divisions, but expects it to be conservative.


Dassault Systemes (DASTY): FY Earnings
Average EPS (First Call, 15 analysts): EUR1.56 (EUR1.35)
Average net income: EUR183M (EUR157M)
Average EBIT: EUR263M (EUR231M)
Average sales: EUR928M (EUR797M)
Note: Growth seen driven by new 3D software lines and acquisition of simulation software such as Abaqus. Eyes on outlook.


DSM (00981.AE): 4Q Earnings
Average net profit (DJ, 3 analysts): EUR145M (EUR99M)
Average sales: EUR2,04B (EUR2,01B)
Note: Profit rise due to higher selling prices, recovery of US dollar and acquisition of profitable NeoResins, which was not consolidated in 04 figures. Analysts expect EBIT in 1Q 06 to be higher than in Q1 of 05. Also curious if anti-infectives unit is still underperforming. Numbers due at 0715 GMT.


Egis (EGIS.BU): 1Q Earnings
Average net profit (DJ, 6 analysts): HUF4.48B (HUF3.89B)
Average revenue: HUF21.26B (HUF19.8B)
Average operating profit: HUF4.83B (HUF4.07B)
Note: Revenue is seen +7% to a quarterly record as key Russian exports are to benefit from state drug subsidies and good marketing. USD gains versus HUF to boost export revenues. Domestic sales are eyed after year-earlier figure was boosted by stockpiling estimated at HUF1.9B. Marketing costs are watched. Net financial gains are also seen solid.


Havas (HAVS): 4Q Revenue
Note: Havas is expected to post a fall in 4Q 2005 organic revenues of 2%, against a 4.6% rise in 4Q 2004, according to a survey of three analysts by Dow Jones Newswires. Oddo Securities sees 4Q revenues falling 9.4% to EUR368M, from EUR406M. Investors will seek an update on Havas' strategy following several years of restructuring and clients losses. Also await update on plans by Chairman Vincent Bollore regarding Aegis (AGS.LN), in which he is also a major shareholder.


Iberdrola (IBE.MC): 4Q Earnings
Average net profit (DJ, 7 analysts): EUR403.5M (EUR337M)
Average FY net profit: EUR1.39B (EUR1.21B)
Average 4Q EBITDA: EUR857M (EUR730M)
Average FY EBITDA: EUR3.24B (EUR2.89B)
Note: Increased nuclear and renewable generation and high pool prices are seen driving 4Q results, say analysts. Also sees improving FY '05 after a drop in power generation from lower hydroelectric output and high fuel costs. Focus is on Spain energy sector regulatory changes expected in mid-'06 and Gas Natural (GAS.MC) divestment process of Endesa (ELE) assets, including side agreement with Iberdrola. Report due premarket.



(MORE TO FOLLOW) Dow Jones Newswires

February 09, 2006 01:00 ET (06:00 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


9 Feb 2006 06:00 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events -2-

ICI (ICI): 4Q Earnings
Average IFRS pretax profit before items (DJ, 4 analysts): GBP101.5M (GBP113.0M)
Forecast range: GBP100.1M - GBP103.0M
Note: Profit seen falling amid a tough input cost environment.However, JP Morgan expects ICI to have had "a reasonably good 4Q with further evidence of selling prices offsetting raw materials." Says the market now expects ICI to announce further restructuring, possibly including the sale of specialty chemicals business Uniqema, as a recent press report suggested. Report due at 0700 GMT.


Micronas (MASN.EB): 4Q Earnings
Average net profit (DJ, 3 analysts): CHF10.5M (CHF18.4M)
Average sales: CHF223.6M (CHF224.1M)
Note: Profit hit by sluggish sales, a 10-days maintenance at the Freiburg fab, and higher R&D expenses. Focus will be on question of whether growth of flat panel TV market will be enough to compensate for decline of CRT TV market. Report due premarket.


Nobel Biocare (NOBE.VX): 4Q Earnings
Average net profit (DJ, 7 analysts): EUR37.4M (EUR35.1M)
Note: Profit rise driven by strong increase in demand for its products, but hampered by higher marketing costs and taxes. Sales seen +24%, EBIT seen +23%. Specter of possible product withdrawal was removed Tuesday.


Renault (13190.FR): FY Earnings
Average net profit (Thomson Financial, 25 analysts): EUR3.01B (EUR2.84B)
Note: Profit rise thanks to bottom-line contribution from Nissan. Operating margin seen at 3.3% vs 5.2%, reflecting price pressure and weak European sales due to aging model line-up. Company reports pre-market, and market operators say FY 05 results will be overshadowed by unveiling of 3-year strategy plan by CEO.


Rolls-Royce (RR.LN): FY Earnings
Average IFRS pretax profit excluding non-trading items (Co, 10 analysts):
GBP570M (GBP364M)
Forecast range: GBP550M - GBP586M
Note: Profits seen boosted by strong demand for new civil aircraft engines and servicing of installed ones. Analysts say the focus is on outlook for expected commercial engine demand during '06, net debt and prospects for defense division.


