Cantor Morning News | Morning @ Cantor

o EUR up … way off lows at 7am et…copper in 1% - off lows, Rates move higher as fear bid dissipates… Hungary tries to reassure markets on its deficit pledge

o EUR/USD remained below the 1.20 level ahead of the NY morning but off its fresh 4-year lows of 1.1878 seen in thin Asian trading

o The G20, in a communique released after two days of talks in South Korea ended on Saturday, did not specifically cite the euro zone's debt troubles.

o More political worries in Mideast and Korea….Iran Guards Ready To Escort Aid Boats To Gaza-Khamenei Aide

· Following Friday's sharp sell-off, the S&P 500 is down 12.5 percent from its most recent closing high on April 23.

· Rates tick up Monday as fear bid dissipates…World events give Fed more reasons to maintain low rates - WSJ

· 3-Month Euribor Rises To 0.711% Vs 0.707% Friday

· 3-month Libor: Dollar: 0.537% vs prior 0.537%;

· Europe stocks dn 0.2% at 7am et (at highs) …Hungary tries to reassure markets on its deficit pledge… equities are still lower by have moved off of the session's worth levels, as the Hungarian Forint has turned positive, as some market players have downplayed Friday's comments regarding a possible debt default by Hungary..plus supportive comments out of Russia's central bank regarding Spanish bonds

o Hungary stocks dn 1% at 7am …were dn 4% Monday

o The Hungarian forint gained, paring the biggest two-day drop since 2008, after the government pledged to stick to the budget deficit goal approved by creditors

o Greece banks hit hard Monday. And Santander dn 3% today

o Cost Of Insuring European Sovereign Debt Mostly Higher, but Greece tightens originally Monday; more Focus On Hungarian Sovereign Debt

§ Other factors playing into the fear and uncertainty included a drop in oil prices, a German court considering a ban on the European Union/International Monetary Fund aid packages, and a Group of 20 meeting that has failed to provide any form of relief, DJ

· Asian Markets: Nikkei (3.84%); Hang Seng (2.03%); Shanghai Composite (1.64%)

o Nikkei fell 380.39 points, or 3.8%, to 9520.80

o Nikkei Stock Average suffered its biggest fall of 2010

o CHINA: Accelerated meltdown in equities early in the session was exacerbated by comments from the president of a Chinese lender Bank of China Li (often confused for the nation's central bank), suggesting inflation pressure has diminished and also downgrading his forecast for the PBoC. TTN

o South Korean won lost 2.76% in domestic trade Monday

o China's yuan was lower against the U.S. dollar Monday afternoon after the U.S. dollar rose against the euro and most other Asian currencies, while nondeliverable forwards rose to nearly 10-month highs as traders scaled back their expectations of yuan appreciation over the next 12 months. DJ

· G20 Agrees on Need for Deficit Cuts –WSJ, CNBC, FT

o G20: Saturday's communique revealed an about-face by global finance officials, calling for greater focus on fiscal consolidation rather than further fiscal stimulus amid the European sovereign storm

o German Finance Minister Wolfgang Schaeuble said the meeting had agreed that a determined effort to cut back billowing budget deficits was unavoidable. But he said the United States and other G20 members had also argued for greater efforts to pump up demand.

o "There are different opinions," Schaeuble told reporters.

o The belt-tightening has raised worries in Washington that Europe's conversion to fiscal rectitude could derail the global recovery.

o Geithner singled out the need for Japan and "European surplus countries" -- code principally for export powerhouse Germany -- to boost domestic demand.

o Geithner warned that the world cannot depend on consumer spending in the U.S. to drive growth

o G-20 officials agreed they would finish work on tightened banking standards before leaders meet at a November summit in Seoul.

o Geithner: G-20 Agreed Stimulus Exit Should Be In Step With Private-Sector Recoveries

o No Discussion Of Euro Level At G-20

o German Fin Min: Likely That G20 Won't Implement Tobin Tax

o German Fin Min: Only Limited Support For Financial Activity Tax

o G-20 Nears Accord On Capital Rules..Not All Countries On Board For Bank Levy

§ The world's leading economic powers edged toward agreement on new rules to ensure that major banks keep enough money in reserve to insulate them against future crises.

o IMF Strauss-Kahn: "Something Must Be Done" On Yuan – DJ

§ International Monetary Fund Managing Director Dominique Strauss-Kahn said Saturday that "something obviously has to be done" on the value of the Chinese currency, but added that even a substantial revaluation of the yuan, also called the renminbi, would not entirely resolve global imbalances.

o Top finance officials from the Group of 20 major industrial and developing economies agreed Saturday they would finish work on the tightened banking standards before their leaders meet for a summit in Seoul in November, ahead of their original year-end goal.

o G20 drops support for fiscal stimulus - FT

§ Finance ministers of the world’s leading economies have been so spooked by the sovereign debt crisis that they have decided they can no longer wait until economies are growing strongly before they remove fiscal stimulus

§ http://link.ft.com/r/6NPSBB/TP6472/TTOKO/D4RS1O/40AH4H/JY/h

· Data quiet overnight

o Germany Apr Factory Orders +2.8% m/m vs consensus (0.4%)

· EU stories:

o The amount of cash banks have parked with the European Central Bank one-day deposit facility rose to a new record high of EUR350.903 billion Sunday, ECB data showed Monday, indicating that pressure remains on money markets. DJ

o EU finance ministers are on track to sign off on final details of $527 billion in loans intended as a backstop if sovereign debt woes deepen. WSJ

o Germany’s constitutional court is considering the possibility of imposing a temporary injunction against the country participating in the 750 billion euro ($896 billion) rescue package for indebted European countries agreed to in May, Der Spiegel

o The euro may not exist in its current form in five years time, economists surveyed by the Sunday Telegraph predict.

§ Of the 25 leading economists who took part in the U.K. newspaper's survey, 12 predicted that the euro wouldn't survive in its current form this U.K. parliamentary term, compared with eight who suspected it would. Five declared themselves undecided.

§ http://www.telegraph.co.uk/finance/financetopics/budget/7806064/Euro-will-be-dead-in-five-years.html

o Juncker: Not Worried About Current Level Of Euro – DJ

§ Euro-zone Chairman Jean-Claude Juncker Sunday said the current level of the euro isn't a concern, but called for improved government across the euro area and greater cooperation between countries using the currency.

§ "I was surprised by the speed of the fall, but I'm not worried about its current level," Juncker said, noting he doesn't normally comment on exchange rates.

o EU Juncker: Yuan Is Undervalued

o EU Juncker: Europe Ratings Agency Needed

o EU Juncker: Always Been In Favor Of Euro-Zone Government

o Spain: Russian central banks says Spain default risk near zero – BBG

o Spain: El Mundo reported that Spain was considering tax amnesty to help finance debt

o Hungary PM Orban to unveil new economic plan on Tuesday Jun 8th

o Hungary: EU officials attempted to calm market concerns, downplaying any comparison of Hungary to Greece - DJ

o Hungary: Hungary's government maintained that it will meet this year's budget deficit target of 3.8% of gross domestic product and said it will form an action plan by the end of Monday. DJ

o EU's Rehn: Talk Of Hungary Default "Wildly Exaggerated" (Dow Jones)--Recent talk of a possible sovereign default by Hungary, which sent the Hungarian currency and bonds crashing last week, is "wildly exaggerated

o Germany Digs In Heels As IMF Pushes G20 Growth Plan - DJ

§ German officials continued Saturday to refuse international pleas to do more to support demand in the global economy, sticking firm to the line that a country with an aging, shrinking population can't afford to live on credit.

o Germany's government plans to cut 15,000 jobs by 2014 and abolish planned pay rises for civil servants as part of austerity efforts from 2011 to reduce its budget deficit, Der Spiegel

o The European Commission Sunday denied it wants to impose austerity reforms that would mean Greek pensions would be slashed by half in an attempt to soothe rising concerns and avoid potential misunderstandings, newspaper Vima reports

o Greece's Fin Min Papaconstantinou: Greece will meet requirements for second part of loans from Europe and IMF in September

§ Deficit cutting measures are ahead of targets

o The rate of economic growth in Central and Eastern Europe is likely to be lower than it was in the past, European Central Bank governing council member Ewald Nowotny said Monday. DJ

· EU and US: Europe Debt Crisis - Euro Zone Faces Zero Growth, US Headed For Trouble: Roubini - CNBC

· Iran Central Bank Denies EUR45 Bln Forex Conversion - AFP

o Iran's central bank chief has denied reports the bank was converting EUR45 billion of its foreign exchange reserves into dollars and gold ingots, the economic daily Pool reported Sunday.

· Argentina Boudou: Argentina Debt Swap Advancing As Expected – DJ

· Money Raising:

o Agricultural Bank of China’s initial public offering is likely to raise much less than the $30bn total it had hoped for when it sells shares in Hong Kong and Shanghai – FT

o Bank of Communications cut the size of a planned rights issue by 21% to $4.8 billion. The shift came as China's stock market falls and as Agricultural Bank of China moves closer to an IPO that could raise as much as $30 billion WSJ

· M&A stories

o Grifols of Spain plans to acquire Talecris, a U.S. maker of plasma medicines partly owned by Cerberus, for more than $3 billion.

§ Grifols will pay $26.16 in cash and stock for each Talecris share

§ That’s 64 percent above Talecris’s June 4 closing price on the Nasdaq Stock Market, and 53 percent above the average close over the last 30 days.

§ BAX impact from Talecris’s takeover

o WPO Washington Post has more than three parties interested in Newsweek - Washington Post

o No new bids pending for Lihir Gold - Reuters

§ Sources say Newcrest Mining (NCM.AU), AngloGold Ashanti (ANG.SJ), Barrick Gold (ABX.CN), and Newmont Mining (NEM) have all looked at the company's books, but Newcrest is likely to remain the only company that makes an offer

o Tenet Healthcare (THC) could be knocked out of the A$1.85 billion race to take over Australia's Healthscope Ltd. (HSP.AU) after a revolt by one of its biggest shareholders overnight put its bid in doubt, the Sydney Morning Herald reported Saturday.

o LEAP PCS WSJ: Leap-MetroPCS Wireless Talks Stay Stalled

o LGF Lionsgate Urges Hldrs To Continue To Reject The Icahn Group's Offer And Not Tender Their Shrs

o EMR May raise its £2.75/shr offer for Chloride Group – Times

o Arrow Energy: Takeover By Shell, PetroChina Remains On Track – DJ

o Prudential plc Issues response to reports claiming new bid for AIG's AIA unit is under discussion

§ - Notes that there are no new plans to bring back a bid for the unit cancelled earlier in the week

§ Prudential New Business Figures 'Terrific' (reported Monday) –DJ

o DIS Walt Disney Reportedly entering exclusive talks to sell Miramax unit to David Bergstein - LAT

o JCI Johnson Controls confirmed that it sent a letter to Visteon and remains interested in proposal

· BP stories:

o BP's shares were up 1% Monday … BP Plc gained for a third day as the oil company increased the oil-capture rate at its leaking well

o BP PLC (BP) Monday said the cost of its response to the Gulf of Mexico oil spill had reached $1.25 billion as it continued its attempts to contain more leaking crude.

o The $1.25 billion figure excludes $360 million for a Louisiana barrier islands construction project,

o BP last week placed a containment cap on its ruptured oil well. On Monday BP said a second containment system would be available for deployment in mid-June, potentially increasing the amount of oil and gas that can be captured.

o On Sunday BP's containment cap collected 10,500 barrels of oil. From Thursday to Sunday, a total of 16,600 barrels of oil had been collected

o BP WSJ doubts BP is a takeover target

o BP regular advisor Goldman Sachs is rumored to be preparing to fend off any potential takeover attempts for the U.K. oil major, reports the Independent on Sunday

o BP US govt may prohibit company from any further contracts or exploration deals in the US as part of punishment for Gulf of Mexico spill – Times

o BP U.S. Coast Guard says BP's cap is capturing about 10K barrels of oil per day -- NY Times

o BP Preparing New Ads To Air Over Next Days, Weeks – WSJ

o BP CEO Hayward Says He Won't Quit—DJ

o Even Before Oil Spill, No One Was In Charge--NY Times

§ Documents from BP PLC (BP, BP.LN) interviews with experts and testimony by witnesses demonstrate that the agencies charged with overseeing deep-water oil drilling in the Gulf of Mexico "granted exceptions to rules, allowed risks to accumulate and made a disaster more likely on the rig, particularly with a mix of different companies operating on the Deepwater [Horizon rig] whose interests were not always in sync,"

