Cantor Morning News | Overnight Stocks

China's IPO's - Initial public offerings by Chinese cos. in the U.S. are suffering their longest slump since at least 2004 after providing twice the return of American IPOs over the past five years. Chinese cos. that sold shares in the U.S. last quarter fell an average 4.8% in their first month of trading, with losses deepening to 6.7% for cos. that debuted in Jan. and Feb. http://www.bloomberg.com/apps/news?pid=20601087&sid=aAExiW8054Rs&pos=5#

NTDOF + Nintendo Co. said it will launch the DSi XL, a bigger-screen version of its popular portable game device, in the U.S. next month as it seeks to continue growing amid more competition from devices like smart phones. The Japanese videogame maker said the DSi XL will sell for $189.99, or $20 more than the previous model, starting March 28. The device, first unveiled in Japan this past Nov., will have a screen that is 93% bigger than last year's model. http://online.wsj.com/article/SB10001424052748704240004575085722773828104.html?mod=WSJ_business_whatsNews

LEH - Lehman Brothers Holdings Inc. says it's in "serious jeopardy" of losing $900M it's owed unless it can take steps to prevent two investment vehicles from being dissolved. LEH is asking for court approval to pay the fees and expenses of two Cayman Islands-based special purpose vehicles that are in "imminent danger" of being dissolved because the fees have gone unpaid. http://online.wsj.com/article/SB10001424052748704240004575085600629456166.html?mod=WSJ_business_whatsNews

Chrysler Group LLC - CHRYSLER Group LLC said it will replace a front airbag sensor in more than 355,500 minivans, starting in June. Chrysler's 'safety improvement campaign' covers 355,562 of its 2005-2006 Chrysler Town & Country and Dodge Grand Caravan minivans, including 259,437 in the U.S. and 72,035 in Canada. The move comes after Chrysler found one of the front airbag crash sensors could crack under some environmental conditions and allow water to enter the sensor, potentially causing the sensor to become inoperative.

http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_494833.html

GOOG - An Italian court convicted three Google Inc. executives of violating the privacy of a disabled boy by allowing a 2006 video of students bullying the boy to air on the now-defunct Google Video site. The ruling could restrict the way Internet cos. operate in Italy. Judge Oscar Magi issued six-month prison sentences Wed. to David Drummond, GOOG 's senior VP and chief legal officer; Peter Fleischer, its chief privacy counsel; and George Reyes, the co.'s former CFO.

U.S. Economic Outlook - US FEDERAL Reserve Chairman Ben Bernanke told Congress that a weak job market and tame inflation warrant low interest rates for 'an extended period,' curbing speculation the central bank was moving closer to raising borrowing costs. In his first appearance before Congress following a testy confirmation vote in the Senate last month, Mr. Bernanke offered a relatively somber assessment of the U.S. economy despite recent signs of strong growth. The country has lost 8.4M jobs in just over two years in the most severe economic downturn since the Great Depression. The Fed chief said job losses were abating, but acknowledged the recession's toll on American workers. 'Notwithstanding the positive signs, the job market remains quite weak,' Mr. Bernanke told the U.S. House of Representatives Financial Services Committee.

http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_494842.html

FRE - FREDDIE Mac lost almost U.S.$26B last year, ominous news for U.S. taxpayers who are footing the bill to rescue the mortgage finance co. and its sibling Fannie Mae FNM. FRE, which has lost a total of almost US$80B since the housing crisis started in 2007, is bracing for more pain. The co. said a record 4% of its borrowers are at least three months behind on their payments and facing foreclosure. Its CEO, Charles Haldeman, warned on Wed. of a 'potential large wave of foreclosures' still to come. http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_494838.html

EK +/- Eastman Kodak Co. said it priced a private placement of $500M worth of 9.75% senior secured notes due 2018 to qualified institutional buyers. EK said it plans to use proceeds from the note placement to buy back $300M worth of 10.5% senior notes due 2017 and $200M worth of 7.25% senior notes due 2013.

