· The S&P Euro 350 is up 0.83% this morning, with Materials the main winners as metal prices gain on the back of a softer dollar and expectations of increased copper demand in March.

· Asian markets: Nikkei +0.24%; Hang Seng +1.03%; Shanghai Composite (0.28%)

o Nikkei 225 Rises for Third Week on Factory Output, Retail Sales

o hang Seng Index Rises, Caps Biggest Monthly Gain Since October

· Rates: tick up in US Friday - Decent 7 yr auction thurs

· Rates: Government bonds weaker with yield curves undergoing bear steepening in both UK and Germany

· FX: Pound lifts after GDP data

· FX: China gold purchase rumors and Yuan currency revaluation rumors continue to circulate - TTN

· FX: WSJ big story : Heavyweight funds launch career trade bets against the euro

· FX: Yuan forwards underestimate the pace of gains in China’s currency, which may strengthen as much as 7 percent in 18 months, according to Wells Fargo – BBG

· Gold up $2…producers advanced after the price rose for the first time this week.

· Gold Author admits she did not have official sources for story saying China will buy 191.3 tons of gold from the IMF – Reuters

· Gold A Chinese think tank commented that China must continue to buy gold and should add to its inventory on any price dip in the metal - TTN

· Gold speculation of China central bank buying IMF's gold-for-sale boosting the metal toward $1,110 from its 2-week lows in prior session – TTN

· Crude flat to up fri…

· Crude IEA Chief: Global Economic Recovery, Oil Demand Levels Not In Line

o "Demand numbers have not been as strong as the macro economists say the economic recovery has been,"

· Data –Good data overnight, helps Asia trade

o New Zealand posting an 8-month high trade surplus figure, marked by the lowest imports component since February of 2005.

o Japan's inflation data for January offered further signs of recovery after the highest rate of decline seen 4 months ago with an 8-month high.

o Japan's industrial production rose at the fastest pace in 8-months, retail trade saw the highest rate of growth since mid-2007

o Japan Retail sales unexpectedly jumped 2.6 percent from a year earlier

o UK House Prices Fall for First Time in 10 Months

o Exit strategy: Case for RBA tightening next week improves with strong private sector credit

o Exit strategy: ?? India rose on speculation the government will not bring an abrupt halt to stimulus measures when it announces its budget later today – sa

o India GDP misses…

o Swedish Retail Sales Rises in January as Recovery Boosts Demand

o UK GDP beats, benefit from govt and global trade

o Japan, Shanghai Securities News speculated that China Feb New Loans may be above CNY700B, still down from CNY1.4T seen in January

o South Korea Central Bank saw Q4 household credit rising by KRW20.9T, the biggest quarterly margin in 3 years

· CIT to Sell TALF Bonds : CIT BOND RISES TO HIGHEST LEVEL IN MORE THAN A MONTH; CIT Said to Plan First Bond Sale Since Emerging From Bankruptcy- BBG

o The sale would “be a start in helping them reduce their borrowing costs,”

· Consumer:

· WTW -9.4% - reported

· GPS up 2% - reports upside, good gude..

· HANS….beats – GMs good

· Consumer: WYNN Wynn Resorts reports - mixed EBITDA

· upbeat on Macau in 2010 - not so much for Las Vegas

· Wynn Macau (1128.HK) rose 2% on the strength of Wynn Resorts (WYNN)’s results.

· FLR Fluor reports - trades -5.7%, mixed - good margins – declining backlog - lowering guidance.

· Dividends galore!

· GPS Gap increases quarterly dividend by 17.6

· XEC Cimarex raises dividend 33%

· BLK BlackRock increases quarterly dividend by 28.2% to $1.00 from $0.78

· building materials led by Saint Gobain (SGO.FP) post results

· Lloyds drops 2% today - Results Disappoint

o impairment charges are guided at around GBP14B, broadly in line with consensus

o projected margin improvement looks better

· Strong earnings were seen from Telefonica

· Right Move ( +7.2 %) Good final figs. Bullish statement.(see no threat from Google)

o Rightmove RMV LN +7% - on final results "housing mkt stable", sees customer price increase by 10%

· Bayer AG slid as much as 4.4 percent in Frankfurt trading after reporting a bigger-than-forecast drop in 2009 earnings

· China is carrying out stress tests on labor-intensive industries to gauge the effect a stronger yuan would have on earnings, the 21st Century Business Herald reported today

o fueling speculation appreciation will be allowed to resume

· China v US: U.S. Senator Charles Schumer and 14 colleagues said yesterday Chinese exporters should be hit with stiffer U.S. tariffs to compensate for the unfair advantage they get from an undervalued yuan – BBG

· China Bonds Surge today

o Government bonds surged after the finance ministry auctioned 30-year bonds at a lower yield than analysts forecast. BBG

· Obama threatens reconciliation: Bipartisan Health Summit Clears Path to Party-Line Vote - BBG

o Obama began yesterday’s health-care summit saying he wanted to find bipartisan ways to fix the health-care system. By the end, he said he might be left with a partisan path forward.

o The question is, “is there enough serious effort that in a month’s time, or a few week’s time, or six weeks’ time, we could actually resolve something?” Obama said. “If we can’t, we’ve got to go ahead and make some decisions, and then that’s what elections are for.”