§ http://www.nytimes.com/2010/06/06/us/06rig.html?hp

· WSJ: Gulf Hotels Hit By Cancellations Due To Tar Balls

· Banks: WSJ: Three Bank Failures Push 2010 Total To 81

· Banks: Finance officials from G-20 nations agreed they'd finish work on tightened banking standards before their leaders meet for a summit in Seoul in November, ahead of their original year-end goal. WSJ

· Weak movie-theater-ticket sales in US being offset by strong performance internationally - LA Times

· Tech in focus today: AAPLs Worldwide Developers Conference in San Francisco

o According to iSuppli, smartphone shipments expected to double over next 4 years – WSJ

o Steve Jobs will probably unveil a new iPhone today – BBG

o Jobs is set to give the keynote address at the company’s Worldwide Developers Conference in San Francisco

o Hon Hai's planned pay increase could more than double the minimum wage for some of its employees.

o Hon Hai Precision (2317.TT) lost 6% in Taiwan after announcing it will double wages in China; affiliate Foxconn Technology (2354.TT) dropped by the 7% daily limit

· GOOG Australian authorities are investigating company over alleged breach of privacy - ABC News

· Goldman Sachs Stung by Backlash in China

o lambasted in articles in state-controlled media

o “Many people believe Goldman Sachs, which goes around the Chinese market slurping gold and sucking silver, may have, using all kinds of deals, created even bigger losses for Chinese companies and investors than it did with its fraudulent actions in the U.S.,” read the opening lines of an article in the China Youth Daily

o http://www.cnbc.com/id/37548164

· GE WSJ thinks General Electric still relies too much on commercial paper (Friday)

· Euro weakness helps EADS: ….European aerospace giant European Aeronautic Defence & Space Co. NV (EADSY, EAD.FR) could revise up its 2010 sales forecast thanks to the euro's weakness against the dollar, the company's finance chief said in anewspaper interview to be published Monday. AFP

· Miners: Weigh Monday (off lows thi) : Kazakhmys is -4.5%, Xstrata -3.3%

· Miners: BHP CEO Kloppers stated that the Mining tax is 'greatest threat I've seen in 17 years'. He further stated that he had been through two Brazilian crises and the Asian crisis and this is by far the biggest issue I have seen by an order of magnitude. the Australian,

· Miners: Australia Prime Minister Rudd is reportedly to continue discussions with mining companies on super-profits tax; Believes the structure and rate of the mining tax are appropriate. TTN

· Airlines pos: IATA Meets Monday As Airline Industry Shows Signs Of Recovery AFP

o The airline industry will post a $2.5 billion profit in 2010, reversing two years of losses, the International Air Transport Association said today, scrapping an estimate for a $2.8 billion deficit as the economy rebounds.

o IATA Says Air Industry Recovering Faster Than Predicted

o Warns Parts Of Industry Still Posing Big Losses

o The commercial aviation industry, battered by plunging sales and fallout from the Icelandic ash cloud, is at last emerging from a steep downturn, the International Air Transport Association (IATA) says.

o "We are meeting as the industry continues its recovery from the global financial meltdown," IATA general director Giovanni Bisignani said ahead of its general assembly starting Monday.

· Airlines Lufthansa AG (LHA.XE) is sticking to its outlook of a slight increase in demand this year, said Chief Executive Officer Wolfgang Mayrhuber, speaking on CNBC

o Lufthansa CEO: Considering Price Hikes For Cargo Ops

o Seeing Slight Increase In Demand In 2010

· Airlines SAS: MayTraffic +4% On 2009

o Signs Of Recovery Seen In Particular On Asian Routes

o The Market Continues To Be Unpredictable

o SAS: Signs Of Recovery Seen On Selected European Routes

o Signs Of Recovery On Some US Routes

· Circuit breakers on single stocks will not be introduced on Monday – WSJ

o SEC Expects Single-Stock Pauses Within Two Weeks

· Korea crisis:

o South Korea sharpened criticism of the North's alleged ship-sinking but acknowledged that Seoul can't go to war over it. WSJ

o South Korea will send an envoy to China this week to seek support for its campaign for the U.N. Security Council to censure North Korea over the sinking of a warship, officials said Monday. AFP

o North Korea's parliament was to hold a rare second annual session Monday amid growing tensions with South Korea – DJ

o North Korea named a new premier during a rare parliamentary succession, the country's official media said Monday

o US Weighing New Options Against North Korea – Gates – AFP

§ The U.S. is weighing fresh steps to hold North Korea to account over the sinking of a South Korean warship, after Seoul appealed for United Nations intervention

§ Washington "is assessing additional options to hold North Korea accountable," apart from the U.N. Security Council route and planned military exercises with South Korea, Defense Secretary Robert Gates said in Singapore

§ He didn't specify what the new measures might be but, in an apparent message to China, warned of the risks of inaction

o South Korea may deploy Patriot anti-missile batteries against North Korea, a move opposed by Chinese officials - Korean press

o South Korea may request more formal support from China in its standoff against the North - Korean Press

· Mideast Crisis

o Iran Red Crescent To Send 3 Aid Ships To Gaza- DJ

o Iran Guards Ready To Escort Aid Boats To Gaza-Khamenei Aide

§ AFP)--Iran's elite Revolutionary Guards are ready to escort aid flotillas to Gaza if the country's supreme leader Ayatollah Ali Khamenei orders this, a Khamenei aide said Sunday.

§ "The Revolutionary Guards' naval forces are fully prepared to escort freedom and peace flotillas carrying humanitarian aid from all over the world to the oppressed people of Gaza," Ali Shirazi, Khamenei's naval representative, told the Mehr news agency

§ "If the respected leader of the revolution [Khamenei] gives an order in this regard to the Revolutionary Guards' naval forces, it will take a practical step using its capability and equipment to escort flotillas to Gaza," he said.

o All Activists And Crew On Gaza Aid Ship Deported –Israel AFP

o Israel Spurns Outside Gaza Raid Probe for Own Inquiry - BBG

§ Israel rejected calls for an external probe of its raid on a Gaza-bound aid ship that left nine dead, saying it was discussing how to conduct its own inquiry with the U.S.

o Asian Leaders Gather In Turkey Amid Gaza Tensions (AFP)--Leaders of Asian nations, among them Iran, Syria and the Palestinians, were to gather for security talks here Monday amid simmering regional tensions over a deadly Israeli raid on Gaza aid ships.

o No Israel Normalization Without Inquiry – Turkey - DJ

o Clinton Warns Of Likely Iranian 'Stunt' Ahead Of UN Sanctions Vote - AFP

§ U.S. Secretary of State Hillary Clinton said Sunday she expects Iran will "pull some stunt in the next couple of days" as a UN vote on tough sanctions against Tehran over its nuclear program looms.

§ Asked what she expects in the runup to a UN Security Council vote on sanctions on Tehran over its controversial nuclear program, Clinton said "I expect Iran to pull some stunt in the next couple of days."

o UN Atomic Watchdog Meets On Iran As New Sanctions Loom (AFP)--Iran's controversial nuclear drive tops the agenda at a week-long meeting of the United Nations atomic watchdog starting here Monday as world powers are poised to slap new sanctions on Tehran.

§ Iranian President Mahmoud Ahmadinejad is heading to China this week to discuss the threat of new United Nations sanctions over Tehran's controversial nuclear program – AFP

o The U.S. is pushing for tougher sanctions against Iran, and said on Thursday it believes the United Nations Security Council will back new sanctions within the next week. AFP

o Iran Nuclear Program Source Of Concern for France and Saudi Arabia - French Minister

· (AFP)--French Defense Minister Herve Morin said Sunday that France and Saudi Arabia share the same "concerns" about Iran's nuclear program, adding that he discussed the issue in Riyadh.

· "Saudi Arabia shares the same concerns as us," Morin told AFP at the end of a two-day visit to the kingdom. "We share the same analysis for the risks posed by such a program to stability in the region."

· Morin highlighted the potential risks of proliferation, saying that if Iran acquired a nuclear weapon "other countries might want to follow the same path."

o Turkey Has Proposed Turkey-Iran-Syria Alliance - McClatchy-Tribune

· The Israeli military confrontation of the so-called "freedom flotilla" earlier this week has precipitated a crisis not just between unlikely allies Israel and Turkey, but between NATO allies Turkey and the United States. As the two American allies start a verbal clash, the Obama Administration is finding itself in the middle.

o Paris Proposes EU Check Of Gaza-bound Ships – AFP

§ France has proposed that the European Union check the cargo on ships bound for the Gaza Strip as well as taking charge of the Rafah border crossing into the Palestinian territory

· Terror: Two Arrested At NY's Kennedy Airport Face Terror Charges

o (AFP)--Two men arrested at John F Kennedy airport in New York were charged Sunday with conspiracy to kill Americans outside the country, U.S. justice officials said.

· US, China Military Wariness Is On Display this weekend - WSJ

o The wary relationship between the militaries of the U.S. and China flared openly -- though courteously -- at a conference here over the weekend, a brief flash of the longstanding tension that's centered on Taiwan but extends to their broader alliances and differing world views.

o viewed the U.S.'s willingness to sell arms to Taiwan as a legitimate reason for the two countries' militaries not to talk with each other

Economics:

Apr Consumer Credit at 15:00 ET
Fed Chairman Bernanke interviewed by ABC journalist Sam Donaldson at 19:45 ET

Earnings:

There are no major companies due to report this session

This week’s highlights

· ASCO this week ..expect a ton of Healthcare news

· Jerome Kerviel, the former trader blamed by SocGen for causing the biggest trading loss ever, heads to a Paris court Tuesday.

· Clinton in a Latin America (AFP)--U.S. Secretary of State Hillary Clinton arrived in the Peruvian capital late Sunday, beginning a Latin America tour aimed at forging stronger security ties with the region.

· Data due Friday will likely show China's consumer price index rose 3% in May from a year earlier, up from April's 2.8% rise – DJ

· US Politics: : Tuesday Primaries…WSJ(6/7) Primaries In New Jersey Test Tea Party

o Reid May Have the Tea Party to Thank for a Victory in November - DJ

o An Angle win would be another coup for the Tea Party and its anti-Washington agenda after Rand Paul, the movement’s preferred candidate, beat the Republican establishment’s pick on May 18 for the Kentucky party’s Senate nomination. The question is whether these candidates can win in November’s election (Reid thinks he can beat Tea party )

· Financial reform: House- Senate talks that may begin this week

Economics:

· Fed release Beige Book Wed, 6/ 09

· Key data is US retail sales figures for May due Friday

· The week of 6/14 : May PPI and CPI. June NAHB Survey, May Housing Starts

· Bernanke speaks multiple times next week

Corporate news busy next week

· 6/10 May 2010 Tractor Sales…. Association of Equipment Manufacturers to report North American April agricultural tractor sales

· Consumer stocks reporting : TLB, DG, MTN, DLM, in Europe, Inditex, the world's second largest apparel retailer.

