EQUITIES as a percentage of any Portfolio

German shares AFX at a glance outlook

FRANKFURT (AFX) - Shares are expected to sharply extend this week's gains
following a solid start to the year on Wall Street overnight and after gains in
Asia this morning, with BASF in focus after the chemicals giant late yesterday
afternoon announced a hostile takeover offer for Engelhard, dealers said.
At 8.44 am, brokerage Lang & Schwarz indicated the DAX 30 index would open
at about 5,512, up some 52 points from yesterday's close at 5,460.68.

FORTHCOMING EVENTS
TODAY
-Wholesaler and exporter association BGA news conference on economic
situation and outlook of wholesale industry (10.30 am)

TOMORROW
-Nov retail sales (9.00 am)
-Dec services PMI (9.55 am)
-Nov manufacturing orders (12.00 noon)

TODAY'S PRESS
-BASF's Wintershall wants to tighten ties to Russia to secure European gas
supply (Financial Times Deutschland)
-Sixt buying VW's Europcar could face resistance from cartel authorities
(Financial Times Deutschland)
-UniCredito must sell Croatia-unit in wake of HVB acquisition (Financial
Times Deutschland)
-German govt wants to spend 34 bln eur on 'growth measures' between 2006-9
(Financial Times Deutschland)
-New equity regulation may force consolidation of German insurance industry
(Handelsblatt)
-Allianz' Dresdner Bank to sell loans valued at several bln eur - report
(Handelsblatt)
-Allianz' asset management unit to achieve 1 bln eur opg profit in 2005
(Boersen-Zeitung)
-Allianz sells Vietnam unit to QBE Insurance (Boersen-Zeitung)
-Vattenfall wants to increase wind energy capacity tenfold in next years -
INTERVIEW (Die Welt)
-German govt wants to reform sales tax from 2008 (Sueddeutsche Zeitung)

COMPANY NEWS
-BASF to make 4.9 bln usd cash offer for New Jersey-based Engelhard
-BASF ratings on CreditWatch negative after hostile offer for Engelhard
*FRESENIUS HIKES PLANNED BOND ISSUE VOLUME TO 1 BLN EUR FROM 700 MLN

MACRO-ECONOMIC/POLITICAL NEWS
-German Nov wholesale sales down 0.1 pct from Oct, up 2.2 pct yr-on-yr

MARKET NEWS/SENTIMENT
-STOCKWATCH Siemens seen up as UBS hikes price target to 86 eur versus 75
-STOCKWATCH Deutsche Post coverage resumed at JP Morgan with 'neutral'
rating
-STOCKWATCH BASF higher pre-bourse as market mulls Engelhard takeover offer
niklas.magnusson@afxnews.com
nm/tc