Morning @ Cantor
Morning @ Cantor 6/2
BETA TEST
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
EARLY US LANDSCAPE****
· US Stock Futures, SPs up 6..EURO moves into neg territory at 7am et… Raets tick up
o Auto Sales and warren buffet today
o Jobs data in focus to end the week..challenger, ADP before NFP fri
o 3-month Libor: Dollar: 0.538% vs prior 0.536%
o Europe middle of range..dn 1.3%
o The EUR/USD heading into the NY flattish but heading lower off its best level following a solid Portugal 3-month T-Bill auction
o Asian Markets: Nikkei (1.12%); Hang Seng (0.13%); Shanghai Composite +0.12%
o this morning, base metals are headed lower again..copper is down 2.5%
o Spot gold was up $10 yesterday…this morning, spot gold is down $3.50
o BP's credit defaults swaps moved to record highs
o BP CDS Soar Past 200 Bps; Shares Slump wed - spread has pushed past 200 bps for the first time, trading at 222 bps overnight
o Around 0930 GMT, the Markit iTraxx Crossover index was 12 basis points wider at 582/586 basis points.
o Cost Of Insuring European Sovereign Debt mixed to worse today
o Spanish spreads hit fresh record highs
o declines in shares of banks have weighed in EU
o German Cabinet approved a bill to extend ban on naked short-selling and the ban included ALL stocks.
o China Stocks Rise for First Time in Four Days; Developers Gain… The Shanghai Composite Index added 3.14, or 0.1 percent, to close at 2,571.42, the first gain in four days and erasing an earlier 1.8 percent loss
o Tokyo Shares Fall On Profit-Taking After Prime Minister Quits
§ Embattled Japan PM Hatoyama resigns, new leader to be chosen by Friday
§ The yen fell against its major counterparts amid speculation Finance Minister Naoto Kan will succeed Prime Minister Yukio Hatoyama and pursue measures to make the currency weaker. BBG
o Japan's prime minister said he will step down amid sinking support for his administration. Hatoyama cited the row over a U.S. Marine base in Okinawa and funding scandals for his decision. DJ
o Portugal 3-month T-Bill auctions shakes off another wave of risk aversion concerns
§ Portugal sold €560M in 3-month Bills; avg yield 1.861%; Bid-to-cover: 3.5x v 2.4x prior
o Euro getting verbal support
§ Central banks in Brazil, India, Russia Japan and South Korea commented in separate interviews ahead of the G20 summit that they would NOT stop investing in euros, as there are few alternatives to both the Euro and USD dollar – TTN
· Portugal's Finance Ministry says general vote on austerity package today; final, gloabl vote on 9-Jun -- Bloomberg
o Spec was circulating that Portugal had delayed a vote on its austerity measures. TTN
· Hungary Central Bank raised the radar on the Central European effect after it commented that the country was set to miss its 2010 budget deficit goal of 3.8% without measures and added that the deficit could hit 4.5% this year. TTN
· FX: china press says iran selling EUR45B in reserves for USD & gold - xinhua press
· FX: Options Traders Most Bearish on Euro in 7 Years: BBG
· FX: Confirmation that the Pru (PUK) has given up on its deal with AIG (AIG) helped EUR/GBP to lurch lower – DJ
· Rates: Since late March, most primary dealers have cut their year-end predictions for 10-year note yields, according to a survey by The Wall Street Journal, driving the median forecast to about 3.75% from 4.15% at the end of March.
· Data
o MBA Mortgage purchase applications index (4.1%) in 28-May week; total market index 0.9%
§ compares to (3.3%) and 11.3%, respectively, in prior week
§ refi index 2.4% vs. 17.0% in the prior week
§ 30-yr fixed rate 3bps to 4.83%
§ 15-yr fixed rate flat to 4.24%
o ABC Consumer Confidence (44) in 30-May week vs (45) in prior week
o Euro-Zone Producer Prices Rise More Than Expected
o Euro-zone producer prices posted their sharpest gain for 21 months in April fueled by higher prices for energy and intermediate goods
o Spain May Net Unemployment M/M: -76.2K v -45.0Ke
o UK Apr Mortgage Approvals 49.9k vs consensus 49.5k. UK May Construction PMI 58.5 vs consensus 58.0.
o AUSTRALIA Q1 GDP Q/Q: 0.5% V 0.5%E;
· PBOC Adviser: Conditions Basically Right To Raise Deposit Rates - People's Daily newspaper
o Conditions are basically ripe for an increase in banking deposit interest rates to stabilize inflation expectations and protect the interests of depositors
o China should maintain its moderately loose monetary policy, and at the same time control the risk of overly fast rises in asset prices, and should appropriately raise deposit interest rates," Li Daokui, a member of the People's Bank of China monetary policy committee
o PBOC Adviser: Large Price Rise Pressures Seen In 2H - China CPI Could Rise 3.7% In 2010 –
· Poland Central Bank's Glapinski reiterated view that the rate panel might need to raise interest rates by 50bps by end of 2010 or early next year
· German Cabinet OKs Bill To Extend Naked Short Selling Ban - DJ
o Germany's Cabinet Wednesday approved a bill banning "naked" short selling of all stocks and euro currency derivatives not intended for hedging against currency risks
o However, the government watered down earlier plans slightly. The ban on derivatives is now an option which the government "can implement per decree if crisis situations require it,"
o It had previously planned a blanket ban on all euro currency derivatives.
· EU short rules coming?: French Finance Minister Christine Lagarde Wednesday urged the European Commission to accelerate work on short selling rules and to find a coordinated position. DJ
o France Fin Min Lagarde commented that the EU needed to accelerate new credit default swap (CDS) rules
· Brazil Cancelling Debt Auctions Delays Longest Benchmark Bond - BBG
o Brazil has cancelled the sale of its longest fixed-rate local bonds three times in the past month after Europe’s debt crisis eroded demand for less-traded assets.
o The government received no bids it found acceptable for the 150 million reais ($81 million) of 10 percent notes due in 2021 offered yesterday. There’s 6 billion reais of the securities outstanding, less than 20 percent of the 34 billion-real average for the country’s six other fixed-rate notes
· EUR impact: Printer Makers May Raise Prices, Seiko Epson President Says - BBG
o Seiko Epson Corp.’s printer-maker rivals may raise prices in Europe later this year as the weaker euro starts to erode earnings, the company’s president said.
· APD, ARG Air Products extends offer to acquire Airgas
· AIG American International Group talking with sovereign wealth funds about becoming cornerstone investors in AIA - Telegraph
· AIG: Prudential PLC Shares -0.5% After Ending AIA Bid
· AIG: AIA Needs Polishing Before IPO – DJ
· AIG: AIG Unit That’s Too Big to Sell Means Asia IPO Likely - BBG
· AIG: Prudential Says Collapse of AIA Bid to Cost 450 Million Pounds
· BP(-2.37%) remains out of favour on news the US government has launched a criminal investigation
· BP – will it trade up if it cuts its dividend? CNBC asks
· BP: To reassure investors over dividend – S&P
· BP Underlying Earnings Power Remains – JPMorgan (per DJ)
o The events surrounding BP (BP.LN) are a "one-off" that do not materially change the long-term underlying earnings power of the company
o JPMorgan cannot rationalize a reduction in BP's dividend, but acknowledges that the market is thinking differently
o BP's share price has almost reached parity with its net book value per share, and is trading at a 55% discount to JPMorgan's sum-of-the-parts value.
· Energy sector: After the US close, Standard & Poor's Ratings Services announced it is undertaking a review of all companies with operating exposure to the GOM after the Department of the Interior extended the moratorium on drilling permits. Following an initial evaluation, S&P believes it will review approximately 35 or so issuers.
· Miners; Australian Treasurer Swan commented that the mining tax may be informally discussed at G20 meeting with any pre-election tax deal dependant on mining companies. He claims that according to miners, the tax raises sovereign risk are nonsense. He also denies that China's visit this week is an attempt to talk down the impact of the mining tax. Australia Resources Minister said he was confident the government can reach an agreement with the mining industry on the mining tax, and that the 40% headline tax rate is not negotiable.
· Facebook Sees Fourfold Jump in Number of Advertisers Since 2009 - BBG
· Autos sales today high bar : Investors jittery about the U.S. recovery are likely to get some reassurance Wednesday with the release of car and light-truck sales for May – WSJ
· Thales SA (HO.FR) of France scored a major victory Tuesday over Lockheed Martin Corp. (LMT), as a Thales-led partnership won a roughly $2.1 billion contract to build a fleet of communications satellites for Iridium Communications Inc. (IRDM). WSJ
o Boeing Co. (BA) is part of the winning team, and other U.S. subcontractors are expected to be added.
· Continental Airlines (CAL) beats street ….. continued to accelerate its gains in a key measure of profitability for carriers, as its traffic also returned to growth in May.
o The country's No. 4 airline estimated its passenger revenue per available seat mile jumped between 23% and 24% last month, compared with about 15% in April. DJ
· Delta Air Lines (DAL), on the heels of last month's federal rule change making it easier for aviation workers to organize, is facing a stepped-up recruitment campaign by labor organizers. WSJ
· Fresh talks between British Airways PLC (BAY.LN) and unions over ongoing cabin crew strikes broke up late Tuesday without any indication of whether any progress had been made - DJ
· Iberia Reiterates It Expects To Close BA Merger By Year End
·
· Macau May Gambling Revenue Jumps Nearly 95% y/y To Record High - Portuguese news agency Lusa reported Tuesday.
o Among Macau's six casino license-holders, tycoon Stanley Ho's SJM Holdings Ltd. (0880.HK) continued to lead the market with a share of slightly above 32%, followed by Las Vegas Sands Corp. unit Sands China Ltd. (1928.HK) with just under 20%, and Wynn Resorts Ltd. unit Wynn Macau Ltd. (1128.HK) with nearly 16%, according to the report.
