Morning @ Cantor
Morning @ Cantor 3/10
BETA TEST
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
EARLY
US LANDSCAPE****
·
US
Stock Futures up 4
·
Emerging market stocks rose, erasing their
2010 losses, and higher-yielding
currencies strengthened against the yen after
China said exports soared the most in three years
·
Europe up quarter
percent…near session highs…Bank shares were amongst leading advancers, as gains
in Greek banks and Fortis (FORB.BB) out-weighed a fall in Barclay's (BARC.LN)
shares after press reports it was looking to for another US bank acquisition
(FT)
·
FX: Dollar sells off hard since 6am et….flat to
down at 7am et
·
FX: The
pound fell for a third day against the dollar and the euro after data
·
Rates: tick up in US at 7am et…..Treasury Yield Is Near
Two-Week High Before $21 Billion Sale.. U.S.
prepared to sell $21 billion in 10-year notes today, the second of three
auctions this week totaling $74 billion.
·
Sovereigns: Germany tapped €5B in the March 2012 Schatz
with a very solid cover of 2.1x. France's 50 yr OAT is set to price later in
the session with reports of robust orders of around €5B. meanwhile Spain
launched a 5 year FRN offering of its own. and in corporate, European names
Alstom and Edison have both come to market with offerings.** Portugal sold €990M in its 3.85% 2021 bonds, which was more that
the €750M expected. - TTN
·
Commodities rally..Following the Chinese data, crude oil, spot
gold and copper prices are all trading near the session's best levels
·
Gold-Silver Ratio Slumps to Six-Week Low as Risk Appetite
Grows – BBG
o
The ratio of gold to silver tumbled to a
six-week low after China said exports soared the most in three years, adding to
signs the global economy is recovering.
·
data
out of Europe has been weak and that is preventing the euro from
appreciating,”….The Chinese figures were good, which is supporting a recovery
scenario outside of Europe and the U.K
·
AUD/USD hit 7-week high above 0.9150 and 2-yr govt bond yields rose to multi-week
high overnight
o Australia
exit strategies?: AUD/USD gains were pared following
disappointing Jan home loans figure, with fixed income market probabilities for
April RBA tightening falling about 5% to just above 30% chance of a 25bp move -
TTN.
·
Japan's exit strategies?:
Growing Speculation that the BOJ might be leaning towards easing
monetary policy further at its policy meeting next week
·
Japan's exit strategies?:
Japan's cabinet continued to sound off on coordination with the central
bank to deal with deflation. In turn, BOJ member Suda acknowledged that
consumer spending remains flat, with upside and downside risks to the economy
still balanced. Recall Japanese press has recently speculated the central bank
could implement additional QE as early as this month's decision – TTN
·
Japan's exit strategies?:
Japanese govt official Tsumura commented that the Gov't believes that
BOJ not need to increase bond purchases to stimulate demand. He added that more
BOJ bond purchases might raise the longer end of the yield curve. He did not
see any risk that Japan would enter a double-dip recession.
·
US exit strategies?: Fed language change coming??: Fed’s ‘Extended Period’ Rate Pledge
Criticized by Some on FOMC - BBG story
says Hoenig, Fisher, Plosser doubts
increase the chances the language will be tweaked when policy makers next meet
on March 16
·
ECB to Update Exit Strategy in June, Paramo Tells Expansion
o
European Central Bank Executive Board member
Jose Manuel Gonzalez-Paramo said the ECB will probably provide more details on
the withdrawal of emergency measures in June
o
“Most likely in June we will say something
about the third quarter,” Gonzalez-Paramo was cited as saying. “We have always
said that it will be a gradual process, one that doesn’t try to influence the
market. Maintaining these actions while normality is returning would end up
being counterproductive.”
·
Exit Strategy ?: Bank of Thailand Keeps Interest Rate at Five-Year Low
o
refraining from following neighbor Malaysia
in raising borrowing costs as political protests threaten the nation’s economic
recovery.
·
Data
highlights China to the good… EU, UK bad…..
o Strong China export numbers revive risk
appetite
o China
Iron Ore Imports Rise 6% on ‘Bullish’ Mills
§ “It
is surprising to see imports are still very strong given that inventories are
at record levels,” – BBG
o
China Property Prices Surge, Highlight Bubble Risk – BBG
§ China’s property prices rose at the fastest pace in 23
months in February, adding urgency to the government’s efforts to rein in
speculation and increase the stock of affordable housing
§ Residential and commercial real-estate prices in 70
cities climbed 10.7 percent from a year earlier, the statistics bureau said on
its Web site today. That topped a 9.5 percent gain in January.
o Euro
Falls Versus High-Yield Currencies as German
Exports Drop .. adding to evidence the European economic recovery is
struggling to take hold
o U.K. factory production unexpectedly fell in
January for the first time in five months, a sign manufacturing
is struggling to shake off the recession
o Industrial production in Italy climbed more
than economists expected in January, a sign that Europe’s
fourth-biggest economy may return to growth after contracting in the fourth
quarter.
o disappointing Australia home financing data
o Chinese exports rose 45.7 per cent in
February from the same month a year earlier, beating forecasts
and providing fresh evidence of a robust recovery
o the
remainder of China February economic data is expected for tomorrow's session
o NZD/USD reached one month high above 0.7065
ahead of tomorrow's RBNZ decision
o
Philippine government said the nation’s
exports in January grew at the fastest pace in 14 years.
o
ABC Consumer Confidence flat at (49)
in 7-Mar week vs (49) in prior week
o
Nasdaq OMX, NYSE and NYSE Amex
announce total short interest as of 26-Feb
o NYSE:
short interest decreased to 13,826,928,711 shares from 13,991,260,798 (revised)
shares on 12-Feb. The short interest on 26-Feb was equal to 3.62% of the total
shares outstanding.
o Bullish
sentiment increases to 44.9% from 42.1% in the latest Investor's Intelligence
poll
o
MBA
Mortgage Applications hi t at 7am et
§ MBA Mortgage purchase applications index 5.7% in 5-Mar
week; total market index 0.5%
§ compares to 9.0% and 14.6%, respectively in prior week.
§ refi index (1.5%) vs. 17.2% in the prior week
§ 30-yr fixed rate 6bps to 5.01%
§ 15-yr fixed rate 5bps to 4.32%.
·
Bailed-out U.S. financial stocks surge - Yahoo! News
o The
U.S. Securities and Exchange Commission denied rumors it is considering curbing
short sales on
companies in which the government owns stakes, which some analysts cited as a
reason for the rising stocks.
o AIG option volume was five times greater than
normal, with about 223,000 calls and 98,000 puts traded, according to option
analytics firm Trade Alert.
·
big gainer (in after hours action) was FACT, up $10.85, or 67% to $27.05, on news that
it will be acquired bay ABT for $27 a share in cash. Biogen had made a bid of
$17.50 that FACT had (correctly, it turns out) deemed inadequate.
·
Interbroker dealers ICAP [IAP.UK] and Tullett Prebon [TLPR.UK] have moved higher on sector consolidation
speculation. – TTN
·
Jenoptik
[JEN.GE] has come under pressure following speculation f an accelerated book
build – TTN
·
merger talk for Piaggio [PIA.IT] with Immsi
has been quashed – TTN
·
NAV -7.9% (earnings), parts missed..military
orders hurt ..reit 2010 guidance
·
Tech good news:
TSM- reports mostly better…(like UMC) Feb
sales were flat even with fewer working days in Feb, so This could be a signal
of strong demand.
·
Tech good news: Commercial
Times said Q1 forecasts for UMC and TSM are being revised higher following US
clients Texas Instruments and Xilings boosting their shipment forecasts
·
Media: CBS says some good things on upfront
o CBS
CEO Sees Double-Digit Gains In 2010 Upfront Ad Pricing
o http://online.wsj.com/article/BT-CO-20100309-715928.html
·
IPOs are back:
Baltic Trading’s IPO Raises $228 Million in Pricing at Low End – BBG
o The
IPO is the first of three U.S. offerings this week and comes after seven
companies postponed or delayed initial sales this year
·
Toyota denied press reports it was considering additional Prius
recalls after yesterday's California freeway police chase was attributed to
failed accelerator on the model
·
C
Citi preferred offering oversubscribed, reports CNBC
·
Citigroup
Selling TruPS After Repaying Bailout, maybe today –
BBG
o Citigroup.,
seeking capital after repaying bailout funds to the Treasury, is selling trust
preferred securities as rising investor demand drives borrowing costs to near
the lowest in almost five years. The
bank plans to issue as much as $2 billion of the securities, known as TruPS, as
soon as today
·
Fortis beats forcast…
·
Apollo
Management LP agreed to buy Citigroup I's real
estate investment unit in a move that will more than triple
the value of the private-equity firm's
property assets - BBG
·
Demand
positive Cathay
Pacific Airways rose as much as 5 percent , Hong Kong’s biggest carrier, rose
the most in about a month after posting a better-than-estimated profit
·
economists
at large investment banks expressed optimism over the March employment picture.
