<p><br/></p><p><span lang="en-ca"><b><font face="Arial Narrow" size="4">CREDIT RESEARCH</font></b></span>
<br/><span lang="en-ca"><font face="Verdana" size="2">February 01, 2008</font></span>
</p><p><span lang="en-ca"><b><font face="Arial">Overnight News and the Day Ahead</font></b></span></p><p align="justify"><span lang="en-ca"><b><font face="Arial" color="#333399" size="2">407 International</font></b></span><b><span lang="en-us"></span></b><span lang="en-us"><font face="Arial" size="2"> reported solid Q4/07 and year-end results.&nbsp; EBITDA grew roughly 15% in 2007, reaching $407.6MM.&nbsp; Overall a solid year with management sustaining good cost controls and promoting solid growth.</font></span></p><p align="justify"><span lang="en-ca"><font face="Arial" size="2">The Times reports that a Monaco-based hedge fund, SRM Global, has amassed a 5.2% stake in</font></span><span lang="en-ca"><b>
<font face="Arial" color="#333399" size="2">Countrywide</font></b><font face="Arial" size="2">. The fund, run by former UBS trader Jon Wood, says that it will try to block the takeover by Bank of America as it “considerably undervalues the company”.</font></span></p><p align="justify"><span lang="en-ca"><font face="Arial" size="2">The Guardian reports that Sir Richard Branson’s Virgin Group will launch a takeover bid for</font><b>
<font face="Arial" color="#333399" size="2">Northern Rock</font></b><font face="Arial" size="2"> next Monday. Northern Rock is currently supported by about ?25bn of emergency funding.</font></span></p><p align="justify"><span lang="en-gb"><font face="Arial" size="2">The Financial Times highlights that</font></span><span lang="en-ca"></span><span lang="en-ca"><b>
<font face="Arial" color="#333399" size="2">Eurozone inflation</font></b></span><b><span lang="en-gb"></span></b><span lang="en-gb"><font face="Arial" size="2"> has surged to a 14-year high of 3.2%, strengthening the European Central Bank’s case for resisting interest rate cuts even as the region’s growth slows.</font></span></p><p align="justify"><span lang="en-ca"><b><font face="Arial" color="#333399" size="2">Credit Agricole</font></b><font face="Arial" size="2">, France's second- largest bank by assets, is appointing advisers to explore a possible bid for</font><b>
<font face="Arial" color="#333399" size="2">Soci?t? G?n?rale</font></b><font face="Arial" size="2">, which last week said a trader's unauthorized bets led to a record loss, four people involved in the discussions said.</font></span><span lang="en-gb">
</span></p><p align="justify"><span lang="en-gb"><font face="Arial" size="2">The eagerly anticipated US</font></span><span lang="en-ca"></span><span lang="en-ca"><b>
<font face="Arial" color="#333399" size="2">Non-Farm Payroll</font></b></span><b><span lang="en-gb"></span></b><span lang="en-gb"><font face="Arial" size="2"> print came in at -17k this morning, versus a survey figure of +70k. After a myriad of employment data, we have the</font></span><span lang="en-ca"></span><span lang="en-ca"><b>
<font face="Arial" color="#333399" size="2">U. of Michigan Confidence</font></b></span><b><span lang="en-gb"></span></b><span lang="en-gb">
<font face="Arial" size="2">Survey at 10.00am ET and the</font></span><span lang="en-ca"></span><span lang="en-ca"><b><font face="Arial" color="#333399" size="2"> ISM Manufacturing</font></b></span><b><span lang="en-gb"></span></b><span lang="en-gb"><font face="Arial" size="2"> number at the same time.</font></span><span lang="en-ca"></span><span lang="en-ca"><b>
<font face="Arial" color="#333399" size="2">US Auto Sales</font></b></span><b><span lang="en-gb"></span></b><span lang="en-gb"><font face="Arial" size="2"> data is also expected sometime today.</font></span></p><p align="justify"><span lang="en-ca"><font face="Arial" size="2">In Canada, we are expecting the</font></span><span lang="en-ca"><b><font face="Arial" color="#333399" size="2"> Industrial Product Price</font></b><font face="Arial" size="2"> print and the</font><b>
<font face="Arial" color="#333399" size="2">Raw Materials Price Index</font></b><font face="Arial" size="2"> at 8.30am ET. Also today, Minister of Industry</font><b>
<font face="Arial" color="#333399" size="2">Jim Prentice</font></b><font face="Arial" size="2"> will speak at the Ontario Energy Association.</font></span></p>