Prudential Financial Launches Three New Global Economic & Investment Research Reports; Coverage Includes Macro and Financial Market Analysis, Forecasting, and Sector Strategy

Business Wire, Feb 13, 2006

NEWARK, N.J. -- Prudential Financial, Inc. (NYSE:PRU) announced today that the company's International Investment business is launching a series of global economic and investment research reports written by John Praveen, PhD., chief investment strategist of Prudential International Investments Advisers, LLC. (PIIA). Starting today, concise and useful information will be available in the PIIA Global Economic Outlook, Global Investment Strategy and Global Investment Outlook on a monthly basis under the auspices of Prudential's International Investment businesses in Korea, Taiwan, and Mexico, and the company's joint ventures in Germany, Italy and China.

PIIA Global Economic Outlook will cover growth and inflation, interest rates, currencies, and corporate profits for the United States, Europe, Japan, China and emerging markets. PIIA Global Investment Strategy will feature global asset allocation, bond and equity market outlook and strategy, and sector strategy. PIIA Global Investment Outlook will provide analysis of and outlook for global financial markets and economies.

"John Praveen has more than 20 years of investment experience from both the buy-side and sell side from Wall Street as well as the academic world," said Stephen Pelletier, chairman and CEO of Prudential's International Investments. "John's market insights provide our businesses and local partners with in depth and relevant analysis on economic trends in Europe and Asia, global sectors, and stocks and bond market outlook," said Pelletier. "They can use this information to assist their clients in making smarter decisions related to their financial needs."

"In making financial decisions, accessible and timely information is key," said Praveen. "Our goal is to turn macro and market data into useful information and analysis to help our business partners better understand today's complex and interrelated global financial markets," said Praveen.

As chief investment strategist, Praveen is responsible for developing and managing macro and financial market analysis, generating forecasts in research reports, and formulating investment strategy, asset allocation and sector strategy. Below are excerpts from the three new research reports:

Global Investment Outlook

Earnings: "Japan continues to have the best earnings outlook, with improving corporate pricing power and labor costs contained. In the U.S., solid GDP growth and strong productivity should underpin earnings. Dollar weakness in 2006 should give a boost to U.S. earnings, as 30% of S&P 500 sales are overseas. European earnings, which enjoyed the support of low interest rates and weak Euro, now face higher interest rates and a potentially stronger Euro."

Valuation: "Stocks are still attractive relative to bonds, with a higher earnings yield. Stocks are also trading at attractive multiples. The trailing P/E for the MSCI World index decreased to 17.9X in December 2005 from 18.4X in January 2005. Market multiples declined in all markets."

Global Economic Outlook

Currency: "Interest rate and growth differentials that supported the U.S. dollar in 2005 are narrowing in 2006. There is dollar weakness, especially against the Euro. Also, increased volatility in currency markets with cross current of growing U.S. current account deficit and strong capital inflows."

Growth: "Solid growth in 2006 with trend growth in the U.S. and Japan, Euroland rebounding to trend growth, strong growth in China and India, and healthy growth in other Emerging Markets. U.S. growth set to rebound sharply in first quarter 2006 from fourth quarter 2005 pause."

Global Investment Strategy

Stocks and Bonds: "Stocks should post healthy gains in 2006, with attractive valuation, solid earnings and improved macro backdrop. Bond yields should remain under pressure, but the rise in yields should be limited."

Prudential International Investments Advisers, LLC (PIIA), a Prudential Financial, Inc. company, is an investment adviser registered with the Securities and Exchange Commission of the United States of America.

International Investments has a presence in Korea, China, Taiwan, Japan, Mexico, Germany and Italy offering proprietary and non-proprietary asset management, investment advice and product choice services to high net worth and mass affluent retail clients and to institutional clients. These services are marketed through our own and third-party distribution networks. International Investments is also part of Prudential's International Division.

Prudential Financial companies, with approximately $532 billion in total assets under management as of December 31, 2005, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.