David Greenlaw of Morgan Stanley is calling for a payrolls increase of over
300k; Jan Hatzius of Goldman is forecasting an add of 275k.
·
U.S.
Senate Set to Vote on Plan to Extend Unemployment today -
BBG
o
The chamber is slated to vote today on the
legislation that would also provide $25 billion in aid to states, extend a
package of miscellaneous tax cuts, temporarily ease corporate- pension funding
requirements and prevent cuts in Medicare reimbursements to doctors.
o
A proposal to impose a 50 percent tax on bonuses awarded
last year to Wall Street executives was dropped.
·
Sovereign
Risk stories
o Speculation
surfaced that Greece might seek EU aid in
roughly two months time if interest rate spreads did not narrow - TTN
o
Greek Financial Crisis Is `Over,' Rest of Euro Region Is Safe, Prodi Says– BBG
o Papandreou
Says Obama Supports Greece Crisis Measures – BBG
§ Papandreou
said after meeting with Obama at the White House yesterday that he also got a
“positive response” about European initiatives to curb market speculation. The
issue will be “high on the agenda” at the next meeting of the Group of 20
nations,
o Germany
and France are stepping up the pressure for urgent action by the European Union
to regulate speculation in sovereign debt markets, in the wake of the Greek debt crisis. FT
o
FT and WSJ talk on the growing 'international momentum for
stricter oversight of derivatives trading'
o
Greece Plans Another Bond Offering
§ As Athens looks to more debt sales to raise money,
officials within the EU square off over European monetary fund
§ http://online.wsj.com/article/SB10001424052748704784904575111922365130474.html?mod=WSJ_World_LEFTSecondNews
o Germany Econ Min stated that the proposed
European Monetary Fund (EMF) should only include Euro-zone states and should
only be used in case of potential insolvency. The capital for fund should come
from quota system from member states – TTN
o UK: UK
Telegraph commented on the recent Fitch warnings on the sovereign front. Fitch
seemed to warn Britain and questions the Greek austerity measures as sovereign
risks grow. Article noted that Fitch Ratings has delivered a serious blow to
the credibility of the Government's budget plans, warning that Britain risks a
loss of investor confidence and erosion of its AAA rating unless it maps out
clear austerity measures. TTN
o UK: The Prime
Minister, Gordon Brown has anounced that the UK Budget will be held in 2 weeks
time on Wednesday 24th March.
§ UK budget release date of March 24 makes a
May 6th general election seem even more likely
o UK: In
the CDS market the spread of the UK over Germany trades at +44.58bps from 47.76
bps at the start of March.
·
China to Launch of First Mars Satellite in 2011, Xinhua
·
SUNSPOTS OBSERVED AT LOWEST IN ALMOST A CENTURY, POTSDAM SAYS (BBG)
TODAY’S
BIG STORIES
·
Equity Wrap:
o US
stocks rose a mite led by the likes of Citibank and AIG. Now tell me if that’s
not encouraging and the type of leadership we need for another market rally!
The Dow was up 0.11%, the S&P500 0.17%, the Nasdaq +0.36%). The continued
outperformance of the Nasdaq IS encouraging. The index broke above its
mid-January year high and the tech sector actually DOES have the potential to
lead markets higher, in particular when 1Q earnings season will prove its
bottom AND top line potential – Uwe Parpart
o “junk stocks” got all the excitement – ie
big rallies in AIG, FNKM, FRE, MBI etc…. as The transports (TRAN) and Banking
index (BKX) stand on the precipice of big breakouts.
o encouraging
words out of some of the transports
etc from JP Morgan's conference, and
from what we saw. a financially led rally which helped stocks
lean towards the path of least resistance.
o Our
desk did did see more money coming off of the side-lines adding to stocks and more
tweaking of portfolios as well as some guys throwing in the
towel on they're short bets. The homebuilders were a stand
out as well(all boats float in the high tide).
o Breadth had 1 1/2 advancing issues for
every declining one, while internally here, sell names almost outnumbered buy
names by 2-1.
o You
had a CMA secondary hold its price and pretty much any type of
bad news get the benefit of the doubt. T
o S&P's traded in a wider range (13
points), as volumes picked up
o (Billy Clark)
·
Treasury’s Wrap:
o Treasury market opened up better bid Tuesday
after the issues in Europe re-emerged (although they do not seem to go away for
more than one day), today was most notably on Portugal.
o The Treasuries rally was short lived as the
market quickly hit a wall grinding lower for the remainder of the morning and
into the afternoon ahead of the start of this weeks supply.
o Treasuries
were trading close to their lows at the time of auction. The $40Bln 3
year note came almost one bp through the market at 1.437% a strong 3.13 bid to
cover and over 62% to end users.
The 3 Year initially had a hard time trading through the stop but as equities
erased their early gains and shorts covered, the Treasury market
caught a small bid. For the entire session the long end of the curve lagged as
market participants setup for the remainder of this weeks supply $21Bln 10 year
notes tomorrow and $13Bln 30 year bonds on Thursday. At 3PM Treasuries were
mixed with all benchmarks besides the 30 year higher in price.
o With this weeks eco calendar extremely light
we look ahead to supply as the main driver in the market. We look for the
market cheapen up ahead of the supply and look for strong demand at
auction time if 10s trade 3.75% and 30s 4.70%
o Primary
Dealer
·
high yield Wrap: CDX
HY 13 up 1/8 point Tuesday
o
A busy Tuesday session in the primary market
saw four issuers, PN
o
the
big deal of the day was MGM – quickly shopped $845 million offering (PN) –
then After pricing t par, up more than 2
points after the break.
o
Boise
prices over-subscribed deal
·
Convertibles Wrap: Ciena’s
convertibles gain on debut – PN
o
ProLogis
launched and priced an upsized $400 million of convertibles on Tuesday, near
the midpoint of talk - PN
·
Investment
grade Wrap: busy
– Tuesday the second day in a row with a large number of sales. Monday had
nearly $13 billion in offerings,and more than $12 billion priced on Tuesday.
o
Novartis Capital Corp., Amgen Inc., Anadarko
Petroleum Corp., TransAlta Corp., ProLogis, Georgia Power Co., Royal Bank of
Scotland plc, American Honda Finance Corp. and Danske Bank were among the
issuers on a packed Tuesday in the high-grade bond market. PN
·
Markit
Group announces plans to roll five CDX indexes in coming weeks
o
The list of additions and the provisional
composition of the Markit CDX North America Investment Grade index series 14
will be published Wednesday. The coupon will be published March 17, the final
annex will be published March 19, and roll trading will begin March 22
o
The list of names removed from the Markit CDX
North America High Yield index series 14 will be published Wednesday, and the
list of additions and the provisional composition of the index will be
published Thursday. The coupon will be published March 24, the final annex will
be published March 26, and roll trading will begin March 29.
·
Fed
language change coming??: Fed’s
‘Extended Period’ Rate Pledge Criticized by Some on FOMC - BBG
o
The Federal Reserve’s pledge to keep interest
rates close to zero for an “extended period” has come under criticism from
policy makers who say it’s restricting their room to maneuver as the economy
recovers.
o
Kansas City Fed President Thomas Hoenig voted
against repeating the statement on Jan. 27 because he wanted to keep “the
broadest options possible.” Since then, Dallas Fed President Richard Fisher,
James Bullard of St. Louis and the Philadelphia Fed’s Charles Plosser have also
expressed reservations.
o
The Fed presidents have said the phrase,
repeated every meeting since March 2009, might reduce the central bank’s
flexibility to raise interest rates or mislead investors into believing the Fed
has a specific date in mind.
o
Their
doubts increase the chances the language will be tweaked when policy makers
next meet on March 16
·
Fed officials discuss how
to indicate next move on rates
o
As
the U.S. economy improves, the Federal Reserve will need to raise interest
rates, but first it must indicate that a change is coming, according to The
Wall Street Journal. Officials at the central bank are debating the best way to
communicate an increase. Policymakers are expected to focus on the issue when
they meet next week. The Wall Street Journal (10 Mar.)
·
Economists Boost Growth Forecasts for 2010
o But, at the same time, they trimmed their economic growth
forecasts for 2011.
o Read original story in Reuters |
Wednesday, March 10, 2010
·
CLO
Defaults in Europe Exceeded U.S. in 2009, Moody’s Reports
o
Collateralized loan obligation managers in
Europe had nearly double the level of defaults in their collateral pools last
year as those based in the U.S., according to Moody’s Investors Service.
o
The
average default rate for a CLO manager in Europe was 10.8 percent, compared
with 6 percent in the U.S
·
Jobs: Obama Job Losses Turn on 300,000 March
Payrolls: Morgan Stanley – BBG
o
The U.S. may add as many as 300,000 jobs in
March, the most in four years, setting the stage for what some economists say
will be sustained employment gains
o
Better weather, hiring of temporary
government workers and a growing economy may bring the biggest job increases
since March 2006, said David Greenlaw, chief fixed-income economist at Morgan
Stanley in New York. The rise would be the second since President Barack Obama
took office in January 2009.