· House Dems balk at Senate jobs bill – Politico

o http://www.politico.com/news/stories/0210/33559.html

· Today: an interview before the second public hearing of the FCIC that begins on Friday, Mr Angelides, a former California state treasurer, said he was most struck so far in his inquiry by the way in which Goldman Sachs had been “creating and selling securities and then fully betting against them”.

· Key events/news:

o Q4 GDP at 08:30 ET

o Feb Chicago PMI at 09:45 ET

o Feb Final U. of Michigan Confidence at 09:55 ET

o Feb NAPM Milwaukee, Jan Existing Homes Sales at 10:00 ET

o Chicago Fed President Evans speaks with CNBC's Steve Liesman on the economy and monetary policy

o New York Fed President Dudley and Minneapolis Fed President Kocherlakota speak at the US Monetary Policy Forum at 10:45 ET

· Earnings:

o Companies reporting pre-open: AES, AIG, CNP, IPG, PEPCO

· Sovereign Risk:

o Big German Banks Shun New Greek Bond

§ Eurohypo and Hypo Real Estate, the two most important German banks involved in public financing, will not subscribe to the next round of bonds issued by Greece as Athens battles a debt crisis, the Financial Times Deutschland newspaper reported on Friday.

§ Deutsche Postbank would also not invest any new funds in Greece, the newspaper said, citing banks and sources.

§ Greece is preparing for its second bond issue this year, possibly in February or early March.

§ The country needs to raise about 20 billion euros ($26.95 billion) to cover maturing debt in April and May.

§ Deutsche Bank wants to participate only as an investment bank when it comes to the placement of bonds but the bank itself will no longer buy Greek government bonds

o Greek Bonds Open better

o Greece PM commented that the WWII reparations issue has not yet been settled, will not raise issue at this time - TTN

o Spanish bond yields not showing too much stress vs Greece- BBG

o Greek PM: No Other Country Will Pay For Our Debts - DJ

o Greek Prime Minister to visit Germany on 5-Mar at Germany Chancellor Merkel's invitation -- Reuters

o EU Tells Greece Its Austerity Package Isn't Enough - DJ

§ The European Union is pushing Greece to urgently adopt new measures amounting to more than EUR4 billion, on top of the austerity package already announced, if it is to achieve its goal of slashing its staggering budget deficit by four percentage points this year, a senior government official said Friday

o Jim Rogers calling cable a "basket case” TTN

o Turkey detains 11 more plotters – BBG

o Turkey Frees Three Former Military Chiefs, Easing Tension Amid Coup Claims

o Turkey Government Seeks To Quell Instability Fears – DJ

§ President Abdullah Gul of Turkey sought to assuage fears of political instability Thursday, pledging that a growing confrontation with the country's military would be resolved within the constitution. Mr. Gul issued his statement after a rare three-hour, three-way meeting with Prime Minister Recep Tayyip Erdogan and army chief Ilker Basbug

o Fitch Says ‘Less Encouraged’ to Cut India’s Credit Rating; government today pledged to shrink its budget deficit

o Icelandic oppostion leader says Icesave referendum must absiolutely be held as planned -- Reuters

o Icesave repayment talks collapse

§ Talks have collapsed between Britain, the Netherlands and Iceland about repayment of £3.4bn lost by depositors in the failed online bank Icesave, raising fears that the country will fail to meet its obligations

§ http://link.ft.com/r/NA70KK/A75OBX/SL6X6/HDJR5V/OJJZ78/SN/h

TODAY’S BIG STORIES

· Equity Wrap:

o It was another wild roller coaster of a day with the action overseas to start it all, you had the Durable goods come out twice as high as expected, while ex transportation they were more then twice as weak.

o The earnings felt a little bit softer with some insider selling of late also spooking people. You had a little more m&a with ko's bid for cce but overall, there was an unwinding of risk going on that had people feeling uneasy.

o so many are watching so many different things and it all spells uneasiness amongst investors and we really need a new catalyst to try and take out that 1,125 eventually.

o We did start to see money of all sorts, value, quant's and short covering come in once we stabilized and that just fueled more people getting comfortable and going along on they're buy orders.

o The volume wasn't much to talk about, somewhat below average as the advances vs. declines were relatively flat. Internally here, they were flat as well.

o Cantor equity desk

· high yield Wrap: CDX HY 13 dn 1/8 pt thurs

o price talk on a slew of deals expected to price on Friday (PN); ArvinMeritor, Niska Gas Storage, Equinix, Oshkosh, etc

o Central Garden & Pet Co. priced an upsized offering of senior subordinated notes on Thursday, the sole high-yield market pricing of the session. (PN)

· Convertibles wrap: CSG Systems International Inc.’s newly priced 3% convertibles traded up mildly on their secondary debut Thursday after pricing at the midpoint of talk, PN

