Cantor Morning News | Overnight Stocks

HBC +/- HSBC, the global bank that has been praised for its handling of the financial crisis, has clashed with shareholders over a proposed pay rise for its executive team. Investors are understood to be particularly unhappy with the sum that HBC wants to pay Michael Geoghegan, its CEO, who relocated his office to Hong Kong on Feb. 1. Mr. Geoghegan was paid Ł1.7M in 2008, down from Ł3.5M in 2007. http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7028398.ece

YRAIF, TRA + Norway's Yara International ASA announced plans to acquire U.S. fertilizer producer Terra Industries in a $4.1B agreed cash deal that comes amid a scramble for global agribusiness assets. The acquisitive YRAIF, which plans to finance the proposed deal with a $2B to $2.5B rights issue, had long been seen as a white knight for TRA.

TV + Mexican media giant Grupo Televisa has acquired a 30% stake in Nextel Mexico for $1.44B, a move that allows TV to partner with a wireless carrier to bid for new wireless spectrum up for auction later this year. TV will be granted an option to acquire another 7.5% of Nextel Mexico in the third or fourth year after this deal closes. TV is the largest media co. in the Spanish-speaking world.

Bank of England +/- The Bank of England's Monetary Policy Committee expects the 3.5% Jan. rise in annual U.K. consumer inflation to be a "temporary deviation" from the 2% target, BOE Governor Mervyn King told Chancellor of the Exchequer Alistair Darling in an open letter. Weak spending has created a "substantial margin of spare capacity" in the economy that is expected to bear down on inflation over time. King said the MPC is committed to taking "whatever actions are necessary" to ensure the inflation outlook remains in line with the 2% target. King is required to write an open letter to the Treasury if inflation misses the target by more than a full percentage point.

TM + Toyota Motor Corp. announced it is considering ways to bolster procedures for checking the quality and reliability of cars and to do more to publicize incremental changes to cars already on the market. TM is aiming to announce changes to its quality and disclosure practices in coming days, in advance of Congressional hearings on the co.'s safety record in Washington next week and CEO Akio Toyoda's scheduled trip to the U.S. early next month, according to two top company executives.

GOOG + Google Inc. said it is planning further updates and considering changing how it tests new social-networking service Buzz after taking steps to stem the public backlash against it. GOOG product manager Todd Jackson said that the amount of people initially uncomfortable with the service underscored that the co.'s approach of testing Buzz among its employees hasn't been sufficient.

SSUMF + Trading co. Sumitomo Corp. said it will launch a tender offer of up to 122.18B yen, or $1.36B, to lift its holdings in Jupiter Telecommunications Co. JUPIF to 40% from 27%. The bid comes three weeks after KDDI Corp. KDDIF, Japan's No. 2 telecom carrier by subscribers and other measures, said it would pay about $4B to buy a 38% stake in JUPIF from Liberty Media Corp.

BABWF +/-

The biojet fuel British Airways is planning to produce in its new plant in London has not yet been certified for use by the U.K. authorities, the airline has admitted to the Guardian. BABWF said today that it would build what is believed to be Europe's first plant to manufacture "biojet fuel" using food scraps and other waste in an attempt to cut greenhouse gas emissions from aircraft.

But the airline stated that the Ministry of Defence body, DStan, which regulates aviation fuel in Britain, has yet to grant approval. Officials want further tests to make sure aircraft safety and performance are not compromised by engines running on biojet fuel, rather than conventional 100% crude oil-based kerosene.

http://www.guardian.co.uk/business/2010/feb/15/british-airways-biojet-fuel-factory/print

SNE +/- Sony Corp. said it would pull the plug on sales of flat TVs in Japan based on organic light-emitting diode (OLED) technology after demand for the pricey, ultra-thin sets failed to take off. SNE said it has already stopped production of OLED TVs in Japan and would end sales when inventory runs out. It plans to continue production for North America, Europe and other overseas markets, a spokesman said. http://www.reuters.com/article/idUSTOE61F00H20100216?type=marketsNews