·
Jobs: Census hiring blitz of 750,000 to cut
jobless rate, offer boost to Obama – The Hill
o
Unemployment rate could drop by half a point
and boost Obama, but workers will only be on until June
·
Jobs: New head of House panel says job
creation will be top priority –WP
o
As he takes the
reins of the tax-writing House Ways and Means Committee, Rep. Sander M. Levin
is vowing to raise the profile of a once-powerful panel that, in recent years, has
been overshadowed by the ethics troubles of its previous chairman, Rep. Charles
B. Rangel.
o
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/09/AR2010030903711.html
·
Jobs: House
changes to jobs bill could risk Republican support in the Senate
o
Republican Senate support for the jobs bill
could be dwindling thanks to changes the lower chamber made to the legislation,
according to Congressional staffers.
o
http://thehill.com/homenews/senate/85779-house-changes-risk-senate-gop-support-for-jobs-bill
·
Jobs: EU Seeks to End Crisis Subsidies for Job
Protection, FTD Says
o European Union finance ministers are considering phasing
out government measures that protected jobs during the economic crisis, the
Financial Times Deutschland reported.
o The proposal mentions Germany’s program of subsidies for
companies that keep employees on shortened working hours rather than lay them
off, the newspaper said today, citing a draft. EU finance ministers will
discuss the proposal March 16
·
Jobs: Brown to Announce Pay Freeze Amid Fears
Over UK's Credit Rating – Telegraph
o
Senior public sector workers will have their
pay frozen, Gordon Brown will confirm today.
o The Prime Minister will use a speech on the economy to
attempt to show that he is willing to get tough with those on the public
payroll.
o But his announcement
comes as a new study shows that public sector pay has risen by 15 per cent more
than pay in the private sector since Labour came to power
·
Rob
rich bankers and give money to the poor
o
Wall Street and the City did little to
deserve their record profits. A Robin Hood tax is the only fair solution
o
http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article7055759.ece
·
China: export growth beats estimates
o
Chinese exports rose 45.7 per cent in
February from the same month a year earlier, beating forecasts and providing
fresh evidence of a robust recovery in an economy poised to overtake Japan this
year as the world’s second-largest
o
http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/QFN3JD/JY/h
·
China: PBoC
Assistant Gov Guo suggested that "moderately loose" monetary policy
pledged by Premier Wen last week may be more difficult to implement than in
2009 given the need to contain high levels of recent bank lending – TTN
·
China: Feb new yuan loans figure would be around
CNY700B and will not exceed CNY750B, down from CNY1.4T in Jan. China Securities Journal
·
China: PBoC
Dep Gov Su noted that economic recovery has probably stabilized in the prior
month
·
Trade
Wars: Europe hints at retaliation
regarding U.S. Air Force tanker deal
·
Trade
Wars: Europe
cries foul over US defence tender - FT
o
European countries have accused Washington of
foul play after the continent’s largest aerospace and defence company pulled
out of a multibillion-dollar race to supply the US military, alleging unfair
¬competition
o
http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/V1LTPF/JY/h
·
Trade
Wars: Don’t
turn air race into trade war, Mandelson tells Obama
o
Lord Mandelson has tried to head off a
transatlantic trade war by expressing concern at Washington’s handling of a $35
billion Pentagon procurement project that could spark European retaliation.
o
http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article7056006.ece
·
Derivatives
rules: U.S. is cool to Greek appeal for reining in
speculators
o Greek Prime Minister George Papandreou's
request for U.S. assistance in restricting speculation in the sovereign-debt
market got a chilly reception at the White House. Papandreou said manipulation
of credit default swaps has worsened his nation's debt crisis. White House
spokesman Robert Gibbs said Greece should focus on fixing its economic problems
and paying down debt. The Globe and Mail
(Toronto) (10 Mar.) , Reuters (09 Mar.) , The Washington Post (10 Mar.)
·
Derivatives
rules: Call for action on speculation rules
o
Germany and France are stepping up pressure
for urgent EU action to tighten regulation in sovereign debt markets – in
particular of credit default swaps – in the wake of the Greek crisis
o
http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/NSJRQ0/JY/h
·
Swaps Come Under Fire
o
U.S. Regulators, European Leaders Seek More
Oversight on Trades in Derivatives
o
http://online.wsj.com/article/SB20001424052748704784904575111191528470212.html#mod=todays_us_page_one
·
Derivatives
rules: CFTC chief calls for new credit
derivatives rules - eFinancialNews
o
Commodity Futures Trading Commission chairman
Gary Gensler yesterday said the US could adopt new regulations for credit
default swaps, the derivative often blamed for the near-collapse of American
International Group during the financial crisis.
o
Gensler's comments, made in a speech at a New
York conference held by Markit, come as the European Union's executive arm
threatened to ban some credit default swaps in a swipe at speculators who made
huge bets against the euro amid Greece's debt crisis.
o
His speech outlined several options for
reining in credit default swaps. But Gensler didn't suggest that the US would
go as far as banning some speculative uses of the products.
·
Derivatives rules:
Italy Police Probing EU9.5 Billion in Derivatives, Sole Says
o
Italian financial police are investigating
9.5 billion euros ($12.9 billion) of derivatives contracts signed by Italian
municipalities, Il Sole 24 Ore reported.
·
Greek Crisis Is Over, Rest of Region Safe, Prodi Says - BBG
o
The worst of Greece’s financial crisis is
over and other European nations won’t follow in its path, said former European
Commission President Romano Prodi
o
“For Greece, the problem is completely over,”
Prodi, who was also Italian prime minister, said in an interview in Shanghai.
“I don’t see any other case now in Europe. I don’t think there is any reason to
think the euro system will collapse or will suffer greatly because of Greece.”
·
Swiss National Bank Expects Further Economic Recovery in
2010 – BBG
o
The Swiss National Bank expects Switzerland’s
economy to gain momentum in the current year
o
“In 2010, a further recovery in economic
activity can be expected,” the central bank said in its Accountability Report
for 2009. “The main stimulus will probably be derived from exports and from
equipment investment.”
·
EU
warned on investor rules -FT
o
Some top institutional investors have warned
Brussels that Europe risks building a protectionist wall between itself and the
global private equity industry if it proceeds with plans for a sweeping
regulatory overhaul of the sector. The warning from the International Limited
Partners Association, representing 220 of the biggest pension funds, endowments
and sovereign wealth funds, comes as EU lawmakers and member states prepare to
finalise new rules, under which EU-based investors could be barred from
investing in buy-out funds outside the 27-country bloc.
o http://ftalphaville.ft.com/thecut/2010/03/10/170026/eu-warned-on-investor-rules/
·
Hedge
Funds Rose 0.5% in February on Market Recovery
o The
Eurekahedge Hedge Fund Index, tracking more than 2,000 funds, is down 0.3
percent this year through February, after posting its first monthly loss in
four in January
o Almost 90 new funds started globally in the
first quarter of this year
o
The euro’s weakness amid speculation of
Greece’s sovereign debt default sent the Eurekahedge Eastern Europe and Russia
Hedge Fund Index down 4.5 percent, while the measure tracking European managers
declined 0.7 percentEight out of nine different strategic indexes rose, with
the measure tracking commodity trading advisers known as CTAs gaining 1.3
percent, the best performer. Managers of CTAs benefited from strength in
commodity prices as well as the U.S. dollarThe measure tracking funds that
invest in distressed debt was little changed, falling 0.02
percent.Eurekahedge’s figures are estimates based on the 39 percent of funds
that have so far disclosed performance to the researcher. The firm plans to release
full data later this month
·
Hedge-Fund Losses Show Euro’s Drop
Fails to Benefit All Traders – BBG
o Hedge
funds that trade currencies are taking hits from politicians casting them as
speculators out to sink the euro and push Greece into insolvency. They are also
losing money
o Macro funds, so named because they try to
profit from macroeconomic trends, fell 1 percent in the first two months of the
year, according to data compiled by Chicago-based Hedge Fund Research Inc.
Brevan Howard Asset Management LLC, Europe’s largest hedge-fund firm, Moore
Capital Management LLC and Tudor Investment Corp. were among those reporting
fund losses
·
Corporate America Flush with Cash: Standard & Poor’s Estimates Cash at
S&P Industrials (Old) Hits Record $832 Billion in Q4 2009. Trimtabs
o Standard
& Poor’s estimates that the S&P Industrials (Old)—S&P 500 companies
excluding the financial, transportation, and utilities firms that are required
to hold large amounts of cash as part of their normal operations—held a record
$832 billion in cash and equivalents at the end of 2009. This amount is
up 27% from $655 billion at the end of 2008.
o As a
percentage of the market cap, cash holdings edged higher to 10.0% at the end of
2009 from 9.9% at the end of 2008. In
other words, increases in corporate cash kept pace with increases in stock
prices last year.