http://www.forbes.com/feeds/ap/2010/02/24/business-materials-us-eastman-kodak-financing_7385153.html

GM - General Motors' deal to sell its Hummer brand to a Chinese automaker fell through Wed. and the co. said it now plans to shut down the brand. GM did not give any details about why the agreement to sell Hummer to Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. could not be completed, saying only that it was disappointed it was unable to close the deal.

http://money.cnn.com/2010/02/24/news/companies/hummer_chinese/index.htm

TM, DNZOF - The FBI has raided three Detroit-area Japanese auto-parts makers for a sealed federal antitrust investigation, including Toyota Motor Corp. supplier Denso Corp, authorities said on Wed. The FBI's Detroit Division served warrants at DNZOF, Yazaki North America and Tokai Rika on Tues. evening, Special Agent Sandra Berchtold said in a statement. The "substance or reason behind the warrants" was not disclosed. A person familiar with the investigation said the raids were unrelated to the Toyota recalls.

http://www.reuters.com/article/idUSN2412560320100224?type=marketsNews

Nissan Motors, Suzuki Motor Corp. , Daihatsu Motor Co. - Nissan Motors, Suzuki Motor Corp. and Daihatsu Motor Co. all announced vehicle recalls to the Japanese transport ministry, according to a report in the paper's online edition. Suzuki will recall 432,366 vehicles focusing on 2 models. Nissan will recall 10 models, 76,415 vehicles, including the Cube, the Tiida and the March, owing to problems with electric cables that connect to the engine. Daihatsu will recall 4 models, including the Atrai and the Hijet, due to airbag problems. That recall covers 60,774 vehicles. The ministry said it normally gets about 300 auto recall filings a year from automakers and the recalls, which begin Friday, are not that unusual, according to The Journal.

CCU +/- A restructuring of radio broadcaster Clear Channel Communications is inevitable, though its private-equity owners Bain Capital and Thomas H. Lee Partners may try to delay it as long as possible, Moody's Investors Service said in a new report. While CCU could issue additional debt through its outdoor unit to make it through 2014, that would only postpone a restructuring by a couple of years, Moody's analyst and lead author Neil Begley said. The co. will still face a critical hurdle in 2016, when about $13.8B of debt comes due, and leverage is expected to remain too high to attract more investment and refinance the debt, Moody's said.

http://www.reuters.com/article/idUSN2411458320100224?type=marketsNews

TCW Group Inc. - TCW Group Inc. clients pulled about $25B after the Dec. 4 firing of Jeffrey Gundlach as investment chief, almost a fourth of its assets and more than double the amount since year-end. TCW completed the acquisition of fixed-income manager Metropolitan West Asset Management LLC, the firm said today in a statement. The deal, announced at the same time of Gundlach�s dismissal, added about $30B, bringing net assets to $115B from $110B before the shakeup.

http://www.bloomberg.com/apps/news?pid=20601087&sid=av9qC6ULeD.Y&pos=7#

BAC +/- A Manhattan federal judge gave final approval to Bank of America Corp's $150M settlement with the U.S. SEC over the takeover of Merrill Lynch & Co at the peak of the financial crisis. U.S. District Judge Jed Rakoff signed off on the settlement on Wed., two days after indicating he would approve the terms, despite his reluctance to vet what he considered "half-baked justice at best." Rakoff preferred that shareholders not be responsible for paying the fine and, on Mon., may have aided shareholder lawsuits against the bank when he said prudent shareholders, had they known all the facts, "would have thought twice about approving the merger or might have sought its renegotiation."

http://www.reuters.com/article/idUSN2420092820100224?type=marketsNews

Airborne Refueling Tankers +/- The Pentagon reopened a $35B contest to supply new airborne refueling tankers, but may still face the prospect of having just one bidder take part. The Department of Defense tweaked its rules to simplify requirements, but analysts said the changes may be insufficient to draw Northrop Grumman Corp. NOC into competition with Boeing Co. BA for the 179-plane deal. Selection is expected by Sept.

