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|  | JANUARY 9, 2006
 WORLD EQUITY WATCH European Indexes Close FlatEarly gains evaporated in in afternoon trading. Energy stocks rose despite slipping oil prices, while autos were in focus in France and GermanyFrom Standard & Poor's European MarketScope Mirroring the US gauges, the major European indexes ended flat Monday as investors waited for US reporting season. It begins after the European close with Alcoa (AA ). WTI dipped below US$64/bbl, in afternoon trade. United Kingdom:The FTSE 100 index ended flat, as investors pondered whether shares could be getting ahead of themselves given the far from secure economic outlook. FTSE breadth was 6-4 negative, with selected financial stocks providing key support, but focus was also on the Bank of England decision and US inflation data later in the week. BP (BP ) (+0.08%) managed to stay afloat. Bank heavyweights HSBC (HBC )(+2.38%) and Standard Chartered (+0.53%) were lifted by upgrades from Citigroup. The focus was also on retailers, with trading updates beginning in earnest tomorrow with Marks & Spencer (+0.25%). ICI (+2.61%) jumped, boosted by a price target increase from Merrill Lynch. Hilton (HLT )(+0.41%) gained on renewed speculation about a possible private equity approach for Ladbrokes. easyJet (+7.04%) took off, also on takeover talk. The carrier reported an 11.1% increase in December passenger numbers and said rolling 12M revenue rose 20.5% to £1.381 billion. Vodafone (VOD )(-1.32%) was hit by profit-taking. The mobile phone giant and Sony NetServices launched Vodafone Radio DJ, offering interactive, personalized radio channels to 3G mobile phones and personal computers. Premier Foods (+5.02%) said it expects total reported grocery sales up 15% and like-for-like grocery sales growth of around 2%. Germany:The Xetra-Dax index (+0.01%) took a breather on Monday after recent strength. In Frankfurt, DaimlerChrysler (DCX )(+2.16%) saw global car sales rise 3.8% to a touch more than 4 million units last year, helped by improving sales at US arm Chrysler and record sales recorded at the Mercedes Car Group. DCX reportedly has hired Goldman Sachs to sell its Smart car unit. VW's (+1.04%) 2005 sales rose 3.2% to 5.24 million vehicles, with new models the main boost to the rise. BMW (-0.26%) is aiming for another record year for vehicle sales in 2006, with 2005 group vehicle sales 9.9% higher year-over-year at 1.328 million. Elsewhere, Canadian steelmaker Dofasco recommended ThyssenKrupp's (-0.05%) bid to shareholders. This is for CAD63 per share, the same as Arcelor's offer, but less conditional. E.on (EON )(-0.25%) hasn't ruled out a fresh takeover attempt for Scottish Power (SPI ) after the UK company rejected an offer in November. Swiss staffing group Adecco said it will bid for DIS (+5.63%) in a deal worth €54.50 per share, or €636 million in total. Evotec (+4.86%) has signed an exclusive worldwide licensing agreement with Roche for two compounds in phase I clinical development for the treatment of Alzheimer's disease. Lanxess (+0.59%) saw a Merrill upgrade to buy, but has cut production of butyl rubber in Sarnia, Canada, due to supply problems. France:The CAC 40 index (+0.16%) ended Monday's choppy session barely changed. Total (TOT )(+0.83%) climbed as oil prices remained relatively high. PPR (+4.89%) was the index's best performer after the retailer announced that its Conforama unit took control of its major franchise holder, Sodice Expansion. Deutsche Bank added momentum by raising its target on the stock to €107 amid expectations of good fourth quarter trading. Autos were a bright spot. Renault (+2.16%) was lifted by a CSFB upgrade to outperform from neutral. Peugeot (+1.96%) and Valeo (+2.35%) also gained. Accor (+1.55%) re-affirmed its fiscal year target of €300 million net profit and €590 million-€610 million pretax profit at the AGM to approve a new board structure. Air France (AKH )(+1.18%) posted strong traffic figures for December. Passenger traffic rose 11.9%, with load factor up to 79.8%. On the downside, Axa (AXA )(-1.69%) was hit by a UBS downgrade to neutral from buy following the share's recent outperformance. EADS (-1.04%) saw a Deutsche downgrade to hold from buy. CEO Noel Forgeard commented that a tie-up with Thales (-1.58%) is still an option worth considering, but is not imminent. Elsewhere: The SMI index (-0.04%) took a breather. Within the Swiss blue chip index, Synthes (+3.95%) was a key gainer as it receives an approvable letter from the FDA for ProDisc-L. The brokers say this considerably increases the likelihood of definitive market approval of the artificial disc system in the US. Adecco (+5.2%) also made marked gains as it buys German listed DIS AG at a price of €54.50 per share, or €636 million. Spanish stocks closed higher on Monday amid strength from Repsol and Telefonica (TEF ).  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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