· Investment grade Wrap: CDX IG ticks wider, but of wides at end of day

o Nomura Holdings, Inc., Enbridge Energy Partners, LP and Landwirtschaftliche Rentenbank AG each priced bonds on an otherwise weak Thursday (PN)

o In secondary trading, new paper from Nomura and Enbridge tightened

o Mixed activity in IG today with the "snow hurricane" hitting the Northeast. KFT, DOW, UTX, and CMCSA were the most active names today with the street active and month-end index account buying. Not surprising as these are the biggest, most recent deals. The IG13 was wider and cash spreads marginally tighter 2-3bps. The front end (3yrs and in) is under pressure with a number of bwic's on the 18mo. and in paper as the 2yr has tightened 15bps in the past week (0.92% to 0.77%).

o Not much said in CCE but paper should be ~20bps better on the KO takeover with little trading. See Robin Mayer in research for more.

o The VIX is finishing the day just above 20 as risk assets have continued to perform well the past two weeks with little impetus

o Michael Salemo

· Credit mkts: European Corporate Bond Markets Stall After Boom In 2009 - DJ

o The volume of bonds sold by European non-financial companies fell to EUR6.9 billion in February, down around 80% compared with the EUR33.6 billion issued in the comparable month last year

o The disappointing reading follows a lacklustre January, when companies sold a mere EUR12.6 billion. So far the volume of bonds sold in 2010 is down 62.5% on same period last year, at EUR19.5 billion

· Commercial Paper Rises, BBG

o U.S. commercial paper outstanding rose for the third straight week, the longest stretch since October, stoking optimism that companies are seeking financing to expand.

o The market for short-term IOUs increased to $1.15 trillion in the week ended Feb. 24, up $31.3 billion, or 2.8 percent, from Feb. 3, the Federal Reserve said yesterday on its Web site.

o It’s risen 7.3 percent, or $78.1 billion, from this year’s low on Jan. 6.

· Fed Watch: Fed reports balance sheet assets of $2.29T on Wednesday, +$8.6B w/w and +$371.9B y/y

o Holdings of US Treasury securities were $776.5B on 25-Feb, ($22M) w/w and +$301.9B y/y

o Holdings of mortgage-backed securities were $1.03T on 25-Feb, +$7B w/w and +$963.9 y/y

o Holdings of federal agency debt securities were $166.5B on 25-Feb, +$950M w/w and +$128.2B y/y.

· Exit strategy: Case for RBA tightening next week improves with strong private sector credit

· Exit strategy: ?? India rose on speculation the government will not bring an abrupt halt to stimulus measures when it announces its budget later today – sa

· Exit strategy, Canada: Carney May Scale Back Emergency Loans Next Week - BBG

o Gains in Canadian corporate bonds may be limited as Bank of Canada comments that financial markets are improving prompts speculation officials led by Governor Mark Carney will scale back emergency lending measures at next week’s interest rate announcement.

o Deputy Governor David Longworth said in a Feb. 17 speech that financial markets have improved “significantly” and policy makers will unwind programs “thoughtfully.” The bank has already canceled two of its three main lending programs, and said in January its remaining one, term purchase and resale agreements, would be geared to mature at the end of June

· US states struggle in the shadow of Greece

o As protesters and strikers took to the streets of Athens this week demonstrating against cutbacks aimed at stemming the Greek debt crisis, questions were being asked in the US about whether similar financial stress could erupt in states there.

o http://www.ft.com/cms/s/0/8c08eb5a-224f-11df-9a72-00144feab49a.html

· Money flows: AMG data reports equity fund inflows of $2.6B in w/e 24-Feb vs inflows of $2.7B in w/e 17-Feb

· Money flows: Junk funds see $470 million inflow – AMG

· Money flows: Junk funds - EPFR sees $632 million cash gain

· Money flows: Emerging mkts funds get $3.5B last week – BBG

· Money flows: fund flows for the week of 2/17/10

o total bond $4.472B inflows

o total stock $1.1B inflows

o ici revised last week’s data to show more modest outflows from equity-related funds than originally reported. hybrid was revised from -$793mln to -$43mln, while total bond flows were left roughly unchanged at +$6.8bln. U.S. stock funds were revised from -$5.2bln to -$4.7bln and funds that invest in foreign stocks from -$0.5bln to -$0.1bln.

· Equity Mutual Fund Managers Unfazed by January Sell-Off. Dollar Amount of Cash at Equity Mutual Funds Drops 2.4% in January.

o The sell-off in January does not seem to have scared equity mutual fund managers. According to the Investment Company Institute, cash as a percentage of equity mutual fund assets was unchanged at 3.6% in January. This percentage held steady only because stock prices tumbled. The amount of cash dropped $4.3 billion, or 2.4% TrimTabs

· Corporate Liquidity Extremely Bullish. Corporate Buying More Than Four Times Higher Than Corporate Selling in February. TrimTabs Supply Index Wildly Bullish at 93.1 on February 24.

o Corporate liquidity has been more favorable than we had expected at the start of this year. In February, companies announced a whopping $62.9 billion in new cash takeovers and new stock buybacks, 4.1 times the $15.3 billion companies and insiders sold (Dealogic reports $750 million in new shares is scheduled to price Thursday).