Bharti Airtel Ltd. +/- Bharti Airtel Ltd. confirmed that it is in exclusive talks to buy most of the African assets of Kuwait's Mobile Telecommunications Co., known as Zain, for $10.7B, in the latest bid by India's largest mobile-phone operator by subscribers to enter a fast-growing market overseas. Bharti's bid for the assets of Zain, which has over 70M customers spread across Africa and the Middle East, came after its talks with South Africa's MTN Group Ltd. for a deal valued at $24B fell through last year. Shares in the Indian co. dropped nearly 10% after the announcement Mon. on concerns it may be overpaying for the deal.

The Dollar + A dramatic turn in sentiment in favor of the dollar and against the euro continued, with lingering fears of a possible European debt crisis pushing the dollar to its highest point in nine months. Among investors, the question a few months ago wasn't whether the U.S. dollar would decline in value, but rather how far and how fast. The currency's surge is throwing a monkey wrench into the plans of corporations and investors who were betting on a weak dollar. The euro extended recent declines Mon., slipping to $1.36 from $1.3618. That came on the heels of last week's fifth-straight weekly gain by the U.S. currency. The dollar is up more than 5% against the euro this year.

DB +/- Deutsche Bank AG, Germany’s biggest bank, introduced a sliding scale forcing top bankers to defer a bigger proportion of their bonuses, said two people with direct knowledge of the plan.

The rule applies to 2009 bonuses of more than 100K euros ($136K), said one of the people, who declined to be identified because the plan is private. Bankers will have to defer at least 25% of bonuses above that amount, the people said. The marginal deferral rate will increase to as much as 90% as the bonus crosses a series of thresholds. http://www.bloomberg.com/apps/news?pid=20601087&sid=a48pEjk4EwP8&pos=2#

Bond Sales +/- Companies are pulling bond sales at the fastest pace since the credit markets seized up 2 1/2 years ago on concern that the inability of European governments to trim their budget deficits will threaten a global recovery. At least 16 borrowers including Montreal-based airplane maker Bombardier Inc. and Italian betting co. Snai SpA have postponed or withdrawn $7.3B of debt sales over the past month, according to data compiled by Bloomberg. That’s the most since more than 50 were canceled in the months after financial markets began to freeze in July 2007. http://www.businessweek.com/news/2010-02-15/companies-pull-most-bond-sales-since-07-crisis-credit-markets.html

Greece +/- In a move that is essentially a delaying tactic, fellow euro-zone countries said they will give Greece one month to show it can right its unbalanced budget before demanding steep spending cuts and fresh taxes, finance ministers of the 16-nation currency union said after meeting Monday.

Housing Prices - More waves of foreclosures will keep downward pressure on home prices in parts of the U.S. over the next several years, 2 new studies project. The studies, by John Burns Real Estate Consulting Inc. and S&P's Financial Services LLC—both conclude that most efforts to modify loans with easier terms will delay, not prevent, the loss of homes to foreclosure. The Treasury Dept is expected to give its latest update this week on government efforts to avert foreclosures. The John Burns study estimates that 5M houses and condominiums on which mortgages are now delinquent will go through foreclosure or related procedures that put them on the market over the next few yrs. That would represent the bulk of the estimated 7.7M households behind on their mortgage payments. This "shadow inventory" of homes expected to hit the market is enough to last about 10 months, based on the average sales rate over the past decade, the firm says.

http://online.wsj.com/article/SB10001424052748703562404575067452797224606.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

LRLCF - French co. L'Oreal pledged to improve turnover and earnings in 2010 when posting Q4 sales below forecasts, particularly luxury products such as Yves Saint Laurent make-up and Lancome creams. LRLCF, which also sells Garnier shampoo and Vichy face creams, said it had come out of 2009 stronger and had "prepared itself well for a return to sales and results growth in 2010".