Greece - Standard & Poor�s may lower Greece�s credit rating again by the end of March as a weak economy and political opposition threaten the country�s ability to cut the European Union�s largest budget deficit. http://www.bloomberg.com/apps/news?pid=20601087&sid=abuLTVWwK_YA&pos=2#

GGWPQ +/- General Growth Properties Inc. unveiled a bankruptcy exit plan bankrolled by Brookfield Asset Management BAM that would split it in two, as suitors circled the second largest U.S. mall owner. GGWPQ signed non-disclosure agreements with Simon Property Group SPG, the largest U.S. mall owner, and Australia's Westfield Group WDC, which would give them access to information about its business, according to sources familiar with the matter. The move is usually a precursor to possible bids. http://www.reuters.com/article/idUSN2423670320100225?type=marketsNews

Heard on the Street +/- Discusses governments made extravagant promises to their citizens over the past decades. Now those commitments risk coming into conflict with the promises made to bondholders. Ultimately, the promises to bondholders will have to be met in some form.

KO +/- Coca-Cola Co. was nearing a deal late Wed. to buy the bulk of its largest bottler, according to people familiar with the matter. As part of the deal, Coke would buy Coca-Cola Enterprises Inc.'s North American operations, the people said. The rest of the bottler, which consists of operations in several European countries, would remain independent and acquire Coke bottling operations in Scandinavia and Germany. The deal's value could be approximately $12B to $13B, including equity and assumed debt, said one person familiar with the matter.

Reuters

Gold Futures - Gold prices retreated from the $1,100 an ounce level in Europe as the euro slipped back towards a nine-month low versus the dollar, pressured by persistent worries about Greece's fiscal health. Spot gold was lower in NY on Wed. U.S. gold futures for April delivery on the COMEX division of the NY Mercantile Exchange fell $6.20 to $1,096.50 an ounce.

http://www.cnbc.com/id/35572927

Oil Futures -

Oil fell below $80, dragged lower by a rise in the dollar as the euro slid on concerns over the outlook for the European economy, while a rise in U.S. crude oil stockpiles also dampened sentiment. The euro fell to a 1yr low against the yen and was down vs the dollar on uncertainty over the ability of the Greek government to cope with its fiscal crisis, while the dollar's trade-weighted index rebounded. A firmer dollar makes oil and other commodities more expensive for holders of other currencies, and also dragged gold down to near a 2 week low. U.S. light, sweet crude for April was down, after rising $1 on Wed., lifted by comments from U.S. Fed Chairman Ben Bernanke, who stressed his commitment to low interest rates. London Brent crude fell.

http://www.cnbc.com/id/35572929

MarketWatch.com

NIHD + NII Holdings Inc said 4Q net income soared to $59.6M, or $.35 a/s, from $2M, or $.01 a/s, earned in the yr-earlier period. Analysts had expected EPS of $.62. Revenue climbed 20% to $1.23B. In 2010, the operator hopes to add between 1.275M and 1.375M new subscribers and to report operating revenues of $5.2B to $5.4B.

DCI +/- Donaldson Co said that its Q2 profit fell to $31M or $.39 p/s, from $33.8M or $.43 p/s, in the year-ago period. Revenue declined to $436.1M from $460.6M last year. Analysts surveyed by FSR estimated a profit of $.38 p/s on revenue of $428.8M. The co. estimates adjusted 2010 earnings of $1.89 to $2.09 p/s. Analysts estimate $1.86 p/s. Separately, DCI increased its quarterly dividend 4% to $.12 p/s. The dividend is payable March 19 to shareholders of record as of Jan. 31.