· Selling by Corporate Insiders Jumps to $4.2 Billion in February. Insider Selling in February Second-Highest in Past Year - TrimTabs

· job-creation bill House Agrees to Extend Jobless Aid; Senate Vote on Bill Delayed - BBG

o The U.S. House approved a $10 billion plan to extend for a month unemployment benefits, including federal subsidies to help the jobless buy health insurance

o The measure, approved on a voice vote yesterday, also would prevent looming cuts in Medicare reimbursements to doctors.

o Immediate action on the bill in the Senate to prevent the expiration of the benefits after Feb. 28 was blocked last night.

o Senator Jim Bunning, a Kentucky Republican, objected to conducting the vote, saying Congress should provide money to pay for the bill instead of adding the cost to the federal deficit.

o The measure, likely to be passed by the Senate next week, would buy lawmakers time to debate longer-term extensions of the programs.

· job-creation bill Black Caucus throws roadblock in front of $15 billion job-creation bill – The Hill

o Congressional Black Caucus members are dismissing a $15 billion jobs bill as inadequate, forcing House leaders to rethink their plan to vote on the measure Friday. Read more

· European Economy Risks Decoupling From Global Recovery as Deficits Balloon – BBG

o Europe's economy may be coming unstuck from the global recovery as governments to the south of the region struggle to reverse budget deficits and consumers in the north pull back spending. After the 16-nation euro economy almost stagnated in the fourth quarter, data this week showed the weakness reaching into 2010. Confidence among households and companies worsened unexpectedly, French consumer spending fell and bank loans to the private sector slid for a fifth month

· Labour shortage hits China export recovery

o An export recovery in the world’s most populous country is running up against an unexpected constraint – manpower. With Chinese exports back to their early 2008 levels, factory owners are worried about their ability to service a surge in orders

o http://link.ft.com/r/NA70KK/A75OBX/SL6X6/HDJR5V/LQQV2G/SN/h

· Hedge fund bosses shy away from lowering bills

o Just one in 10 hedge fund managers expects to see the fees they charge fall in spite of underperformance that has seen income sharply reduced, a survey has found

o http://link.ft.com/r/NA70KK/A75OBX/SL6X6/HDJR5V/A771L7/SN/h

· Goldman role in Greek crisis probed (yest story)

o The US central bank is looking into Goldman Sachs’s role in arranging contentious derivatives trades for Greece, which helped the country to massage its public finances, Ben Bernanke, chairman of the Federal Reserve, revealed

o http://link.ft.com/r/NA70KK/A75OBX/SL6X6/HDJR5V/NSSAZH/SN/h

· Financial crisis panel to call back bank chiefs

o The commission set up by the US Congress to probe the causes of the 2008 financial market meltdown will interview foreign regulators and put bank executives back on the witness stand

o an interview before the second public hearing of the FCIC that begins on Friday, Mr Angelides, a former California state treasurer, said he was most struck so far in his inquiry by the way in which Goldman Sachs had been “creating and selling securities and then fully betting against them”.

o http://link.ft.com/r/NA70KK/A75OBX/SL6X6/HDJR5V/TPPWX2/SN/h

· Homeowner help: a potential prohibition of any new foreclosure action, unless there is first a rigorous attempt to first put the case through the HAMP (Home Affordable Modification Program). Recall that this program was set up to help up to 4 million homeowners; to date, 116,297 loans have been modified – DJ

· Homeowner help: FDIC to test principal-reduction program for underwater borrowers

o The Federal Deposit Insurance Corp. is developing a program to test whether cutting the mortgage balances of distressed borrowers who owe significantly more than their homes are worth is an effective method for saving homeowners from foreclosure.

o http://www.washingtonpost.com/wp-dyn/content/article/2010/02/25/AR2010022505817.html

· Finance reforms?: Dodd aims to unveil financials bill

o Enhanced Dealer Standard May Be Dropped in Financial Bill

o A plan to stiffen regulations for broker-dealers may be dropped from a financial overhaul bill Senate Banking Committee Chairman Christopher Dodd (D., Conn.) hopes to unveil next week.

o The issue involves a plan, included in a House financial overhaul bill, to make broker-dealers subject to the same legal standards as investment advisers. Some Wall Street firms oppose this idea.

o http://online.wsj.com/article/SB10001424052748704479404575087373455313924.html?mod=WSJ_newsreel_us

· Finance reforms?: Reform bill's chances hang on consumer protection - WP

o Liberal senators and advocacy groups cautioned Thursday that they would not support a compromise on financial reform legislation unless it sufficiently empowered a proposed federal regulator to protect consumers of mortgages, credit cards and other loans.