·
Liquidity: On the first seven trading days of March,
companies have announced a solid $20.2 billion in float shrink, including two
small private equity buyouts using $650 million in cash and 10 new stock
buybacks totaling $2.9 billion announced Friday through Tuesday - Trimtabs
·
Hedge Fund Managers Sharply Divided on U.S.
Equities: Greenwich Alternative Investments Reports 57% of
Surveyed Managers Bearish and 43% Bullish
·
health-care bill: McConnell
warns House Democrats on reconciliation – WP
o
As Republicans work
to prevent a health-care bill from reaching President Obama, they are
scrambling to exploit divisions between Democrats in the House and the Senate.
·
health-care bill: Obama’s Health-Care Push Gets Challenge From
Business Coalition 2010
o
President Barack Obama is facing a renewed
push against his health-care legislation as a coalition of business groups
plans to spend as much as $1 million a day on advertisements to pressure
lawmakers into voting “no.”
o
The campaign will last about 10 days and cost
between $4 million and $10 million, said Bruce Josten, the top lobbyist at the
U.S. Chamber of Commerce, which is helping lead the effort.
o
The ads will start on national cable
television and run in 17 states, Josten told reporters on a conference call.
·
Financials reform: Senate
financial bill appears likely to keep Fed as regulator of big banks
o
Key members of the Senate banking committee
are coalescing around legislation that would strip the Federal Reserve of much
of its regulatory authority but would leave the central bank with oversight of
the nation's largest banks,
o
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/09/AR2010030903584.html
·
Kerry Says ‘Great Deal’ of Consensus Reached on Climate
Policy-BBG
o
Senator John Kerry said a bipartisan group of
lawmakers achieved a “great deal of consensus” on energy policy at the White
House yesterday, and he’s moving “rapidly” to introduce legislation on the
subject
o
The 14 senators agreed action was needed to
promote U.S.
o
energy independence, create jobs in clean
energy and cut pollution, said lawmakers who attended the meeting with
President Barack Obama.
o
“If this group continues to work together, we can get
something done,” said Senator Joseph Lieberman, a Connecticut independent.
·
Munis: Defaults
Signal Bursting Muni Junk Bubble on High-Yield Surge – BBG
o
Investors in search of better returns poured
$7.8 billion into high-yield municipal bond funds last year, pushing assets to
a two-year high. They may start experiencing losses as early as this year as
default risks grow
·
Common set of school standards to be proposed
– WP
o
The nation's
governors and state school chiefs will propose standards Wednesday for what
students should learn in English and math, from kindergarten through high
school, a crucial step in President Obama's campaign to raise academic
standards across the country.
·
UK:
Budget Date Fuels Election Speculation Sky News
o
Gordon Brown has
confirmed there will be a budget in two weeks' time. The date is widely
expected to be March 24.
o
The Prime
Minister's comment will fuel speculation the General Election will be held on
May 6, the same day as the council polls. He made the announcement in a speech
on the economy. Earlier, Treasury officials declined to comment on the date but
confirmed it would be released in a written ministerial statement to MPs. Sky's
political correspondent Joey Jones said it is likely to be a "nakedly political"
budget, "dripping with electoral menace".
·
Saddam Hussein
weighed nuclear 'package' deal in 1990, documents show
o As
troops massed on his border near the start of the Persian Gulf War, Iraqi
President Saddam Hussein weighed the purchase of a $150 million nuclear
"package" deal that included not only weapons designs but also
production plants and foreign experts to supervise the building of a nuclear
bomb, according to documents uncovered by a former U.N. weapons inspector.
o http://www.washingtonpost.com/wp-dyn/content/article/2010/03/09/AR2010030903775.html
COMPANY
NEWS WITH MACRO IMPLICATIONS
·
Money
Raising: multiple secondary’s priced
last night – see Investment banking section below
o IPOs
are back: Baltic Trading’s IPO Raises $228 Million in Pricing
at Low End – BBG
o The
IPO is the first of three U.S. offerings this week and comes after seven
companies postponed or delayed initial sales this year
·
M&A: Buyout Firms Can’t Spend $503 Billion as Fund Deadlines Loom -
BBG
o
Buyout funds sitting on half a trillion
dollars committed by investors may need more than a decade to put the money to
work if mergers and acquisitions continue at the current pace.
o
Firms led by Blackstone Group LP and KKR
& Co. announced $87 billion in deals over the past 12 months, according to
data compiled by Bloomberg. At that rate, it would take until the middle of
2021 to invest an estimated $503 billion in unspent money, assuming they borrow
half the purchase price. Firms usually have three to six years to deploy commitments
·
M&A: FACT
+66.9% (to be acquired by ABT),
o Abbott
Bests Biogen With $27-a-Share Bid for Facet Biotech – BBG
o Abbott
Laboratories, succeeded in its bid for
Facet Biotech Corp. by offering 54 percent more than Biogen Idec . in its
rejected takeover effort
o The drugmaker agreed to buy Facet, maker of
experimental medicines in cancer and immunology, for $27 a share in cash, or a
net $450 million, the companies said yesterday in a statement.
o price is a 67 percent premium over
Redwood City, California- based Facet’s closing share value yesterday in Nasdaq
trading
·
M&A: ICAP jumps on takeover talks – BBG
·
M&A: BDEV.LN Barratt Developments trading
higher on market talk of possible 170 pence bid from Persimmon (PSN.LN) -- Reuters
·
Demand positive Cathay Pacific Airways rose as much as 5 percent , Hong
Kong’s biggest carrier, rose the most in about a month after posting a
better-than-estimated profit on capacity cuts and the sale of a stake in a
maintenance venture
·
Demand positive, steel: China Iron Ore Imports Rise 6% on ‘Bullish’ Mills - BBG
o
Iron ore imports by China, the largest buyer,
rose 6 percent in February, strengthening the ability of BHP Billiton Ltd., Rio
Tinto Group and Vale SA to ask for higher prices
o
Imports reached 49.4 million metric tons,
compared with 46.6 million tons in January, according to customs data today.
o
Shipments were up 5.6 percent from a year
ago.
o
“It is surprising to see imports are still
very strong given that inventories are at record levels,”
o
“This indicates steelmakers are bullish
on steel demand, so they increased orders.”
·
Demand
positive Steel
makers invest in growth – WSJ
·
PSS
Collective Brands reports mostly in line..
·
RMIX
reports
o The
company anticipates that pricing will continue to be affected by the
recessionary conditions into 2010. RMIX says, though it is currently in
compliance with the provisions of its amended credit agreement, absent a
successful restructuring, there is substantial doubt about its ability to
continue to operate as a going concern and says it has initiated
discussions with its lenders regarding a permanent restructuring of its
balance sheet.
·
SIBN.RU
Gazprom Neft reports Q4
·
FLOW
Flow International…reports ni line, outlook may not impress
·
Healthcare: ITMN
+64.6% - FDA panel vote
·
Healthcare: AGN
+2.6% - data
·
NAV -7.9% (earnings), parts missed..military
orders hurt ..reit 2010 guidance
·
Healthcare: ACAD
-6.3% (earnings),
·
AVAV -5.4% (earnings),
·
NCS -2.4% (earnings)
·
Autos:
TM Toyota Motor recalls cost end up costing more than $5B says the WSJ
·
Autos:
Cash for Clunkers: Better than we thought
o CNNMoney.com)
-- The government's Cash for Clunkers program resulted in a far bigger boost to
car sales than was previously estimated, even by the government, according to a
new analysis by Maritz Research, an automotive market research company.
o http://money.cnn.com/2010/03/09/autos/clunkers_analysis/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29&utm_content=Google+Reader
·
Tech/telco.
media
o Commercial Times said Q1 forecasts for UMC
and TSM are being revised higher following US clients Texas Instruments and
Xilings boosting their shipment forecasts
o Media: CBS says some good things on upfront
§ CBS
CEO Sees Double-Digit Gains In 2010 Upfront Ad Pricing
§ http://online.wsj.com/article/BT-CO-20100309-715928.html
o China:
U.S. weighing China Internet censorship case- Reuters
o http://feeds.reuters.com/~r/reuters/technologyNews/~3/L19aFhDCe94/idUSTRE6284YG20100310
o TSM- reports mostly better…(like UMC) Feb
sales were flat even with fewer working days in Feb, so This could be a signal
of strong demand.
o GOOG opens
Web store for business applications- AP
o GOOG:
Google Maps Adds Directions for Cylists
o Search
(MSFT, GOOG, YHOO): Bing, Google Gain Search Share In Feb.;
Yahoo Sinks Again- Barron’s Tech
§ GOOG
share inched up to 65.5%, from 65.4% in January, and 63.3% a year ago.
§ MSFT
boosted its share, taking 11.5% share, up from 11.3% in January and 8.2% a year
ago
§ YHOO fell
to 16.8%, from 17% in January, and 20.6% a year ago.
§ IACI had
3.7% share, down from 3.8% in January, and 4.1% a year ago.
