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|  | JANUARY 25, 2006
 WORLD EQUITY WATCH European Indexes Up at MiddayTech stocks climbed on impressive numbers from SAP. Meanwhile, M&A rumors continued in the steel and banking sectors, among othersFrom Standard & Poor's European MarketScope The major European indexes were showing strength at midday Wednesday. US futures pointed to a higher opening on Wall Street. WTI traded at US$66.63, on expectations that inventories data this afternoon will show a build. Meanwhile, the Ifo survey showed sentiment rising to 102 in January, its highest level since May, 2000, from a revised 99.7 in December. Germany: The Xetra-Dax index(+0.88%) clocked up solid gains. SAP's (SAP )(+8.3%) fiscal 2006 guidance was better than expected as it saw license sales rising 15-17% this year, against the 13% increase forecast by analysts. US-based Steel Dynamics saw its shares jump overnight on speculation that ThyssenKrupp (+0.73%) may make a bid for it. Linde (+3.38%) is offering £15 per BOC share, reportedly saying it is well advanced in arranging financing for a possible transaction with the UK group. BASF (BF ) (+0.19%) won't raise its US$4.9 billion unsolicited bid, or US$37 per share, for US rival Engelhard (EC ). Commerzbank (+4.25%) jumped on renewed speculation that the UK's Barclays (BCS ) is interested in buying it. Adidas (-0.64%) has secured European Union antitrust approval for its US$3.8 billion planned takeover of Reebok (RBK ). Schering (SHR )(-1.95%) has received an FDA approvable letter for YAZ, its oral contraceptive in the treatment of PMDD, which delays the expected launch date. Altana (AAA )(+1.28%) posted a solid 10% rise in fiscal 2005 sales to €3.3 billion. Roche has asked regulators for permission to start trials of an antibody to treat Alzheimer's disease. This triggered a milestone payment to Morphosys (+5.96%). Key on the broker front, Morgan Stanley initiated coverage of Hypo Real Estate (+4.27%) with an overweight rating. United Kingdom: The FTSE index extended gains at midday, led by mining shares, amid record prices for gold, copper and zinc; BHP Billiton (BHP )(+2.8%), Rio Tinto (RTP ) (+2.36%) and Antofagasta (+2.92%) soared. Meanwhile, BOC (+4.95%) was once again the index's main winner after Linde confirmed that it offered £15 per share. Prudential (PUK )(unch.) reported a 15% increase in new business APE in the full year, to £2.51 billion. Mortgage lender Northern Rock (+1.33%) unveiled a strong set of fiscal year results and said it does not expect to see a significant deterioration in credit quality going forward. Barclays (BCS )(+0.51%) declined to comment on talk that it is eyeing Commerzbank. Tate & Lyle (-0.51%) warned that it expects a modest decline in sugars this year and a further decline in the year to March 2007, while total net margins for Ingredients, Europe will be below 2005. Stanley Leisure (+2.83%) said provincial casinos attendance levels are up 15.7% for the first nine weeks of the second half on a like-for-like basis, following the removal of the 24 hour membership rule. Hopes of a bidding war boosted First Technology (+11.73%) after Honeywell (HON ) increased its offer to £3.85, following an earlier £251 million counterbid from Danaher Corporation (DHR ). France: The CAC 40 index (+0.64%) clocked up more gains at midday. Breadth was resolutely positive at 35-5. Tech stocks benefit from SAP's strong fiscal 2006 guidance: Alcatel (ALA )(+1.33%), Cap Gemini (+2.37%). Meanwhile, chipmaker STM (STM )(-1.59%) gave up early gains to trade negative; it posted fourth quarter 2005 in-line net profit of US$183 million, or US$0.20 per share. it also sees fiscal 2006 growth exceeding the market's predicted 7%-10% growth over the period. Sanofi (SNY )(-0.81%) heard that the FDA has authorized a generic version of Plavix, the company's star drug. Laggard Thomson (-3.43%) was hit by a Deutsche Bank downgrade to hold from buy. In the broader market, Business Objects (+4.05%) was found innocent in MicroStrategy's patent infringement lawsuit. NRJ (-2.66%) was hurt by a UBS cut to neutral from buy. Etam (+6.89%) jumped after a 6.9% rise in fiscal year sales. Citigroup believes consensus will move up. Foncia (+4.57%) beat guidance, while Manitou (-2.98%) missed consensus forecasts. Elsewhere: Piazza Affari strengthened at midday with Bulgari (+4.34%) leading the SP/MIB on the back of talk - promptly denied with a statement - that the luxury group is about to be sold. Also, Elsewhere, according to Il Sole 24 Ore, the Carlyle fund, together with Providence, have offered to buy Silvio Scaglia's 25% stake in Fastweb (+1.57%). Trade in the Nordic region picked up in the early afternoon. Eyes were on Nokia (NOK ) (+1.14%), Hennes & Mauritz (+0.38%) and SKF (+2.63%) ahead of Thursday's fourth quarter releases. The former was cheered by tech stocks' recoveries on the Nasdaq overnight and by in-line figures from STM.  Prepared by Zaida Espana, Valerie Vidal, Michael Sanderson, Mariella Mongio, Alexander Wisch, Holly Cook, Emma Stevenson, Pawan Girglani, Julien Manrique, and Rocio Opazo-Aniotz (Standard & Poor's); Alex Halperin (BusinessWeek Online) 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. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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