· Healthcare reforms?: More Talk, No Deal At Health Summit – WSJ

o The nationally televised session stretched over more than seven hours and, to no one's surprise, yielded no new agreement, although lawmakers strove to maintain an atmosphere of decorum and cooperation—even as they aired their warring views.

o http://online.wsj.com/article/SB20001424052748704479404575087381769772648.html

· Healthcare reforms?: Analysis: Budget reconciliation would get Obama closer to health reform

o With U.S. President Barack Obama stepping directly into the congressional health care debate, Democrats are moving closer to using the parliamentary maneuver budget reconciliation to get their overhaul adopted, according to The Economist. This approach requires 51 votes in the Senate, not 60, depriving Republicans of their ability to block action through a filibuster. "Republicans are bitterly denouncing such a possibility as trickery, but there are clear signs that Democrats are getting ready to pursue such a tack if ... bipartisan agreement is impossible," The Economist notes. The Economist (25 Feb.) , Bloomberg (26 Feb.)

· Cap and trade???

o A top labor leader warned the White House that his unions fear new rules being crafted by the administration to cut greenhouse-gas emissions may have "severe negative consequences."

o Mark Ayers, head of the Building and Construction Trades Department, urged the administration to rethink its planned climate policies under the Clean Air Act. The department falls under the American Federation of Labor-Congress of Industrial Organizations

o Construction Unions Worry About EPA Emissions Rules

o http://online.wsj.com/article/SB10001424052748704479404575087971376639094.html?mod=WSJ_newsreel_us

· Cap and trade???

o Push to Oversimplify at Climate Panel

o Scientists working with the world's leading authority on global warming say they sometimes faced institutional bias toward oversimplification, a Wall Street Journal examination shows.

· Clinton calls Greenspan's fiscal advice 'outrageous' - WP

o Secretary of State Hillary Rodham Clinton said Thursday that "outrageous" advice from former Federal Reserve chairman Alan Greenspan helped create record U.S. budget deficits that put national security at risk

· UK must boost savings and investment - How unruly economists can agree

o Oped By Martin Wolf in FT

o http://www.ft.com/cms/s/0/461666b8-224a-11df-9a72-00144feab49a.html

· Munis: Tax-Exempt Yields Slide to Two-Month Low as Bond Offerings Slow – BBG

o BofA Merrill Lynch’s total-return Municipal Master Index is headed for its seventh positive month since June, advancing 0.8 percent in February through Feb. 25. Three-year tax-exempt bonds are offering less than 70 percent of the before-tax yield available on taxable Treasury notes, after averaging 86 percent in the past decade, according to Municipal Market Advisors data

· Obama Friend’s Bid for Senate Seat Threatened by Bank’s Losses - BBG

o Fridays are getting tense in the Chicago campaign office of Alexi Giannoulias, the Democrat seeking the U.S. Senate seat once held by President Barack Obama. That’s the day regulators announce which troubled banks they’ll close

o Broadway Bank in Chicago, owned by Giannoulias’s family, must attract at least $75 million in capital by late April to meet terms of a consent order with the Federal Deposit Insurance Corp. prompted by losses on commercial real-estate loans. Even if successful, the family could lose control before November’s election, dealing a blow to Democrats and an Obama friend

· Massive Iceberg Could Affect Ocean Circulation Patterns

o An iceberg the size of Luxembourg broke off into the Southern Ocean recently and scientists are concerned that it might slow the rate at which dense, salty water reaches the bottom of the ocean, altering global climate patterns.
Read original story in Reuters | Friday, Feb. 26, 2010

COMPANY NEWS WITH MACRO IMPLICATIONS

· Money Raising: ARM ArvinMeritor 17.35M share secondary priced at $10.50 a share through JPMorgan, Citi and UBS - Dow Jones (closed at $11.12)

· BKS Barnes & Noble holder Ronald Burkle sends letter to board

· M&A: LII.LN Liberty International in advanced talks to sell US shopping centers to Equity One (EQY) - FT

· M&A: Aegon trading higher on market talk of Munich Re (MUV2.GR) interested in company – Reuters

· M&A: Aviva gains on munich Re report – BBG

· M&A: Telefonica puts plans to merge with Telecom Italia (TIT.IM) on hold, says la Repubblica

· French Port Union Calls for a 24-Hour Strike, Le Figaro Says

o A union representing port workers has called for a 24-hour strike today at all French ports, Le Figaro reported, citing the Confederation Generale du Travail trade union.

o The walkout is to protest a move by local authorities to require a striking employee to work during a labor conflict at the Port of Saint-Nazaire

· CIT to Sell TALF Bonds : CIT BOND RISES TO HIGHEST LEVEL IN MORE THAN A MONTH; CIT Said to Plan First Bond Sale Since Emerging From Bankruptcy- BBG

o The sale would “be a start in helping them reduce their borrowing costs,”

· Dry Bulk, Tanker Freight Rates, May Gain in 2010, Moody’s

o Freight rates for some of the biggest vessels which carry iron ore, coal and grains and ship oil may climb by 13 percent to 16 percent this year, while still remaining below the 10-year average

o Shippers may pay as much $38,000 a day on an average this year and $46,000 in 2011 for capesizes, which are 100,000 deadweight tons and above, from $32,900 a day last year

o The Baltic Dry Index, a measure of shipping costs for commodities, may average as much as 4,000 this year from 2,613 a year earlier.