SAS (SAS.SK): 4Q Earnings
Average pretax profit excluding on-time items (SME Direkt, 10 analysts):
SEK228M (SEK305M loss)
Average revenue: SEK15.38B (SEK14.94B)
Note: Results are seen boosted by improved traffic figures and the completion of the cost cutting program Turnaround '05. Market is eyeing outlook and more details about further cost cuts.


Securitas (SECU-B.SK): 4Q Earnings
Average pretax profit (SME Direkt, 15 analysts): SEK938M (SEK945M)
Forecast range: SEK872M - SEK998M
Average sales: SEK17.073B (SEK15.222B)
Note: Profit forecasts include a capital loss of SEK150M from Securitas' sales of its German cash handling business. Operating margin seen down to 6.5% from 7.3%. Eyes will be on margin development, comments on organic growth and potential acquisition plans.


Syngenta (SYT): FY Earnings
Average FY net profit including restructuring and impairment (DJ, 6 analysts):
$555.8M ($460M)
Average net profit excluding charges and discontinued operations and a one-off
tax credit: $780M ($623M)
Average sales: $8.083B ($7.269B)
Note: Profit rise driven by a higher demand, ongoing cost savings. Sales seen +11% helped by product price increases. Eyes on 06 outlook, cash flow generation and expected update on cash returns to shareholders via dividends, share buybacks. Report due at 0600 GMT.


Unilever (UN,UL): FY Earnings
Average net profit (DJ, 4 analysts): EUR3.85B (EUR2.8B)
Note: Analysts will be focused on the company's plans for its European frozen-food business. The rise in 2005 profit is largely a result of the negative effect in 2004 of a write down of losses associated with its Slimfast dieting products.

The results of Unilever's strategic review into its European frozen foods business are due to be announced by the end of Feb and analysts believe the company will unveil plans for a sale of the business on Thursday. 4Q sales growth - excluding the effect of acquisitions - is expected to be from 3% to 4%.

Emerging markets operations, rather than those in Europe or North America, are expected to drive sales growth, though any improvements in European sales in the fourth quarter will be significant. No 2006 outlook is expected as the company continues its policy of providing no profit guidance.



(MORE TO FOLLOW) Dow Jones Newswires

February 09, 2006 01:00 ET (06:00 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


9 Feb 2006 06:00 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events -3-

OTHER SCHEDULED EVENTS:

Acta Holding (ACTA.OS): 4Q Press Conference

Alfa Laval (ALFA.SK): FY Earnings

Allied Healthcare (AHI.LN): 1Q Earnings

Alumasc Group (ALU.LN): 1H Earnings

Anoto Group (ANOT.SK): FY Earnings

Avingtrans (AVG.LN): 1H Earnings

BAA (BAA.LN): Traffic Data

Bobst (BOBNN.EB): FY Revenue

Capio (CAP.SK): FY Earnings

Chrysalis Group (CHS.LN): AGM

Chime Communications (CHW.LN): FY Earnings

Citycon (CTY1S.HE): FY Earnings
Comptel Corporation (CTL1V.HE): FY Earnings

Corporacion Mapfre (MAP.MC): FY Earnings

Dunedin Smaller Cos Investment (DNDL.LN): AGM

Elcoteq (ELQAV.HE): Investors Day

Elisa (ELI1V.HE): FY Earnings

Enagas (ENG.MC): 4Q Earnings

Exact Holdings (35036.AE): FY Earnings

Exense (EXE.OS): FY Revenue

Fjord Seafood (FJO.OS): FY Earnings

Fred Olsen Energy (FOE.OS): 4Q Earnings

Henderson Strata Investments (HSI.LN): AGM

Investment Kinnevik (KINV-B.SK): FY Earnings

McBride (MCB.LN): 1H Earnings

NeoNet (NEO.SK): 4Q Earnings

Norway Energy & Marine (NEMI.OS): 4Q Earnings

Norwegian Air Shuttle (NAS.OS): 4Q Earnings

Observer (OBS.SK): FY Earnings

Paragon Group of Companies (PAG.LN): AGM

Pininfarina (PINF.MI): FY Earnings

Proffice (PROE-B.SK): FY Earnings

Protect Data (PROT.SK): FY Earnings

Raisio Yhtyma (RAIVV.HE): FY Earnings

Recordati (REC.MI): 4Q Earnings

SalusAnsvar (SALA-B.SK): 4Q Earnings

Schibsted (SCH.OS): 4Q Earnings

Smith & Nephew (SN.LN): FY Earnings

Sorin (SRN.MI): 4Q Earnings

Spacelabs Healthcare (SLAB.LN): 1H Earnings

Sponda (SDA1V.HE): FY Earnings

Technopolis (TPS1V.HE): FY Earnings

Teleca (TELC-B.SK): FY Earnings

TGS-Nopec (TGS.OS): 4Q Earnings

Vacon (VAC1V.HE): FY Earnings

Valeo (13033.FR): FY Earnings

VMetro (VME.OS): FY Earnings

Wavecom (WVCM): 4Q Earnings


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February 09, 2006 01:00 ET (06:00 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.


9 Feb 2006 06:00 GMT =DJ EUROPEAN MORNING BRIEFING: Div Payment & Ex-Div Dates

Wyeth (WYE): 4Q 2005 Ex-Dividend Date


(END) Dow Jones Newswires