LZ + The Lubrizol Corporation said that it's aiming for earnings of $10 a/s by 2012, a 32% increase compared with adjusted '09 results. The goal reflects expected improved earnings contributions from the co.'s base business, a more favorable product mix and potential earnings contributions from value-adding acquisitions. The co. expects '10 adjusted EPS in a range of $7.70 to $8.30 a/s, compared to 2009 adjusted EPS of $7.55.

ESRX +/- Express Scripts Inc. said that its Q4 profit rose to $223.3M from $206.8M, in the year-ago period. On a p/s basis, quarterly earnings fell to $.80 from $.83 a year ago. Excluding one-time charges, the co. would have reported earnings of $.97 p/s. Revenue rose to $8.2B from $5.51B last year. Analysts surveyed by TR estimated a quarterly profit of $.90 p/s on revenue of $7.4B. ESRX sees adjusted 2010 earnings of $4.80 to $5 p/s, compared with an analysts' consensus of $4.69 p/s.

FWLT - Foster Wheeler said that its 4Q net profit fell 35% to $65.1M, or $.51 a/s, from $99.9M, or $.75 a/s, a yr earlier. Revenue for the latest Q fell 23% to $1.27B. Including the impact of asbestos-related costs, earnings fell to $.67 a/s from $1.03 a/s. FactSet ad been expecting EPS of $.64 a/s on revenue of $1.25B.

BBI - Blockbuster Inc. said that its Q4 loss widened to $435M or $2.24 p/s, compared with a loss of $359.8M or $1.89 p/s, in a year-earlier period that also included an impairment charge. Excluding items, BBI said its adjusted net loss was $44.3M or $.24 p/s. Revenue fell to $1.08B from $1.31B. Analysts were expecting a loss of $.14 on revenue of $1.08B. At U.S. stores open at least a year, Q4 sales plunged 16%. In 2010, the co. intends to close 500 to 545 underperforming stores in the U.S.

PCS + MetroPCS Communications Inc. reported that 4Q net income more than doubled on 28% higher revenue. Earnings reached $33M, or $.09 a/s, compared with $15M, or $.04, in the yr-earlier Q. Earnings from operations rose 31% in the Q. Revenue totaled $930M, compared with $724M. FactSet produced an estimate of $.06 of profit on $895.6M of revenue. Average revenue per user in the Q rose 0.4% to $40.70. Churn, or customers moving to other providers, rose to 5.3% from 5.1% a year earlier.

NEM + Newmont Mining Corp. reported that 4Q net income leaped as revenue nearly doubled. Earnings reached $865M from $42M in the year-earlier Q. Net income attributable to Newmont holders was $558M, or $1.13 a/s, compared with $4M, or $.01. Adjusted net income in the latest period was $1.14. Shares outstanding rose 8.4% to 493M from 455M. Revenue rose to $2.52B from $1.33B. FactSet produced estimates of $.81 a/s of profit on $1.95B of revenue. The co. sold 1.5M ounces of gold and 72M pounds of copper in the Q. The co.'s costs of selling gold fell 7% from a yr-earlier to $413 an ounce. The costs of selling copper fell 2% to $.64 a pound.

FIG - Fortress Investment Group reported a 4Q net loss of $260.8M, or $.58 a/s, narrower than the loss of $426.5M, or $1.50 a/s, in the final 3 months of 2008. The co. said principals compensation accounted for just shy of $240M of the net loss in the latest Q, an amount virtually unchanged from the prior year. The FactSet forecast had been for a 4Q profit of $.08 a/s, as opposed to a comparable loss of $1.06 a/s. For '09, FIG generated revenue of $584.1M, down from $731.8M in '08; quarterly revenue figures were not immediately available. Assets under management increased to $31.76B as of Dec. 31, up from $29.45B at the end of 2008.

CPN +/- Calpine Corp. reported a net 4Q loss of $43M, or $.09 a/s, compared to $109M, or $.22 a/s, in the same period the previous year. Excluding reorganization costs, unrealized mark-to-market gains or losses and other items, the 4Q loss totaled $12M, the co. said. FactSet produced an estimate for a loss of $.01 a/s. 4Q revenues fell 20% to $1.57B. The co. reaffirmed its 2010 guidance for adjusted EBITDA of $1.5B to $1.6B and free cash flow of $400M to $500M.