· Israel Risks Losing "Sole Friend" In Mideast - Turkish PM (DJ)
· DJ US Declines To Apportion Blame After Israeli Raid
· Two more vessels were headed to Gaza in an attempt to run the blockade, Israel said – DJ
· Taiwan is to test a missile for the first time that could hit Beijing, AFP
· South Korea becoming more aggressive on getting intl sanctions vs North – BBG
· Pyongyang's alleged attackon a South Korean ship may be part of North Korea's efforts to redraw the sea border. WSJ
· AFP)--A U.S. aircraft carrier will join a major anti-submarine naval exercise with South Korea next week in a show of strength to North Korea after the sinking of a warship
· South Koreans went to the polls Wednesday in local elections overshadowed by rekindled security concerns about North Korea.
· The Justice Department doesn't have an adequate plan for responding to a WMD attack, WSJ
· The annual meeting of the American Society of Clinical Oncology, or ASCO, will take place from June 4 through June 8 in Chicago, Ill.
- Economics:
- MBA Mortgage Applications at 07:00 ET
- May Challenger Job Cuts at 07:30 ET
- Apr Pending Home Sales at 10:00 ET
- May domestic vehicle sales will be reported throughout the day
- Earnings:
- There are no major companies reporting this session
TODAY’S BIG STORIES
· Equity Wrap:
o Early tues morning, S&P futures were off by as much as 20 points. Bearish pressures came from a number of events: China’s PMI was weaker than expected (MSCI emerging markets fell for the first time in 5 days, ending down 2.4%); the German president resigned, while European officials bickered over the pace, size and specifics of the ECB’s sovereign purchases; for its part, the ECB alluded to hundreds of millions in possible losses to face the European banks (leading the Euro to break to a new 4 year low). To cap it off, new geopolitical tensions emerged over the weekend (escalating later in the day as the Lebanese military fired on Israeli warplanes).
o The domestic economic news was decidedly more upbeat as the ISM manufacturing index and Prices Paid Index both came in higher than expected. In addition, Construction Spending also surprised to the upside. Even before these numbers came out, however, S&P’s were already rallying; with the 10:00 release of the economic statistics, futures extended their move, recouping all the lost ground and then some (more than 25 points above the early morning lows). The middle of the session was spent on either side of even. Ultimately, though, the geopolitical tensions overwhelmed the bulls and futures spent the last part of the session in decline. S&P’s ended the day on their lows, off 19 points. Cash S&P ended at 1070.71, off 1.7%. Notable losers included BP and HAL, off 15% each; APC (Anadarko), off 20%; and RIG, off 12%. Gainers included two names involved in M&A activity: EVVV and MCCC, each up 17%.
o Breadth to the market had declining issues outnumbering buy issues by almost 4-1, while internally here, buy and sell names were even, albeit very quiet
o (Billy Clark and team)
· CMBS DAILY RECAP
o Slow start to the week with $170mm in BWICs including $26mm in AM/AJ paper. Thur/Fri last week we did see retail come back into the mkt. Spreads were unchanged to 10bps wider on the day with better paper out performing. GG10s traded most the day in the +422-426 range before finishing 10bps wider at +430/$93-14. GEORDIE WALKER
· Credit markets: Bond New Issues Shut as Bank Default Swaps Rise - BBG
o No companies issued bonds in the U.S. yesterday, compared with $2.2 billion on the corresponding day following the Memorial Day weekend in 2009, according to data compiled by Bloomberg. In Europe, 1.35 billion euros ($1.66 billion) was raised from two sales of covered bonds, versus 6.5 billion euros a year earlier, Bloomberg data show.
· Credit markets: For CMBS Arena, 'The Worst Is Yet To Come' – WSJ
o While values have shown signs of stabilizing, the weak economy continues to hammer rents and occupancy rates in many markets. As a result, defaults, foreclosures and losses on mortgages are rising.
o 0ther bad news for CMBS investors also is beginning to surface.
o Historically, when mortgages that were bundled into CMBS run into problems and are foreclosed on or sold, investors have lost, on average, 37% of their principal. But according to a study to be released by Fitch on Wednesday, that figure, known as the "loss-severity rate," averaged 57% last year, an all-time high. The rate will exceed the historical average, through 2011, Fitch projects.
· Loan markets: China Finds New Market For Loans: The US – WSJ
o When GE Capital exited from the U.S. government's bailout program last year, it quickly found a new financial backer: a Chinese bank
o In December, cash-rich Industrial & Commercial Bank of China made a three-year, $400 million loan to the General Electric Co. unit, its first from a Chinese lender. "We like banks that have global aspirations and that can work with us in all markets," says Kathryn Cassidy, senior vice president and treasurer at GE.
o The U.S. is undergoing a mini-invasion by banks based elsewhere that generally avoided the disastrous boom-era loans and investments made by many U.S. financial institutions. Chinese banks are in a particularly strong position for U.S. growth
· Dubai Holding doesn't need debt restructuring, CEO says
o Dubai Holding does not plan to ask for a debt restructuring, despite major losses at most of its companies, said CEO Ahmed bin Byat. "There is no need to restructure outstanding debt as discussions are taking place with banks to roll over our existing facilities at commercial terms," he said. Emirates Business 24/7 (United Arab Emirates) (02 Jun.)
·
· Jobs: WSJ(6/2) Chronic Joblessness Bites Deep
o The job market is improving, but one statistic presents a stark reminder of the challenges that remain: Nearly half of the unemployed -- 45.9% -- have been out of work longer than six months, more than at any time since the Labor Department began keeping track in 1948
o Even in the worst months of the early 1980s, when the jobless rate topped 10% for months on end, only about one in four of the unemployed was out of work for more than six months
o Overall, seven million Americans have been looking for work for 27 weeks or more, and most of them -- 4.7 million -- have been out of work for a year or more.
· Commodity trading limits: CFTC Auditor Probes Trading Enforcement – WSJ
o The Commodity Futures Trading Commission's internal watchdog has launched a review of the agency's market surveillance operations to determine how well the CFTC enforces speculative limits for large traders
o The independent review was disclosed by the CFTC's inspector general in the semiannual report to Congress.
o The review comes as the CFTC considers a proposal that would impose stricter limits on energy-market speculators.
· SEC Is Boosting Scrutiny of Offshore Accounting, Fagel Says - BBG
o Securities and Exchange Commission investigators are increasing scrutiny of U.S. companies’offshore operations amid concern that accounting controls may be too weak, the head of the agency’s San Francisco office said.
o “Some of the old-fashioned revenue recognition and accounting fraud issues that we used to see here, we’re seeing in their offshore operations,” Marc J. Fagel said in an interview in San Francisco yesterday. “That’s a big theme.”
· Buffett And The Ratings Cartel WSJ(6/2) Editorial
o Warren Buffett testifies today before the Financial Crisis Inquiry Commission, and the big question is where he'll come down on the future role of the credit-rating cartel. Mr. Buffett's Berkshire Hathaway owns a large stake in Moody's, one of the Big Three agencies whose ratings did so much to abet the financial panic, but America's most famous investor won't do his reputation any good if he endorses an oligopoly that has done so much economic harm.
· S.E.C. Is Said to Seek to Bar Wall St. Financier Rattner - NYT
o it investigates a suspected kickback scheme in New York’s pension system, the Securities and Exchange Commission has been pushing to bar Steven L. Rattner, a prominent financier and former adviser to the Obama administration on the auto industry, from working in the securities industry for up to three years
o But Mr. Rattner has fiercely resisted the proposed penalty, setting up a face-off with the federal government
o http://www.nytimes.com/2010/06/02/business/02sec.html?emc=na
· U.S. Falls From Internet Elite, Aims to Catch Iceland, Hungary - BBG
o Laurent Bernard, an intern at HSBC Holdings Plc in Paris, recalls his U.S. Internet experience in 2008, the year he moved to New York City as a student.“I noticed right away that the Internet was slower,”
o Bernard, 24, said in an e-mail. “The most annoying thing was the time it took for each Web page to load on the screen. In France, it’s pretty much instantaneous.”
o After ranking third in the world a decade ago, the U.S. has dropped to 15th in the proportion of citizens receiving fast Web service, or broadband, according to the Organization for Economic Cooperation and Development.
· US Officials Look At How To Respond To Threats To Electric Grid - DJ
o Officials in charge of the reliability of the U.S. electric grid are taking a closer look at how to respond to cyberattacks and other possible catastrophic events
o The North American Electric Reliability Corp., or NERC, and the U.S. Department of Energy in a report to be released Wednesday call for a range of steps-- from increasing communication to ensuring the supply of transformers and other equipment--to mitigate what they described as a "high-impact, low-frequency" event on the nation's power system.
· The Revolving Door At The Hospital – WSJ
o To save costs, hospitals for years have been discharging patients after shorter stays. But at the same time more people are having to return to hospital for additional care within a month of their initial treatment, according to a major new study of Medicare heart-failure patients.
· Employees Earn Cash for Exercising More
o How much money would it take to get you to lose some serious weight? Many employers are betting they can find your price.
o At least a third of U.S. companies offer financial incentives, or are planning to introduce them, to get their employees to lose weight or get healthier in other ways. "There's been an explosion of interest in this," said Kevin Volpp, director of the University of Pennsylvania's Center for Health Incentives
· State All-Crimes DNA Databank Proposed – WSJ
o New York state would be allowed to collect a DNA sample from anyone convicted of a crime, including misdemeanors such as curfew violation, petty theft and vandalism, under legislation announced by Gov. David Paterson on Tuesday.
· NY: WSJ(6/2) GOP Convention A Tense Scene (today to pick gov candidate)
· U.S. President Barack Obama will meet with Arizona's governor Thursday, a White House aide confirmed amid mounting ire over the state's immigration law that critics say encourages ethnic profiling. AFP
· GOP Has Big Funding Edge In Race To Lead California - WSJ
o California's presumptive Democratic nominee for governor, Jerry Brown, badly trails the leading Republican candidates on the fund-raising front. Oddly enough, though, he appears well-situated for the general election.
o On paper, the matchup looks uneven. While GOP rivals Meg Whitman and Steve Poizner have raised $110 million between them since early 2009, mostly by tapping into their personal fortunes, Mr. Brown has raised $21 million in that period, according to state campaign-finance data
o Yet some political analysts said Mr. Brown is in good shape for the November showdown because the GOP candidates have spent much of their cash in the brutal primary that will conclude next week. Mr. Brown, who faces no serious Democratic challenger, has spent next to nothing.