§ AOL had
2.5% share, flat with January, and down from 3.9% a year ago.
o China
Mobile to Buy $5.8 Billion Stake in Pudong Bank
o Components:
Supply of passive components tightens- Digitimes
o EXLS
+8.1% (earnings),
o SNDK
drops patent lawsuit against Transcend- Digitimes
o NOK not
keeping up with smartphone performance leaps, says Ovum- Digitimes
o SMIC to
cut 10% of employees- Digitimes
o Motherboard
makers see on-month drops in February 2010 revenues- Digitimes
o Chips:
IC Insights raises chip market forecast for 2010-
Digitimes
o SNE:
Sony to ship 20-25 million LCD TVs in 2010, says Sony Taiwan
o PCs:
shipments actually grew in '09, says iSuppli- EETimes
o Jetpack!!:
Martin Jetpack priced at $86,000, mere mortals will soon be able to buy one
too- Engadget
o NWS: to
re-launch MySpace over the next several months – FT
o MGM
expected to draw six bids by March 19 (TWX, LGF, LINTA, Access Industries, and
Eilliot Management named, sixth not known)
o BRKR
Bruekr to acquire some VARI Varian assets from A Agilent
o UMC (UMC) higher after reporting solid
February sales of NT$8.63B vs. prior year NT$3.14B.
o NWS News Corp to re-launch MySpace over the next
several months – FT
o JC DECAUX Trading lower post results/: Posts 77% decrease in 2009 net income share
o 6
bidders expected for Metro-Goldwyn-Mayer by 19-March deadline – Reuters
§ According to two sources close to the deals,
the participants are expected to include Time Warner (TWX), Lions Gate (LGF),
Liberty Media Corp (LCAPA), Access Industries and Elliott Management. The sixth
group was unknown. The interest of TWX, LGF and LCAPA has been previously
noted.
·
Hynix Creditors Choose
Credit Suisse, Nomura for Stake Sale- BBG
o
Hynix Semiconductor’s creditors chose Credit
Suisse Group AG and Nomura Securities Co. to arrange a block sale of part of
their stake in the chipmaker
o
Woori Investment & Securities Co., NH
Investment & Securities Co., Shinhan Investment Corp. and Daewoo Securities
Co. will also arrange the sale
·
Consumer
o APT
+7.5% (earnings),
o Barron's Positive on LZB
o INCH LN smaller company -4% on numbers
o HOG Harley-Davidson U.S. Jan-Feb retail sales
at dealer are likely (35%) y/y, says UBS
o American Eagle Outfitters - AEO +6.1% (to close MARTIN+OSA concept), 9 am call..this is not complete surprise
o SPLS
Staples increases quarterly dividend by 9.1%
o JCG J. Crew Group reports a beat and better
guidance
o JCG
J. Crew Group downgraded to hold from buy at Citi
o JMBA
-5.9% (earnings)
o Hennes
& Mauritz Says 2010 Looks ‘Better Than 2009’ – BBG
§ Hennes & Mauritz AB Chief Executive Officer
Karl-Johan Persson said the economy will be “a little better” this year and
confirmed that Europe’s second-largest clothing retailer plans to open 240
stores in 2010
§ “2010 will be a challenging year for the economy and
somewhat better than 2009,”
·
Healthcare
o Germanys Health Minsiter Roesler says drug
prices are too high - plans new legislation within a year to force price cuts
o NOVN VX details 5bn bond isuue - proceeds to
fund Alcon Bid
·
Financials:
o Citigroup Selling TruPS After Repaying
Bailout, maybe today – BBG
§ Citigroup.,
seeking capital after repaying bailout funds to the Treasury, is selling trust
preferred securities as rising investor demand drives borrowing costs to near
the lowest in almost five years. The
bank plans to issue as much as $2 billion of the securities, known as TruPS, as
soon as today
·
C
Citi preferred offering oversubscribed, reports CNBC's Bob Pisani
·
C
Apollo Global Management signs agreement to purchase Citi's
real-estate investment business – WSJ
·
HBAN
Huntington Bancshares reiterates expectation to return to
profitable quarterly performance at some time in 2010
·
UK to publish draft
regulation on pay disclosures at banks on 10-Mar – Reuters
o Barclays
eyes US bank deal
§ the
likes of SunTrust, PNC Financial and US Bancorp – all bailed-out US banks – as
potential targets. FT
o F&C
Asset Management (FCAM.LN) Trading higher post results
o Swiss Re (RUKN.VX) anticipates $500M
losses arising from Chilean earthquake, whilst Munich Re (MUV2.GR)
reaffirms FY10 targets in wake of Chilean earthquake and winter storm Xynthia
·
Banks:
Regulators tell US banks to hold funds - FT
o
US regulators have told banks not to increase dividends or buy back
shares until political and economic uncertainty surrounding the
industry dissipates, in a move that will delay by months the return of capital
to shareholders
o
http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/OJRF9V/JY/h
·
Banks:
Senators eye
pre-funded resolution authority
o
Senators in the banking committee have agreed
in principle to a partially pre-funded ‘resolution authority’ to wind down a
failing bank holding company, favouring a structure that would levy a $50bn
charge on the industry
o
http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/NSJRQ4/JY/h
·
Myners Says U.K. Banks Must Disclose More Details on
Banker Pay - BBG
o
The U.K. intends to force banks to increase
disclosure on compensation, lowering the bar on reporting bonuses to 500,000
pounds ($746,000) from 1 million pounds, U.K. Treasury Minister Paul Myners
said.
o
The government will consult with the industry
on the proposal requiring banks to reveal executives’ earnings in bands of
500,000 pounds up to 5 million pounds. Above that, banks need to disclose
executives’ earnings in 1 million-pound bands.
·
RY
Royal Bank of Canada interested in U.S. banks with $10B in assets or more –
BusinessWeek
o Possible targets
might include United Community Banks (UCBI), South Financial Group (TSFG) or
Synovus Financial (SNV)
·
AIG
Debt offering from AIG's ILFC unit has strong demand reports the WSJ
o The deal is expected
to close sometime this month.
o A $1.3 billion loan offering from
International Lease Finance Corp. has met with strong investor demand, which
will enable the aircraft-leasing unit of American International Group Inc. to
raise fresh funds to repay some of its maturing debt.
o The money will come at a much higher cost
than ILFC is accustomed to paying, and could hurt the aircraft lessor's profit
margins
o http://online.wsj.com/article/SB20001424052748704145904575111974061864304.html
·
BAC
Bank of America to end overdraft fees on debit cards reports the NY Times
o NYSE Euronext reports February trading
volumes
§ NYSE
Euronext reports February trading volumes - NYSE Euronext announced trading
volumes for its global derivatives and cash equities exchanges for February
20101. Derivatives trading volumes in February 2010 recorded strong
year-over-year growth, with European derivatives volumes increasing 44.2% and
U.S. options trading volumes increasing 56.4%. Cash equities trading volumes
were mixed in February 2010, with European cash transactions increasing 9.1%
and U.S. cash equities trading volumes declining 35.7% from prior year elevated
levels.
§ Both
European and U.S. cash trading volumes, however, remain above fourth quarter
2009 levels.
o Northern Rock Narrows Loss; Bad Loan
Provisions Rise
o Standard Life 2009 Profit Beats Analysts’
Estimates
o Fortis trades up…Resumes
Dividend, Trims Greek Bond Holdings
§ “The increased uncertainty on some sovereign European
countries impacted negatively the value of amongst others our South European
investments,” Fortis said in the statement. “As a result, Fortis reduced its
exposure on Greece.”
o
Munich Re Sticks to
Profit Target After Quake, Storm; world’s biggest reinsurer
·
Oils
o Tullow Oil (flat) '09 figures on the lower side of
estimates. Profit down on lower prices and output. Total and Cnooc are expected
to acquire a third of Tullows Ugandan assets each.
·
Utilities
o E.on (+0.86%) '09 figures lower than expected. '10 outlook is
more cautious than expected. Proposed dividend was inline.
·
Miners
o Norseman (-10.9% NGL LN). 2010 Production
guidance revised down due to production shortfalls.
·
Real
Estate:Apollo to buy Citi property unit - FT
o Apollo
Management has signed a preliminary agreement to buy Citi Property, Citigroup’s
property investment unit, in a move to expand the global reach of Leon Black’s
private equity firm, reports the FT.
o Under
the deal, Apollo will get about $12.5bn in gross assets and exposure to Europe.
It will also acquire Citi Property’s team of 60 professionals.
o Apollo
was believed to have had an inside track against other bidders since its head
of real estate, Joe Azrack, once headed the Citi real estate unit.
·
Aeroenvironment
misses, trades dn in EU trade
·
Elekta CEO Says North American Market Has ‘Bottomed Out’ (Bloomberg) -- Elekta AB, the world’s second- largest
maker of radiation equipment, said the North American market has “bottomed out”
and sees growth returning to the region in late 2010, Chief Executive Officer
Tomas Puusepp said today in a phone interview from Stockholm.