· NAV reports

· Tech sector busy: multiple conferences incl BAC TMT and UBS tech…..plus earnings from NSM, SAP, CIEN, FNSR..plus mid quarter updates from ALTR and TXN; , MediaTek May 2010 Monthly Sales Monday

· Apple Worldwide Developers Conf

· CAT Shareholders Meeting

· Prudential's AGM on Monday, as the fallout descends from the company's failed bid to take over AIA

· Big Wall Street Conferences are busy next week:

o NAREIT starts next week in Chicago

o Healthcare sector in focus over next week

§ ASCO this weekend

§ 2 healthcare conference next week

o TMT conf at BAC

o UBS Global Technology and Services Conference

o UBS Aerospace & Defense Conference in Chicago (June 8th)

o UBS Global Basic Materials Conference in London (June 9-10th)

o Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference

o RBC Capital Markets Global Energy & Power Conference

o JPMorgan Diversified Industries Conference

o Piper Jaffray Consumer Conference

o And many more

Fed watch:

· 6/7 Bernanke interview w/ ABC News Sam Donaldson

· 6/7 Yellen speaks - San Francisco Fed President Yellen gives opening speech before Annual Banking and Finance conference

· 6/8 US: Fed Governor Duke (FOMC voter) speaks to the Consumer Bankers Association

· 6/8 US: Chicago Fed President Evans (FOMC non-voter) speaks on the economic outlook

· 6/8 23:00 US: Kansas City Fed President Hoenig (FOMC voter) speaks on "Farming, Finance, and the Global Marketplace"

· 6/9 Bernanke speaks - testifies before the House Budget Committee on economic conditions

· 06/09/ 12:00 NY Fed's Sack Speaks to Economists in 06/09/2010 12:00

· 6/9 US: Fed Chairman Bernanke speaks at a conference on employment and the recovery at the Richmond Fed

· 6/9 Hoenig speaks –

· 6/11 Plosser speaks

· 06/11 12:00 Fed's Kocherlakota Speaks in Minneap 06/11/2010 12:00

· 6/ 23 FOMC rate decision

Global rates/ central banks:

· central banks meeting next week include:

o The ECB and BoE are set to announce monthly interest rate decisions on Thursday. Neither is expected to change rates

o Brazil

o Bank of Korea

· ECB meets next week: mkt will focus on whether they provide additional liquidity measures (which has weighed on the EUR recently)

o Pay close attention to Trichet’s comments on bond purchases

· US treasury Auctions next week: The Treasury announced next weeks auction schedule which will include $36Bln 3 year notes a decrease of $2Bln from May, $21Bln 10 year notes and $13Bln 30 year bonds.

TODAY’S BIG STORIES

· Equity Wrap:

o We were set up for the disappointment going into the number Friday morning, then prior to the number, you had BK price a bunch of stock at 27 and break issue before you can say investment banking fee, there were comments which later supposedly they said were translated the wrong way about Hungary not wanting to have anything to do with austerity and then there was chatter which was out earlier in the week, that soigné was hiding losses apparently taken on their derivatives(Greek debt they owned), that coupled with a not as robust as expected nonfarm and mfg payrolls even worse number spooked investors and gave reason for folks to get rid of the 1% up for the week profits they’ve had. All said and done, it was not a good way to close for the day and end the week

o For the week, Dow - 2.39% / S&P 500 - 2.61% / Nasdaq - 1.96% / Russell 2000 - 4.30%, and sentiment had shifted once again. Internally, we did see value guys putting money to work, quant’s covering and selling long, and vanillas mostly mixed but better to sell, but by day’s end, the demand was easily satiated. Had software for sale in a big way and saw some durables to buy. Technically, 1,065 and then 1,043 February 5^th lows is support, while 1,105 held on resistance and up higher in case, 1,100/1,120 and 1,140. Breadth to the market had declining issues outpacing advancing issues almost 10-1 while internally here, buy and sell names wound up being equal

o (Billy Clark and team)

· Treasury’s Wrap:

o Friday’s NY session opened with, surprise, higher prices and lower yields – 2yrs off 2bp, belly off 4bps, and the bond 3 ½ bps lower – mostly in response to wider spreads in Euro Bonds and CDS products. Prices began to back up slightly as the market priced in an expected strong payroll number, however this quickly reversed and Treasuries went bid when the released NFP number missed expectations by 105k (431k vs. 536k survey). The big surprise to the weakness though was how much the street missed on increases in the private sector( +41 vs. exp 180) . Bottom line..the number was weak-- although we have to wonder how significant this NFP release was to long-term macroeconomic outlooks (skewed by census workers). As the Euro continued to take heavy selling pressure, hitting a 4-year low below the $1.20 handle, the Treasury market remained bid with 2s trading as high as 100-02¼ (7 ticks above yesterday’s close) and 10s as high as 102-20 (1 ½ points above yesterday’s close). As has been the recent pattern, rallies in treasuries has resulted in a flatter to mixed yield curve with shorter maturities having trouble participating fully in the up move as the need for added yield becomes more prevalent.

o Treasuries went out at their highs as the Dow Jones Industrial Average closed at a low of the last 4 months (9932.0). Once again we find ourselves in a precarious spot to be bidding on a total of $70Bln in Treasuries this week.

o Tuesday morning the Treasury will auction $36Bln 3 year notes (a $2Bln decrease from May) and reopen 10 year notes and bonds for $21Bln and $13Bln respectively.

o Primary Dealer

· Easy Money To Stick Around A While – WSJ

o As a result of euro zone's financial turmoil, along with meager job growth and low inflation, the odds that Mr. Bernanke will soon reverse the easy-money policies that have greased the wheels of the financial system since the crisis began are far smaller than they seemed just a few months ago.

o Futures markets see less than a 50-50 chance that the Fed will push the federal funds rate up to 0.5% by December from its current level just below 0.25%. That is a major shift since the beginning of May, when an increase was viewed as almost a sure thing.

o The next test of the Fed's intentions will come at its meeting June 22-23.

· U.S. Debt Nears Key Threshold

o 88%: Gross U.S. public debt as a share of annual economic output.

o There’s little doubt that the U.S. needs to get its mounting debts under control. But at what point do they become a clear and present danger?

o http://blogs.wsj.com/economics/2010/06/05/number-of-the-week-us-debt-nears-key-threshold/

· Bond firms hoard Treasuries as Europe's debt crisis persists

o The largest bond firms on Wall Street are shifting money to U.S. Treasuries, driving the biggest government-bond rally in at least seven years. The 18 primary dealers that trade with the Federal Reserve held more than $37 billion in government debt as of May 26, according to data from the Fed. Meanwhile, the firms' non-Treasury holdings of fixed-income assets declined 17%. Bloomberg (06 Jun.)

· Consumer deleveraging: Drag on Recovery: Consumer Debt-Cutting - WSJ

o shouldn't come as too much of a surprise that the economic rebound is moving at such a gradual pace.

o job growth is decidedly sluggish.

o One reason: deleveraging. After years of bingeing on debt, U.S. households are paring back. Those not doing so by choice are often being forced, because lending standards remain tight.

o The question now, both for consumer spending and growth more broadly, is how much further the process has to go.

o The answer is probably a lot

o On Monday, the Federal Reserve is expected to say total consumer credit outstanding fell by $1 billion in April to $2.45 trillion. While that may seem like a rounding error, it will mark the 17th monthly decline in the past two years, an unprecedented stretch in the series' 67-year history.

· Equity derivatives are out of favour - Financial News – Online

o The sovereign debt crisis has been the story of the first half of 2010, and it has had many ramifications. One of them has been to drain considerable liquidity from the equity markets, and this has been bad news for equity derivatives.

o Senior equity derivative bankers privately concede that the biggest headache they face at the moment is that investors will not only fail to return to equities but will further curtail overall exposure. The head of equity derivatives at a major bank said last week: “May was terrible for investors. They may decide to reduce exposure to equities. This is a worry.”

o . There is little interest in selling calls or in exotic hedging instruments in the present climate, lament equity derivatives bankers.

· Private-equity managers warn of more future distressed financial-asset sales - Saturday WSJ

o At a meeting in Boston, private-equity managers, painted a bleak picture of the future of the financial services sector

o Peter Birger of Fortress Investment Group stated that the improved environment is, in fact, a charade from central banks and large financial institutions to increase lending markets and consumer confidence

· Munis: WSJ (6/4): IRS Audits Send Chill Through Build America Program

o Ambiguous statements from the Internal Revenue Service have jolted the $2.8 trillion municipal-bond market, raising concern that in the worst case, some states or cities could lose federal interest-rate subsidies on more than $100 billion worth of Build America Bonds that have already been sold.

o Any moves to claw back federal subsidies on those securities could further squeeze local governments already reeling from diminished tax revenues and increased demand for unemployment insurance and other social services.

· Munis: Moody's Lowers State Of Illinois' General Obligation Bond Rating To A1 From Aa3, Based On State's Increased Reliance On Non-Recurring Measures; Outlook Is Stable

· Munis: Build America Issuers Call IRS Look at Pricing ‘Over-Reaching’ - BBG

o The Internal Revenue Service and U.S. Securities and Exchange Commission are using concern that Build America Bonds are being mispriced as an opportunity to impose restrictions on municipal borrowers, a panel of public issuers said at a conference this weekend.

· Munis, banks: New bonds for strapped states also lifting Wall Street – WP

o New federally subsidized bonds that have proven wildly popular in helping cash-strapped state and local governments fund roads, schools and other construction projects also offer a windfall to a less obvious beneficiary: Wall Street banks.

· PwC Faces Possible Probe Over J.P. Morgan's UK Breach

o Auditor PricewaterhouseCoopers LLC could face an investigation over the audit work it provided for J.P. Morgan Chase & Co. (JPM), which earlier this week was hit by a record fine imposed by the U.K. Financial Services Authority of GBP33.32 million, the Sunday Telegraph

· Scrutiny of China’s Grim Factories Intensifies After Suicides

o a generation of workers rejecting the regimented hardships their predecessors endured as the cheap labor army behind China’s economic miracle.

o Rather than take their own lives, many more workers at Foxconn — tens of thousands more — have simply quit. In recent interviews here, employees said the typical Foxconn hire lasted just a few months at the factory before leaving, demoralized.

o They complain about military-style drills, verbal abuse by superiors and “self-criticisms” they are forced to read aloud, as well as occasionally being pressured to work as many 13 consecutive days to complete a big customer order — even when it means sleeping on the factory floor

o Responding to the clamor, Foxconn has raised salaries steeply twice in the last five days

§ company announced the latest increase on Sunday, saying that after a three-month trial period, the basic salaries of many of its workers in China could reach nearly $300 a month, more than double what they were a few weeks ago.

o http://www.cnbc.com/id/37545596

· China growth positive: Foxconn Pay Rise Signals ‘Good News’ on China Growth, HSBC Says - BBG

o China’s pay rises, highlighted by increases at Foxconn Technology Group and Honda Motor Co., are “good news” that may limit any economic slowdown in the nation by fueling private consumption

o “With wage income improving substantially, growth in consumer spending is set to stay strong for the rest of the year,”

· Worker unrest in China signals cheap labor may be thing of past – WP link

o China has been hit with a recent wave of labor unrest, including strikes and partial shutdowns of factories, underscoring what experts call one of the most dramatic effects of three decades of startling growth: A seemingly endless supply of cheap labor is drying up

· Funds news:

o U.S. stock mutual funds have lost $15.3 billion to withdrawals this year through May, according to preliminary numbers from the ICI

o Fidelity’s Funds Only Winners Among Biggest U.S. Stock Pickers - BBG

§ Fidelity Investments’ Contrafund and Growth Company Fund are alone among the 10 largest U.S. stock mutual funds in beating their benchmarks this year, as Vanguard Group Inc. and Capital Group Cos. offerings trailed their indexes.

o Clarium Capital Gained 4% In May As Deflation Trade Returned - DJ

§ Clarium Capital, a hedge fund firm run by PayPal co-founder Peter Thiel, had a good month in May as deflation concerns crept back into the market.

§ Clarium's fund is now down roughly 6% for the first five months of 2010.

· France: Most recent approval rating for PM Sarkozy fell to the record low seen in April at 34% - Le Parisien

· Japan Support For Japan Ruling Party Rises With New PM – Bloomberg

· The Obama administration is warning Medicare Advantage insurers not to boost premiums and co-payments for seniors. Many companies say increases are necessary. WSJ

· WSJ(6/5) Hispanic Voters Drift From GOP

o California Hispanics who registered to vote since the last midterm election are less likely to be Republican than those who registered just four years earlier, according to an analysis of party affiliation released Friday

· IRS Rules Gay Couples Will Get Equal Tax Treatment - Japan

· World cup preview?? Soccer fans stampede outside South African stadium

o South Africa (AP) - Thousands of soccer fans stampeded outside a stadium Sunday before an exhibition game between Nigeria and North Korea, leaving 15 people injured, including one police officer who was seriously hurt

o Stampede Has No Relation To World Cup Organization -FIFA

· A U.S. military cruise missile armed with cluster ammunition was used in an attack in Yemen in December that killed 52 people, U.K. newspaper the Independent reports Monday

· Arizona leaders worry as state's image takes beating nationally WP

o When state Rep. Kyrsten Sinema (D) travels outside Arizona, she hears the same question over and over: "What's wrong with your state?" She notes Arizona's new immigration law, its ban on ethnic studies classes and its prohibition on creating animal-human hybrids.