LRLCF's Oct.-Dec. like-for-like sales rose 1.5%, missing market expectations of 2.4% to 4% growth. Revenues from luxury products, which also include Shu Uemura lipstick and Kiel's herbal remedies, fell 4.7% on a comparative basis during the Q4, while many analysts had expected a rise, some by as much as 4%.http://www.reuters.com/article/idUSLDE61E20C20100215

European Central Bank +/- Euro zone finance ministers have chosen Portugal's Vitor Constancio to become the next European Central Bank VP, a source with insight into the ministers' meeting told Reuters on Monday. Constancio, 66, is seen as bringing a dovish tilt to the ECB's core Executive Board but his nomination is likely to also increase speculation that inflation hardliner Axel Weber will take over from Jean-Claude Trichet as president next year. "The Eurogroup agreed that Vitor Constancio should be the next ECB vice-president. A formal decision will be taken on Tuesday by the Ecofin Council," an EU diplomat said. http://www.reuters.com/article/idUSBRU01065820100215?type=marketsNews

Heard on the Street +/- Discusses as all else has crumbled, the BRICs have come through the crisis looking relatively solid. Yet clear differences have opened up among the fast-growing emerging-market quartet consisting of Brazil, Russia, India and China.

Dubai World +/- Dubai World may offer its creditors 60% of the money they are owed, backed by the sheikdom's government, as part of a deal to reschedule $22B of debt, people familiar with the matter told Zawya Dow Jones. The potential offer includes no provision for annual interest payments, but calls for creditors to receive $.60 for every U.S. dollar loaned to the troubled conglomerate after seven years. Lenders would receive an interest payment at that time. Repayment would be guaranteed by the Dubai government. Dubai World is considering presenting the offer to creditors by April, the people said. http://online.wsj.com/article/SB10001424052748704124704575064541452937112.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

Toys 'R' Us +/- Five years after taking Toys 'R' Us private for $6.6B, the retailer's private-equity owners are angling to cash in with an IPO this summer, The Post has learned. Bain Capital, Kohlberg Kravis Roberts and Vornado Realty are now interviewing investment banks including Goldman Sachs, Deutsche Bank and JPMorgan Chase as potential underwriters. The assignment: to issue as much as $1B in publicly traded shares. The cash would be used to slim and refinance Toys 'R' Us' $5B debt load, which has hampered the big funds' ability to take profits on their investment, sources said. http://www.nypost.com/p/news/business/it_time_to_play_ylfI4Df4GcGRtYtPQOaPCK

ITW + Illinois Tool Works Inc. reported a 5% jump in operating revenue for the three months ended Jan. 31 and reaffirmed its Q1 and 2010 outlook. The co. said operating revenue was boosted by acquisitions and positive currency translations. Operating revenue at the co.'s transportation unit posted the sharpest rise at 28.4%. The co. also reaffirmed its Q1 earnings from continuing operations of $.48 to $.60 a/s. ITW regularly reports trailing three-month sales. Shares of the co. closed at $43.64 Fri. http://www.reuters.com/article/idUSSGE61E0FA20100215?type=marketsNews

TTM + Tata Motors Ltd. hired Carl-Peter Forster, the former head of General Motors Co.’s European division, as CEO to help the Indian co. manage global operations after purchasing Jaguar Land Rover. http://www.bloomberg.com/apps/news?pid=20601087&sid=avKJEgde7fhU&pos=7#

PHM +/- Builder Pulte Homes said that founder William J. Pulte, 77, will retire from the co. and the board March 31. He will not be replaced, leaving the board with 11 members. http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/201002151728DOWJONESDJONLINE000264_univ.xml

Reuters

U.S. Recovery + The economic rebound is likely to speed up in the US this year, but in Europe things are not as good, Bob Diamond, Barclays president, told CNBC Tuesday. "There are mixed signals, for sure, but we are at the positive end, particularly in the US," Diamond told "Squawk Box Europe." "We see very strong signs of an accelerated recovery as 2010 goes on" and a "material improvement" in US employment is likely to occur, he added. But Barclays is not that positive on Europe, because of its rigid labor markets and because it hasn't had the advantage of a weak currency to boost its exports.

http://www.cnbc.com/id/35417338

KFT, CBY +/- Kraft Foods Inc. said it had just over 90% acceptances from Cadbury Plc shareholders in its takeover of the British confectioner. KFT, after a prolonged battle for the co., said it would start a compulsory purchase of the remaining shares to close out the deal.