·
FRAPORT: February passenger traffic down 1%
·
IVG: Reports 2009 net loss of EUR 158m
·
MAIRE
TECNIMONT: FY09 EBITDA seen
at EUR 140.32m
·
PIRELLI
& C.: 2009 EBITDA seen
at EUR 447.27m
·
SWISSLOG: Reports 2009 EBIT of CHF28.4m
·
COSTAIN: FY revenue better than expected
·
IG GROUP: 3M revenue up 11%, sees growth
·
INCHCAPE: FY numbers ahead of estimates
·
INTERSERVE: FY headline PTP down 3.8%, wins contracts
·
YULE CATTO: FY PTP up 21%, to recommence DPS
·
Tanfield: The company have announce a non-binding,
conditional offer from Smith Electric Vehicles US Inc (“SEVUS”) for the
company’s Smith Electric Vehicle division. The board of Tanfield have granted
SEVUS a fourth month exclusivity period for clarification and negotiation of
this offer. Currently 44% better @ 41 pence (09.30 GMT).
·
Melrose: Manufacturing investment company reported a
sharp rise in full-year pretax profit, buoyed by its acquisition of engineering
group FKI and said it is searching for more deals with current market
conditions favouring acquisitions over disposals. Profits for 2009 rose to GBP
82 million compared to GBP 23.5 the year before. Trading 6.25 % better at 205.3
(09.40 GMT).
CRISIS
WATCH
·
Iraqis Maneuver Amid Signs No Party Will Win Majority - BBG
o
Iraq faces tough political coalition-building
as leaders maneuvered amid indications that no party would win a majority when
initial results from the parliamentary election are announced.
·
Some U.S. Troops May Leave Afghanistan Sooner Than
Expected
o
Obama has announced that U.S. troops will
begin withdrawing from Afghanistan in July 2011, but Defense Secretary Gates
raised the possibility that Obama's target could be beat. AP
·
Biden Slams Israel Housing Plan as Obstacle to Peace -
BBG
o
Vice President Joe Biden condemned an Israeli
plan to build new houses in east Jerusalem, saying it threatened to undermine a
U.S. effort to restart the Israeli- Palestinian peace process that had brought
him to the region
o
In a statement issued hours after he met with
Israeli Prime Minister Benjamin Netanyahu in Jerusalem yesterday, Biden said
the announcement of the plan “is precisely the kind of step that undermines the
trust we need right now and runs counter to the constructive discussions that
I’ve had” in Israel.
·
With
'JihadJane,' a new kind of threat – WP
o A
petite, blond-haired, blue-eyed high school dropout who allegedly used the
nickname JihadJane was identified Tuesday as an alleged terrorist intent on recruiting
others to her cause, as federal prosecutors unsealed criminal charges that
could send her to prison for life.
·
Dispute
threatens to undercut legitimacy of Iraqi vote – WP
o A
controversy over the disqualification of candidates threatened Tuesday to undermine
the legitimacy of Iraq's recent elections and inflame supporters of a coalition
seeking to topple the alliance led by the prime minister
·
Internet
law ‘threatens free speech’
o Plans
to force internet providers to block sites carrying pirated music and films
‘threaten freedom of speech and the open internet’, says internet and telecom
companies
o http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/IYIEKP/JY/h
·
London
protested at torture, says ex-MI5 chief - FT
o Britain
complained to the US over the latter’s use of torture on terrorist suspects,
says a former head of the Security Service
o http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/GKDYWZ/JY/h
·
Hague
proffers EU olive branch - FT
o William
Hague says the Conservatives have made ‘a strategic decision’ not to pick a
fight with the rest of Europe if they win the election
o http://link.ft.com/r/FG6LAA/UUTKJ3/BXQHQ/9ZKGTM/5CV2O3/JY/h
o
OVERSEAS
ACTION***
·
Europe
up small
·
Nikkei
(0.04%);
·
Hang
Seng +0.00%;
·
Shanghai
Composite (0.66%)
·
Data:
·
Strong
China export numbers revive risk appetite
·
Japan
Jan Machine tool orders (3.5%) vs consensus (3.7%).
·
China
Feb property prices in 70 cities +10.7% y/y vs +9.5% y/y in Jan
·
Germany
Feb final CPI
+0.4% m/m vs consensus +0.2%.
·
France
Jan Industrial Production
+3.5% y/y vs consensus 1.7%, Manufacturing Production +4.4% y/y.
·
UK
Jan Industrial Production
(1.5%) y/y vs consensus (0.8%),
·
Manufacturing
Production y/y +0.2% vs consensus
+1.4%.
·
disappointing Australia home financing data
o Aussie Jan home loans fell at the quickest
pace in years at -7.9% v 2.0% increase expected, highlighting the impact of
recent RBA rate hikes on financing activity while weighing on the outlook for
further April tightening as implied by fixed income markets.
o ) Thailand
Central Bank maintained its Benchmark Interest Rate at 1.25%; as expected
o China Feb NDRC Housing Prices: 10.7% v 9.4%e
o Germany Jan Current Account: €3.6B v €15.0Be;
Trade Balance: €8.0B v €14.5Be; Imports M/M: 6.0% v 1.2%e; Exports M/M: -6.3% v
0.5%e
o Germany Feb Final Consumer Price Index M/M:
0.4% v 0.2%e; Y/Y; 0.6% v 0.4%e
o Germany Feb Final CPI EU Harmonized M/M: 0.4%
v 0.2%e; Y/Y; 0.5% v 0.3%e
o France
Jan Industrial Production M/M: % v 0.1%e; Y/Y; % v 1.7%e
o France
Jan Manufacturing Production M/M: % v 0.2%e; Y/Y; % v -2.0% prior
o Italy
Jan Industrial Production M/M: 2.6% v 0.7%e; Y/Y: -3.3% v -1.5%e; Indust Prod
WDA: 0.1% v -3.4%e
o (UK)
Jan Industrial Production M/M: -0.4% v 0.3%e; Y/Y: -1.5% v -0.8%e; First
negative monthly decline since Aug 2009
o (UK) Jan Manufacturing Production M/M: -0.9%
v 0.2%e; Y/Y:0.2 % v 1.4%e
o Italy
Q4 Final GDP Q/Q: -0.3% v -0.2%e; Y/Y: -3.0% v -2.8%e
o NEW ZEALAND Q4 TERMS OF TRADE: 5.7% V 1.2%e
(biggest increase since Q1 of 1995)
TODAY’S
EVENTS
Top
Events
·
Wednesday March 10 :
o GOOG’s Eric Smith will speak
today at Bloomberg Business Week: 2010 Media Summit
o New
Zealand Central bank meets, and decided whether to change rates
o China reports its February
trade balance
o Futures
trade group begins meeting
o The
House Financial Services Committee holds a hearing on regulating money-service
businesses
o Health Care Conference- Cowen (3/8-11)
o Institutional
Investors Conference- Raymond James
(3/7-10)
o Global
Technology Conference- Jefferies (3/8-10)
o Consumer
Analyst Group of Europe Conference (3/8-10)
o Global
Media and Communications Conference 2010 (3/8-10)
o CFO
Rising Conference & Expo (3/7-10)
o Technology
Conference- Montgomery (3/9-10)
o Aviation
& Transportation Conference- JPM (3/9-10)
o Global
Ag Productivity Conference- Credit Suisse (3/9-10)
o Management
Access Conference- Wedbush (3/9-11)
o Consumer
Conference- BoA (3/10-11)
o Internet
Services 1:1 Conference- Oppy
o Communication
Equipment & Networking Conference- Credit Suisse
o Financial
Services Conference- Citi
o DBR
Restructuring and Turnaround Summit 2010- DJ
o FirstEnergy
and Societe Generale Canadian Energy Conference (3/10-12)
o IWCE
2010 (3/10-12)
o Sovereign
Hotspots: Diverging Trends- Fitch
o DIS, MSPD,
TYC shareholder meetings
o NVLS mid Q update
o JAH analyst
meeting
·
Economics
o Wednesday
March 10:
§ 0700
Mortgage Applications
§ 1000
Wholesale Trade
§ 1030
US Energy Dept Oil Inventories
§ 1400
Federal Budget Balance
·
Earnings
o Materials
o Wednesday
March 10 : CAS, FSIN, CPC, GG, MBLX,
o Industrials
o Wednesday
March 10 : ESLT, HRBN, HWK, PRST, RMIX, KTOS
o Consumer/Retail/Education
o Wednesday
March 10 : DIIB, ILLG, MLR, BF.B, IPAR,
MTEX, OME, BONT, PLCE , AEO
o Energy
o Wednesday
March 10: CRZO, CWEI, FGP, BLDP, CLNE,
FCEL, WES, WG
o Financials
o Wednesday
March 10: BKCC, CIA, CLNY
o Tech/Telecom
o Wednesday
March 10: DSGX, ELMG, SOL, ABVT, CBMX,
CLRT, DTLK, GEOY, IDSY, IGOI, RAE,
SMTC, LRD.L
o Healthcare
o Wednesday
March 10 : CPIX, IDRA, QLTI,
CHTP, CSU, DCAI, VITA
o Services
o Wednesday
March 10: AACC, MTN, PESI, TRK,
AFCE, GYMB, HIL, HOTT, JAS, MW, PRSC, RCMT, SAN, TTGT
INVESTMENT BANKING WRAP
M&A
·
ABT Abbott Bests Biogen With $27-a-Share Bid for
FACTFacet Biotech- BBG
o
Abbott Laboratories, maker of the arthritis
medicine Humira, succeeded in its bid for Facet Biotech Corp. by offering 54
percent more than Biogen Idec Inc. in its rejected takeover effort
o
“It’s a good deal because Abbott gets half
the worldwide rights to a potential blockbuster drug in the immunotherapy
market,”
o
http://www.bloomberg.com/apps/news?pid=20601087&sid=aV0SojnUbmnA&pos=6
·
Buyout Firms Can’t Spend $503 Billion as Fund Deadlines Loom-
BBG
o
Buyout funds sitting on half a trillion
dollars committed by investors may need more than a decade to put the money to
work if mergers and acquisitions
continue at the current pace
o
The funds that may eventually face the
toughest time are the industry’s largest, raised in 2007 and 2008. TPG has
$15.3 billion left of an $18.9 billion fund raised in 2008, according to a
person with direct knowledge of the fund. A European fund raised by CVC Capital
Partners Ltd. in the same year has $11.3 billion left of $14.2 billion
o
http://www.bloomberg.com/apps/news?pid=20601103&sid=aC92MZTOJ3lI
·
Investors warn EU on private equity rules- FT
o
Europe risks building a protectionist wall
between itself and the global private equity industry if plans for a sweeping
overhaul of regulation in the sector go ahead, some of the world’s biggest
institutional investors have warned
o
http://www.ft.com/cms/s/0/8766c834-2bcc-11df-8033-00144feabdc0.html
·
Barclays looking for U.S. retail bank to buy-
Reuters
o
Barclays has designated an internal team to
assess possible targets and is looking for a franchise with a strong branch
network and deposit base
o
http://www.reuters.com/article/idUSN0915142920100309
·
Ackman puts GGP General Growth ball in SGP Simon's
court- Reuters
o
Activist investor William Ackman is doubling
down on General Growth Properties (GGP.N) and however the current battle for
the second-largest U.S. mall owner turns out, his hedge fund will likely emerge
as a big winner.