COMPANY NEWS WITH MACRO IMPLICATIONS

· Changes in the latest IBD 100 List: Added: ULTA, ABC, VQ, AGP, ASPS, ROST, PLCE, XEC, STRA, ESRX, CLR, FSRV, BEXP, ABII, ARTC, LVS, ABV, AZO. Deleted: IDSA, BOFI, CAAS, KWR, KMGB, SIRO, ADS, NUS, DSW, CVLT, PRXL, HSNI, TLB, XRTX, DDS, MFW, NUAN, ALB

· Barron's summary:

o Cover: Ranks the Top 100 Women Financial Advisors.

o Interview: John Hathaway, manager of the Tocqueville Gold Fund, likes FNV.CN, NEM, OSK.CN, GOLD and RGLD.

o In Q1, ETFs linked to hedge fund performance underperformed but they could have their place in a portfolio, especially in a downturn.

o TXN Positive on Texas Instruments' efforts to expand its smart-chip business.

o AVF, AFF, AIG Barron's prefers American International Group's debt to the common stock.

o China's market could see an upturn as they get close to a bottom. Positive on 939.HK, 1398.HK, CEO and LFC.

o CAB Barron's thinks it is time to get rid of shares of Cabela's.

o ACOM ancestry.com is profiting from the growing interest in genealogy.

o FBN Sizing Up Small Caps is positive on Furniture Brands International saying it finally looks to be on the mend. The shares could rally 55% in the next year.

o Editorial says it is too early to write America off just yet, while there are plenty of things wrong here, there are still plenty of things that, if nurtured properly, will allow America to emerge better and stronger than ever from the recession.

o IBKR, SKX The Trader is positive on Interactive Brokers and Skechers .

o BA The Striking Price notes an options idea for Boeing from Morgan Stanley, selling August $70 calls against the stock.

o Asia Trader is positive on the Philippines after May's elections. Positive mentions of EDC.PM, AP.PM, GLO.PM, TEL.PM, SMC.PM, JFC.PM, AGI.PM, ALI.PM, BDO.PM, MEG.PM and SM.PM.

o Current Yield says a renewed flight from risk sent investors to Treasuries last week.

o Commodities Corner says oversupply will keep the price of rice depressed.

o European Trader says the fears over infrastructure operators seems overblown, positive on FER.SM and DG.FP.

o CAR, COO, MW, BP, DO Follow Up notes that Short Alert is bearish on CAR, COO and MW this year; BP looks appealing, positive on DO.

o Up and Down Wall Street notes the new regulatory risk to Gulf of Mexico energy companies like RDS.A, CVX, NE, DO, NBR and ESV. The jobs report is a clear sign the economy is weak.

o FTR Streetwise says the market is caught in a trading range, positive on Frontier Communications.

o D.C. Current discusses market volatility.

o Economic Beat looks at the jobs report.

o Technology Trader reviews the events of the D8 conference this past week.

o HPQ Plugged In discusses the speculated upon HP tablet that will run Palm's webOS, there are risks to both Dell and RIMM.

Energy

· OII Conference call: 09:00 ET, Oceaneering International makes preliminary reduction to 2010 guidance

o In light of the 27-May announcement of a six-month moratorium on deepwater permitting and drilling activities in the Gulf of Mexico, the company estimates H2 EPS could be reduced by $0.45. The company is cutting guidance to $2.80-3.10 vs prior $3.25-3.55 and Reuters $3.44. As of 31-May, the company had 70 of its 255 ROVs in the Gulf of Mexico and says its guidance could change significantly as customers' reactions to the moratorium become clear. Company plans to update guidance with its Q2 earnings release in July. Conference call: 09:00 ET, 866-862-4678

· ORA Ormat Technologies updates status of Amatitlan project in Guatemala

· PAL North America Palladium provides LDI exploration update

· Oil-Refining Glut Leaves Europe Firms Struggling – WSJ

o A glut in global refining capacity is keeping a lid on refiners' profits, particularly in Europe, where firms are resisting much-needed plant closures.

o Vienna-based consultancy JBC Energy forecasts that refineries handling 3.4 million barrels a day, or 19% of Europe's total refining capacity, are under threat of closure by 2020 because they are unprofitable. But companies are reluctant to shut plants, given environmental cleanup costs and the opposition from both governments and labor unions

· Not Happy With OPEC's Quota Compliance Of Under 50% -Iraq Oil Minister - DJ

· IEA: World Economy Spends $550B A Year In Energy Subsidies –FT

o The world economy spends more than $550 billion in energy subsidies a year, about 75% more than previously thought

o In 2008--the latest year for which data are available--37 large developing countries spent about $557 billion in energy subsidies, the IEA estimates,

o Previous estimates put it at about $300 billion.

o Iran, Russia, Saudi Arabia, India and China top the ranking, according to the report.

o The new report will be discussed at the G20 summit in Toronto this month,

o Full story at:

o http://www.ft.com/cms/s/0/27c0ff92-7192-11df-8eec-00144feabdc0.html

· OPEC Unlikely To Take Action At Oct Meeting Zawya Dow Jones)--The Organization of Petroleum Exporting Countries, or OPEC, will likely keep its production quota unchanged when it next meets in October, Libya's top oil official said Sunday.

· Environmental Group To Call For BP North Sea Rig Check

o U.S. non-governmental organization Food & Water Watch will Monday call for a safety check on all BP PLC (BP, BP.LN) rigs in the North Sea following the oil spill in the Gulf of Mexico, The Observer reports Sunday.

· Dow Jones)--Arrow Energy Ltd. (AOE.AU) said Monday that a proposed A$3.44 billion takeover of the bulk of its Australian assets by Royal Dutch Shell PLC (RDSB.LN) and PetroChina Corp. (PTR) remains on track to be sealed by late July.

· FPP FieldPoint Petroleum board authorizes stock buyback of $250K

· BP stories:

o BP's shares were up 1% Monday … BP Plc gained for a third day as the oil company increased the oil-capture rate at its leaking well

o BP PLC (BP) Monday said the cost of its response to the Gulf of Mexico oil spill had reached $1.25 billion as it continued its attempts to contain more leaking crude.

o The $1.25 billion figure excludes $360 million for a Louisiana barrier islands construction project,

o On Sunday BP's containment cap collected 10,500 barrels of oil. From Thursday to Sunday, a total of 16,600 barrels of oil had been collected

o BP WSJ doubts BP is a takeover target

o BP regular advisor Goldman Sachs is rumored to be preparing to fend off any potential takeover attempts for the U.K. oil major, reports the Independent on Sunday

o BP US govt may prohibit company from any further contracts or exploration deals in the US as part of punishment for Gulf of Mexico spill – Times

o BP U.S. Coast Guard says BP's cap is capturing about 10K barrels of oil per day -- NY Times

o BP Preparing New Ads To Air Over Next Days, Weeks – WSJ

o BP CEO Hayward Says He Won't Quit—DJ

o Even Before Oil Spill, No One Was In Charge--NY Times

§ http://www.nytimes.com/2010/06/06/us/06rig.html?hp

· WSJ: Gulf Hotels Hit By Cancellations Due To Tar Balls

· UTILITIES

o Primo Water files amended S1; increasing size of offering to $92M from $60M through Wells Fargo and Thomas Weisel

o DTE DTE Energy and union leaders reach tentative agreement on new three year contract

· TRANSPORTS

o Airlines pos: IATA Meets Monday As Airline Industry Shows Signs Of Recovery AFP

§ The airline industry will post a $2.5 billion profit in 2010, reversing two years of losses, the International Air Transport Association said today, scrapping an estimate for a $2.8 billion deficit as the economy rebounds.

§ IATA Says Air Industry Recovering Faster Than Predicted

§ Warns Parts Of Industry Still Posing Big Losses

§ The commercial aviation industry, battered by plunging sales and fallout from the Icelandic ash cloud, is at last emerging from a steep downturn, the International Air Transport Association (IATA) says.

§ "We are meeting as the industry continues its recovery from the global financial meltdown," IATA general director Giovanni Bisignani said ahead of its general assembly starting Monday.

o Airlines Delta Air Lines (DAL) and US Airways Group Inc. (LCC) have asked regulators for extra time to decide whether to carry on with a planned asset-swap at two of the country's busiest airports following a demand that they surrender some takeoff and landing slots to rivals. The airlines have asked the Federal Aviation Administration to extend its deadline for them to pursue the planned deal until July 2

o Airlines Iberia CEO: Expects Pension Regulator To Side With BA Deal

o Airlines Lufthansa AG (LHA.XE) is sticking to its outlook of a slight increase in demand this year, said Chief Executive Officer Wolfgang Mayrhuber, speaking on CNBC

§ Lufthansa CEO: Considering Price Hikes For Cargo Ops

§ Seeing Slight Increase In Demand In 2010

o Airlines SAS: MayTraffic +4% On 2009

§ Signs Of Recovery Seen In Particular On Asian Routes

§ The Market Continues To Be Unpredictable

§ SAS: Signs Of Recovery Seen On Selected European Routes

§ Signs Of Recovery On Some US Routes

o PNCL Pinnacle Airlines reports May traffic (5.3%)

· INDUSTRIALS

o Finmeccanica SpA (FNC.MI) and Boeing Co. (BA) will issue a statement at midday Monday, Speaking to Dow Jones Newswires on condition of anonymity, the person didn't elaborate. On the website of Italian business daily Il Sole 24 Ore, a report says Finmeccanica and Boeing have agreed to participate in the tender to build the new U.S. presidential helicopter.

o European aerospace giant European Aeronautic Defence & Space Co. NV (EADSY, EAD.FR) could revise up its 2010 sales forecast thanks to the euro's weakness against the dollar, the company's finance chief said in anewspaper interview to be published Monday. AFP

o GE WSJ thinks General Electric still relies too much on commercial paper

o ADG Allied Defense CFO Deborah Ricci resigns, effective 1-Jun to pursue other opportunities

o NPO EnPro Industries' Garlock subsidiary files bankruptcy petition

o EMR Emerson to raise £723M hostile bid for Chloride -- London Times

o BA Boeing to announce today that it will bid to make Presidential helicopters - NYT

Tech/media/ telecom sectors

· AAPL to unveil the next generation iPhone today- CNBC

· AAPL: Surveys say Appetite for IPhone Continues Undiminished- AllThingsDigital

· AAPL: was only US PC maker to outgrow market in Q1 2010- iSuppli

· AAPL: patent application hints at solar-powered iPhone- Engadget

· Wrap-up of AllThings Digital Conference from Fri (AOL, MSFT, F EBAY)

o F Ford CEO Alan Mulally http://d8.allthingsd.com/20100603/alan-mulally-session/?mod=ATD_rss

o MSFT Microsoft CEO Steve Ballmer on the iPad

o http://d8.allthingsd.com/20100603/d8-video-microsoft-ceo-steve-ballmer-on-the-ipad/

o EBAY CEO John Donahoe on Digital Wallets, iPhone Apps and the iPad http://d8.allthingsd.com/20100604/donahoe-ipad-digital-wallet/?mod=ATD_rss

· AOL Kicks Off Google/Microsoft Search Sweepstakes

o http://d8.allthingsd.com/20100604/d8-video-aol-kicks-off-googlemicrosoft-search-sweepstakes/

· YHOO: site mirrors Facebook in latest facelift- AP

· YHOO: Wants Huffington Post Badly- TechCrunch

· GOOG: Australia launches privacy investigation of Google- AP

· ORCL: Says Sun Costs To Top $1 Billion- DJ

· ORCL: Cutting More Jobs Tied To Sun Deal; Taking Big Charge- Barron’s

· http://feedproxy.google.com/~r/barrons/techtraderdaily/feed/~3/sbvvptWKmbM/

· DIS: to enter new talks for Miramax with Ron Tutor and film financier partner David Bergstein – LATimes

· DIS: Cuban says he'd back Weinstein deal for Miramax- AP

· LEAP: talks with MetroPCS have Stalled- WSJ

· http://online.wsj.com/article/SB10001424052748704080104575286940040487302.html

· Reliance Communications rallies on stake sale plan- Reuters

· Reliance Comm in Informal Talks With T AT&T- WSJ

· WPO: 3 companies have been identified as having submitted preliminary bids for Newsweek- Washington Post http://www.washingtonpost.com/wp-dyn/content/article/2010/06/06/AR2010060603299_pf.html

· Foxconn Falls on Plan to Double Wages at China Plants in an attempt to curb suicides- BBG

· Foxconn Details Pay Raise- WSJ http://online.wsj.com/article/SB10001424052748704726104575290580120387658.html

· Elpida Plans China, Taiwan Factories to Meet Demand- BBG

· AUO: Reports may revs up 6.4% sequentially and 57.9% y/y. Large-sized panel shipments were a strong positive in the month.