VLOUF + French seamless tube maker Vallourec said it would invest $650M in building a new plant in the U.S., to meet the needs of the oil and gas industries there. The new small-diameter rolling mill, in Youngstown, Ohio, will initially produce 350K metric tons per year, and provides and annual nominal rolling capacity of 500K metric tons of seamless tubes, VLOUF said.

Oil Futures + Oil skipped over $75 per barrel, up more than $1, responding to a euro struggling higher against the dollar and supported by tensions over pressure for more sanctions against Iran. U.S. crude for March delivery touched a session high of $75.23 per barrel, and was up on the day. London ICE Brent for April delivery was trading up after having touched an intra-day peak of $73.74 earlier. Trading volumes continued light with much of Asia shut for the Lunar New Year holiday and U.S. markets opening later after Monday's closure for Presidents' Day.

http://www.cnbc.com/id/35413122

MarketWatch.com

Australia's Shares - Australian shares moved lower in choppy trade Mon. morning, as weakness among miners outweighed strength in financials. The S&P/ASX 200 lost 0.1% to 4,559.5 in early trading, with Alumina Ltd. qAWCMF down 1.9%, and Rio Tinto Ltd. qRTP falling 1.8%, giving back a little of last week's strong gains as the market waited for news on iron-ore price negotiations. Banks were somewhat stronger, with Commonwealth Bank of Australia qCBAUF up 1.2% and Westpac Banking Corp. qWEBNF higher by 1%.

ANF + Abercrombie & Fitch Co. said that 4Q earnings were $48M, or $.53 a/s, compared to $68M, or $.78, in the same period a yr ago. Adjusted EPS were $.91 vs $1.06 in last year's period. Sales were $2.93B compared to $3.48B. FactSet Research estimated EPS of $.89.

Japan's GDP +/- Japan's economy expanded in line with expectations in the Oct.-Dec. quarter, according to government data released Mon. Gross domestic product grew 1.1% in real terms from the July-Sept. quarter, slightly better than 1.0% growth expected by economists surveyed by Dow Jones Newswires. GDP grew 4.6% on an annualized basis, the Cabinet Office data showed. Domestic demand added 0.6 percentage points to GDP growth in the latest quarter, while external demand, exports minus imports, added 0.5 percentage points to growth.

Q +/- Qwest Communications International Inc. qQ said its 4Q net income fell to $108M, or $.06 a/s, from $177M, or $.10 a/s, in the yr-ago period. Recent results include a $.02 a/s charge for severance cost. FactSet predicted EPS of $.08 a/s. Operating revenue fell nearly 10% to about $3B from $3.3B. For full-year 2010, Q expects to report improving revenue comparisons with the yr-over-yr decline improving to a low- to mid-single digit rate by the 4Q. Shares of Q closed Friday at $4.46 each.

MRK + Merck & Co. Inc. said its 4Q profit rose to $6.49B, or $2.35 a/s, compared to $1.64B, or $.78 a/s a yr ago. Sales for the Q were $10.09B, vs. $6.03B a yr ago. Non-GAAP EPS were $.79, vs. the consensus FactSet estimate poll number of $.78.

PMI - PMI Group Inc. said that its 4Q net loss widened to $228.2M, or $2.76 a/s, from $178.8M, or $2.19 a/s, a yr earlier. Total revenue for the Q rose 31% to $249.8M. FactSet had forecast a loss of $1.42 a/s. PMI said its U.S. mortgage insurance operations lost $242M in the Q, due to higher claim rates and the acceleration of some expected future losses. The number of primary loans in default at the end of Dec. was 150,925, compared to 141,261 at the end of Sept.