o “The supply-demand imbalance will continue to limit the upside of freight rates,”

· supertankers FRONTLINE: 4Q EBIT below consensus, sees improved result in 1q q/q

o Frontline Ltd., the world’s largest operator of supertankers, posted a 92 percent slump in fourth- quarter profit and predicted improving earnings, with freight rates bolstered by the global economic recovery.

o Net income fell to $3.9 million, or 5 cents a share

· Macro good news: Sows Sold for Sausage Signal U.S. Farmers Halt Hog Cull: Chart of the Day – BBG

o U.S. hog farmers, emboldened by their first profits since 2007, are preparing to revive output to take advantage of lower costs for corn feed and a rebound in pork demand, said Steve Meyer at Paragon Economics.

o farmers are selling fewer sows to be made into sausage, after culling their breeding herds to curb losses.

o The 53,800 sold to pork plants in the week ended Feb. 13 was the fewest for a non-holiday period since April 2005, and prices on Feb. 24 reached a record 63.81 cents a pound for sows weighing 500 pounds to 550 pounds (249 kilograms).

· DRYS DryShips reports mixed; EPS in line with street

o Co talked on potential for the IPO of its rig fleet at some point this year

· WYNN Wynn Resorts reports - mixed EBITDA

o upbeat on Macau in 2010 - not so much for Las Vegas

· FLR Fluor reports - trades -5.7%, mixed - good margins – declining backlog - lowering guidance.

· LHO LaSalle Hotel reports Q4 FFO - Outlook Below Expectations.

· dividends

· GPS Gap increases quarterly dividend by 17.6

· XEC Cimarex raises dividend 33%

· BLK BlackRock increases quarterly dividend by 28.2% to $1.00 from $0.78

REIT: RWT +3%, after report

· WR- in-line Q after adjustments for absence in COLI benefits, guides in-line. A non-favorable tax rate weighed on EPS.

· BXS BancorpSouth to delay 10K filing

ATHN -13.2% (postpones Q4 release).
LYV Live Nation Entertainment reports – in line…..guidance weighs
AGO Assured Guaranty reports better than consensus – call today
CNO Conseco reports small miss - 10 am call today

· Macro negative: Toyota Motor to miss North American production target for February-April by 20% - Nikkei

· Macro Good news??: AIG Ditches Payback Plan as Outlook Improves

o American International Group Inc. and its federal overseers have decided to scrap a plan to use cash flows from life-insurance policies to repay $8.5 billion in debt to the Federal Reserve Bank of New York, according to people familiar with the matter.

o The decision, which comes as AIG prepares to report fourth-quarter results Friday, follows a market recovery over the past year that could improve the government-controlled insurer's chances of repaying its debts to U.S. taxpayers.

o http://online.wsj.com/article/SB10001424052748703795004575088203763487726.html?mod=WSJ_hps_LEFTWhatsNews

· Tech/ telco. Media

o COGT- down 8.4%. Q slightly weaker due to a delay in revenue recognition. Bears may look at FY10 guidance which was well below consensus

o LEAP- mixed Q, revs were a little light on lower than expected ARPU, but EPS and Margins better. No FY guidance was given, but the company did suggest trends were improving

o SBAC- in-line Q. slightly raised FY10 outlook

o DECK +8.5%, Deckers Outdoor reports

o NOVL- down 1.3%. mixed Q, revs miss and EPS in-line. The declining collaboration solutions

o Business drove revs to miss. Guides Q2 worse

o OVTI- down 5.9%. slightly better Q, but guidance was flattish. Seasonaility looks to be improving as the company calls for solid Summer and Fall Quarters, but says seasonal slowdown carries Into Q4

o SONS- down 4%- solid Q driven by top line growth.

o NVTL- down 9.4%. Weak Q and guides worse. Weaker MiFi drove to the negative. Worse guidance was issued on expectations core business will decline, with lower ASPs and seasonally weak volumes

o RST- up 12.5%- very Strong results (EPs beats by 20 cents) and guides FY10 better.

o SIRI WSJ warns that Sirius XM Radio may be overvalued

o China Unicom (762.HK) surged 8% on a broker upgrade

o Taiwans: Coretronic (5371.TT) rose 3% on a report its LCD backlight products will rise 30% y/y.

o Telefonica. Report Q4 Earnings: Revenues,net profit ahead of expectations also company reiterates dividend policy for 2010..trading up 2% in first hour

o Colt Telecom Full-Year Profit Up, Outlook Positive

o SIEMENS: Could IPO hearing aids unit – FAZ

o Belgacom (BELG.BB) up post reporting

o Telco: broadband plan may require providers to post average access speeds - LA Times

§ 'Up to' claims for Internet connection speeds next to worthless

§ http://www.latimes.com/business/la-fi-lazarus26-2010feb26,0,2585901,full.column

· Healthcare:

o Novartis reiterates 2010 sales to grow mid-single-digits -- Bloomberg

o Ranbaxy Laboratories dropped 7% the most in nine months in Mumbai trading after forecasting 2010 profit that missed analysts’ expectations.