· Voters go to polls in Alabama, Mississippi, New Mexico – WP link
o Alabama Agriculture Commissioner Ron Sparks trounced Rep. Artur Davis in the state's Democratic primary for governor Tuesday night, a shocking result for a national figure once regarded as a heavy favorite to be on the ballot in November
· Hispanic Caucus wants Napolitano to cut ties with Arizona police – The Hill
o Members of the Congressional Hispanic Caucus (CHC) have called on the Department of Homeland Security to sever its ties with Arizona police in response to the state's new immigration enforcement law
· health-care reform: Insurance regulators miss early deadline on premium spending rules
o Implementing a controversial provision of the new health-care law is proving harder than planned.
o A national assembly of state insurance regulators, which is helping the federal government translate the law into more specific rules, said it was unable to meet a Tuesday deadline for standards meant to ensure that consumers get value for their premium dollars.
o At issue is a requirement that insurers devote at least 80 to 85 percent of premiums to the payment of medical claims and other expenses that improve health care
o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/01/AR2010060103700.html
· Global Temperature Is Warmest on Record, NASA’s Hansen Says
o (Bloomberg) -- The global temperature this year reached its warmest on record based on a 12-month-rolling average, James Hansen, the top climate change scientist at the U.S. National Aeronautics and Space Administration, said today
COMPANY NEWS WITH MACRO IMPLICATIONS
· TRANSPORTS
o ALGT Allegiant Travel reports May traffic +8.7% ; Allegiant Air May Load Factor 92.1% Vs 90.6% >ALGT
o CAL Continental Airlines beats street…reports May consolidated traffic +3.7%; capacity +0.2%
o DAL Delta Air Lines facing increased unionization efforts – WSJ
o Continental Airlines (CAL) continued to accelerate its gains in a key measure of profitability for carriers, as its traffic also returned to growth in May.
§ The country's No. 4 airline estimated its passenger revenue per available seat mile jumped between 23% and 24% last month, compared with about 15% in April. DJ
o Delta Air Lines (DAL), on the heels of last month's federal rule change making it easier for aviation workers to organize, is facing a stepped-up recruitment campaign by labor organizers. WSJ
o Fresh talks between British Airways PLC (BAY.LN) and unions over ongoing cabin crew strikes broke up late Tuesday without any indication of whether any progress had been made - DJ
o Iberia Reiterates It Expects To Close BA Merger By Year End
-
· ENERGY
o Energy sector: After the US close, Standard & Poor's Ratings Services announced it is undertaking a review of all companies with operating exposure to the GOM after the Department of the Interior extended the moratorium on drilling permits. Following an initial evaluation, S&P believes it will review approximately 35 or so issuers.
o BP(-2.37%) remains out of favour on news the US government has launched a criminal investigation
o BP – will it trade up if it cuts its dividend? CNBC asks
o BP: To reassure investors over dividend – S&P
o BP Underlying Earnings Power Remains – JPMorgan (per DJ)
§ The events surrounding BP (BP.LN) are a "one-off" that do not materially change the long-term underlying earnings power of the company
§ JPMorgan cannot rationalize a reduction in BP's dividend, but acknowledges that the market is thinking differently
§ BP's share price has almost reached parity with its net book value per share, and is trading at a 55% discount to JPMorgan's sum-of-the-parts value.
o HAL Halliburton to provide update on Gulf of Mexico operations; conference call: 11:00 ET, 2-Jun, 866-327-2267 or +1-706-758-9648 (international), conference ID 79553748.
o CSIQ Canadian Solar updates Q1 performance; postpones quarterly conference call
o CNX CONSOL Energy enters into settlement agreement with Yukon Pocahontas Coal and others
o Coal miner Consol Energy Inc. (CNX) is developing a project to capture and destroy methane gas, a natural byproduct of coal mining that can trigger underground explosions and can add to greenhouse-gas emissions. WSJ
o Lukoil [LKOH.RU]: Reported Q1 Net $2.05B comparing favorably to year-ago figure of $905M. Revenues were also higher than year ago figures at $23.9B vs $14.7B. Compamy noted the particular economic uncertainty present in the Russian Federation.
o A budding partnership between OAO Gazprom (GAZP.RS) of Russia and state-run Ukrainian energy company Naftogaz could affect Russia's richest man, business daily Vedomosti reports Wednesday.
o PVG Penn Virginia GP announces ~8.83M share secondary offering through Barclays Capital
o BP BP is expected to maintain dividend - London Times
o OPTT Ocean Power Technologies names Brian Posner CFO
o MEE Judge to rule on contested violations at Massey Energy's Tiller mine - Washington Post
o WPRT Westport Innovations reports Q4 EPS
o Analysis: "Green gloom" is probably being overdone
§ Supporters of renewable energy are troubled by falling share prices of green companies, but executives of U.S. renewable-energy firms aren't worried about the sector's long-term prospects, according to The Economist. Investment in renewable energy stands a good chance of reaching an all-time high next year, although much of the money won't end up in big companies tracked by the Renewable Energy Industrial Index, the magazine notes. Investment in solar or wind power is down from its peak from before the recession, but capital is flowing into cellulosic biofuel, geothermal energy and electric cars. The Economist (01 Jun.)
o
· UTILITIES
o NST NSTAR closes previously announced sale of district energy operations; authorizes $200M buyback
Tech/media/ telecom sectors
· DIVX Sonic Solutions (SNIC) to acquire DivX
o Sonic Solutions said it agreed to buy DivX Inc. for $3.75 in cash and 0.514 share per share, or about
o $9.83 a share based on yesterday’s close. Sonic Solutions disclosed the purchase plan in a regulatory filing.
·
· HRAY Hurray! Reports Preliminary Results
· SNDA: Disappointing Q1 due to soft revs from Shanda games. Costs were also higher due to the Hurray’s acquisition of Ku6. SNDA announced $200M share repurchase plan Conf Call 10:30AM. Call # 866-730-5763; Call Pin 60720333
· GAME: Weak Q1 and guidance. GAME revs were down 14% q/q due to weaker MMORPG revs and a sharp ARPU drop. Revs from Casual games and others surprised to the upside.
· HRAY, SNDA: China's HRAY Hurray Holding, SNDA Shanda Interactive In Asset Swap- WSJ
· AT&T introduces new wireless data plans
· AAPL’s Steve Jobs Comments regarding T, GOOG, Media, Foxconn, and others- All Things Digital Conference
· “We're Not Getting Into Search, and We're Not Booting Google From the iPhone”
· “I Can Help Save the Media Business, if It'll Wise Up and Cut Its Prices”
· He Holds out Hope That AT&T Can fix its iPhone Problem, and said “AT&T Reliability To Be Better 'By End Of Summer”
· “Apple TV a hobby because there's no viable market”
· “Apple Actually Developed iPad Before The iPhone”
· Says Supplier Foxconn Is 'Not A Sweatshop', and “We’re all over this” regarding the Foxconn suicides
· Summary of all coments: http://www.slashgear.com/steve-jobs-at-d8-talking-about-flash-the-iphone-hd-and-everything-else-0187873/
· Facebook Sees Fourfold Jump in Number of Advertisers Since 2009- BBG
· http://www.bloomberg.com/apps/news?pid=20601087&sid=aA16n05JszAQ&pos=6
· T: caps phone data usage with new wireless plans- AP
· Tablets: MSI chairman expects tablet PC market to take off in 2011- Digitimes
· LCM: Radiant expects LCM shipments to reach 3 million units in 2Q10- Digitimes
· Solar Panels May Be Exempted in EU Hazardous Substance Revamp- BBG
· http://www.bloomberg.com/apps/news?pid=20601100&sid=aLl7IGpF9HeQ
· WiMAX to remain feasible for at least 10 more years, says Acer chairman- Digitimes
· Printer Makers May Raise Prices, Seiko Epson President Says- BBG
· Seiko Epson Corp.’s printer-maker rivals may raise prices in Europe later this year as the weaker euro starts to erode earnings
· Wafers: DRAM and driver ICs buoying 12-inch wafer demand, says PSC president- Digitimes
· Nintendo to cut Japan prices of main DS models- Reuters
· LCD TV: Vendors start price war in China for larger-size high-end LCD TVs- Digitimes
· PC accessory makers to raise prices in Europe- Digitimes
· MSFT: Hulu headed to a Xbox 360 dashboard near you?- Engadget
· Foxconn increases wages by 30 percent as deaths continue to mount (additional 10% from the 20% already announced)- Engadget
· LGF: Icahn plans proxy fight for LGF Lions Gate- Reuters
· Bresnan Communications: Providence Equity Said to Seek More Than $1 Billion for Bresnan- BBG
· ADVS: Financial software firm Sophis (owned by Advent) for sale- Rueters
· Vivo: Telefonica's improved 6.5 billion euro offer to Portugal Telecom (PT) for its part of Brazilian mobile firm Vivo got the thumbs up from PT investors on Wednesday- Reuters
· Music: Indie label Bug Music being shopped for $300M- NYPOST
· MMBY Gets Buyout Bid From CEO- WSJ
· ARM Holdings: Don't See Big Impact On PC, Smartphone Demand From Europe Crisis- DJ
· ATRN reduces workforce by 47 positions, or 30%
· WDC, STX: Western Digital Tops Seagate As No. 1 In Hard-Disk-Drive Shipments- iSuppli
· http://www.nasdaq.com/aspx/stock-market-news-story.aspx
· Broadband: Most Consumers Unaware Of Broadband Speed- WSJ
· Most Americans have no idea how fast their home broadband connections are, but they are basically happy with the service, a new study by the FCC finds.