KFT + Kraft Foods said its 4Q profit surged to $710M, or $.48 a/s, from $180M, or $.12 a/s, on lower restructuring costs. Revenue rose 3% to $11.03B as favorable currency swings and improving volume and mix offset lower prices. FactSet had expected EPS of $.45 on revenue of $11.03B. KFT expects comparable sales growth of 4% or more, and it expects at least $675M in savings before tax from its acquisition of Cadbury at a one-time cost of $1.3B. It expects EPS to be lifted by $.05 a/s from the deal, excluding one-time items, in 2011, though the sale of its North American pizza business will hurt earnings by $.05 a/s. Over the long-term, the combined co. is targeting EPS growth of 9% to 11%.

European Car Registrations + New passenger car registrations in the European Union rose by 12.9% to 1.06M in Jan. compared to the same month a yr ago, the European Automobile Manufacturers' Association said.

http://www.marketwatch.com/story/story/print?guid=49120F84-62A3-48A3-909A-99B55FE1C441

TEVA + Teva Pharmaceutical Industries Ltd. swung to Q4 net income of $379M or $.42 p/s, compared with a loss of $694M or $.88, in the year-earlier quarter. Adjusted earnings were $.94 p/s against $.80. Shares outstanding rose 15% to 900M. Sales rose to $3.8B from $2.85B. At Feb. 5, TEVA had 216 product applications awaiting final clearance from the U.S. FDA; of these, 43 have tentative approvals.

NMR, NXY + Nomura, the Tokyo investment bank, agreed to acquire Nexen Energy Marketing London Ltd., a commodity-trading and -marketing business focused on European natural gas and power. Terms weren't disclosed. Nexen Energy is a subsidiary of Nexen Inc., the energy co. NEML will complement Nomura's current commodities business and will strengthen its investment-banking franchise in power and natural gas, Nomura said in a statement.

AZN, RIGL + Anglo-Swedish drugmaker AstraZeneca and Rigel Pharmaceuticals signed an exclusive worldwide license agreement for the global development and commercialisation of fostamatinib disodium, RIGL's late-stage investigational product for rheumatoid arthritis and additional indications. AZN will make an upfront payment to RIGL of $100M with up to an additional $345M payable if specified milestones are achieved. RIGL will also be eligible to receive up to an additional $800M of specified sales-related milestone payments if the product achieves considerable commercial success, as well as significant stepped double-digit royalties on net sales worldwide. AZN will design a global phase-III program, anticipated to begin in the second half of 2010.

APC + Anadarko Petroleum Corp. formed a joint venture in which an affiliate of Mitsui & Co. MITSF will become a 32.5% partner in its Marcellus Shale assets, located primarily in north-central Pennsylvania. The deal is valued at $1.4B, APC said in a Tues. statement. MITDF, the Tokyo conglomerate, receives 100K acres "in exchange for funding 100% of Anadarko's share of development costs in 2010 and 90% of these costs thereafter, with an estimated completion of all obligations by 2013," APC said. MITSF also can buy a 32.5% share of APC's existing wells and additional acreage acquisitions by reimbursing APC proportionately for its spending on those assets, APC said.

TEVA, NVS + Teva Pharmaceutical Industries Ltd. said subsidiary Teva Pharmaceuticals USA Inc. signed an agreement with Novartis to settle a patent lawsuit over Teva's generic version of the Novartis-developed antiviral medication Famvir. Under terms of the settlement, TEVA will make a 1-time payment to NVS as well as ongoing royalty fees on U.S. sales of generic Famvir. TEVA didn't disclose the amount it will pay. Famvir is used to treat herpes and shingles.

MSFT + Microsoft said that it's introducing Windows Phone 7 Series, the software giant's latest operating system for phones. MSFT will bring together Xbox LIVE games and the Zune music and video experience on a mobile phone, exclusively on Windows Phone 7 Series. Partners have already started building phones; customers will be able to purchase the first phones in stores by holiday 2010.

