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|  | JANUARY 27, 2005
 WORLD EQUITY WATCH Europe Closes Higher, Asia Mixed European markets closed higher on strong performances from AstraZeneca and Sanofi-Aventis European stock markets closed higher on Thursday. In London, the Financial Times-Stock Exchange 100 Gained 6.30 points, or 0.13%, to close at 4853.40. The FTSE edged higher as Wall Street trades mixed, with oil prices again heading towards the $50 per barrel mark. At home, strong fiscal year figures from pharma giant AstraZeneca were doused by a downbeat oil sector and problems for Royal & Sun Alliance, after General Motors filed an asbestos lawsuit. AstraZeneca led the FTSE 100 after beating forecasts with a 19% rise in 2004 earnings, with fourth-quarter earnings per share pre-exceptionals of 59 cents, while fiscal year sales rose to $21.426 billion, slightly above expectations. Conversely, Royal & Sun Alliance was among the biggest fallers after General Motors yesterday filed a lawsuit in Michigan against the company, seeking payment of a multi-million dollar asbestos-related claims it alleges has been withheld, FT.com reports. In mergers and acquisition news, Deutsche Boerse announced details of a pre-conditional cash offer for the London Stock Exchange of no less than 5.30 pounds per ordinary share. Separately, the LSE said third-quarter turnover was up 5% year-over-year to 66.3 million pounds while 9 million turnover to Dec. 31, 2004, was also up 5%, to 192.1 million pounds. Germany's DAX gained 2.29 points, or 0.05%, to close at 4216.41. The Dax edged higher as Wall Street stocks traded mostly higher. U.S. weekly jobless claims rose less than expected, and December durable goods data were mixed. Siemens closed 2.43% higher after first-quarter results came in better than expected. Group EBIT from operations was up 5% year-over-year to 1.433 billion euro. No solution was given for mobile phones, which may be a disappointment for the market. Siemens only said it knows the avenue out of the mobile phone losses and would address the problem without haste. Analysts see a clear need for action as handset EBIT loss was stable at 143 million euro in the normally strongest seasonal quarter. Management remained unspecified with respect to the magnitude of net profit growth in full 2005 due to still uncertain amount of costs related to the strategic reorientation of the Comms group. Elsewhere Adidas closed 2.42% lower after the company reported currency-neutral sales growth at all brands and in all regions highlighted the strength of the group's portfolio. In France, the CAC-40 gained 11.58 points, or 0.30%, to close at 3891.40. The CAC40 pulled itself to its feet in late session as Sanofi-Aventis jumped 1.13% in the afternoon. Wall Street was trading mixed, with the Dow slipping 0.2% as poor earnings releases and higher oil prices weighed on sentiment. At home, L'Oreal rallied 0.9% after delivering fourth-quarter like-for-like revenues at the upper end of the consensus range. PPR dipped 0.1% as fourth-quarter sales slip, while like-for-like luxury trends showed strong momentum, especially in November and December. STM was unchanged as a good fourth quarter from Nokia offset the disappointment of gross margins guidance of 34%, vs. market expectations of 35.5%. After the close, TF1, M6, and Saint Gobain release sales. Results aside, Alcatel was boosted 1.2% after signing a $150 million contract will Brazilian operator Star One. Asian markets were mixed on Thursday. Japan's Nikkei 225 fell 35.26 points, or 0.31%, to close at 11,341.31, on worries over corporate earnings and a weakening U.S. dollar. Sony Corp, which dropped 0.52%, said after market close that third-quarter consolidated operating profit fell 13% year-over-year to 138.17 billion yen due largely to sliding prices of TVs, DVD recorders and video cameras. Power company Kansai Electric Power fell 2.67% after its shareholder Resona Holdings announced to sell about $264 million worth of Kansai shares overseas. In Hong Kong, the Hang Seng index gained 5.23 points, or 0.04%, to close at 13,628.91, as China plays rose on speculation of a potential yuan revaluation. Canada's benchmark TSX/S&P gained 12.05 points, or 0.13%, to close at 9,174.41.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. 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