The climate for the world economy is good. Our outlook for 2006 is more positive than before.

It is in China's interest to allow the yuan to appreciate, as long as it's at a reasonable pace.

Angela Merkel believes fiercely that Germany needs a freer, more individualistic society, and more market-oriented economy, precisely because she grew up in the very opposite -- in the communist east.

Our client base grew further in 2005 and the positive effects of the improved stock exchange climate and greater business confidence were also manifest.

Besides earning returns, we're making a positive impact on the economy of formerly bypassed California markets. We have identified three key benchmarks of underserved markets: companies that have limited access to capital, companies that employ workers who reside in economically disadvantaged areas, and companies that have female and/or minority management.

The fundamentals for European shares are good. A strong economy, good earnings and positive outlooks all combine to make them attractive.