· http://online.wsj.com/article/SB10001424052748704875604575280790864097432.html
· LINTA: Liberty Media's Malone Shops For Shares- WSJ
· Malone bought 790,000 shares of Liberty Media Interactive for $12.43 on May 20, and 257,000 shares of Liberty Media Capital for $38.83 on May 20 and 21.
Miners/ steel sectors etc
· China plans to strengthen controls on rare earths - China Daily
o Strategic rare earth minerals will only be mined by a few select State-owned enterprises (SOEs) as part of the government's bid to crack down on illegal exploitation and consolidate reserves, according to sources close to the matter
o http://www.chinadaily.com.cn/cndy/2010-06/02/content_9919937.htm
· SLW Silver Wheaton announces amended silver purchase agreement in conjunction with Goldcorp's (GG) proposed sale of the San Dimas mine
· VALE Vale SA acquires additional 24.5% stake in Belvedere coal project for $92M
· China's wallet could yet spell trouble for commodities bulls.
o WSJ(6/2)Heard On The St:Not All Chinese Cash Boosts Commodities
o China reckons its sheer size means it "should be given a discount" on raw-materials, It doesn't always work
o But throw enough money at new supply, and deflationary pressure on prices increases
· Bloomberg) -- Xstrata Plc Chief Executive Officer Mick Davis said Australia’s proposed tax on mining profit may prompt companies to cancel investments in the country.
· CEO of gold producer Newcrest said the mining tax will decrease industry competitiveness and delay agreements for mining projects. Fortescue Metals also noted serious project funding problems. TTN
· Russia Mulls Higher Export Duties On Copper, Metal -Vedomosti
o Russia, seeking to offset reduced revenue caused by falling prices for its crude oil exports, may increase duties on metals bound for markets abroad
· Resource Tax Will Create More Revenue for Australia, Gruen Says - BBG
o Australia’s planned 40 percent tax on resource profits will raise more revenue for the government, senior Treasury official David Gruen said, as Prime Minister Kevin Rudd fights to win voter support for the levy
o “If you get rid of the royalties, or rebate the royalties, and introduce a tax which is more efficient in principle and in practice you can generate more revenue as well as reduce the distortions,” Gruen, executive director of the Treasury’s macroeconomics group, told a senate committee today. “That is the point of the tax.”
·
· No Backdown On 40% Miner Tax But Generous Transition -Australia Minister (DJ)
o Australia's government is prepared to offer "generous" transition arrangements for miners affected by the country's proposed resource super profits tax but won't back down on the key 40% tax level, Resources and Energy Minister Martin Ferguson said Wednesday
o In a speech at the Minerals Week conference in Canberra, he said that the government was considering the first reports back from consultation meetings with the industry over the past few weeks.
· Kobe Steel Aims To Source 20% Of Iron Ore From Own Mines –Nikkei
· Severstal And Endeavour Fincl Reach Agreement For Building Value In Crew Gold Corp
· SSRI Silver Standard Resources reports preliminary assessment results for Snowfield project
· HWKN Hawkins Chemical reports Q4 EPS
· APD, ARG Air Products extends offer to acquire Airgas
· AZC Augusta Resource Corp provides new DEIS timeline for Rosemont Copper project
INDUSTRIALS
o APD, ARG Air Products extends offer to acquire Airgas
o Weekly USDA crop progress report says 85% of the corn crop has emerged, compares to 71% of corn crop emerged last week and 80% average of 2005-09.
o Thales SA (HO.FR) of France scored a major victory Tuesday over Lockheed Martin Corp. (LMT), as a Thales-led partnership won a roughly $2.1 billion contract to build a fleet of communications satellites for Iridium Communications Inc. (IRDM). WSJ
§ Boeing Co. (BA) is part of the winning team, and other U.S. subcontractors are expected to be added.
o WSJ(6/2) Caterpillar, GE In Iron-Horse Race
§ Caterpillar Inc. is pushing further into the rail business by buying a maker of locomotives, and taking on General Electric Co. in the process. On Tuesday, the heavy-equipment maker said it would pay $820 million for Electro-Motive Diesel, in a bet that freight transport will grow as the economy strengthens.
o
o SSW Seaspan accepted delivery of the Calicanto Bridge from Jiangsu Yangzijiang Shipbuilding on 28-May
o AME Ametek acquires Technical Services for Electronics
o UNP Morgan Keegan adds Union Pacific to its Focus List; separately, the firm has removed UPS from the Focus List.
o ENS EnerSys reports Q4 GAAP EPS
o KBR KBR awarded development contract for Araromi refinery project by FPR, Inc.
o CWST Casella Waste Systems receives State of MA permit for conversion of Southbridge Landfill to municipal solid waste
o DAC Danaos Corp takes delivery of Hanjin Buenos Aires
o JOYG Joy Global upgraded to buy from neutral at Goldman Sachs
·
Autos sector:
· WSJ(6/2) German Aid To Opel In Jeopardy
o General Motors Co.'s chances of winning more than 1 billion euros in German government aid for its ailing Opel unit dimmed after a key government advisory panel criticized the auto makers' request. The panel, comprised of outside economic experts and former German business leaders, was "very critical" of GM's bid for 1.1 billion euros ($1.35 billion) in loan guarantees, German Economic Minister Rainer Bruderle said at a press briefing Tuesday, adding that the committee's remarks would heavily influence the final decision. WSJ
· Honda Reopens Chinese Parts Factory as Most Employees Return
o Honda Motor Co., Japan’s second- largest carmaker, reopened a parts plant in China as most workers ended a walkout that shut down all of the company’s production in the country
o The factory resumed operations even as the company continues to negotiate with some workers, BBG
· Ford's China Car JV: May Sales Up 17.8% At Record 23,742 Units
· China Auto makers were among the biggest gainers after China said it would offer subsidies for electric vehicle purchases in five cities. SAIC Motor rose 1.7% to CNY16.51 and Chongqing Changan Automobile jumped 5.2% to CNY10.35. DJ
· Tata Motors Ltd. (TTM) and Jaguar Land Rover are to form a joint management team to combine their expertise, with Tata handling the engineering side and JLR the design, the Economic Times reported
· Tata Motors: Can Expand Nano Plant Capacity To 350,000 Cars/Year - DJ
· TTM Tata Motors May vehicle sales 56,779 units vs year-ago 40,196 units
· HMC Honda Motor resumes operations at auto parts plant in China - wires
· Peugeot Citroen CEO says plans to pay back €1B in state loans in H2 "proceeding well" -- Reuters
·
Financials:
· AIG American International Group talking with sovereign wealth funds about becoming cornerstone investors in AIA - Telegraph
· AIG: Prudential PLC Shares -0.5% After Ending AIA Bid
· AIG: AIA Needs Polishing Before IPO – DJ
· AIG: AIG Unit That’s Too Big to Sell Means Asia IPO Likely - BBG
· AIG: Prudential Says Collapse of AIA Bid to Cost 450 Million Pounds
· MF Global Holdings Ltd. plans to sell as much as $150 million of shares and has launched an offer to exchange shares for some senior notes and preferred stock.
· Citigroup Inc. is positioning its CitiFinancial consumer-lending unit to expand -- and thus to be sold more easily. WSJ
· Monarch Community Bancorp Names Ross Acting Pres, CEO >MCBF
· The Stresses In European Bank Tests – WSJ
o U.S. stress tests helped reassure markets in 2009. Europe would have tough time pulling off a similar feat for its banks
o With finance ministers from the Group of 20 industrialized nations meeting this week, the U.S. plans to urge a more-transparent European approach to stress-testing banks in order to soothe investors. But to work, publicly disclosed tests would need credible results. That is a problem.
· ECB's Noyer Says Credit Insurers Could Issue Ratings – DJ
o There should be more competition in the credit rating industry, European Central Bank governing council member Christian Noyer says
o Credit insurers such as Euler-Hermes SA (ELE.FR) and Coface could easily issue ratings alongside the existing rating agencies, since they already evaluate the quality of credits, the paper cited him as saying
o "They have the know-how and experience, and they are even made to pay if they are wrong," he says.
· Bats Steps Up Fee Battle With LSE – DJ: Bats Europe, Europe's second-largest alternative share trading platform, has stepped up its battle with the London Stock Exchange (LSE.LN) by implementing a new strategy for U.K.-listed stocks, less than a month after its larger rival changed its fees in a bid to regain market share.
· FINANCIALS
· FRBK Republic First has commenced $30M common stock offering through Sandler O'Neill and RBC
· HCC HCC Insurance Holdings CFO Tobin Whamond to become COO, effective 10-Aug
· HCC HCC approves new share repurchase program
· MVC MVC Capital reports Q2 net operating loss
· Real Estate:
o MBA Mortgage purchase applications index (4.1%) in 28-May week; total market index 0.9%
§ compares to (3.3%) and 11.3%, respectively, in prior week
§ refi index 2.4% vs. 17.0% in the prior week
§ 30-yr fixed rate 3bps to 4.83%
§ 15-yr fixed rate flat to 4.24%
· REITS
o AMRR ARMOUR Residential REIT files amended S-1; to offer 7M shares through Ladenburg Thalmann and Macquarie
o SLG WSJ says SL Green Realty under fire over excessive executive compensation
· Fitch said loss rates on mortgage-backed securities reached an all-time high average of 57% last year.
· FHLB Pushes To Avoid Loan Caps – WSJ
o The Federal Home Loan Banks are asking Congress to exempt them from a provision of the financial-overhaul legislation that would severely restrict their lending
o The legislation bars financial institutions deemed "systemically important" from lending to any one customer an amount exceeding 25% of the lender's capital. The House version of the legislation exempts the 12 regional home-loan banks from that restriction, but the Senate version doesn't. The 25% threshold would apply to any FHLB bank making a loan.