· Energy:

o World Fuel Services INT +4.8%, nice beat

o Dresser-Rand DRC -2.8%. misses. Oulook unched, not good enough

o SWN Southwestern Energy reports better – reit guidance

o GXP Great Plains Energy reports OK – guidance not good enough

o MHK- Strong results driven by top line growth and a lower tax rate. Guidance looks cautious due to delays in price increases. SD weak Q driven by a decline in Production. Reserves fell sharply (down 60% YoY) due to the negative impact of price related revisions

o Gazprom renegotiates contracts with some European customers – FT

§ http://www.ft.com/cms/s/0/53068c2c-2254-11df-9a72-00144feab49a.html

o Seadrill (+4.8%) Q4 beats estimates , dividend increase.

o SBM Offshore (-2.5%) figures inline, but outook is cautious.

o Gamesa (-6%) Turbine sales fall short of expectations.

o BP to announce shakeup of global refining operations 2-Mar - London Times

o NEC.NO Norse Energy Corp reports - reaffirms looking to achieve US 2010 goal

§ aims to list its Brazilian operations on the Oslo Stock exchange in Q2 of 2010

o ROYAL DUTCH SHELL (NL): Iraq talks delayed – WSJ

o SEADRILL up 5%: 4Q EBIT above forecast, sees improvement in results

o STATOIL: EU companies renegotiate contracts with Gazpro

o SBM OFFSHORE: FY results broadly in line

o Nigerian court orders StatoilHydro to temporarily set aside revenues from local subsidiary - FT

o Solar Moser Baer Has Biggest Gain in 8 Months on Solar Cell Tax Break - BBG

§ Moser Baer India Ltd., an Indian maker of solar equipment, rose the most in more than eight months after the government said it will give tax breaks on products needed to set up solar power plants.

· Consumer:

· GPS up 2% - reports upside, good gude..

· HANS….beats – GMs good

· CROX -15.2% - CEO leaves

· WTW -9.4%, after reporting - guidance weighs

· BKS Barnes & Noble holder Ronald Burkle sends letter to board

· Volcom, apparel, VLCM +4.4%, reported

· WYNN Wynn Resorts reports - mixed EBITDA

o upbeat on Macau in 2010 - not so much for Las Vegas

· Wynn Macau (1128.HK) rose 2% on the strength of Wynn Resorts (WYNN)’s results.

o Deflation: McDonald's cutting prices, taking competitors' coupons in China - China Daily

o William Hill WMH LN opened +2% figs hurt on customers reduced gambling due to UK recession as expected currently up 0.75%

o Roundabout Theater Says ‘Strong’ Ticket Sales Improve Outlook - BBG

§ New York’s Roundabout Theatre Co., stung last season by a decline in contributions and investment income, says it’s “starting to see signs of an improved outlook.”

§ The city’s largest nonprofit theater said in a bond disclosure yesterday that “single ticket sales for the fall season have been very strong,” offsetting a decrease in annual subscription sales.

· Financials:

o AIG reports today…American International Group, government ditch plan to use life-insurance-policy cash flows to repay debt – WSJ

o Lloyds Bank (-2%) 2009 pre tax loss worse than market was expecting at £6.3bn. Expect significant improvement in impairments in 2010 but market still worried about some losses still not being taken and profit taking from recent lows weighing on the stock.

§ “The financial performance of the group’s continuing businesses is expected to improve significantly in 2010,” Chief Executive Officer Eric Daniels said

§ Although we are forecasting a slow, below trend, economic recovery, the group is successfully addressing the near term challenges.”

o GENERALI (+1.4%) delivers an unexpected rise in FY premiums, driven by a positive performance in the life segment.

o CREDIT AGRICOLE (+3.57%) continues to climb following FY results, with Natixis and Exane both carrying positive recommendations on the stock.

o AEGON (+4.23%) jumps on rumours that MUNICH RE (+1.66%) is interesting in acquiring the Dutch group – S&P

o Erste Bank (-3.6) 4^th quarter pre tax number of €183.4m well down on analyst estimates of €273m hence stock under pressure

o Axa Is Preparing a New Strategic Plan, Les Echos Reports

o European Commission approves Ireland's NAMA impaired asset relief scheme --DJ

§ Recall EU Commission expected to decide on Irish "bad bank" scheme this week

· MATERIALS

o ACERINOX (-0.9%) posts a FY net loss in line with estimates, and says it expects 2010 to be a year of recovery.

o BofA-ML upgrades AIR LIQUIDE (+4.12%) to buy.

o OAO GMK Norilsk Nickel, Russia’s largest mining company, may pay $1 billion in dividends for 2009, ending two years without a payout, Vedomosti

· Australia Harvey Norman (HVN.AU) up 2%

· Australia ANZ Banking (ANZ.AU) up 4%r earnings

· Australia QBE Insurance (QBE.AU) dropped 7% -EPS miss

· Australia Woolworths up 6%, Australia’s biggest retailer, rose the most in 15 months in Sydney trading after increasing earnings and announcing plans to buy back A$400 million ($355 million) of stock.