TRA + Norwegian fertilizer group Yara International said that it will pay $41.10 a/s, or $4.1B in total, for Terra Industries Inc. Yara said that the deal will improve its position in the U.S. "Yara and Terra are a perfect fit, and the combination will elevate Yara to a truly global leader in the industry," said CEO Jřrgen Ole Haslestad. Yara has identified yearly cost synergies with pre-tax effects of $60M within a yr after closing. It intends to issue shares to raise $2.0B to $2.5B. Separately, Yara said that it swung to a 4Q net profit of 1.4B Norwegian kroner ($236M), from a loss of 2.1B kroner a yr ago.

AMR + American Airlines and Japan Airlines filed an application with the Dept. of Transportation for antitrust immunity as part of their effort to forge closer business ties, the airlines said. "An immunized JBA will benefit the public, offer new competition in the fast-growing Asian aviation marketplace and strengthen the relationship between American and Japan Airlines, which will support JAL's successful restructuring," said AMR's Chairman and CEO Gerard Arpey.

ICAP +/- Interdealer-broker Icap said that it has started a strategic review of some of its cash equities businesses.

GSK + GlaxoSmithKline shares were up 0.9% after the co. was upgraded to neutral from underperform at J.P. Morgan. "GSK is the first large cap to emerge from the patent cliff in late 2010, and thus will be the first benchmark for profitability and earnings growth of a pharmaceutical large cap post-patent cliff," the broker said.

U.S. Stock Futures + U.S. stock futures were stronger Tuesday after a 3-day break, with investors returning to a rally in commodity prices, notably gold.

S&P 500 futures rose 4.4pts to 1,083.50 and Nasdaq 100 futures added 8.25pts to 1,791.50. Futures on the DJIA rose 31pts. U.S. stocks rose last week, with the S&P 500 rising 0.9% to snap a four-period losing run.

Investors are returning to a rally in gold prices, up some $26 an ounce in electronic trade, and firmer commodity prices across the board. In euro terms, gold rose to an all-time high of 818 euros an ounce.

The dollar index fell 0.2%. The euro recovered somewhat as European finance ministers demanded fresh budget cuts from Greece if a review of the country's debt-slashing measures doesn't meet approval next month.

The NY Federal Reserve's Empire State Index for Feb., along with the National Association of Home Builders' housing market index, also for February, will be released Tuesday, as will securities inflows for December.

Earnings also are due from companies including Merck & Co. MRK , Kraft Foods qKFT and Qwest Communications qQ.

Terra Industries qTRA accepted a $4.1B takeover bid from Norway's Yara. Barclays qBCS reported a surge in profit as the U.K. bank said '10 has started out more strongly than '09.

GPC + Genuine Parts Co. said its board of directors raised the quarterly dividend to $.41 a/s, effectively raising the annual dividend rate to $1.64 from $1.60. The automotive-parts co. will pay the dividend on April 1 to shareholders of record on March 5.

BCS + U.K. bank Barclays said that its '09 net profit more than doubled to 9.39B pounds ($14.73B) from 4.38B pounds a yr earlier, due to gains from the disposal of Barclays Global Investors. The bank said pretax profit, including a 6.33B pounds gain from BGI, rose 92% to 11.64B pounds, slightly ahead of a 11.31B pound consensus forecast. The group said pretax profit in its investment banking arm rose 89% to 2.46B pounds, while impairment charges on the banks' lending rose 49% to 8.07B pounds. The bank said CEO John Varley and President Bob Diamond have both declined any bonus for '09 and that other members of the executive committee have had their entire bonus deferred. The total dividend for the year declined 78% to 2.5 pence a/s.