LTD + Limited Brands posted a Q4 profit of $356.1M or $1.08 p/s, on the period, up from $16.1M or $.05, in the same quarter last year. On an adjusted basis, the co. would have earned $1.01 p/s up from $.68. Revenue hit $3.06B up from $2.99B. The estimate of analysts polled by FSR had been for the co. to earn $.97 p/s on revenue of $3.06B. LTD said it expects to earn between $1.40 and $1.60 p/s in the current fiscal year versus a current Wall Street view of $1.19.

SPW +/- SPX Corp. said that its 4Q net loss widened to $72.1M, or $1.46 a/s, from $25.3M, or $.47 a/s, a yr earlier. Revenue at the manufacturing and industrial equipment supplier fell 12% to $1.32B. Excluding a $3.39-a/s impairment charge and a tax benefit linked to its European operations, SPX said adjusted earnings from continuing operations were $1.35 a/s. The adjusted figure was in the middle of the co.'s previous guidance range and matched the consensus forecast of FactSet.

CRI + Carter's Inc. reported 4Q net income rose 20% on 0.7% higher sales. Profit reached $33M, or $.56 a/s, from $27.5M, or $.47, in the yr-earlier Q. Adjusted earnings rose 32% to $.61 a/s from $.47. Sales totaled $424.7M, up from $422.1M. For '10, the co. expects reported earnings to rise 10% from the adjusted $2.15 reported for '09. Sales should rise about 5% from the $1.59B of '09.

VMED + Virgin Media narrowed its 4Q loss on 3.3% higher revenue. The loss was 94.4 pounds ($145M), compared with 244M in the yr-earlier Q. Revenue reached 979.5M pounds from 948.5M. Average revenue per user within the cable division rose 5.8% to 44.81 pounds. Churn, or customers moving to other providers, was 1.2%, which VMED said in a statement was "low."

NDAQ +/- Nasdaq OMX Inc. said that short interest rose to 6.78B shares in 2421 securities at the end of Feb. 12 from 6.47B shares in 2417 issues at the end of Jan. 29. A short sale is a bet by an investor that the stock's price will fall.

RHHBY + Roche's Genentech subsidiary said that a Phase III study showed that women with previously untreated advanced ovarian cancer who took Avastin combined with chemotherapy, and then maintained a regimen of the drug alone, lived longer without the disease worsening than women who took chemotherapy alone. The results are important because "most women's cancer will worsen after their initial treatment," said Genentech's E.V.P. for global development and chief medical officer, Hal Barron. Genentech said it would discuss the results with the FDA.

AEG + Aegon N.V. swung to 4Q net income from a yr-earlier loss as operations improved, impairments declined and the co. exceeded its cost-cut target for the yr. The co. said, however, that "it continues to be prudent to maintain a substantial capital buffer," and it declined to declare a dividend. AEG reported net of 393M euros ($530.5M) compared with a loss of 1.18B euros in the yr-earlier Q. Underlying earnings before tax were 427M euros against a loss of 181M. Impairments totaled 209M euros, the lowest in 6 quarters but still "above Aegon's long-term average expectations," the co. said.

DT + Deutsche Telekom said that its 4Q net loss narrowed to 3M euros ($4M), from 730M euros posted at the same point last year. Sales edged up 0.6% to 16.2B euros. "After a bumpy start, we rounded 2009 off with good results," said CEO Ren� Obermann. "Cost discipline was key to getting through economically challenging times," the CEO added.

