Wake Up Call - Jan 10

Good Morning. This is your wake up call for Wednesday January 10, 2007. The time is 9:25 AM EST, and major U.S. equity index futures are indicating a broadly lower open. With geopolitical concerns abound, highlighted by hot spots in Iran, Venezuela, Belarus, Somalia and Thailand, developed markets in Asia, Europe and the states a reflecting growing concern today.

Asia:
Hang Seng Index -1.66%; Shanghai/Shenzhen 300 +2.54%; NIKKEI 225 -1.71%; BSE SENSEX 30 % -1.5%; Ho Chi Minh +2.46%; SET +0.9%

U.K. & Europe:
DJ STOXX 50 Index -0.83%; FTSE 100 -0.55%; CAC 40 -0.59%; DAX -0.71%; Russian RTX Index $ -2.18%; ASE General -2.07%


KEY HEADLINE NEWS

• President Bush is set to lay out his "new way forward" for Iraq in a nationally televised address this evening. Democrats are already deliberating on a nonbinding resolution against further troop deployment. The president's plan is rumored to include total control transition in November, though some troops would remain in Iraq.
• Feeling the heat from America, representatives within Venezuela announced that Hugo Chavez's nationalization plans, will be executed through the reversal of foreign acquisitions and that foreign investors will be compensated. The question remains, will they get fair value... Venezuela's market collapsed yesterday on the news, and the shares of those firms involved were impacted most. So, exactly how Chavez's government plans to calculate fair value remains a significant concern.
• Rumor has it that after a long telephone conversation between Vladimir Putin and Belarus' President Alexander Lukashenko, an oil deal was formulated. The parties are expected to agree to the details by Friday, and oil flow should begin soon after. Germany's Merkel was especially infuriated by the dispute, announcing that trust in Russian oil supplies had been lost.
• The Mortgage Bankers Association stated its seasonally adjusted index of mortgage application activity, soared 16.6% to 671.1 for the week ended Jan. 5. As mortgage interest rates declined for the first time in five weeks, refinancing increased as a portion of total activity, to reach 48.4%, compared to 48.1% in the week just prior.
• U.S. Airways raised its bid for Delta by 20%, to $10 billion, saying it wanted to make a clear differentiation to Delta's Board and stakeholders between its bid and Delta's reorganization plan.
• After another negative reaction to a new restrictive investment policy, Thailand's government sought once again to appease investor concern by floundering on a new law. However, it is becoming clear that the government is a threat to foreign investment.
• The NYSE, along with several corporate investors, agreed to take a 20% investment position in the Indian Stock Market.

We urge you to read our section within the sidebar, entitled "Headline News", for further important information for traders.

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