· WSJ(6/2) SL Green Under Fire For Pay
o "Their executive compensation numbers are way above their peers,"
· Zombie buildings: WSJ(6/2) A Deal To Raise The Dead
o A venture of Prudential Financial Inc. and Barker Pacific Group Inc. hopes a cash infusion of about $20 million is enough to bring a zombie office building in San Francisco back to life
o Zombie buildings, which have been mushrooming throughout the commercial real-estate landscape, are those that are worth less than their mortgages and are deteriorating in value because neither the owner nor lender is willing to infuse new capital to retain existing tenants or attract new ones.
· WSJ(6/2) Thor's Bid Gains For Midtown Site
o Joseph Sitt's Thor Equities has the inside track to buy the Takashimaya building, a Fifth Avenue trophy property owned by the Japanese retailer, with a bid of more than $140 million
o Thor, which owns stores, office buildings and other commercial real estate in New York and other cities, is close to edging out other bidders, including Vornado Realty Trust and SL Green Realty. The building, between 54th and 55th streets, has about 100,000 square feet of space and is being marketed by Jones Lang LaSalle.
· WSJ(6/2) GIC Bids For A Landmark
o Government of Singapore Investment Corp. is among a handful of cash-rich buyers seeking to buy Grosvenor House Hotel, a London landmark, from Royal Bank of Scotland Group PLC
o The hotel was expected to fetch a record price for a European hotel and flag the return of trophy asset sales to overseas buyers. The Grosvenor House Hotel carries a price tag of about GBP 500 million ($727.1 million). This would make it the biggest amount garnered for a single European hotel, according to consultancy firm HVS
· WSJ: Four Seasons To Cut The Flowers, Send Out Wash At Some Hotels
o Four Seasons Hotels & Resorts has agreed to skimp on some of its famed white-glove hotel service, bowing to pressures by some financially strapped owners of properties that bear its name
o Many Four Seasons hotels have stopped displaying huge vases of fresh flowers. Others are closing their high-end restaurants on slow days. And some have begun outsourcing laundry.
o In the past, the company, which holds long-term contracts with the hotels it manages, shrugged off downturns as passing cycles that didn't warrant altering its expensive but successful formula. This time, though, Isadore Sharp, Four Seasons' founder and chief executive, agreed to some concessions.
Consumer sector:
· NUS Nu Skin Enterprises announces 4.5M share secondary offering for holders through JPMorgan and Deutsche
· OSK Oshkosh was awarded 3 US Army contracts for Check-6 rear view sensor systems
· OSK Oshkosh awarded $66.9M US Army contract on 24-May
· MO Altria agrees to pay approximately $971M in taxes and related estimated interests
· SLE Sara Lee completes previously announced sale of its 51% stake in its Godrej Sara Lee joint venture
· PSS Collective Brands reports Q1 EPS
· MAN Manpower announces results of elections and proration of merger consideration for former stockholders of COMSYS
· WMT Massmart denies union accusations that it has a deal pending with Wal-Mart (WMT) - Business Day
· JOSB Jos. A. Bank reports
·
· GAMING LODGING & LEISURE
· MHGC Morgans Hotel Group shareholder HG Vora discloses 10% stake in 13D filing
· LGF Lions Gate reports f10 EPS
· Macau May Gambling Revenue Jumps Nearly 95% y/y To Record High - Portuguese news agency Lusa reported Tuesday.
o Among Macau's six casino license-holders, tycoon Stanley Ho's SJM Holdings Ltd. (0880.HK) continued to lead the market with a share of slightly above 32%, followed by Las Vegas Sands Corp. unit Sands China Ltd. (1928.HK) with just under 20%, and Wynn Resorts Ltd. unit Wynn Macau Ltd. (1128.HK) with nearly 16%, according to the report.
· HEALTHCARE
o health-care reform: Insurance regulators miss early deadline on premium spending rules
§ Implementing a controversial provision of the new health-care law is proving harder than planned.
§ A national assembly of state insurance regulators, which is helping the federal government translate the law into more specific rules, said it was unable to meet a Tuesday deadline for standards meant to ensure that consumers get value for their premium dollars.
§ At issue is a requirement that insurers devote at least 80 to 85 percent of premiums to the payment of medical claims and other expenses that improve health care
§ http://www.washingtonpost.com/wp-dyn/content/article/2010/06/01/AR2010060103700.html
o AMGN (Dow Jones)--Amgen Inc. (AMGN) received U.S. Food and Drug Administration approval for Prolia to treat osteoporosis in postmenopausal women Tuesday, in a decision that comes almost two months earlier than expected.
o Novartis AG (NOVN.VX) Wednesday said fresh research data shows that some of the Swiss pharma company's key cancer drugs promise to improve treatments for both common and rare forms of cancer, and that its experimental oncology drug pipeline is sound. DJ
§ The data will be presented at the annual meeting of the American Society of Clinical Oncology, or ASCO, which will start later this week.
o TAROF Guggenheim made a $15/share offer on behalf of clients for Sun Pharma (SUNP.IN)'s stake in Taro Pharmaceutical; Taro rejected offer-- Bloomberg
o ABII Abraxis Bioscience announced findings from a phase 1 randomized ABRAXANE trial
o HNSN Hansen Medical CEO Frederic Moll has been named Chairman
o BAX Baxter CFO Robert Davis appointed President of Baxter's Renal business
o SKBI Skystar Bio-Pharmaceutical files $28.8M secondary offering through Rodman and JMP
o BIIB Bayer AG sues Biogen over Betaseron patent royalties
o *SRDX SurModics president, CEO Bruce Barclay resigning, effective immediately
o AMSG AmSurg completes debt refinancing
o TOMO TomoTherapy and Avalon Capital announce termination agreement
o KCI Kinetic Concepts sr secured credit facility upgraded to Baa3 from Ba1 at Moody's
o First deadline missed for healthcare reform - Washington Post
From our EU/London desk
· Oils
· BP (-3%). Stock falls again as US Dept. of Justice announces the start of criminal investigations into the Gulf of Mexico leak. BP CDSs jump to over 200bps for the first time.
· BP: To reassure investors over dividend – S&P
·
· Afren (+1.5%). Speculation in the UK press that BG may be preparing a 140p a share bid. West African-focused oil explorer Afren was a strong mid-cap gainer, up 1.5p to 96.2p, supported by rumours reported in the Daily Mail that BG Group could launch a 140-pence-a-share cash offer.
o Read more: http://www.thisismoney.co.uk/markets/article.html?in_article_id=505575&in_page_id=3&ito=1565#ixzz0pgzETfjt
· Chemicals
· BASF (-1.2%). Rumours in the media that BASF have reached a preliminary deal to buy private German chemicals firm Cognis for €3bn-€3.5bn. DJ
· Symrise (+3.2%). Market rumours that Solvay may bid €20 a share for Symrise. Reuters
· Utilities
· Northumbrian Water (+2.8%). FY results please market with small sales growth and Adj. EPS up 12%.
· National Grid (-3.5%). Go ex-div (24.89p) today.
· HC sector
· NOVN VX - sees accelerating sales "Tasigna" after data from ASCO
· MKS LN XD 9.5
· ABF LN XD 7.6
· TMT
· Telefonica: Sweetens bid for Vivo from $5.7bln to $6.5bln euros
· Bouygues: 1Q numbers a tad light but order book good and has ‘limited exposure’ to Portugal,Greece,Spain and Italy
· PSA says needs no stake swap with BMW
· TELEFONICA sweetens Vivo bid – S&P
· SANTANDER mulling options for insurance biz – S&P
· IBERIA seeks EUR 20m compensation for ash disruption
· VETROPACK CEO cautions profit to fall this year
· NORTHUMBRIAN WATER: FY PTP ahead of consensus
· TOPPS TILES: cancels dividend to focus on debt
TODAY’S EVENTS
CONFERENCES
Wednesday June 2:
o All Things digital Conference
o Adam Smith Conferences: Transport Infrastructure Conference - Jun 01, 2010 - Jun 03, 2010
o AMR Research Supply Chain Executive Conference - Jun 02, 2010 - Jun 04, 2010
o Argyle Executive CMO Leadership Forum - Jun 02, 2010
· IUSA
o Bank of America Merrill Lynch UK Chemical & UK House Building Mid Cap Forum - Jun 02, 2010
o Bank of America Merrill Lynch Technology Conference - Jun 02, 2010 - Jun 03, 2010
· 7:40AM: KLAC
· 9AM: HPQ
· 9:30AM: FLEX
· 9:45AM: EMC , FSLR , QCOM , TLAB
· 10:40AM: AVT , SPWRA , TEL
· 11:25AM: ADI , CRM , JNPR
· 12:10PM: XEL
· 1:45PM: AMAT , CREE , RVBD
· 2:30PM: AONE , GOOG , LRCX
· 3:25PM: BCSI , IM , VSEA
· 4:10PM: MSFT
· FFIV
o CA Cheuvreux Mid Cap Conference - Jun 02, 2010 - Jun 03, 2010
o CA Cheuvreux Pan-Europe London Conference - Jun 02, 2010 - Jun 03, 2010
· CWI.VA , PGHN.S , RHI.VI , SBS.F , SOW.F , AIXA.F , CGM.PA , RAA.F , RTRKS.HE , SBS.DE
o Canaccord Adams Investing For Income Conference - Jun 02, 2010