DNZOY, TKRKF - Shares of auto-parts makers Denso Corp. and Tokai Rika Co. closed sharply lower in Tokyo after news the companies were the subject of an FBI raid in the U.S. over possible antitrust issues. Denso ended the day down 2.8%, while Tokai Rika was 5.6% lower, after reports surfaced overnight that the 2, along with unlisted Yazaki North America, were the subject of a probe of alleged price-fixing. Both make parts for Toyota Motor Corp. qTM, but reports of the raids cited the FBI as saying the action was unrelated to U.S. inquiries into the safety of some Toyota vehicles.

GME +/- GameStop Corp. said that CFO Catherine Smith resigned from the co. to take a position with Wal-Mart Stores Inc's WMT international division. GME, which did not specify plans for an executive search, named Robert Lloyd, the video game retailer's chief accounting officer, as interim CFO effective immediately.

BTI + British American Tobacco said its annual profit rose to 2.71B pounds ($4.2B) from 2.46B pounds, with revenue up 17% to 14.12B pounds. The co. said volumes rose 1% on acquisitions and a falling pound vs. the dollar and price hikes drove profitability. Its annual dividend is up by 19% to 99.5 pence a/s.

MGA + Magna International said that its 4Q net loss narrowed to $139M, or $1.25 a/s, from $148M, or $1.33 a/s, a yr earlier. Sales for the Q rose 12% to $5.42B. MGA said sales were boosted by stronger production and complete vehicle assembly sales, partly offset by decreases in tooling and engineering sales. Restructuring and other costs resulted in charges of $1.20 a/s in the latest Q. For '10, MGA said it expects consolidated sales to be between $19B and $20B, based on light vehicle production volumes of around 10.5M units in North America and 11.4M units in Europe.

CRM + Salesforce.com Inc said its Q4 net income rose to $20.4M or $.16 p/s, from $13.8M or $.11 p/s in the same period a year earlier. Revenue rose 22% to $354. Analysts polled by TR had expected CRM to post earnings of $.15 p/s, and $342.3M in revenue.

RBS + Royal Bank of Scotland said that its 4Q net loss attributable to ordinary and B shareholders narrowed to 765M pounds ($1.17B) from 24.35B pounds a yr earlier. Total pro forma income rose to 7.54B pounds from 363M pounds and impairment losses narrowed to 3.1B pounds from 4.67B pounds. The annual loss was 3.6B pounds & was smaller than some analysts had expected. The bank said impairments now appear likely to have peaked. It added that it's made good progress with its strategic plan and is ahead of its targets on every published measure for the first year of the 5yr plan. The core Tier 1 ratio improved to 11% from 5.9% a/y earlier following its entry to the government's asset protection scheme, while gross new lending for the year was 79.5B pounds.

IRM + Iron Mountain Inc. said that its 4Q net profit jumped to $61.3M, or $.30 a/s, from $1.4M, or $.01 a/s, a yr earlier as the group's board also approved a $150M share repurchase program. Sales in the latest Q rose 3.5% to $779M. Adjusted earnings in the 4Q were $.27 a/s. FactSet had been expecting EPS of $.24. For 2010, IRM said it's targeting adjusted EPS of $1.07 to $1.20 on sales of $3.19B to $3.26B. The co. also announced a new dividend policy under which it intends to pay quarterly cash dividends, with the first dividend of 6.25 cents a/s payable on April 15.

FT - France Telecom said that its 2009 net income declined to 3B euros ($4B), from 4.1B euros posted at the same point a yr ago. Sales declined to 45.9B euros, from 47.7B euros last yr, after regulatory measures. Customers increased 5.7% over the yr to 193B. The group stuck to its organic cash flow generation target for 2010 and 2011 after organic cash flow totaled 8.35B euros in 2009, exceeding the co.'s target. FT will pay a dividend of 1.40 euros p/s for '09.

NYSE Group Inc. +/- The NYSE Group Inc. said that short interest rose to 14B shares at the end of Feb. 12 from 13.49B shares at the end of Jan. 29. A short sale is a bet by an investor that the stock's price will fall. The 3.8% gain in short sales is the third rise in a row for bi-monthly counts and the highest level since late Aug. 2009.