· Right Move( +7.2 %) Good final figs. Bullish statement.(see no threat from Google)

o Rightmove To Raise Prices Around 10% From Monday

· Britt Ins. Stock showing + 300%...4=1 consolidation, figs ok

· SMDS.L +4.5% raised buy from neutral by UBS

· Chemical and pharma: company Bayer AG

o Bayer AG slid as much as 4.4 percent in Frankfurt trading after reporting a bigger-than-forecast drop in 2009 earnings because of a slump at the German drug and chemical maker’s plastics unit.

· SERCO: FY PTP up 30.1%, sees growth

· WILLIAM HILL: FY PTP pre-ex down 9%, sales miss est

· EIFFAGE: FY results below ests, sees stable sales outlook

· SPIR: FY09 net loss EUR 92.9m, aims to break even in FY10

· Saint Gobain +5.4% After FY09 better Earnings

· Endesa's EBITDA tops forecasts

· PIAGGIO: 2009 sales seen doen 5% to EUR 1.491bn

· SARAS: Adj. EBITDA plummets 79% in 2009

· ACCELL: FY results in line

· ACERINOX: FY09 net loss matches ests, sees better 2010

· PROSEGUR: FY09 results beat forecasts, margins improve

· AFFICHAGE: Posts 2009 net loss of CHF59m

· PSP: Reports 2009 net profit of CHF136.5m

· DAVIS SERVICE: FY adj PTP +0.44%, downbeat on outlook

· GAMMA HOLDING: FY net loss in line with expectations

· OUTOKUMPU: Acerinox FY09 net loss matches ests, sees be better 2010

· Kudelski up after EPS

· Spanish Property Firms Aim to Defer Bankruptcies, Expansion

o Spain’s biggest real estate companies are lobbying the government to extend a law deferring bankruptcy proceedings for companies that have seen property-price declines wipe out their capital, Expansion

· Tata Motors Has Third-Quarter Profit of 6.5 Billion Rupees

CRISIS WATCH

· Killer Whale Was Treated Differently, Handler Admits - Telegraph

o The captive killer whale, Tilikum, responsible for the death of one of its trainers had to be treated differently from other animals because of the danger it posed, the park's boss has admitted.

o Chuck Tompkins, chief animal trainer for SeaWorld Orlando in Florida, said the 12,300 pound orca's sheer size and history of previous attacks meant handlers had to take special precautions.

· Taiwan Will "Drown" Without China Trade Pact, Warns PM - AFP

o Taiwan Premier Wu Den-yih warned Friday that the island will "drown" if it fails to sign a planned major trade pact with China, as competition from rivals in the region will become too formidable

o "They will form a regional alliance while we are the only one that's excluded and that will cause unthinkable pain," he told parliament.

· Hezbollah Chief Meets Iran's Ahmadinejad In Syria

o (AFP)--The head of the Lebanese Hezbollah movement, which shares Iran's vision of a world without Israel, has traveled to Damascus for talks with allies Syria and Iran, the SANA news agency said Friday.

· Coffee Hit By Global Warming, Growers Say - AFP

o Coffee producers say they are getting hammered by global warming, with higher temperatures forcing growers to move to prized higher ground, putting the cash crop at risk.

· Rangel Admonished by House Ethics Panel Over Trips to Caribbean - BBG

o House Ways and Means Committee Chairman Charles Rangel, a New York Democrat, has been admonished by the chamber’s ethics panel for trips he made to the Caribbean

o The committee determined he violated House gift rules when he accepted the trips to conferences in 2007 and 2008 sponsored by the Carib News Foundation. The foundation received contributions from corporations specifically to fund the conferences, the panel said in a statement.

· India and Pakistan talks end without deal

o Pakistan urged India to stop lecturing it about combating terrorism and to start discussing substantive issues such as the fate of Kashmir as the first official talks between the neighbours since 2008 broke up without any firm agreement

o http://link.ft.com/r/NA70KK/A75OBX/SL6X6/HDJR5V/C55THW/SN/h

TODAY’S EVENTS

· Friday February 26:

o ISPE Tampa Conference(2/22-25)

o Saudi Arabia Conference- BoA (2/21-25)

o Bretton Woods conference

o National Mortgage Servicing Conference & Expo- MBA (2/23-26)

o Texas Independent Producers & Royalty Owners Assoc convention (2/24-26)

o CleanTech Forum (2/24-26)

o International Stroke Conference (2/24-26)

o Medical Device Conference- Lazard (2/24-26)

o Global Materials Conference- Morgan Stanley (2/25-26)

o ONNN Analyst Day

o SNDK Investor Day

LOOKING AHEAD

· Friday February 26:

o 0830 GDP

o 0830 ISM-NY Business Conditions Index

o 0945 ISM-Chicago

o 0955 Reuters/Univ Of Michigan Consumer Confidence Index

o 1000 Existing Home Sales

· Earnings