o
Ackman and Fairholme's offer increases
Simon's costs to buy General Growth by granting warrants to the two investors
that any rival bidder would have to buy back. These warrants are similar to
those being offered to Brookfield, and Simon has estimated the Brookfield
warrants alone are worth more than $300 million
o
http://www.reuters.com/article/idUSN0912544820100309
·
China Mobile to Buy $5.8 Billion Stake in Pudong Bank -
BBG
o
China Mobile Ltd., the world’s biggest phone
company by market value, agreed to buy 20 percent of Shanghai Pudong
Development Bank Co. for 39.8 billion yuan ($5.8 billion) to expand its electronic
payment business
o
China Mobile said it won’t invest in energy,
property assets, and on the stake in Pudong says Pudong is just the right size,
the price is reasonable, and China Mobile won’t seek additional stakes.
·
Morningstar ranks Top biotech takeout targets of 2010
o
http://www.reuters.com/article/idUSN0922687420100309
·
Autos: China's Geely secures financing to buy Volvo- Ruters
o
The parent of China's Geely Automobile
(0175.HK) has secured financing to buy Ford-owned Volvo cars for about 15
billion Swedish crowns ($2.10 billion)
o
Earlier this week, ZGH said it had yet to
sign an agreement in its ongoing bid for Volvo cars, though its plan to buy the
brand for $2 billion was proceeding on track
·
MGM expected to draw six bids by March 19- Reuters
o
Those expected to participate in the new
round of bidding include TWX Time Warner, LGF Lions Gate, LBTYA Liberty Media
Corp, Access Industries, a company controlled by industrialist Len Blavatnik,
and Elliott Management
o
Several of them had been involved in an
earlier round of non-binding bids that went as high as $1.7 billion. It was
unclear who the sixth party was
o
http://www.reuters.com/article/idUSTRE62849R20100310
·
Tullett Prebon Says It’s in Talks Over Possible Offer- BBG
o
Tullett Prebon, the London- based
inter-dealer broker led by Terry Smith, said it’s in early talks that may lead
to an offer for the company
o
Tullett didn’t disclose the bidder’s identity
in a statement today. Australia’s Macquarie Group and Bank of China Ltd. are considering offers
o
http://www.bloomberg.com/apps/news?pid=20601110&sid=aEExWG.V870c
·
Liberty demerger heralds new era- FT
o
Liberty will be split into Two new companies.
They are expected to start trading on the London Stock Exchange as early as
this summer: Capital Shopping Centres (CSC), and Capital & Counties
(CapCo),
o
Patrick Burgess, Liberty chairman, says the
move is in response to a changing approach to investment in real estate, both
in the equity and property markets, which were requiring greater focus and more
active management
o
http://www.ft.com/cms/s/0/42393830-2bb5-11df-a5c7-00144feabdc0.html
·
SKS Shanks drops after Carlyle talks end- FT
o
Shares in Shanks, the waste management group,
fell more than 15 per cent on Tuesday after it said that it had ended talks
over a possible sale of the business to Carlyle, the private equity investor.
o
Shanks said Carlyle had indicated it would
have been willing to pay 120p per share in cash for the group – below the 150p
or more that Shanks’ board had publicly identified as an acceptable price. This
figure was also less than the 135p per share Carlyle was understood to have
been considering offering last year
o
http://www.ft.com/cms/s/0/5630f614-2b4e-11df-9d96-00144feabdc0.html
·
UAE's Union Properties gets offers for Ritz Carlton-
Reuters
o
Dubai's Union Properties has received
"negotiable" offers for its Ritz Carlton hotel in Dubai, which the
debt-laden firm is hoping to sell for about 1.5 billion dirhams
o
“There are different groups of people we are
talking to ... Westerners, Qataris, Saudis and local companies with regards to
selling the Ritz Carlton," chairman Khalid bin Kalban told Reuters
"We are waiting to get the right price ... one or two have given a
negotiable price."
o
http://asia.news.yahoo.com/rtrs/20100310/tbs-unionproperties-sale-7318940.html
·
Taiwan regulator sets conditions for AIG Nan Shan deal-
Reuters
o
the conditions may include ensuring the
buyers' funding sources meet Taiwan regulations and that the buyers have the
ability to raise money for future business needs
o
AIG agreed to sell Nan Shan to China
Strategic (0235.HK) and Hong Kong-based financial services firm Primus
Financial in October, but has not been able to close the deal on concerns in
Taiwan the buyers were backed by China-sourced funds
·
Barratt Developments trading higher on market talk of possible
170 pence bid from Persimmon- (SA)
·
AIG could learn fate of Taiwan unit deal soon- Reuters
o
American International Group (AIG.N) could
learn the fate of the stalled $2.2 billion sale of its Taiwan unit Nan Shan
Life Insurance as early as Thursday
·
Reuters lists all European oil refineries sold and up for
sale
o
http://www.reuters.com/article/idUSLDE6282F920100309
·
Royal Bank Eyes U.S. Banks With $10 Billion in
Assets- BusinessWeek
o
Royal Bank of Canada is interested in U.S.
banks with $10 billion in assets or more to add to its consumer lending
business
o
Westlake wouldn’t say what banks he’d be
interested in buying. Lenders in RBC Bank’s operating region that fall within
the range for assets include United Community Banks Inc., a company based in
Blairsville, Georgia, with a market value of $401 million. South Financial
Group Inc., is a Greenville, South Carolina-based lender valued at $159 million
·
DAIMLER: Sells 8.65m
shares in Tata Motors–S&P
·
Carlyle hires GS Goldman to sell Arinc- Reuters
o
The company has not sent out a sales
prospectus to potential buyers yet, and an auction will likely not start for
another few weeks
o
Arinc, which provides communications and
engineering solutions for the U.S. Department of Defense, the U.S. government
as well as commercial clients, will likely draw interest from other private
equity firms as well as some defense companies
o
http://www.reuters.com/article/idUSN0914550820100310
·
CVX Chevron seeks UK refinery sale- Reuters
o
Chevron Corp (CVX.N), the second-largest U.S.
