The results are generally in line with expectations. But growth in net profit in 2006 will not be as (strong) as in 2005.

We definitely expect to see new products and services from the banks as they try to improve their market share especially in the retail sector.

Growth was lower than expectations because of inventories -- which will need to be rebuilt -- while moderating employment costs will make it less costly for firms to hire additional workers. The still-strong level of wage and salary should buoy consumption.

Strong figures will boost expectations of higher growth in consumer spending in the U.S.. That will heighten expectations of at least two more rate hikes from the Fed, supporting the dollar.

It's a savage profit warning for the UK, with numbers for 2006/07 likely to shift materially below current expectations. You are probably looking at cuts of between 30 and 50 percent.

Investor expectations about profit gains at brokerages grew stronger.