BusinessWire

TQNT + TriQuint Semiconductor Inc. reported Q4 revenue of $193.3M, up 12% sequentially and 30% from the Q4 of 2008. Revenue for the year was $654.3M, up 14% from the prior year. Net income was $17.5 or $0.11 per diluted share. Net income for the year was $16.2 or $0.11 per diluted share. Non-GAAP net income grew 44% to $22.6M, or $0.14 per diluted share. Non-GAAP net income for the year was $38.8 or $0.25 per diluted share.

Bloomberg.com

The Yen + The yen climbed to a 1yr high against the euro as investors sought the safest currencies amid concern Greece�s credit rating will be lowered as Prime Minister George Papandreou struggles to push through budget cuts. The yen advanced against all 16 major counterparts after S&P�s and Moody�s Investors Service said Greece faces further downgrades as early as next month as it copes with the EU�s biggest budget deficit. The euro slid against the dollar after unions took to the streets of Athens and police fired tear-gas and clashed with demonstrators.

http://www.bloomberg.com/apps/news?pid=20601083&sid=abAfn.WMWMMU#

The Euro, Asia - The euro fell to a 1yr low against the yen and Asian stocks dropped after Moody�s Investors Service and S&P�s said they may downgrade Greece�s credit rating again. Oil and copper reversed earlier gains. The euro weakened to 120.38 yen as of 5 p.m. in Tokyo from 122.03 yesterday. The MSCI Asia Pacific Index lost 0.7%to 116.91 and S&P 500 futures slid 0.6% The DJ Stoxx 600 was off 0.4% to 246.20 at 8 a.m. in London. Oil fell as much as 0.7% and copper declined as much as 0.4%. Treasuries gained, led by 10yr notes.

http://www.bloomberg.com/apps/news?pid=20601087&sid=acu49YPmUe6c&pos=1#

Greece - Greece�s debt rating may be cut within a month as it struggles to pare the EU�s largest budget deficit, driving up borrowing costs and renewing pressure on the euro. S&P�s said it may lower its BBB+ rating by the end of March and Moody�s Investors Service said today it may reduce its A2 grade in a few months. The warnings further complicate the government�s effort to persuade investors that it can slash its fiscal shortfall from last year�s 12.7% of GDP.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aoQ4RlSR26Fc&pos=2#

European Confidence - European confidence in the economic outlook unexpectedly worsened in Feb. after the euro region�s recovery almost stalled in the 4Q. An index of executive & consumer sentiment in the 16 nation using the euro slipped to 95.9 from a revised 96 in Jan., the European Commission in Brussels said. Economists projected an increase to 96.4 from a previously reported Jan. reading of 95.7, according to the median of 25 forecasts in a Bloomberg News survey. The euro-area economy may struggle to gather strength after growing just 0.1% in the 4Q as companies continue to cut jobs, discouraging consumer spending. While European governments are seeking to bolster a recovery, they also are trying to stem investor concern about budget deficits in Greece and other nations, which is pushing the euro lower vs. the dollar.

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

Bloomberg

MS +/- Morgan Stanley Chairman John Mack said investment bankers are overpaid and Wall Street compensation won�t decrease much because firms don�t want to lose their best performers. Mack, who retired as CEO in Dec., cited a 28-year-old MS trader whose unit had earned $300M to $400M for the firm. After MS offered $11M in compensation, the trader jumped to a hedge fund that paid him $25M, Mack said.

Associated Press

Carlyle Group +/- The private-equity co. The Carlyle Group has agreed to join Fosun Group in setting up a Chinese-currency investment fund, the cos. said in a statement. The $100M fund will focus on investing in high-growth cos. around the world, said the statement issued late Wed. Shanghai-based Fosun, one of the largest Chinese financial conglomerates, and Carlyle plan to raise capital for other yuan-denominated funds, it said. Carlyle and Fosun earlier jointly invested in Guangdong Yashili Group Co., a Chinese baby-formula co.