oil company, put some of its downstream operations up for sale, including its
Pembroke refinery in the UK
o
Mike Wirth, Chevron's executive vice
president for global downstream, expects the tough market conditions to last
several years and said growing competition from refineries in Asia and the
Middle East will threaten U.S. and European operations
o
http://www.reuters.com/article/idUSN0922760320100309
·
AB InBev to buy Modelo this year- Reuters
o
A Modelo deal could follow Heineken's
(HEIN.AS) acquisition of Mexico's other big brewer FEMSA Ceverza in January,
and Evolution said Modelo with its larger share of the domestic and export beer
markets is the more attractive brewer
o
http://www.reuters.com/article/idUSTRE6282EE20100309
·
QuadraMed Announces Stockholder Approval of Acquisition
by Francisco Partners- (PR)
·
BRKR Bruekr to acquire some VARI Varian assets from A
Agilent- (PR)
o
Bruker will acquire certain product lines of
Varian Inc., which Agilent has committed to divest in connection with obtaining
regulatory approval for Agilent’s previously announced acquisition of Varian
o
Varian’s global inductively coupled plasma
mass spectrometry instruments business,
the global laboratory gas chromatography instruments business, and the
global gas chromatography triple-quadrupole mass spectrometry instruments
business
·
GS Goldman China partner Hu retires to plan fund- Reuters
·
Hynix Creditors Choose Credit Suisse, Nomura for Stake
Sale- BBG
o
Hynix Semiconductor’s creditors chose Credit
Suisse Group AG and Nomura Securities Co. to arrange a block sale of part of
their stake in the chipmaker
o
Woori Investment & Securities Co., NH
Investment & Securities Co., Shinhan Investment Corp. and Daewoo Securities
Co. will also arrange the sale
·
KEB says Lone Star to resume $3.9 bln KEB stake sale-
Reuters
o
US. private equity fund Lone Star plans to
resume selling its 51 percent stake in Korea Exchange Bank, worth 4.4 trillion
won ($3.89 billion) at current market prices
o
"(Lone Star) notified our board members
today that they would resume selling the stake," a KEB spokeswoman said,
adding that they would soon start selecting lead managers for the deal, which
will be offered to domestic and foreign investo
·
Deutsche Post may make acquisitions- Frankfurter
Allgemeine
·
IP’s GDF deal ‘fell on valuations- FT
o Philip
Cox said he had thought a deal “potentially had commercial and financial
benefits”, but “we were unable to agree terms”.
o
He also rejected suggestions from analysts
that International Power would find it difficult to expand because of its debt
burden, highlighting opportunities in Saudi Arabia, the United Arab Emirates,
Egypt, Indonesia, Thailand and Vietnam
o
http://www.ft.com/cms/s/0/ff18c76c-2bbb-11df-a5c7-00144feabdc0.html
·
UK Coal gets £350m merger proposal- The Guardian
o
UK Coal announced that it had received a
merger approach from an unnamed third party. The company is keen to reduce its
reliance on its deep mines, which are expensive to maintain and have suffered
production problems leading to large losses. UK Coal shares closed up more than
12% today
o
It is understood that Peel Group, which owns
28% of UK Coal, is being kept fully informed of developments. The merger plan
is still tentative and even if both sides proceed with the plan, they are understood
to be some way from putting a formal agreement to shareholders
o
http://www.guardian.co.uk/business/2010/mar/09/ukcoal-mining
·
Hargreaves Services may be the party behind the bid
approach for UK Coal- FT
·
SAP is speculated to be a potential buyer of Temenos- FT
·
Apollo Signs C Citigroup Deal- WSJ
o
Apollo Global Management LP has signed an
agreement to buy Citigroup Inc.'s real-estate investment business, according to
two people familiar with the matter. Final negotiations are still taking place,
but the deal could close in the next few months
o
Apollo said last month that it was creating a
Hong Kong-based real-estate team to focus on deals in Australia, Japan, and
South Korea
·
FAURECIA: One Equity
Partners sells 4.4% stake–S&P
·
Canada's Royal Laser says bidder hikes offer- Reuters
o
Canada's Royal Laser Corp (RLC.TO), a
supplier of flat-rolled steel to auto manufacturers, said the bidder who made
an unsolicited takeover offer for the company last November raised its offer by
about 33 percent
o
Royal Laser still did not name the bidder but
said the unsolicited offer was subject to the same conditions made last time,
including the sale of certain non-core assets.
o
http://www.reuters.com/article/idUSSGE6280IQ20100309
·
Thomas Cook Group agrees to buy Think W3 Ltd; financial
details weren't disclosed- (SA)
·
BDK Black & Decker CEO may have very big payday
thanks to SWK deal- NYT
o
Black & Decker CEO Archibald could win a
pay package worth more than $89M if company investors approve the company's
proposed acquisition by rival toolmaker Stanley Works
o
The pay package for Archibald, who owns about
1 percent of the company he has led since 1986, is unusual for its potential
size, as well as for its composition
·
Transgene signs lung cancer deal with NVS Novartis-
Reuters
o
Transgene (TRNG.PA) could seal an exclusive
agreement with Novartis (NOVN.VX) to develop and marketing its lung cancer
vaccine candidate TG4010, a deal that could bring in as much as 700 million
euros in milestone fees
o
Under the agreement, Transgene has granted
Novartis an option to acquire an exclusive worldwide license for TG4010,
depending on the outcome of a Phase IIb mid-stage clinical trial. Novartis will
pay Transgene $10 million for the option
o
http://www.reuters.com/article/idUSLDE6290EJ20100310
·
Ascom is not planning a capital increase to finance
acquisitions- Handelszeitung
·
Atlas Iron to acquire Aurox to boost port capacity –
reuters
o
Australian iron ore producer Atlas Iron is
seeking to acquire Aurox in a A$143M scrip offer to secure additional port
capacity as it beefs up production to meet Chinese demand
o
Aurox said its board will vote in favour of
the deal, which implies a value of A$0.74 per Aurox share -- a 172 percent
premium to its closing price on Tuesday
o
http://www.reuters.com/article/idUSSGE6280K120100310
·
Nufarm Shares Drop as Much as 10% in Sydney Trading- BBG
o
Nufarm, Australia’s largest supplier of farm
chemicals, fell to the lowest in 15 months in Sydney trading, before a deadline
on a share offer from Sumitomo Chemical
o
The tender offer will be from March 12 to April
9 and will only be available to shareholders registered by the opening date.
Buyers purchasing the stock today, may not be eligible because of the time
period to complete transactions
·
NAB may need to raise up to A$3B for purchase of Axa Asia
holdings and 320 branches sold by RBS- Australian Financial Review
·
MYE
Myers Industries holder GAMCO reiterates intent to nominate board members - 13D
filing
·
CLF
Cliffs Natural Resources terminates shareholder rights plan
·
$
Raising
IPOs
·
Queensland picks banks for A$7bn rail IPO- FT
o
The planned listing of QR National – which is
what the business will be called upon listing – will be managed by Credit
Suisse, Goldman Sachs JB Were, Merrill Lynch, RBS Morgans and UBS. It comes at
a time of huge investment in Queensland’s coal industry, which is expected to
double production during the next decade as demand from China grows
o
The listing of QR
National, one of Australia’s largest railway operators, faces competition from
another plan. Mining heavyweights BHP Billiton, Rio Tinto, Xstrata, Anglo
American and Peabody Energy are poised to launch an alternative bid for
Queensland Rail’s track network
o
http://www.ft.com/cms/s/0/8b67976a-2bf4-11df-8033-00144feabdc0.html
·
Baltic Trading’s IPO Raises $228 Million in
Pricing at Low End- BBG
o
The IPO is the
first of three U.S. offerings this week and comes after seven companies
postponed or delayed initial sales this year. While buyers have extracted
concessions in almost every deal, Baltic Trading became the second company in
2010 to price shares within its forecast range
o
“With markets being
much stronger across the board, that’s good momentum building for the IPO
market,”
o
http://www.bloomberg.com/apps/news?pid=20601103&sid=ahcv4ZFzmC2c
·
Merlin still open to listing- FT
o
Merlin
Entertainments, the BX-owned theme park operator, held out the prospect that it
may revive plans for a stock exchange listing after reporting double-digit
growth in annual earnings
o
“It [a float]
certainly remains a very, very big option for us and one we continue to look
at,” Mr Varney said. “Should we choose that option we will be in a good
position to do so.”
o
http://www.ft.com/cms/s/0/66f38406-2b50-11df-9d96-00144feabdc0.html
·
ABENGOA: To IPO solar unit - –S&P
·
Ferrous revives London IPO plan- FT
o
Ferrous Resources,
the emerging Brazilian iron ore producer, has revived its plan for a London
flotation that could be worth $3bn-$4bn (£2bn-£2.7bn).
o
Ferrous's largest
investors, which include the hedge fund Harbinger Capital, have pressed the
company to proceed with an IPO sooner rather than later to free liquidity
o
http://www.ft.com/cms/s/0/536c774a-2be5-11df-8033-00144feabdc0.html
·
Baker Steel Resources to Sell Shares, List
on London Exchange- BBG
o
Bkaer Steel Capital
Managers said it plans to sell new shares of its Baker Steel Resources Trust to
raise 70 million pounds and list the investment unit on the London Stock
Exchange
·
Asia Retail Group To Raise Up To S$170
Million Via Courts Singapore IPO- Nasdaq
o
Asia Retail Group
Ltd., which is partly owned by Baring Private Equity group, is looking to raise
up to S$170 million through an initial public offering of furniture retailer
Courts Singapore, which it acquired in a private equity buyout
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