Germany +/- The ZEW indicator of economic sentiment for Germany fell to 45.1 in Feb. from a reading of 47.2 in Jan., the Center for European Economic Research, or ZEW, said Tuesday. Economists had forecast a decline to 40, according to Action Economics. The ZEW index measures the response of professional investors polled on their expectations for the German economy over the next 6 months.

http://www.marketwatch.com/story/story/print?guid=43F7E0D7-5637-4EAB-8F68-1A23D7D9649E

IHG - InterContinental Hotels that its fiscal-year net attributable profit declined to $213M, from $262M at the same point last year. The firm took an exceptional operating charge of $373M in the period, including a $197M impairment charge. Sales totaled $1.5B, from $1.9B a yr ago. Revenue per available room fell by 14.7% over the yr, with a 4Q decline of 10.9%.

http://www.marketwatch.com/story/story/print?guid=A3242A96-F025-46A0-A461-DA1EAD204F3B

CLZNY +/- Clariant AG reported a narrower 4Q loss on 1.7% lower sales, and the board proposed not to pay a dividend for '09. The net loss shrank to 67M Swiss francs ($62.3M) from 207M in the yr-earlier Q. EBIT excluding special items more than doubled to 107M francs. Sales fell to 1.71B Swiss francs from 1.74B. The co. also said it would take further efficiency measures, cutting a total of 500 jobs.

http://www.marketwatch.com/story/clariant-q4-loss-shrinks-500-job-cuts-planned-2010-02-16

DB + Deutsche Bank AG was upgraded to outperform from neutral at Credit Suisse, which also raised its target price on the stock to 62.50 euros a/s from 50 euros previously. The latest guidance from Deutsche Bank suggested that significantly stronger volumes are being seen in the key sales and trading line, Credit Suisse said. As a result, 1Q"earnings could be very strong indeed; it is not impossible that the outturn could be up on the previous record quarter," which was the first quarter of '09, the broker said.

Financial Times

The U.S. Fed - The U.S. Federal Reserve is holding sizable paper losses on real estate assets acquired in the Bear Stearns rescue, the paper reported. The assets are held in a vehicle known as Maiden Lane I, which was set up to facilitate JPMorgan Chase's JPM purchase of Bear in March 2008, the newspaper said. The assets were originally valued at $30B when a final agreement on the portfolio was reached in June 2008 by the NY Fed and its advisers, the newspaper said. At the end of 2009, the Fed said the assets were worth $27.1B. The report said Maiden Lane's losses were concentrated in commercial real estate assets, which had a face value of $8.4B and an estimated worth of $7.7B when acquired by Fed. They were marked down to $4B as of Sept., according to the report.

Dow Jones News Service

COF + Capital One Financial Corp. reported credit-card delinquencies rose for a second-straight month in Jan., while U.S. charge-off levels continued to climb. However auto-loan delinquencies and charge-offs were down. The credit-card-lender-turned-bank and many others have been struggling with credit concerns as the weak economy and high unemployment pressure balance sheets. Delinquencies and charge-off help predict lenders' potential losses and how much they may need to put aside to cover them. Charge-offs, or loans COF doesn't expect it will be able to collect, rose to 10.41% from 10.14% in Dec. in its U.S. credit-card business and declined to 9.03% from 9.58% internationally, the bank said in a filing with the SEC. Auto-finance charge-offs dropped to 4.27% from 5.68%.

http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/201002160638DOWJONESDJONLINE000148_univ.xml

BRO - Brown & Brown Co. reported Q4 earnings of $23.7M or $.17 p/s, compared to $33.4M or $.24 p/s a year earlier. Revenue fell to $214.2M from $232.1M. Analysts polled by TR expected earnings of $.22 on revenue of $224M.

CHE +/- Chemed Corp. reported Q4 earnings of $18M or $.78 p/s, compared to $18.2M or $.80 p/s, a year earlier. Excluding items, earnings p/s rose 7.1% to $1.06. Revenue increased 3.8% to $303.2M. Analysts surveyed by TR projected earnings of $.94 on revenue of $300M.

CW +/- Curtiss-Wright Corp. reported a Q4 profit of $35M or $.76 p/s, up from $33M or $.73, a year earlier. Sales slipped 1% to $502.8M. Analysts polled by TR had most recently forecast earnings of $.74 on $495M in revenue.

