FYI...
<http://www.saxobank.com/Advertisements/PublisherMailImages/MastHead/equitie s_header_left.gif> <http://www.saxobank.com/Advertisements/PublisherMailImages/MastHead/equitie s_header_gradient.gif> <http://www.saxobank.com/Advertisements/PublisherMailImages/MastHead/equitie s_header_right.gif> Jan. 21, 2008Client Inquiries <https://www.saxobank.com/__DotNet/Site/Questionnaire/MemberQuestionnaire_Po pUp.aspx?QstID=30> Partnerships <http://www.saxobank.com/?id=875> Contact Us <http://www.saxobank.com/__DotNet/Site/Contact/ContactCenter.aspx?SCO=&SMU=&; SPU=&SBPU=&SPM=&SCB=> Update Subscriptions <https://www.saxobank.com/__DotNet/site/questionnaire/subscriptions/unsubscr ibe.aspx?memberid=1833613&[EMAIL PROTECTED]> www.saxobank.com <http://www.saxobank.com/> <http://www.saxobank.com/Site/About_Us/PressRoom/Photos/ctb-140-105.jpg> Analysis by: Christian Tegllund Blaabjerg <mailto:[EMAIL PROTECTED]> Market Strategist Saxo Bank _____ The Equity Strategy Team consists of: Christian Tegllund Blaabjerg <mailto:[EMAIL PROTECTED]> Market Strategist Saxo Bank Christian Svendsen <mailto:[EMAIL PROTECTED]> Market Strategist Saxo Bank See the full Strategy Team here <http://www.saxobank.com/?id=1532> Email the Strategy Team <mailto:[EMAIL PROTECTED]> Published: Jan. 21 2008, 15:30 GMT Entering a bear market We are now entering a bear market. But today's sell off is an overreaction. We expect the market to go down - but not at this pace. We will see a rebound in the near future. _____ MAJOR HEADLINES - PREVIOUS SESSION http://mitsweb.iitech.dk/live/dc/analysisimage.aspx?ResUID=50a34236-c30d-4fe e-b78f-430534bc1ab7 The Standard & Poor's 500 Index declined 5.4 percent this week to 1,325.19, the lowest level since September 2006. The Dow Jones Industrial Average dropped 4 percent to 12,099.30, extending its 2008 slump to 8.8 percent. The Nasdaq Composite Index lost 4.1 percent to 2,340.02. The Dow Jones Stoxx 600 Index fell 7.27, or 2.2 percent, to 320.26 as of 8:33 a.m. in London today, extending its decline from a near seven-year high on June 1 to more than 20 percent. Intel dropped 14 percent to $19 for the week, the lowest since March. The semiconductor maker said first-quarter revenue would be as low as $9.4 billion, less than the $10.1 billion predicted by analysts. Citigroup declined 14 percent to $24.45, the biggest weekly loss since July 2002. The bank wrote down the value of subprime-mortgage investments by $18 billion, reduced its dividend by 41 percent and said it would sell $14.5 billion of preferred stock to investors including the government of Singapore to shore up depleted capital. Merrill Lynch & Co. lost 5.2 percent to $51.87. The biggest U.S. brokerage reported a record loss after $16.7 billion of writedowns on assets affected by subprime mortgages. MBIA Inc. and Ambac Financial Group Inc., the two biggest bond insurers, tumbled 48 percent and 71 percent, respectively. The companies have a more than 70 percent chance of going bankrupt, credit-default swaps show. Banks including UBS AG and Barclays Plc led the retreat as financial firms announced losses of more than $100 billion worldwide from credit investments that went sour. U.S. reports this month signaled that a housing slump and subprime mortgage defaults may have sent the world's biggest economy into a contraction. _____ THEMES TO WATCH - UPCOMING SESSION We saw in Fridays session that the S&P500 dropped by 0.6%. However no one foresaw the meltdown of the European market today. The theme that caused this has been running in the market for a while; the fear of recession in the US. And this fear has increased amongst investors who now are selling equities across the board. We expect that we will have a short rebound within a couple of days since today's sell off is going far to fast to be able to sustain at this lower level. However it does not change our perception of the trend - we are going down and we should expect another 15% drawdown at the stock market. Corporate News: Abbott Laboratories: The drugmaker said its top-selling drug, Humira, won U.S. approval to treat moderate to severe forms of the skin disease psoriasis. The stock fell 32 cents to $59.43 in regular trading. Acorda Therapeutics Inc.: The biotechnology company may gain if it receives approval for a drug to treat spinal injuries or becomes a takeover target, Barron's reported, citing analysts including Joel Sendek at Lazard Capital Markets. Acorda declined 27 cents to $24.32 on Jan. 18. ABX Holdings, Inc.: The air-cargo carrier that relies on DHL Express for 90 percent of its sales said DHL demanded a repayment of a $92.9 million note. The stock rose 3 cents to $2.92 in regular trading. Home BancShares Inc.: The Conway, Arkansas-based bank holding company said its board approved a stock buyback program of as many as 1 million shares. The stock rose 93 cents to $20.28 in regular trading. Johnson Outdoors Inc.: The maker of Eureka! Tents and Old Town canoes said it's considering a sale or other options for its Escape brand of battery-powered electric boats. The stock added 15 cents to $20.94 in regular trading. Lehman Brothers Holdings Inc.: The investment banking company and other financial institutions may be holding a worthless $4.6 billion bridge-equity loan in Archstone-Smith Trust, a real-estate investment trust, Barron's reported, without citing anyone. Lehman, Bank of America Corp., and Barclays Plc may not have sold most of the loan to institutional investors after real estate investment trusts fell, Barron's said. Lehman shares fell $1.41 to $53.25, while Bank of America fell 94 cents to $35.97. Barclays American depositary receipts, which each represent 4 ordinary shares, fell $1.36 to $34.85. MBIA Inc.: The world's largest bond insurer's shares are "absurdly low" after news that rating agencies were reviewing the company's AAA rating caused the share price to plummet, Barron's reported, without citing anyone. MBIA stock fell 67 cents to $8.55 on Jan. 18. Sears Holdings Corp.: The owner of the Kmart and Sears retail chains that include the Kenmore appliance brand will appoint executives to run each of its business lines after saying profit may decline for a third straight quarter. Each unit's performance will have a designated leader and a group of executive advisers to oversee performance, Sears spokesman Chris Brathwaite said yesterday in an e-mail. Sears Holdings gained 50 cents to $89.43. WellCare Health Plans Inc.: The insurer under FBI investigation said it received U.S. approval to sell its Medicare health plans for the elderly and disabled in four additional counties in New York state. The stock rose 46 cents to $53.86 in regular trading. _____ Risk warning Saxo Bank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. 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