· Smartphones: A new survey of U.S. smartphone owners found that 28 percent use a device running the iPhone OS, compared with just 9 percent on Google's Android mobile operating system- AppleInsider

· http://www.appleinsider.com/articles/10/06/06/apples_iphone_market_share_three_times_greater_than_android_in_us.html

· Front projector market to grow over 30% in 2010- Pacific Media Associates

· LEDs post strong revenue gains in May 2010- Digitimes

· HPQ notebook shipments in May fall short of expectations- Digitmes

· HPQ Wants to Print for Smartphones- NYT

· TV vendors in China delay LCD panel purchasing plans from Taiwan- Digitimes

· HTC, AAPL: Gives Apple Run For Money- WSJ

· http://online.wsj.com/article/SB10001424052748704726104575291032347090248.html

· HTC to acquire Abaxia- Digitimes

· S, HTC: HTC EVO 4G overtakes Palm Pre for best-selling launch day on Sprint- Engadget

· T, App makers: With New Caps on AT&T Data Use, App Makers Worry- NYT

· http://feeds.nytimes.com/click.phdo?i=2bb58c7c4dac8b15be4b5656a77ef632

· ProMOS Revenues dropped 8.2% in the month on DDR2 price slump although output started to increase substantially.

· Synnex Technology sees May consolidated revenues show a big loss of 22.2%.

Miners/ steel sectors etc

· Xstrata Optimistic Of Deal Over Australian Mining Tax – DJ

o Xstrata PLC (XTA.LN) is optimistic a deal can be done with the Australian government to change a proposed new 40% tax on mining profits that last week saw the Anglo-Swiss mining giant shelve development spending on two major projects in Queensland state

· Zinc Smelters in China Idle Capacity on Price Slump, Gao Says (Bloomberg) -- Zinc smelters in China, the world’s largest producer, have idled as much as 8.8 percent of capacity as prices decline and the nation bids to cool the property market, curbing demand, according to Shanghai Metals Market.

· No new bids pending for Lihir Gold - Reuters

o Sources say Newcrest Mining (NCM.AU), AngloGold Ashanti (ANG.SJ), Barrick Gold (ABX.CN), and Newmont Mining (NEM) have all looked at the company's books, but Newcrest is likely to remain the only company that makes an offer

Autos sector:

· Players in US car market more evenly matched than before - Detroit News

o U.S. market becoming more like Europe with no dominant firm

o From The Detroit News: http://www.detnews.com/article/20100607/AUTO01/6070334/Shake-ups--missteps-level-auto-playing-field#ixzz0qA43nsTc

· Honda Says Strike Over At China Subsidiary, Production Resumes Monday – DJ

· Daimler AG (DAI) would welcome a Chinese investor and there is currently no need for the German auto maker to tap bond markets to raise liquidity, Chief Financial Officer Bodo Uebber told Saturday's Boersen-Zeitung newspaper.

o Uebber said he would welcome Chinese parties among its shareholder structure. "I can well imagine having bigger shareholders from China, but we don't plan to get another anchor shareholder of the size of Kuwait or Abu Dhabi in the foreseeable future," he said.

· GM WSJ: GM To Rejoin Its Rivals With Super Bowl Ads

· Nissan Motor Co. (7201.TO) said Monday that pre-launch orders in Japan for its Leaf electric vehicle have hit its full-year domestic sales target in two months.

· Proton Falls in Malaysia After Volkswagen Halts Talks(Bloomberg) -- Proton Holdings Bhd., Malaysia’s state-controlled automaker, is heading for its biggest daily decline in 13 months in Kuala Lumpur trading after Volkswagen AG, Europe’s largest carmaker, ended partnership talks.

Financials:

· WSJ: Three Bank Failures Push 2010 Total To 81

· GBL WSJ warns GAMCO Investors will probably fall

o "Heard on the Street" column says that a hefty pay package for an aging chairman/CEO Mario Gabelli and AUM that just won't grow fast enough mean it is unlikely that the stock will stay at 14.5 times next year's consensus earnings, vs peers' 13.1 times.

· Japan not likely to immediately introduce global bank tax - Nikkei

· G20 scraps global bank levy - FT

o G20 finance ministers on Sunday agreed to drop proposals for a global levy on banks, bowing to opposition led by Canada after marathon negotiations at their weekend meeting in Busan, South Korea. A G20 communiqué said banks should make contributions only in countries where taxpayers had bailed out highly indebted banking systems.

· Pimco chief Mohamed El-Erian writes on FT Alphaville that the G20 result leaves the door open to “even wider country differentiation”

· A Bailed-Out Bank Now Tests Treasury's Willingness - WSJ

o By missing a sixth quarterly dividend payment due to the U.S. in May, a Southern California bank is poised to test just how far the government will extend its reach into the smaller corners of the private sector

o Saigon National Bank, a Westminster, Calif., bank focused on making loans to the area's Vietnamese business community, hasn't paid any dividends since obtaining $1.55 million in taxpayer funds in December 2008

o Saigon National is so far the only government-aid recipient to have missed six dividend payments, which triggers the Treasury's right to appoint two directors to a bank's board.

o A dozen others are close, but it isn't clear whether the Treasury will exercise its right to appoint directors at the institutions

o The Treasury still is considering its options, David Miller, chief investment officer for the Treasury's Office of Financial Stability, told lawmakers last month.

· Osborne to go ahead with bank tax on UK banks -FT

o George Osborne, chancellor, is to press ahead with plans for a levy on UK-based banks, in spite of G20 finance ministers at the weekend scrapping worldwide plans for a banking tax

o http://link.ft.com/r/6NPSBB/TP6472/TTOKO/D4RS1O/3O2T5H/JY/h

· MS: Morgan Stanley in drive on cross-selling – FT

o The bank launches a push to close gap with more profitable rivals such as Goldman Sachs and JPMorgan Chase, creating a team of senior bankers to cross-sell more of its products

o http://link.ft.com/r/6NPSBB/TP6472/TTOKO/D4RS1O/LQRXU4/JY/h

· AIG: Prudential PLC denies report of new bid for AIA – Reuters

· Prudential New Business Figures 'Terrific' –DJ

o Prudential's (PRU.LN) new business figures in its trading update are "terrific"

o worldwide sales are up 27% in the period, reflecting growth of 33% in Asia, 41% in the US and 4% in UK.

o AGM meeting today..likely focus on costs of the aborted bid, future of the board and on how some aspects of the bid were handled.

o Shares -2.2% Monday

· Some of Prudential PLC's (PRU.LN) biggest shareholders have approached Mark Tucker about replacing Tidjane Thiam as chief executive of the embattled UKinsurer, U.K. newspaper The Times reported

· Bank Valuations Just Can't Keep Up – WSJ on cheap banks

o Bank earnings have bounced back from the worst days of the crisis.

o Valuations haven't followed suit.

o Of the five biggest U.S banks--J.P. Morgan Chase (JPM), Bank of America (BAC), Citigroup (C), Goldman Sachs (GS) and Morgan Stanley (MS)--all but Goldman trade at or below book value.

o While such low multiples often signal that markets expect trouble, they also draw the attention of bargain hunters.

o But tempted investors may have to wait some time for a big sector rerating. The banks first have to clear high hurdles….

· Deutsche Bank DB bashed by FDIC’s Bair? WSJ

o In a letter last month to an industry group called the Institute of International Bankers, Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., went to considerable lengths to defend a part of the Senate's financial-overhaul bill that aims to strengthen capital regulations.

o Ms. Bair may have been talking about Deutsche, whose U.S. bank holding

o company, Taunus Corp., has a Tier 1 risk-based capital ratio of negative 7.58%

o Deutsche's total equity is equivalent to 4.4% of assets, using a U.S.-style approach, lower than 7.7% for Citigroup and J.P. Morgan Chase, and 10% for Bank of America.

· UK FSA Stress-Testing Banks Over Euro Zone Exposure

o The U.K. Financial Services Authority is stress-testing the country's largest banks over their exposure to growing financial problems in European countries, the Sunday Times

· PwC Faces Possible Probe Over J.P. Morgan's UK Breach

· Three of Prudential PLC's (PRU.LN) largest shareholders are set to vote against the company's remuneration report at Monday's annual meeting, the Sunday Telegraph

· -Deutsche Bank AG's (DB) head of global banking, Michael Cohrs, is set to announce his retirement within weeks and hand sole leadership of the division to Anshu Jain, co-head of investment banking, the Financial Times reports Saturday

· Boston Private Financial Holdings Inc. (BPFH) said late Friday it's filed with the Securities and Exchange Commission for a public offering of up to $40 million of its common shares.

o Boston Private Plans To Raise Equity, Pay Off TARP

· HBOS private equity managers to avoid cull despite losses -- FT

· Investors oppose Lehman plan - FT

o Dutch retail investors who own bonds sold by a unit of Lehman Brothers Holdings will oppose the bankrupt bank’s proposal for pay-outs to its creditors, reports the FT. The group believes that European creditors who own bonds issued by Lehman Brothers Treasury, a Dutch-based unit, are being treated unfairly and plans to dispute Lehman’s plan in US proceedings this month, said Gerhard Zeilmaker, a bondholder and former executive at ABN Amro.

· BPFH BostonPrivate Financial files for $40M secondary offering through Goldman Sachs

· NFBK Northfield Bancorp announces plan to sell additional stock and convert to fully public company

· CLGX CoreLogic files $400M equity shelf

· YHOO Yahoo! integrates Facebook across "more than 15" sites

Real Estate:

· REITS

o KRC Kilroy Realty is under contract to purchase office building in Irvine, CA for $103M

o UMH UMH Properties acquires PA-based Sunny Acres and Suburban Estates for total purchase price of $13.2M

o AMB AMB Property removed from Conviction Sell List at Goldman Sachs

· PEB Pebblebrook Hotel Trust purchases Doubletree Bethesda Hotel for $67.1M

· Mortgage Delinquencies At FHA Show Slowdown - WSJ

o The government agency that backs home loans may have some good news for taxpayers

o Home mortgages insured by the Federal Housing Administration are falling into delinquency at a slower rate than they have in the past.

o If the trend is maintained, it could help the government agency avoid a taxpayer bailout.

o In April, nearly 8.5% of loans backed by the agency were 90 days or more past due. While that was still higher than a year earlier, April marked the third consecutive month in which delinquencies, which peaked at 9.4% in January, declined.

o The FHA figures come amid other signs that mortgage delinquencies may have plateaued.