· 11AM: BTE
o Computex Tapai Information Tech show
o Cowen and Company Technology Media & Telecom Conference - Jun 02, 2010 - Jun 03, 2010
· 8AM: EPIC , MOT , PAYX , PLXT , SYNA
· 8:45AM: EHTH , FFIV , KNXA , SVVS , TSRA , WIT
· 9:30AM: ARBA , CA , CY , IDSY , NSTC , RAX
· 10:15AM: ARUN , BRCM , CTXS , VIRL
· 12:50PM: ATNI , CDNS , DIVX , INFY , TRAK , VPRT
· 1:35PM: BRCD , CAVM , CTSH , INAP , PANL , TTGT
· 3:25PM: AVNW , BMC , GCA , IDTI , MSPD
· 4:10PM: ACTL , LAVA , ROVI , TYL , VRTU
o Craig Hallum Capital Group Institutional Investor Conference
· 9AM: ARTC
· 11:15AM: ARGN
· 11:55AM: LPSN
· 2:20PM: MIPS
· 3:30PM: WBSN
· ABTL , ACIW , ACTG , ANAD , ARTG , DMND , ENTG , EPAY , FSYS , GAIA , IRIS , LTXC , MSPD , PLXT , PRTS , SRSL , TQNT , VLTR , VTAL
o Credit Suisse Future of Energy Conference - Jun 02, 2010 - Jun 04, 2010
· 10:30AM: DOW , ENER
· 11:05AM: DD
· 1:40PM: ROC
· ERII
o CRU Events World Wire and Cable Conference - Jun 02, 2010 - Jun 04, 2010
o D.A. Davidson & Co. Technology Forum - Jun 01, 2010 - Jun 02, 2010
· ABVT , CRNT , ENTG , ENTR , ESIO , MRVL , TQNT
o EBD Group EuroMedtech Conference - Jun 01, 2010 - Jun 02, 2010
o Goldman Sachs Basic Materials Conference - Jun 02, 2010 - Jun 04, 2010
· 8AM: DOW
· 9:10AM: ECL
· 10AM: EMN , IP
· 10:35AM: BZ , HUN
· 11:10AM: CYT
· 11:45AM: SHW
· 1:10PM: PX
· 1:45PM: LZ
· 2:20PM: BLL , GGC
· 3:10PM: CE , GRM
· 4:20PM: MEOH
· VALE
o Government Technology Indiana Digital Government Summit - Jun 02, 2010
o Incisive Media Professional Pensions Investment Conference - Jun 02, 2010 - Jun 03, 2010
o Incisive Media Structured Products Conference -Benelux - Jun 02, 2010
o Information Management Network (IMN) 5th Annual Illinois Public Employee Systems Summit - Jun 02, 2010 - Jun 03, 2010
o Information Management Network (IMN) 9th Annual Illinois Public Finance Conference - Jun 02, 2010 - Jun 03, 2010 Chicago, IL
o ING Bank N.V. TMT Conference - Jun 02, 2010 - Jun 03, 2010
· CETV , MTA
o Keefe, Bruyette & Woods, Inc.Diversified Financial Services Conference - Jun 02, 2010 - Jun 03, 2010
· 8AM: FICO
· 8:45AM: NEWS
· 9:30AM: ANH
· 10:15AM: MFA
· 11AM: DHI , FII
· 12:15PM: OZM
· 2:05PM: ADS , CMO
· 3PM: CSE , PHH
· 3:45PM: HTS , VS
· 4:30PM: HPY
o Keybanc Capital Markets Industrial and Automotive Conference
· 8AM: WERN
· 1:05PM: BUCY
· ARGN , ARM , BWA , CGI , CNW , ETN , GNRC , HSC , KMT , R , RBN , TEN , ZBRA
o Massachusetts Biotechnology Council Life Sciences Innovation Day - Jun 02, 2010 MA
o Massachusetts Biotechnology Council The ERBI Conference - Jun 02, 2010 - Jun 03, 2010
o Natural Gas Conversion Board's Novel Gas Conversion Symposium - May 30, 2010 - Jun 03, 2010
o New York Society of Security Analysts Metals & Mining Industry Conference - Jun 02, 2010 - Jun 03, 2010
· AMC.TO , PAL , SGF.TO
o Nomura Securities Co., Ltd. Pan-Asia Technology Forum - Jun 02, 2010 - Jun 04, 2010
o RBC Capital Markets Equity Investing for Income Forum
· 2:05PM: ENB.TO
o Red Herring, Inc. North America Conference - Jun 01, 2010 - Jun 03, 2010
o Royal Bank of Scotland Benelux Equities Conference Amsterdam - Jun 02, 2010 - Jun 03, 2010
· AFGVF.PK , AMVMF.PK , WTKWY
o Sanford C. Bernstein Strategic Decisions Conference - Jun 02, 2010 - Jun 04, 2010
· 8AM: MRK , NOC , PRU , SPLS , WFC
· 9AM: CL , HSP , NTRS , PNC , TRI , TYC
· 10AM: ADM , AET , AXP , CVS , DHR , DIS
· 2PM: BAC , Dr. Kenneth Lieberthal , MCD , MET , PDE , VIA
· 3PM: **LNF , FPL , LNC , MHS , MON , ORLY
· 4PM: BHI , EIX , GHL , LEAP , SBUX , VMW
· 5PM: CBS
o The CWC Group Rio Gas Forum - May 31, 2010 - Jun 02, 2010
o UBS Global Specialty Pharmaceuticals Conference - Jun 02, 2010 - Jun 03, 2010
· 5AM: SVA NTS: COPN.S , MNHPF.PK
o UBS Nordic Senior Investor Day
· HOLN.S , SI
Thursday June 3:
o All Things digital Conference
o Adam Smith Conferences: Transport Infrastructure Conference - Jun 01, 2010 - Jun 03, 2010
o AMR Research Supply Chain Executive Conference - Jun 02, 2010 - Jun 04, 2010
o Bank of America Merrill Lynch Technology Conference - Jun 02, 2010 - Jun 03, 2010
· 8AM: TXN
· 9AM: POWI
· 9:45AM: PCLN , TDC
· 10:40AM: ARW , FSYS , NVLS
· 11:25AM: BRCM , EXPE , MOT
· 1:45PM: APH , GSIC , ORA , SYMC
· 2:30PM: GLW , MRVL , RAX
· 3:25PM: CDNS , CTV , GRMN , TECD
o Berenberg Bank Diagnostics Day
· ROG.S
o CA Cheuvreux Mid Cap Conference - Jun 02, 2010 - Jun 03, 2010
· ABG.MC , PECI.MI
o CA Cheuvreux Pan-Europe London Conference - Jun 02, 2010 - Jun 03, 2010
· FI-N.S
o Computex Tapai Information Tech show
o Cowen and Company Technology Media & Telecom Conference - Jun 02, 2010 - Jun 03, 2010
· 8AM: BBND , CHKP , OPWV , TMRK , VRGY
· 8:45AM: APKT , CELL , N , OPEN , QTM , TER
· 9:30AM: ATMI , CCOI , CRM , LGF , NVTL , RVBD
· 10:15AM: ABVT , ADS , AZPN , BCSI
· 12:50PM: ACN , KLAC , PAET , PGI , PLCM , WBSN
· 1:35PM: DLB , FNGN , GLBC , MSFT , SDBT , THQI
· 2:20PM: KOPN , MA , MERU , SPMYY.PK , VSAT
· CSR , FORM , JNPR
o Credit Suisse Future of Energy Conference - Jun 02, 2010 - Jun 04, 2010
· 8AM: SPWRA
· 8:35AM: CREE
· 12:30PM: FSLR
· 11:45PM: CDXS
o Credit Suisse Group Engineering & Construction Conference - Jun 03, 2010
· 7:40AM: KBR
· 8:20AM: MDR
· 9AM: FLR
· 9:50AM: URS
· 10:30AM: MTRX , SHAW
· 11:10AM: FWLT
· 1:15PM: JEC
· 1:55PM: CBI
· 2:45PM: PWR
· 3:25PM: ES
· HIL , QNTA
o CRU Events World Wire and Cable Conference - Jun 02, 2010 - Jun 04, 2010
o Danske Markets Bank Seminar
· NDA.ST
o Financial Times Sustainable Banking Conference & Awards - Jun 03, 2010
o Goldman Sachs Basic Materials Conference - Jun 02, 2010 - Jun 04, 2010
· 9:10AM: PKG , ROC
· 10AM: MWV
· 10:30AM: VAL
· 11:10AM: ALB , RKT
· APD
o Incisive Media Malaysian Structured Products Forum - Jun 03, 2010
o Incisive Media Professional Pensions Investment Conference - Jun 02, 2010 - Jun 03, 2010
o Information Management Network (IMN) 5th Annual Illinois Public Employee Systems Summit - Jun 02, 2010 - Jun 03, 2010
o Information Management Network (IMN) 9th Annual Illinois Public Finance Conference - Jun 02, 2010 - Jun 03, 2010
o ING Bank N.V. TMT Conference - Jun 02, 2010 - Jun 03, 2010
o Keefe, Bruyette & Woods, Inc.Diversified Financial Services Conference - Jun 02, 2010 - Jun 03, 2010
· 8AM: AB
· 8:45AM: SLM
· 11AM: WDR
· 2:50PM: IVR
· EV
o Keybanc Capital Markets Industrial and Automotive Conference
· 9AM: TNC
· BEZ , DBD , FWRD , JBHT , JBT , NCR
o Lazard Capital Markets' Annual Radiation Oncology Day
· 3:15PM: TOMO
o Massachusetts Biotechnology Council The ERBI Conference - Jun 02, 2010 - Jun 03, 2010
o Natural Gas Conversion Board's Novel Gas Conversion Symposium - May 30, 2010 - Jun 03, 2010
o New York Society of Security Analysts Metals & Mining Industry Conference - Jun 02, 2010 - Jun 03, 2010
· 11:30PM: GBG
o Nomura Securities Co., Ltd. Pan-Asia Technology Forum - Jun 02, 2010 - Jun 04, 2010
o Platts Geothermal Energy Conference - Jun 03, 2010 - Jun 04, 2010
· 3:30PM: RZ
o RBC Capital Markets Consumer & Retail Conference - Jun 03, 2010 - Jun 04, 2010
· 9AM: JACK
· 10:10AM: CPLA
· CRI , GAIA , LKQX , URBN
o Red Herring, Inc. North America Conference - Jun 01, 2010 - Jun 03, 2010
o Royal Bank of Scotland Benelux Equities Conference Amsterdam - Jun 02, 2010 - Jun 03, 2010
· COR.AS
o Sandler O'Neill & Partners, L.P. Global Exchange and Brokerage Conference - Jun 03, 2010 - Jun 04, 2010
· 7:30AM: AMTD
· 8AM: GHL
· 8:30AM: EVR
· 9AM: TRAD
· 10AM: MF
· 3:30PM: ITG
o Sanford C. Bernstein Strategic Decisions Conference - Jun 02, 2010 - Jun 04, 2010
· 8AM: HES , KFT , LXK , MMM , MRX , PH
· 9AM: APA , EBAY , FE , PFG , UNH , VRTX
· 10AM: CAH , CI , COP , EMR , LMT , TXN
· 2PM: BA , CEPH , COF , EXC , GILD , HOT
· 3PM: CLX , DELL , IPG , LLY , SUN , TRV
· 4PM: AGN , APD , CELG , CTSH , ETN , LOW
o SEPAC Spring Investor Showcase - Jun 03, 2010
o Sterne, Agee & Leach, Inc. Technology Conference - Jun 03, 2010
· 10:45AM: MOSY
· SUPX , ZRAN
o Think Equity Semiconductor Conference - Jun 03, 2010
· 8:30AM: MLNX
· 9AM: AMCC
· 9:30AM: VIRL , VTSS.PK
· 10AM: SMSC
· 10:30AM: CY , NETL
· 11AM: CNXT
· 1PM: ISSI , PLXT
· 1:30PM: MIPS
· 2PM: CAVM , QLGC
· 3PM: MSCC , POWI
· CEVA , DIOD , ENTR , MSPD
o ThinkEquity Semiconductor Conference - Jun 03, 2010
· ELX
o UBS Global Specialty Pharmaceuticals Conference - Jun 02, 2010 - Jun 03, 2010
o United Nations Environment Programme World Environment Day: Water Matters Global Water Conference - Jun 03, 2010
· AWK
COMPANY MEETINGS/OTHER DAILY EVENTS
· Wednesday June 2:
o Shareholder Meetings
§ AI, INOC, MWE, YSI, DII, FCN, VQ, AMS, CALP, CSGP, MDCO, MDNU, OWW, VSI, CBR, SNDK, CERS, DNE, MNTX, NTN, ROP, TSPT, SALM, ADVS, CAKE, MASI, SNSS, ISIS, NGSX, TAP, DKS, DRCO, OFI, TECD, LACO
o Challenger Gray & Christmas reports on job-cut announcements for May
o The SEC sponsors a roundtable discussion on market structure.