Bloomberg.com

NVZMY + Novozymes A/S will announce today an enzyme product that makes the production of second generation ethanol from agricultural waste possible at a cost of below $2 per gallon, thus making it competitive with gasoline, newspaper Borsen reported today. Novozymes sales of the enzyme cocktail could eventually be as much as 20B kroner ($3.7B) per year, the newspaper said.

Gold Futures + Gold rose for a second day in London to the highest price in almost 2 weeks as a weaker dollar increased the metal’s appeal as an alternative investment. The U.S. Dollar Index, a 6-currency gauge of the greenback’s value, slipped as much as 0.5% as gains in equities and improving corporate earnings reduced demand for the safest assets. The dollar also fell amid speculation the euro’s recent losses, prompted by Greece’s financial turmoil, were too rapid. Gold typically moves inversely to the dollar.

http://www.businessweek.com/news/2010-02-16/gold-advances-to-two-week-high-as-weaker-dollar-boosts-demand.html

Rubber Futures - Rubber prices in Shanghai may drop as much as 17% this year and drag down Tokyo futures after gains outpaced demand growth in China, the largest consumer, Global Broker Services Ltd. said. The Shanghai Futures Exchange price may drop to as low as 20,000 yuan ($2,930) a metric ton by the end of 2010 from 24,045 yuan on Feb. 12, Tetsuji Wakao, president of the Hong Kong-based commodities and securities broker, said in an interview. The Tokyo contract, the global benchmark, will move in tandem with the market in China, he said, without giving a specific forecast.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWio9NhNUC8c&pos=7

JPM, + JPMorgan Chase & Co., agreed to buy the non-U.S. units of RBS Sempra Commodities LLP for $1.7B to expand its energy and metals trading units. JPMorgan will acquire the firm’s European and Asian global metals and oil units, Edinburgh-based RBS said. Royal Bank of Scotland Group Plc was forced to sell its stake in Sempra by the EU after receiving a 45.5B-pound ($71B) taxpayer-funded bailout.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCavi2u_2YfA&pos=3#

The Dollar - Bill Gross, who runs the world’s biggest bond fund at PIMCO increased holdings of non-dollar developed-market debt in January for a third month. The $209.6B Total Return Fund boosted the securities to 18% of assets from 16% in Dec., according to Pimco’s Web site. The holding is the most since 2004. The fund increased cash to 9% from 8%, also rising for a third month. Government-related bonds dropped to 31% from 32%.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aeU728pSiOmc&pos=4

Treasury Inflation-Protected Securities - Treasury Inflation-Protected Securities are posting the biggest losses since Lehman Brothers Holdings Inc. collapsed in 2008 as investors say they’re too expensive when consumer prices are barely rising. Blackrock Inc., Pacific Investment Management Co. and FAF Advisors Inc., which oversee about $4.5T, are selling TIPS, contributing to a 1.1% loss this month after they gained 1.5% in Jan. and 10% in 2009. The bonds are on pace for their worst month since falling 8.47% in Oct. 2008, the month after Lehman went bankrupt.

http://www.bloomberg.com/apps/news?pid=20601087&sid=awCoj_h47UA0&pos=4

Greece + Greek stocks declined for a third day, extending the benchmark ASE Index’s losses for the year to 15%, amid concern the European Union will force the nation to make deeper cuts to its budget deficit. The ASE dropped 1.3% to 1,874.22 at 11:47 a.m. in Athens. The FTSE/ASE 20 Index of the nation’s biggest companies slid 1.4% to 923.97. Greek markets were closed for a holiday yesterday.

http://www.businessweek.com/news/2010-02-16/greek-stocks-drop-on-eu-aid-concern-extend-2010-slump-to-15-.html

Bloomberg

JPM +/- JPMorgan Chase & Co. is close to a deal to buy the non-North American units of RBS Sempra Commodities LLP for about $1.7B to expand its energy and metals trading units, according to two people briefed on the talks. The purchase may be announced as early as today. Royal Bank of Scotland Group Plc was forced to sell its stake in Sempra by the European Union after receiving a Ł 45.5B taxpayer-funded bailout.