· Drop In Home Sales In Wake Of Tax Credit Tops Forecast – WSJ

o The withdrawal of federal tax credits for home buyers led to a steeper-than-expected plunge in May home sales in much of the U.S., as the housing market struggles to wean itself from government support.

o Economists and real estate analysts expected home sales to slow after the tax credit, of as much as $8,000, expired at the end of April. But early data from real-estate brokers indicate that the sales decline has been far more substantial than expected, with some markets showing declines of 25% to 30%

o "Anybody who wanted to buy a house probably did" before the tax-credit deadline, said Jay Brinkmann, chief economist of the Mortgage Bankers Association, a trade group

o Housing analysts say that the May slump is ominous but that it's too early to tell whether it portends another serious downward lurch in a market that has generally been leveling off over the past year

o Some signs have been encouraging. In April, the government reported that new-home sales, spurred by the tax credit, jumped 48% from a year earlier to an annual rate of 504,000

o But Ivy Zelman, chief executive of Zelman & Associates, a research firm, estimates that sales of new homes nationwide in May were down 25% to 30% from April. She warns that the weak May performance increases the chances of renewed price cuts by builders caught with too much inventory.

o http://online.wsj.com/article/SB20001424052748704080104575286760022273010.html

· MTH: pos WSJ HEARD ON THE STREET: Home Builder Meritage Bucks The Trend; Meritage's Edge: Cheap Land

· =WSJ:Gulf Hotels Hit By Cancellations Due To Tar Balls

· WSJ(6/7) Hyatt Heir Checks Back Into Hotel Industry

o Pritzker family scion John Pritzker is getting back into the hotel industry by buying a majority stake in an operator of boutique hotels in California and establishing a $150 million fund to buy additional small hotels

o Mr. Pritzker's Geolo Capital on Friday bought a majority stake in Joie De Vivre Hospitality Inc. at a price both sides declined to disclose. Founded in 1987, Joie de Vivre manages 33 small, upscale hotels, 14 of which it owns. Geolo's majority stake, which is less than 60%, includes only Joie De Vivre's hotel-management operations and brand, not the real estate.

· Hong Kong Site May Fetch $1.1 Billion in Auction BBG

o Hong Kong developers may pay HK$8.41 billion ($1.08 billion) for a residential site at a government auction tomorrow, as some analysts cut their estimates after two previous land sales missed forecasts and apartment prices fell in the last two weeks

o Estimates for the site in Ho Man Tin district ranged from HK$7.15 billion to HK$9.8 billion, based on seven analysts surveyed by Bloomberg News. Three of the analysts either cut their estimates over the last two weeks or waited longer than usual before publishing forecasts.

Consumer sector:

· Consumer deleveraging: Drag on Recovery: Consumer Debt-Cutting - WSJ

o shouldn't come as too much of a surprise that the economic rebound is moving at such a gradual pace.

o job growth is decidedly sluggish.

o One reason: deleveraging. After years of bingeing on debt, U.S. households are paring back. Those not doing so by choice are often being forced, because lending standards remain tight.

o The question now, both for consumer spending and growth more broadly, is how much further the process has to go.

o The answer is probably a lot

· Hermes: Sales Continue To Be "Extremely Good"

o April, May Sales Growth Is Better Than In 1Q

· WMT: WSJ(6/7) Rival Chains Secretly Fund Opposition To Wal-Mart

o Saint Consulting Group secretly run antidevelopment campaigns. Saint is a specialist at fighting proposed Wal-Marts, and it uses tactics it describes as "black arts."

o As Wal-Mart Stores Inc. has grown into the largest grocery seller in the U.S., similar battles have played out in hundreds of towns

o Local activists and union groups have been the public face of much of the resistance. But in scores of cases, large supermarket chains including Supervalu Inc., Safeway Inc. and Ahold NV have retained Saint Consulting to block Wal-Mart, according to hundreds of pages of Saint documents reviewed by The Wall Street Journal and interviews with former employees.

· WSJ(6/7) Nike Is Playing On Umbro's Revival

o When the U.S. and England clash in soccer's World Cup on Saturday, a sure victor will be Nike Inc., which is outfitting both squads. Nike owns sportswear maker Umbro, the official sponsor of the English team. The U.S. team will be wearing Nike.

· CAG ….Brambles Loses Major U.S. Customer ConAgra

o (Dow Jones)--Brambles Ltd. (BXB.AU) lost major U.S. customer ConAgra Foods Inc. (CAG), which is now switching to plastic pallets supplied by a rival, the Australian newspaper reported Monday.

· PONE GTCR completes acquisition of Protection One

· FRPT Force Protection awarded $46.1M contract

· BH Biglari Holdings has terminated its exchange offer for shares of Advance Auto Parts

· GAMING LODGING & LEISURE

o Weak movie-theater-ticket sales in US being offset by strong performance internationally - LA Times

· HEALTHCARE

o HC M&A Grifols fell 3.5 percent to 8.94 euros as Europe’s largest maker of blood-plasma products agreed to pay $19 in cash and 0.641 newly issued non-voting Grifols shares for each of Talecris’s.

§ The deal gives Grifols almost a third of the $7 billion U.S. market for blood-based infusions, matching Baxter International and beating CSL Ltd.’s 29 percent share

§ Grifols doesn’t expect to have to make any divestments to satisfy the U.S. Federal Trade Commission over its acquisition of Talecris Biotherapeutics Holdings Corp., Grifols’ Chief Financial Officer Alfredo Arroyo said today in a telephone interview BBG

o BAX impact from Talecris’s takeover

o SCR Simcere Pharmaceutical to acquire additional stake in Jilin Boda Pharmaceutical Co. BBG

o CNC Centene Corp. issued a retraction late Friday, saying that a subsidiary had not won a managed-care contract in Indiana, despite sending out a statement earlier in the day that it had. The development might have helped the company's shares. Centene (CNC) was one of the few stocks to make gains during Friday's bloodbath, in which the Dow Jones Industrial Average dropped 323 points, or more than 3%. DJ

o AEN Adeona Pharmaceuticals announces completion of 50% enrollment in part 2 of CopperProof-2 Study in Alzheimer's disease and mild cognitive impairment

o MDYO WSJ(6/5) MediSys May Face An Inquiry From State

o ARQL pos: They've been bid up over 60% over the past three months, but there could still be quite a bit of upside to ArQule shares, according to analysts. DJ

o CTIC Cell Therapeutics Adjourns Special Meeting Of Hldrs To June 29

o CTIC Cell Therapeutics [CTIC]: Reported results from Phase II study of Opaxio with advanced esophageal cancer . Results confirmed high rate of response.

o Merck and Eli Lilly [MRK and LLY]: Reported that study of Erbitux failed to stop cancer spread

o CLDX Celldex announces interim positive Phase 2b results from rindopepimut (CDX-110) study for brain cancer

o CELG Data from pomalidomide study in refractory multiple myeloma patients presented by Celgene at ASCO

o SGEN Seattle Genetics and Millennium report positive data on retreatment with SGN-35 in lymphoma

o ONXX Onyx Pharmaceuticals' carfilzomib demonstrates encouraging results in ongoing phase 2 multiple myeloma study

o AVEO Aveo Pharmaceuticals initiates phase II study of AV-299 for the treatment of non-small cell lung cancer

o NVS Novartis says adding Zometa to chemotherapy significantly improves overall survival in newly diagnosed multiple myeloma patients

o BMY Bristol-Myers announces positive results of ipilimumab in metastatic melanoma

o MRK Merck KGaA announces long term follow up data for Phase II study of recurrent glioblastoma receiving cilengitide

o ARQL ArQule, Daiichi Sankyo present final phase 2 results for ARQ 197 in NSCLC

o ABII Abraxis BioScience presents additional detail from Abraxane phase 3 trial in NSCLC at ASCO

o AMGN Amgen announces integrated analysis of previously reported studies of Prolia for bone metastases

o AMGN Amgen announces detailed results from previously released study of Prolia and NVS's Zometa in delaying SREs

o CELG Celgene announces initial data from an investigator-initiated study of REVLIMID plus Rituxan

o BAX Baxter and FDA announce withdrawal of 2 lots of GammaGard

o CELG Celgene announces study results for Revlimid in multiple myeloma following autologous stem cell transplant

o CLDX Celldex presents positive results from phase 1/2 advanced breast cancer study with CDX-011

o ZGEN ZymoGenetics reports positive IL-21 phase 2 results in metastatic melanoma

o ALTH Allos Therapeutics reports new data on Folotyn

o IMGN ImmunoGen announces presentation of clinical data for trastuzumab-DM1

o ARRY Array BioPharma's ARRY-520 well tolerated and demonstrates preliminary activity as a single agent in multiple myeloma patients

o NKTR Nektar Therapeutics announces results from phase 2 study of NKTR-102

o CELG Celgene presents phase 3 study comparing Revlimid plus Melphalan and Prednisone (MPR) compared to autologous stem cell transplant

o OXGN OXiGENE reports encouraging safety and efficacy data from ongoing phase 2 trial of zybrestat in NSCLC

o AMGN AMGN reports data for AMG 386 and Motesanib at ASCO

o DCTH Delcath highlights phase 3 trial results presented at ASCO

o PCYC Pharmacyclics announces presentation of results from phase 1 trial of PCI-32765

o PARD Poniard announces final data from phase 3 SPEAR trial of picoplatin in small cell lung cancer

o PFE Pfizer says phase III study shows Macugen improved vision over standard care in patients with diabetic macular edema

o SNY Sanofi-Aventis announces one-year data for Teriflunomide in multiple sclerosis patients

o BMY Bristol-Myers says study shows Sprycel superior to Gleevec in adult patients with newly diagnosed chronic myeloid leukemia in chronic phase

o TLCR Grifols sees Talecris Biotherapeutics deal being +30% EPS accretive from second year -- Reuters

o TLCR Grifols to buy Talecris Biotherapeutics for $26.16/share

o CTIC OPAXIO Phase II study results confirm high rate of complete response with low rate of side effects in patients with advanced esophageal cancer

o INCY Results from an ongoing phase I/II trial of oral INCB presented at ASCO

o EXEL Exelixis reports updated data from multiple clinical trials of the dual PI3K and mTOR inhibitor XL765 (SAR245409) to be presented at ASCO

From our EU/London desk

· Oils

· BP (+1.1%). The containment cap placed over the Gulf leak appears to be having some effect, with the company claiming to have captured 10k barrels of oil on Saturday. Rumours in the British press that Goldmans are preparing to fend off a potential bid for BP. Dividend decision will be made by the board at the end of July, but they won't confirm or deny any possible dividend cut.

· Miners

· Xstrata (-2.6%). Company is confident that the proposed Australian resources Super-Tax will shelved or amended after consultations with the Australian government.

· CGG VERITAS: CEO expects stable FY10 revenue

· AIR BERLIN says May passenger traffic up 1.8%

· LUFTHANSA to keep stake in Jetblue

· VW's tie-up talks with Malaysia's Proton end – S&P

· CAMPARI to extend shopping spree – CEO – S&P

· Iran stops negotiations with Shell, Repsol – S&P

· BBVA eyeing Clydesdale and Yorkshire banks – S&P

· CHLORIDE: Emerson poised to raise bid – S&P

· BT GROUP: Union calls for strike – S&P

· FSA probes UK banks' exposure to eurozone

TODAY’S EVENTS

DAILY VIEW

CONFERENCES

Monday June 07:

o Accredited Members Inc. Summer Small Cap/Micro Cap Investment Conference - Jun 07, 2010 - Jun 09, 2010

o Adam Smith Conferences: Russian Real Estate Summit - Jun 07, 2010 - Jun 09, 2010

o American Society of Clinical Oncology 2010 Annual Meeting - Jun 04, 2010 - Jun 08, 2010

· 8AM: BMY

· 9AM: ARRY , DNDN , GHDX , ONC.TO , ONTY , SPPI

· 11:15AM: EXEL

· 11:45AM: HNAB , SNSS

· 2PM: GTXI , HRBR

· 3PM: CYCC

· MSHL

o Bank of America Merrill Lynch Telecommunications, Media and Technology Conference - Jun 07, 2010 - Jun 09, 2010

· ASML , BEZQ.TA , CTCM , ERIC , WTKWY

o Bank of America Merrill Lynch UCITS III Conference - Jun 07, 2010

o CA Cheuvreux Austrian (Large & Mid Caps) Day - Jun 07, 2010

o Cambridge House International Inc. World Resource Investment Conference - Jun 06, 2010 - Jun 07, 2010

o Citi Power, Gas, Coal and Alternative Energy Conference

· 3PM: CPN

o Gartner PPM & IT Governance Summit - Jun 07, 2010 - Jun 09, 2010

o Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference

· 8:30AM: EAT

· 11:15AM: H

· 12PM: PENN

· 1PM: BKC

· 1:30PM: SGMS

· IGT

o Informa plc IIR: FTTX & Next Generation Access Summit - Jun 07, 2010 - Jun 09, 2010

o Institute for International Research FTTx Summit - Jun 07, 2010 - Jun 09, 2010

o Institute for International Research In-Building Summit - Jun 07, 2010 - Jun 10, 2010

o Marcus Evans Investment Consultants Summit - Jun 06, 2010 - Jun 08, 2010

o Mizuho Securites USA Next Generation Technologies Conference

· 10AM: XXIA

· 11:30AM: AVNW

o Nagoya Stock Exchange IR Seminar

· 12AM: 726600.T

· 1AM: 748500.NG

· 2AM: 141300.NG

o New York University International Hospitality Industry Investment Conference - Jun 06, 2010 - Jun 08, 2010