o Investor Warren Buffett headlines the Financial Crisis InquirCommission's examination of the role of ratings agencies in the meltdown
o South Korean markets close.
· Thursday June 3:
o Shareholder Meetings
§ ISPH, PRXL, AMPH, FBCM, GV, IDIX, PDII, RPBC, TITN, IR, OMEX, DG, DSW, ENMD, IT, NYB, PFIN, REV, SBGI, TEAM, TSON, TZOO, UHT, URRE, WEBM, AREX, IDCC, PEI, TRGL, FTWR, SBSA, CXM, ICGN, LF, PXG, SLTM, SNMX, BABY,ASGN, BIDZ, EXPO, QSFT, RDNT, WAVE, CPHC, STEM
o G-20 ministers gather in South Korea.
o JNJ offers a business review
o Markets are closed in Austria, Brazil and Poland for a religious holiday.
ECONOMICS
· Wednesday June 2:
o 0700 Mortgage Applications
o 0745 ICSC/Goldman Sachs Chain Store Sales
o 0855 Redbook Index
o 1000 Conference Board Online Help Wanted Index
o 1000 Pending Home Sales
o 1630 API Oil Industry Report
o Auto Sales
· Thursday June 3:
o 0815 ADP National Employment Report
o 0830 Productivity & Costs,
o 0830 Jobless Claims
o 1000 DJ-BTMU Economic Barometer
o 1000 ISM Non-Manufacturing Composite Index
o 1000 Factory Orders
o 1030 EIA Natural Gas Inventories
o 1100 US Energy Dept Oil Inventories
o 1630 Fed Discount Window Borrowings
o 1630 Foreign Central Bank Holdings
o 1630 Money Supply
o Chain Store Sales
EARNINGS
o Industrials/Homebuilders
· Wednesday June 2: HOV, LAYN, BNSSA, CSIQ, DAKT, ROLL, GEF, ASPG, CPRT
· Thursday June 3: JOYG, UHAL, STP
o Consumer/Retail/Education
· Wednesday June 2: CWTR, JOSB, SCVL, ABM, UNFI, JVA
· Thursday June 3: CHRS, GIII, ZQK, KKD, ULTA, VLGEA, CVGW, MDNU, CHTT
o Financials
· Thursday June 3: NASB,
o Transports
· Wednesday June 2: DDMX
o Gaming,, Lodging, & Leisure
· Wednesday June 2: ISLE
o Tech/Telecom
· Wednesday June 2: FTLK, HRAY
· Thursday June 3: SNIC, SAI, AGYS, JRJC, CMTL,
o Autos
· Thursday June 3: MOD, XIDE, CRMT
o Healthcare
· Wednesday June 2: CMED, CMN, CO
o Media
· Wednesday June 2: ALOY
· Thursday June 3: NAVR
o Energy
· Wednesday June 2: AENY
INVESTMENT BANKING WRAP
M&A
· AIG/Prudential
o Pru withdraws from 3-month, $30.4 bln AIA bid- Reuters
§ Prudential said on Wednesday it is withdrawing from its effort to buy AIG's Asian life insurer, an expected move by the U.K. group after AIG turned down a $30.4 billion offer for the company
§ As a result, Prudential (2378.HK) said it will not proceed with a $21 billion rights offering in London and Hong Kong designed to raise money to finance the deal
§ http://www.reuters.com/article/idUSTOE65100R20100602
o AIG has many options for AIA, Benmosche- Reuters
§ "We will have several options to consider regarding AIA -- more than we did in March," Benmosche said
§ These options include selling parts of AIA by geography, according to sources familiar with the situation. AIG could also revive plans for an initial public offering of the business.
§ http://www.reuters.com/article/idUSWEN535420100601
o Prudential Says Collapse of AIA Bid to Cost 450 Million Pounds- BBG
§ Prudential Plc said the collapse of its $35.5 billion takeover of AIG’s main Asian unit will cost it about 450 million pounds ($660 million). The failure may also cost Chief Executive Officer Tidjane Thiam his job
§ Prudential, which was due to pay AIG in dollars after raising the cash in pounds, may have made a “significant gain” on a 500 million-pound currency hedge
o Prudential currency trades could mop up cost of AIA deal- Telegraph
§ Overall, the AIA deal would have cost Prudential about £1.1bn in various advisory and legal fees, however the larger part of these will only be payable if the deal is successful, meaning that if the transaction is aborted the insurer could come out with little in the way of expenses and potentially more money than it started with.
o No Reason To Break Up Prudential, Oriel- DJ
§ Weighing in on "where now for Prudential," Oriel Securities sees "no reason to break the company up and we doubt that any acquirer has the resources to make a successful bid."
§ But Oriel still thinks the shares looks expensive, and buying them now would mean relying on a bid or breakup
· C Citi to shrink consumer finance arm in effort to attract buyers- FT
o The restructuring of CitiFinancial, one of the cornerstones of Citi’s original plan for an all-encompassing “financial supermarket”, underlines the desire by current management to put the company’s turbulent past behind it.
o Citi said on Tuesday it would shut down more than 300 of CitiFinancial’s 1,800-plus branches and stop making consumer loans at another 184. The moves will lead to more than 500 job losses among the 9,600 people employed by CitiFinancial, which will also change its name once the reorganisation is complete.
o http://www.ft.com/cms/s/0/4fea84da-6dcc-11df-b5c9-00144feabdc0.html
· Icahn plans proxy fight for LGF Lions Gate- Reuters
o Billionaire Carl Icahn said he would launch a proxy battle for control of the board of Lions Gate Entertainment Corp (LGF.N) as the studio posted a narrower-than-expected loss on Tuesday
o “We've lost confidence in general with the board and the management," the billionaire told Reuters. "We think its reprehensible for a company this size to have such high general and administrative expenses,"”
o http://www.reuters.com/article/idUSN0113431420100602
· Massmart denies WMT Wal-Mart deal in eye of strike- Business Report
o Lucas Ramatlhodi, the co-ordinator in the secretariat at Saccawu, said yesterday that the job cuts were not only to do with the financial performance of the business, but were part of a strategy to neutralise unions ahead of a mooted deal with Wal-Mart
o Brian Leroni, a spokesman, said yesterday: "There is no Wal-Mart deal." Instead he said the retrenchments were due to the restructuring of Massdiscounters distribution centres, which meant that fewer staff were now required to receive goods at Game and Dion Wired stores
o http://www.busrep.co.za/index.php?fArticleId=5495527
· COV Covidien to buy EVVV ev3 for $2.6 billion in vascular deal- Reuters
o Covidien plans to acquire ev3 for $2.6 billion to boost its business in stents and other vascular devices, underscoring the favorable deal climate in the medical technology industry.
o At $22.50 per share, the deal represents a nearly 19 percent premium for ev3, whose shares had already jumped more than 40 percent this year
o http://www.reuters.com/article/idUSTRE65022T20100601
· THC Tenet confirms in talks to buy Australia's Healthscope- Reuters
o It did not discuss a price. Healthscope owns 43 hospitals, representing 15 percent of Australia's private hospital market, and is the country's third-largest pathology business
o While the talks are in preliminary stages, Tenet said it is deviating from its policy of not commenting on possible acquisitions because of the recent volatility in its common stock.
o http://www.reuters.com/article/idUSN0112167920100601
· APD Air Products Extends Tender Offer to Acquire ARG Airgas- (PR)
o The offer and withdrawal rights are now scheduled to expire at 12:00 midnight New York City time on August 13, 2010, unless extended.