· 11:15AM: IILG

o Noble Financial Equity Conference - Jun 07, 2010 - Jun 08, 2010

· 8AM: LVWR.PK

· 8:30AM: COVR , EGHT , HHS

· 9AM: BLC , COHR , ESIO , INO

· 9:30AM: ESIC , GCI

· 10AM: GTEC , INHX

· 10:30AM: ANCI , IVAC

· 11AM: AAIR , BIOS , NCIT

· 11:30AM: CYTX , MHP

· 12PM: DGLY , FARO , MMSI

· 12:30PM: KAD , KEI , NGNM

· 1PM: INOD

· 1:30PM: CTXS , DRCO

· 2PM: CTGX , ISCA

· 2:30PM: GCOM , MAIL , MDXG

· 3PM: WWE

· 3:30PM: EXAC

· 4PM: CVU , PIP , WAVX

· 4:30PM: MEND , TWIN , ZAGG

· 5PM: CGCP , CRXX

· CACI , FFIV , KNOT , VICL

o Nomura Asia Equity Forum - Jun 07, 2010 - Jun 10, 2010

· EVGPF.PK

o Opal Financial Group European Family Office & Private Conference - Jun 07, 2010 - Jun 09, 2010

o RBC Capital Markets Global Energy & Power Conference - Jun 07, 2010 - Jun 08, 2010

· 8:30AM: HAL , RZ

· 9:30AM: GOK

· 10:30AM: KWK

· 2PM: WRES

· 3PM: CLR

· CHK , SD

o Richmond Events, Inc. Conference Logistics & Supply Chain Forum - Jun 06, 2010 - Jun 08, 2010

o Terrapinn Central Asia Mining Congress - Jun 07, 2010 - Jun 10, 2010

o Terrapinn Smart Electricity World Australia Conference - Jun 06, 2010 - Jun 09, 2010

o Terrapinn Telecoms World North Africa Conference - Jun 07, 2010 - Jun 09, 2010

o WBR TradeTech Japan Conference - Jun 07, 2010 - Jun 08, 2010

o WestLB Securities Software & IT Services Conference

· NTS: SOW.F

COMPANY MEETINGS/OTHER DAILY EVENTS

· Monday June 7

o Shareholder meetings:

§ SLGN, ARCC, COWN, ZIXI, LOV, APT, JAZZ, ,MTSN, JMP, RNOW, SPLS

o NKTR investor breakfast

o MDT analyst meeting

o PMTC investor update

o AMGN investor reception

ECONOMICS

· Monday June 7

o 1000 Conference Board Employment Trends Index

o 1500 Consumer Credit

EARNINGS

o Industrials/Homebuilders

· Monday June 7: CWST, CAC, BZC, GBRC, MAXX

o Consumer/Retail/Education

· Monday June 7: BDK, ATAI, GIII

o Financials

· Monday June 7: BERK, FTBK, LBCP

o Tech/Telecom

· Monday June 7: ALTR

o Healthcare

· Monday June 7: RX

o Media

· Monday June 7: EDCI

o Energy

· Monday June 7: FCEL

INVESTMENT BANKING WRAP

M&A

· GS Goldman Rumored To Be Readying BP For Takeover Defense- Telegraph

o BP PLC's (BP) regular advisor Goldman Sachs is rumored to be preparing to fend off any potential takeover attempts for the U.K. oil major

o The Independent says a Western major company takeover attempt is "far-fetched" and an immediate takeover attempt in general is unlikely

o http://www.marketwatch.com/story/goldman-reported-readying-bp-for-takeover-defense-2010-06-06

· Avoiding BP's Toxic Takeover Temptation- WSJ

o As poison pills go, a geyser of oil a mile beneath the sea is hard to beat.

o Above all, crisis or not, the days when bigger scale begot higher multiples for oil majors are long gone. The best-performing stock among them this year has been that of ConocoPhillips, a company actively shrinking

o http://online.wsj.com/article/SB20001424052748704764404575286863500000650.html

· Buyout size increasing, not 'mega' yet-executives- Reuters

o Private equity bosses are expecting deal sizes to gradually increase in size but said on Friday they aren't forecasting an immediate return to mega-buyouts, like the $15 billion size recently discussed

o "Deals are getting done; including multi-billion dollar deals," said Providence Equity Partners' chief executive Jonathan Nelson at private equity conference Super Return U.S. "I would put money on the $5 billion to $8 billion categories actually happening."

o http://www.reuters.com/article/idUSN0412858920100604

· DIS Disney to enter new talks for Miramax- LATimes

o Walt Disney Co (DIS.N) will enter into exclusive talks on Monday to sell its Miramax film unit to Los Angeles construction magnate Ron Tutor and film financier partner David Bergstein

o The newspaper quoted Tutor as saying the exclusive negotiating window would expire at midnight on June 17, but added that such deadlines were often extended.

o http://www.reuters.com/article/idUSTRE65503Z20100606

· Cuban says he'd back Weinstein deal for DIS Miramax- AP

o Billionaire investor Mark Cuban said Saturday he "loved" the idea of the Weinstein brothers participating in a bid for Miramax, adding that he didn't help block their bid to take back the label from The Walt Disney Co

o Cuban said Saturday that the ultimately failed $625 million offer was too high. But he said the possible tie-up with the Weinstein Co. amounted to a no-risk chance at turning around his investment with the filmmaking brothers

o http://www.google.com/hostednews/ap/article/ALeqM5ht0ztsanm5tWWes6waG4AgwQDIogD9G5HNH01

· UBS Held talks with HSBC and also considered Barclays as a suitor for its investment bank unit in 2008- TTN

· EMR Emerson Electric To Raise Offer For UK's Chloride- Sunday Times

o Emerson Electric Co. (EMR) is set to raise its GBP723 million offer for Chloride Group PLC (CHLD.LN) over the next two weeks

o The board of U.K.-based Chloride, which specializes in maintaining uninterrupted power systems, has said that the bid significantly undervalued the company.

o http://business.timesonline.co.uk/tol/business/industry_sectors/utilities/article7144820.ece

· Spain's Grifols Nears Deal For TLCR Talecris Biotherapeutics- WSJ

o Spain's Grifols SA plans to buy Talecris Biotherapeutics, the fast-growing U.S. maker of plasma medicines, part-owned by Cerberus Capital Management LP, for more than $3 billion

o The two sides plan to announce the deal--which Grifols will pay for using a mix of cash and stock--as early as Monday, one of the people said. The exact price couldn't be learned

o http://online.wsj.com/article/SB10001424052748704726104575291100383060696.html?mod=WSJ_Markets_section_Deals

· Grifols to Acquire TLCR Talecris for $3.4 Billion‎- WSJ

o Grifols will pay $26.16 in cash and stock for each Talecris share

o That’s 64 percent above Talecris’s June 4 closing price on the Nasdaq Stock Market, and 53 percent above the average close over the last 30 days.

o The deal gives Grifols almost a third of the $7 billion U.S. market for blood-based infusions, matching Baxter International Inc. and beating CSL Ltd.’s 29 percent share

o Grifols doesn’t expect to have to make any divestments to satisfy the U.S. Federal Trade Commission over its acquisition of Talecris Biotherapeutics Holdings Co

o http://online.wsj.com/article/SB10001424052748703303904575291951497414176.html?mod=googlenews_wsj

· SNY Sanofi-Aventis Mulls Buy But No Interest In Stada- DJ

o French drugmaker Sanofi-Aventis SA (SNY) is looking into acquisition opportunities but has no intention of buying German healthcare company Stada

o He also said the company has no plans to make layoffs in Germany. "The staffing level will stay more or less stable,"

· LEAP Leap-PCS MetroPCS Wireless Talks Stay Stalled- WSJ

o For nearly four years, Wall Street bankers and stock investors have said that a marriage of the two low-cost carriers is inevitable. But after opening up talks in February, the two sides remain at an impass

o At this stage, a deal isn't likely unless the two sides can agree on the relative value of each company, which would determine the exchange ratio at which Leap shareholders would turn in their shares

o http://online.wsj.com/article/SB10001424052748704080104575286940040487302.html?mod=rss_whats_news_us

· GS Goldman Sachs upgraded BMY Bristol-Myers noting an increasing probability of a takeover

· SWFs likely to add private equity exposure, Carlyle- Reuters

o Carlyle Group co-founder David Rubenstein said on Friday that he expects a greater share of capital invested in private equity to come from sovereign wealth funds, particularly from China

o "They see that when you look across the alternative investment landscape, private equity probably did better during this period of time than many other alternative forms of investment," Rubenstein said

o http://www.reuters.com/article/idUSN0411497420100604

· Reliance Comm rallies on stake sale plan- Reuters

o Shares in India's Reliance Communications (RLCM.BO) rose for a fourth session on Monday, briefly erasing their losses for the year, after the company's board approved selling up to 26 percent stake at a premium to its current market price to strategic or private equity investors

o The No.2 Indian mobile carrier did not disclose any timeframe or details for a possible deal in its statement on Sunday, but media reports have linked Abu Dhabi's Etisalat (ETEL.AD), South Africa's MTN (MTNJ.J) and U.S. phone firm AT&T (T.N) as the potential partners

o http://www.reuters.com/article/idUSSGE65605M20100607

· India's Reliance in Informal Talks With AT&T- WSJ

o India's Reliance Communications and U.S. telecom giant AT&T Inc. have sounded out each other's interest about a potential transaction in which AT&T would take a significant minority stake in the Indian cellphone company

o India's Reliance Communications Ltd. and U.S. telecom giant AT&T Inc. have sounded out each other's interest about a potential transaction in which AT&T would take a significant minority stake in the Indian cellphone company

o http://online.wsj.com/article/SB10001424052748704726104575290520535372834.html

· JCDecaux eyes U.S. deals incl CBS, CCO assets-Les Echos

o JCDecaux, the world's second-biggest outdoor advertiser, sees acquisition opportunities in the United States and is still interested in media group CBS' (CBS.N) outdoor assets

o Another potential opportunity would be rival Clear Channel Outdoor (CCO.N) if its private-equity owners decide to sell

o http://www.reuters.com/article/idUSLDE65604U20100607

· Gold firms look at Lihir, no new bid imminent- Reuters

o At least four of the world's biggest gold producers have looked at the books of Australia's Lihir Gold (LGL.AX) but Newcrest Mining (NCM.AX) was seen as the only bidder

o AngloGold Ashanti (ANGJ.J), Barrick Gold (ABX.TO), Newcrest and Newmont Mining Corp (NEM.N) have looked at Lihir's books before the company's data room is closed on June 8, but no new bid was imminent

o http://www.reuters.com/article/idUSSGE65604N20100607

· XOM Exxon in discussions with China firms on partnership- Reuters

o Exxon Mobil (XOM.N) is holding detailed discussions with China's national oil firms on partnerships for a number of resources including unconventional

o XOM senior VP Albers also said Exxon, the world's largest refiner, is in early studies to expand China's Fujian refining and petrochemical plant, a $5 billion venture in which the U.S. oil giant owns a 25 percent stake

· AT Kearney In Talks With Booz & Co Over Merger- WSJ

o Booz & Co. is exploring a possible merger with rival management consultancy A.T. Kearney Inc., according to people familiar with the situation, in a deal that would give the two midsized companies greater scale but still leave them smaller than the market leaders in a highly competitive industry

o http://online.wsj.com/article/BT-CO-20100604-712528.html?mod=WSJ_latestheadlines

· YHOO Yahoo Wants HuffPo Badly- TechCrunch

o Yahoo is clearly positioning itself to become a stronger player in the online content game, as evidenced by its recent acquisition of Associated Content. But TechCrunch is hearing that the real prize they want is the Huffington Post

o There are rumblings that Yahoo wants to buy the Huffington Post outright, but it may be too expensive

o http://techcrunch.com/2010/06/04/yahoo-huffpo/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+Techcrunch+(TechCrunch)

· UK's Pru denies report of renewed bid for AIG unit- Reuters

o The Sunday Times, quoting unnamed sources, said the group was considering an attempt to resurrect its bid and Pru's Chief Executive Tidjane Thiam believed he could have a chance to table another offer before the end of this year

o “We remain highly committed to Asia through our current very successful business. We will not be resurrecting the AIA deal and any speculation is misguided and inaccurate," said Pru

· Pru investors plot return of former CEO after failed deal- Reuters

o Current CEO, Tidjane Thiam has faced calls from some shareholders to quit following the company's botched bid to take over AIG's Asian arm, although other Pru owners told Reuters on Friday it would be premature to force him out

o The FT said at least two top-15 investors had touted Tucker as a possible successor, although other investors were concerned he might push for a break-up of the insurer

o http://www.reuters.com/article/idUSLDE6550JA20100606

· Atos withdraws from bid for RBS' WorldPay- Reuters

o People familiar with the matter have told Reuters that parties still interested in WorldPay, which is valued at $4 billion, include Clayton; Dubilier & Rice (CD&R); American Express (AXP.N) and Permira; Advent International and Bain Capital; Canada's Moneris Solutions; and TPG

o http://www.reuters.com/article/idUSLDE6550DQ20100606

· PEP Pepsi Gains Control Of Serm Suk- WSJ

o With images of burning shopping malls and violent street protests fresh in investors' minds, Thailand might seem an unlikely place for a hostile takeover.

o But PepsiCo Inc.'s bid to buy local bottler and distributor Serm Suk PCL points to an undercurrent of hope in the Southeast Asian nation's longer-term prospects, analysts say.

o http://online.wsj.com/article/SB10001424052748704002104575290052617207486.html

· Canada venture capital drawing big-name investors- Reuters

o Major U.S. and Canadian companies are catching on to what some are already calling a sea change in Canada, where transactions were quietly announced in recent weeks by powerhouses like Google GOOG, Microsoft MSFT and Canada's own RIMM Research In Motion

o http://www.reuters.com/article/idUSN0414800420100606

· BHI Baker Hughes expands in Russia through acquisition- BHI

o Baker Hughes Inc (BHI.N), the world's third-largest oilfield services company, is expanding its stake in the massive Russian oil and gas market through its acquisition of Siberia-based Oilpump Services

o The deal, for an undisclosed amount, will double the U.S. company's share of the Russian market for electrical submersible pumps (ESP), which are used to increase the flow from a well

o http://www.reuters.com/article/idUSN0410884820100604

· BBVA mulling bid for Yorkshire, Clydesdale banks- Reuters

o The potential sale, which could value the British business at 2 billion pounds ($2.9 billion), comes after NAB pulled out of the auction to buy 318 Royal Bank of Scotland (RBS.L) branches on Friday

o NAB is expected to quit the British market altogether now, with a sale preferred over a listing of its UK business.

· JCI Johnson Controls says still wants Visteon- Reuters

o Johnson Controls Inc (JCI.N) said on Friday it is still interested in acquiring auto parts supplier Visteon Corp (VSTNQ.PK) after its unsolicited $1.25 billion bid was rejected this week

o On Tuesday, Visteon rejected Johnson's approach for most of its assets, saying it would stick to its own plan for emerging from bankruptcy

o http://www.reuters.com/article/idUSN0415136020100604

· Former Time Inc exec buys Ziff Davis- Reuters

o Ziff Davis, which is based in New York and publishes technology reviews online, including PCMag.com, did not disclose financial terms of the deal. Since Ziff Davis emerged from bankruptcy in 2009, it has been run by a group of creditors.

o http://www.reuters.com/article/idUSN0413710720100604

· Carlyle to buy heat exchangers maker Giannoni- Reuters

o Private equity firm the Carlyle Group [CYL.UL] said it had made a fully-financed bid for Giannoni, the French maker of heat exchangers for energy efficient boilers.

o The deal values the business at 490 million euros ($585.1 million), the Financial Times reported earlier on Monday, and will see Carlyle take a 65 percent stake in the business

o http://www.reuters.com/article/idUSLDE6560L120100607

· UK to start asset sales with Chunnel link- The Independent

o The UK government is aiming to kickstart a round of crucial asset sales with the auction of the Channel Tunnel rail link, estimated to raise 2 billion pounds ($2.93 billion)

o http://www.reuters.com/article/idUSTRE65518J20100606

· Puma says considering more acquisitions- Reuters

o CEO Zeitz cited as an example of a good match, Puma's acquisition of the golf equipment brand Cobra, which it bought in March from U.S. diversified consumer products company Fortune Brands Inc (FO.N) for an undisclosed sum.

o http://www.reuters.com/article/idUSTRE6551KO20100606

· Triton says still a contender to buy Karstadt- Reuters

o "We are expecting that our offer will be on the agenda on Monday," the spokesman said. A committee representing Karstadt's creditors plans to select an investor on Monday.

o http://www.reuters.com/article/idUSTRE6550YD20100606

· EDB and ErgoGroup create Nordic IT giant- Guardian

o Norwegian companies EDB Business Partner ASA and unlisted ErgoGroup AS, owned by postal services provider Posten Norge, agreed to merge to create one of the Nordic region's biggest IT vendors

o http://www.guardian.co.uk/business/feedarticle/9115248

· Three companies have been identified as having submitted preliminary bids for Newsweek- WP

o A source familiar with the Newsweek situation, who would not be identified discussing private negotiations, says a number of other substantial suitors -- both corporations and wealthy individuals -- have formally expressed interest as well.

o With Post Co. executives refusing to discuss the process, the other possible bidders remain shrouded in secrecy. They may or may not wind up pursuing a purchase, but for now, the discussion centers only on those who have confirmed their interest

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/06/AR2010060603299_pf.html

· Proton Falls in Malaysia After Volkswagen Halts Talks- BBG

o Proton Holdings Bhd., Malaysia’s state-controlled automaker, is heading for its biggest daily decline in 13 months in Kuala Lumpur trading after Volkswagen AG, Europe’s largest carmaker, ended partnership talks

o Proton is seeking foreign partners to help bolster exports and develop new models to compete with Toyota Motor and Honda Motor

o http://www.businessweek.com/news/2010-06-07/proton-falls-in-malaysia-after-volkswagen-halts-talks-update3-.html

· DAI Daimler says no intention of selling its 22.5% stake in EADS- S&P

o Daimler CFO said "It's clear to me that EADS has a great future ahead--the long-term growth is intact,"

o "The value of EADS will rise, and we as Daimler want to participate in this."

· Italy's Campari Ready To Acquire Again- DJ

o Davide Campari-Milano SpA is generating enough cash that it is ready to make another acquisition a little more than a year after its purchase of U.S. bourbon Wild Turkey

· Fujitsu Hunts For Deals In US, to maintain ORCL partnership- WSJ

o Looking to move past a scandal involving its former president's departure, Fujitsu Ltd.'s president said Friday improvements in the company's finances have allowed it to start seeking acquisitions to bolster its position in the U.S. market

o Masami Yamamoto, who took over in April, said in an interview that Fujitsu is also in the final stages of reaching an agreement to maintain its existing partnership with Sun Microsystems under its new parent, ORCL Oracle Corp

· Iberia: May Rethink BA Deal Based On Pension Regulator Decision- WSJ

o Iberia Lineas Aereas de Espana SA (IBLA.MC) could walk away from a merger from British Airways PLC (BAY.LN) if the U.K. pension regulator doesn't agree with what the two airlines have already outlined in a deal

o http://online.wsj.com/article/BT-CO-20100607-701075.html

· Arrow Energy: takeover by RDS Shell, PTR PetroChina on track- DJ

o During a webcast to Australian Securities Exchange, Arrow said the transactions are "on plan, on time, on target" and its shareholders wi ll on July 14 vote on the acquisition in which Royal and PetroChina of fer 4.70 Australia dollar per share. The judgment on the deal will be made on July 29 and the last trading day for Arrow Energy is July 30

$ RAISING

IPOs

· Big Names Are Masking Fresh Slump- WSJ

o A string of big-name companies that have filed to go public in recent weeks has obscured a less-encouraging trend in the U.S.: The pace of companies registering for IPOs fell in May and more deals were shelved than at any point this year.

o During a month in which hospital operator HCA Inc. registered to raise as much as $4.6 billion and Toys "R" Us Inc. filed for $800 million, the number of postponed or withdrawn initial public offerings rose to seven, the highest level this year, according to data from Dealogic

o http://www.world-breakingnews.com/all-top-stories-country/united-states-top-stories/head-lines-us/the-ipo-facade-big-names-mask-slump

· Brokerage giant LPL Financial files for IPO- Reuters

o Private equity-backed LPL Investment Holdings, parent of one of the largest U.S. brokerage companies, filed on Friday for a long-awaited initial public stock offering worth up to $600M

o Private-equity firms Hellman & Friedman LLC and TPG Capital TPG.UL acquired LPL in December 2005. The two firms currently own more than 72 percent of LPL

o http://www.reuters.com/article/idUSTRE65362720100604

· BoCom's smaller fund raising a bad sign for AgBank- Reuters

o Bank of Communications said it could still meet its capital needs after slashing its fundraising plan to take account of weak markets, in a move that bodes ill for rival AgBank's giant IPO

o BoCom said the rights issue plan, cut by 20 percent on Sunday, will suffice for the next three years and has fully taken into account investors' interests in a weak stock market.

o http://www.reuters.com/article/idUSTRE6560WL20100607

· AgBank Prospectus Reveals Reasons For Caution- WSJ

o The 26-page section on risk factors in Agricultural Bank of China’s stock prospectus gives a good sense of just why the global investor should still approach China's lenders, and this one in particular, with a bit of caution

o the prospectus reminds us that AgBank owes its respectable nonperforming-loan ratio of 2.91% at Dec. 31, largely to a government-sponsored cleanup of its bad loans in 2008. As of Dec. 31, 2007, that ratio was 23.57%.

· Chinese bank IPO set to fall short- FT

o Agricultural Bank of China’s initial public offering is likely to raise much less than the $30bn record-setting total it had hoped for when it sells shares in Hong Kong and Shanghai as early as next month

o Analysts and bankers close to the deal said that judging by investor appetite, the current state of the market and details in the IPO prospectus released on Friday, Agricultural Bank was more likely to raise a little over $20bn

o http://www.ft.com/cms/s/0/8ea1c77a-7195-11df-8eec-00144feabdc0.html

· Primo increasing size of offering to $92M from $60M via WFC and weasel- (PR)

· Northfield Bancorp Announces Plan to Sell Additional Stock and Convert to Fully Public Company- (PR)

o http://www.marketwatch.com/story/northfield-bancorp-inc-announces-plan-to-sell-additional-stock-and-convert-to-fully-public-company-2010-06-04?reflink=MW_news_stmp

· Edwards hires executives to spearhead changes- FT

o Edwards, the vacuum technology company, will on Monday say it has hired the recently departed bosses of JCB and Jaguar Land Rover as its top two executives in preparation for an initial public offering or sale of the company

o http://www.ft.com/cms/s/0/f3fc5756-71a0-11df-8eec-00144feabdc0.html

PRICINGS

o Initial Offerings

o China New Borun 5.5m share IPO expected to price wk of 6/7. Price Talk: $12-14

o Secondary Offerings

o ARR Armour Residential REIT 7M share secondary expected to price 6/8 via Ladenburg Thalman and Macquarie

o MSEX Middlesex Water 1.7m share secondary expected to price 6/8 via Janney Montgomery Scott

o ULTA Ulta Salon Cosmetics & Fragrance 9.8m share secondary expected to price 6/8 via Wells Fargo and William Blair

NEWS

· DAI Daimler would welcome a Chinese investor- BBG

o Daimler AG (DAI) would welcome a Chinese investor and there is currently no need for the German auto maker to tap bond markets to raise liquidity

o "I can well imagine having bigger shareholders from China, but we don't plan to get another anchor shareholder of the size of Kuwait or Abu Dhabi in the foreseeable future," said the CFO

· Real Estate: CLGX CoreLogic files $400M equity shelf

· Financials: BPFH BostonPrivate Financial files for $40M secondary offering via Goldman Sachs

***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.