· Foster's beer could pull bids of $10 bln- Reuters Dealtalk
o Foster's Group Ltd (FGL.AX), Australia's largest brewer, could attract takeover bids of up to $10 billion from suitors including SABMiller and Asahi, after a long-awaited decision to split off its struggling wine business.
o http://www.reuters.com/article/idUSSGE65005I20100602
· VALE Vale increases stake in Belvedere- (PR)
o Vale S.A. (Vale) informs that it has acquired an additional 24.5% stake in the Belvedere coal project (Belvedere) for US$ 92 million from AMCI Investments Pty Ltd (AMCI)
· CAT Caterpillar, GE in Iron-Horse Race- WSJ
o Caterpillar Inc. is pushing further into the rail business by buying a maker of locomotives, and taking on General Electric Co. in the process.
o On Tuesday, the heavy-equipment maker said it would pay $820 million for Electro-Motive Diesel, in a bet that freight transport will grow as the economy strengthens
o http://online.wsj.com/article/SB10001424052748704875604575280263343200050.html
· Providence Equity Said to Seek More Than $1 Billion for Bresnan- BBG
o The private-equity firm, based in Providence, Rhode Island, hired Credit Suisse Group AG and UBS AG to sell Bresnan, which has attracted the interest of buyout funds and strategic buyers
o Bids are due in two weeks, one of the people said
· Guggenheim Said to Bid $215 Million for TARO Stake- BBG
o Guggenheim Partners offered on behalf of clients to buy Sun Pharmaceutical Industries Ltd.’s minority stake in Taro Pharmaceuticals Industries Ltd. for about $215 million
o Guggenheim, which has been advising Taro, offered $15 a share in a May 27 letter and Mumbai-based Sun subsequently rejected the approach
· Financial software firm Sophis for sale- Rueters
o Advent has hired Credit Suisse to help it prepare for a sale of the business, which is likely to take place after the European summer,
o Sophis could ultimately fetch 500 to 600 million euros ($608 to $729 million) or more.
o http://www.reuters.com/article/idUSTRE6505GY20100601
· Guarani buys mill, to be No 3 Brazil ethanol group- Reuters
o Acucar Guarani SA (ACGU3.SA) will become Brazil's third largest sugar and ethanol group with the purchase of the Mandu mill in Sao Paulo state
o http://www.reuters.com/article/idUSN0112381720100601
· Telefonica bid for PT's Vivo stake boosts PT stock- Reuters
o Telefonica's improved 6.5 billion euro offer to Portugal Telecom (PT) for its part of Brazilian mobile firm Vivo (VIVO4.SA) got the thumbs up from PT investors on Wednesday
o PT's board said on Tuesday it would let shareholders decide on the sweetened cash bid for its half of a joint venture that controls Vivo, Brazil's largest mobile phone company. That was 14 percent better than the previous bid, which received an outright rejection.
o http://www.reuters.com/article/idUSLDE6510GP20100602?type=marketsNews
· BASF near agreeing takeover of Cognis- Reuters
o BASF, the world's largest chemicals maker, and Cognis's owners Permira PERM.UL and Goldman Sachs Capital Partners (GS.N) have agreed terms on the price and on the main conditions of the deal
o However, an official announcement should not be expected before mid-June because BASF plans to carry out final checks as part of a "confirmatory due diligence,"
o http://www.reuters.com/article/idUSTRE65117020100602
· China's HRAY Hurray Holding, SNDA Shanda Interactive In Asset Swap- WSJ
o An asset swap between Chinese online media companies Hurray Holding and Shanda Interactive Entertainment will reshape the companies' focus in China's robust Internet and mobile market
o Hurray has agreed to buy Shanda Interactive's online audio business in exchange for about 415.4 million newly issued shares, while selling Shanda Interactive its core recorded music and wireless services business for $36.9 million
· Barclays Makes Offer for Carbon Developer Tricorona- BBG
o Barclays Plc said it made a cash offer of 8 kronor a share for Tricorona AB to expand its position in the carbon market.
o The London-based bank said the offer values the Stockholm-based developer of carbon credits at about 1.1 billion kronor ($144 million), according to a statement released today.
o The offer was recommended by Tricorona’s board, according to a separate statement.
· Sulzer Offers to Buy Castle; Bid Valued at 127.5 Million Pounds- BBG
o Sulzer said it has offered to buy Castle Support Services. for 108 pence per share in cash, valuing the UK company at 127.5 million pounds.
· Indie label Bug Music being shopped for $300M- NYPOST
o In the chase for the firm are several big record companies including Warner Music Group, Universal Music Group, Sony/ATV Music and a joint venture with private equity powerhouse KKR and BMG.
o http://www.nypost.com/p/news/business/indie_label_bug_music_being_shopped_DT2TuWsZ4v1lpm2GfSYVCP
· Santander once again preparing to sell its insurance business- Expansion
o Santander seeks alternatives for its insurance business to enable it to be in a comfortable position with the capital requirements of future banking regulation.
o Possible suitors could be French Axa, Italian Generali, Britain’s Aviva, and Zurich Swiss
· MMBYMediacom Gets Buyout Bid From CEO- WSJ
o Mediacom Communications Corp., said Tuesday its founder and chief executive offered to take the company private in a bid that values the cable operator at about $590 million.
$ RAISING
IPOs
· Prudential deal exit raises prospects for AIA IPO- Reuters
o The widely expected move on Wednesday came after American International Group (AIG) rebuffed Prudential's attempt to lower its offer, and could pave the way for American International Assurance's (AIA) potentially up to $15 billion IPO.
o http://www.reuters.com/article/idUSTRE65104D20100602
· AIA Needs Polishing Before IPO- WSJ
o Prudential's bid for AIA gave rise to some implied criticisms of the way the business has been run, including AIA's product mix and relatively poor sales agent productivity;
o Meanwhile its geographic spread isn't optimal, with market-leading positions in politically volatile places such as Thailand and the Philippines and relatively weak businesses in India and China
o http://online.wsj.com/article/SB10001424052748703561604575281771117418324.html
· Market slide may dent AgBank IPO valuation hopes- Reuters
o China's market .SSEC drop is one of several factors prompting potential investors to query whether AgBank, China's fourth-biggest lender by assets, is worth the 1.6 times book value being bandied around in the market.
o The China Daily newspaper reported on Wednesday that AgBank could cut the size of the IPO if markets remain volatile
o http://www.reuters.com/article/idUSTRE6506RZ20100602
· JPMorgan and BofA lead candidates for GM IPO- Reuters
o Bank of America Merrill Lynch (BAC.N) and JPMorgan (JPM.N) are the lead candidates for "senior manager" underwriting roles on the General Motors initial public offering, according to Fox Business Network's Charlie Gasparino
o GM and the Treasury are running the selection process and an announcement is expected later this week or next
o http://www.reuters.com/article/idUSTRE65064720100601
· Chr. Hansen IPO fully subscribed- Reuters
o Danish food ingredients maker Chr. Hansen's initial public offering (IPO) of new shares is fully subscribed
o The planned listing marks a thaw in the Danish IPO market. The previous major listing in Copenhagen was that of insurer TrygVesta in 2005.
o http://www.reuters.com/article/idUSTRE6511RT20100602
· Jupiter Sets Its IPO Price at 150 Pence to 210 Pence- BBG
o Jupiter Investment Management Holdings, the money manager run by Edward Bonham Carter, said it will price its initial public offering at between 150 pence and 210 pence as it seeks to raise money to reduce debt.
o Jupiter will be valued at around 793 million pounds if the shares are sold at 180 pence. That’s 8.69 times the firm’s earnings before interest, tax and amortization. Rival money manager Henderson Plc has a ratio of 13.99 and Gartmore Group Ltd. has a ratio of 7.93.
· Zipcar Files for an IPO- WSJ
o Car-sharing concern Zipcar Inc. filed plans for an initial public offering of stock, a deal that could be a draw for investors looking for a business with a dash of eco-consumerism
o Car sharing, a rental alternative in which drivers pay for memberships that enable them to rent cars by the hour, is a hot area of the otherwise slow-growing global auto-rental industry
o http://online.wsj.com/article/SB10001424052748703961204575280671016193544.html
PRICINGS
Initial Offerings
o NRE Nobao Renewable Energy 18m share IPO expected to price 6/03/10 via UBS and Citi: Price Talk $8-10
o WLS Welsh Property Trust 17.5m share IPO expected to price 6/03/10 via UBS and JPM: Price Talk $19-21
o Byggmax Holding says IPO priced at SEK 46/share- SA
o Jupiter Investment Management Sets Its IPO Price at 150 Pence to 210 Pence- BBG
Secondary Offerings
o No secondary pricings currently expected next week
NEWS
· Aleris emerges from bankruptcy as private company, closes rights offering- Reuters
o The company, now owned by funds managed by Oaktree Capital Management LP affiliates of Apollo Management LP and Sankaty Advisors LLC, also said it closed on a $609 million rights offering
o http://www.reuters.com/article/idUSN0112736520100601
· Student Transportation to raise C$50 mln in bought deal- Reuters
o Student Transportation Inc (STB.TO) said it would raise C$50 million from the sale of convertible debentures, the proceeds of which will be used for general corporate purposes
o http://www.reuters.com/article/idUSSGE6500JU20100601
· HCC Insurance to buy back $300 mln shrs; names new CFO- Reuters
· Consumer: NUS Nu Skin Enterprises files common stock shelf of indeterminate amount for holders
· Healthcare: SKBI Skystar Bio-Pharmaceutical files $28.8M secondary offering via Rodman and JMP
· Energy: PVG Penn Virginia GP announces 8.83M share secondary offering via Barclays
· Financials: MF MF Global to offer up to $150M in common shares via JPM, Citi, and DB
· Financials: FRBK Republic First has commenced $30M common stock offering via Sandler O'Neill and RBC
· Real Estate: AMRR ARMOUR Residential REIT to offer 7M shares via Ladenburg Thalmann and Macquarie
· Tech: GS Goldman Sachs Placing 2.54 Million Ordina Shares at EU3.20 to EU3.25
· YUII Yuhe International, Inc. files $40M equity shelf
***All eco data from Bloomberg and DJ
Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal.