Morning @ Cantor
Morning @ Cantor 6/8
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
EARLY US LANDSCAPE****
· US Stock Futures, SPs up 3..recaptures gains as 7am et passes. Rates move higher
· EU stocks dn 1.2% - off lows on a host of negatives overnight
o EU gave up all gains after UK comments from Fitch t 5am et…
o Dennis Gartman says credit downgrade for the UK is coming – Bloomberg
o German trade data unsettled the markets. Exports from Germany fell -5.9% in April versus expectations of a drop of -2.0% and growth of +10.8% (revised up from +10.7%) in March
o No real reaction to better data…Germany Apr Industrial Production +13.3% y/y vs consensus +12.4%
o Sovereign fiscal comments by Japan PM Kan as well
o markets moved even lower after the ECB's daily borrowing data
· Asian Markets: Nikkei +0.18%; Hang Seng +0.56%; Shanghai Composite +0.09%
o Asian Market traded off lows - higher overseas on Bernanke comments
· Risk is OFF – but trades is calming as 7am et passes
o Crude Oil Futures Decline a Third Day as Equity Markets Fall
o The main European bourses have turned negative and the JPY and CHF are gaining once again on risk aversion plays.
o SPOT GOLD HITS FRESH ALL-TIME HIGHS ABOVE $1,250/OZ
o Three-Month Euribor Rises To Near Six-Month High
§ Euribor is tracked more widely than its London Interbank Offered Rate euro counterpart, and is used to benchmark a wider range of assets.
· EU/ UK stories …
o ECB: Use Of Deposit Facility Hit New Record Monday - DJ
§ Use of the European Central Bank's 0.25% deposit facility hit another new record Monday, according to data released Tuesday by the ECB
§ The ECB said banks placed EUR361.692 billion in the facility Monday, a rise of EUR10.789 billion from the EUR350.903 billion registered over the weekend.
o Pound Extends Slide After Fitch Says U.K. Challenge Formidable
§ The pound extended declines after Fitch Ratings said the U.K. fiscal challenge is “formidable.”
§ Fitch: Fiscal challenge is formidable and situation in UK warrants faster deficit cuts than in April budget
§ An emergency budget announcement is expected later this month on 22nd of June, to set out plans to cut the deficit over the next five years.
§ Sterling fell 0.4 percent to $1.4414 as of 10:03 a.m. in London, and weakened 0.4 percent to 82.72 pence per euro.
o UK Tsy: Govt Agrees With Fitch On Need For Faster Deficit Cuts – DJ
o S&P: Downward Pressures On Wages Also Risk To South Euro Zone
§ S&P: South Euro Zone Growth Prospects Constrained By Uncompetitiveness
o Doubts raised about ECB bond buying – FT
§ Yields of eurozone countries have risen sharply, with some analysts warning the euro itself may not survive Europe’s public debt crisis – sparking growing criticism of the European Central Bank’s apparent lack of conviction
§ http://link.ft.com/r/4RNQTT/ZBA9MH/R18W8/RNOOVC/RN1S1D/GX/h
o Poland Fin Min Rostowski commented that he did not see contagion risks from Hungary – TTN
o Spain civil servant strikes began to protest the government austerity measures – TTN
o Hungary auction goes off today… sold HUF45B in three-month Bills; avg yield 5.26%; Bid-to-cover: 2.4x
· Japan caution: Japan's PM Kan stated that the reason why Japan's fiscal state worsened was because gov't could not raise taxes. Simply raising consumption tax to restore financial health will accelerate deflation
· IEA commented that current oil prices were not seen having negative effect on producers and no indication that OPEC would adjust its output at its scheduled Oct meeting
· Bernanke comments sanguine overnight
o "There seems to be a good bit of momentum in consumer spending and investment," Mr. Bernanke said at a dinner hosted by the Woodrow Wilson International Center for Scholars. "My best guess is we'll have continued recovery, but it won't feel terrific."
o Pretty Good News So Far In US Recovery
o Best Guess Is No US Double-Dip Recession
o We Can't Wait Until Jobless Rate Is Where We Want It
o US Needs Fiscal Exit Strategy; Has None So Far
o http://online.wsj.com/article/SB10001424052748703303904575293500401370006.html?mod=WSJ_hps_LEFTWhatsNews
· Treasury Secretary Geithner to face questions on China from Senate Finance Committee this Thursday – Reuters
o The Senate Finance Committee includes some of Congress' toughest critics of Beijing's currency policy, including Senator Charles Schumer
o http://www.reuters.com/article/idUSTRE6564NX20100607
· Data
o Ukraine Central Bank cuts discount rate by 75bps to 9.50% from 10.25%
o German stocks declined as a report showed exports from the country declined in April, o
o GERMANY APR INDUSTRIAL PRODUCTION M/M: 0.9% V 0.7%E; Y/Y: 13.3% V 12.4%E
o Germany Apr Current Account: €11.8B v €12.2Be; Trade Balance: €13.4B v €15.0Be; Imports M/M: -7.3% v -3.0%e; Exports M/M: -5.9% v -2.0%e
· China Chinese yuan forwards may soon signal a currency devaluation after the euro surpassed the losses suffered following the collapse of Lehman Brothers Holdings Inc.in 2008, according to Royal Bank of Scotland Plc
· China Rates, Yuan Forwards Climb as Bills Sold at Higher Yield - BBG
o China’s money-market rates and yuan forwards rose on speculation policy makers are increasing their focus on curbing inflation after the central bank sold one-year bills at a higher yield
· China Yuan forwards strengthened, after yesterday reflecting the weakest expectations for currency gains since September 2009, as traders bet China’s government will allow appreciation once the global economy recovers. BBG
· China is considering controls on yuan forward transactions to deter investors from betting on an end to its 23-month peg to the dollar - BBG
· China Hiring Plans Rise to 6-Year High, Manpower Says
· China: Huge fund-raising activities by banks, DJ
o Among banks' fund-raising activities, Bank of China launched a CNY40 billion convertible bond sale last Wednesday. Investors are also preparing for a CNY33.1 billion rights issue by Bank of Communications in Shanghai and Hong Kong, as well as the imminent launch of a huge initial public offering by Agricultural Bank of China, which could further drain funds. DJ
· M&A:
o ABB's (ABB) bid for Chloride (CHLD.LN) has strategic merit, but the Swiss firm may have to convince investors, says Goldman (per DJ)
§ ABB shares +1.1% at CHF19.43, while Chloride shares +18% at 340p.
o Electric (EMR) says considering position regarding Chloride offer; will make announcement in due course
o Casey's Rejects Hostile Bid
o CRL Charles River Laboratories holder Jana Partners believes acquisition of WuXi (WX) is suboptimal for the company's shareholders
o SNA Snap-On holder Value Act discloses a 5.2% stake in a 13D filing; up from 3.3%
o CPKI California Pizza Kitchen attracting small amount of interest from private equity - NY Post
§ American Securities Capital Partners is deep in talks on a purchase, and another says Harvest Partners is interested. The deadline for bids is within four weeks.
o Tenet Healthcare Corp. (THC) withdrew its bid to acquire Healthscope Ltd. (HSP.AU), DJ
· FDX FedEx increases quarterly dividend by 9.1%
· Obama Cites ‘Corner Cutting’ in BP Spill, Seeks ‘Ass to Kick’ - BBG
o President Barack Obama, citing possible safety shortcomings before the nation’s worst environmental disaster, said he is looking for “whose ass to kick” in response to the BP Plc spill.
o In an interview for broadcast today on NBC’s “Today” show, Obama said there may have been “some corner cutting” on safety on the doomed oil rig and promised a full investigation.
· Obama to Reopen Oil Drilling
§ HERO +6.2%
§ HP +3.7%
§ RDC +3.5%
o New Rules on Shallow-Water Exploration Expected as Economic Woes Mount
o The Obama administration, facing rising anger on the Gulf Coast over the loss of jobs and income from a drilling moratorium, said Monday that it would move quickly to release new safety requirements that would allow the reopening of offshore oil and gas exploration in shallow waters.
· BP bankruptcy talks: might one day file for bankruptcy, particularly as part of a merger that would enable it to cordon off its liabilities from the spill, is starting to percolate on Wall Street.
o Shell and Exxon Mobil are both said to be licking their chops.
o http://www.nytimes.com/2010/06/08/business/08sorkin.html?ref=todayspaper
· BP PLC (BP) has requested that all pre-trial matters in litigation relating to the Gulf of Mexico oil spill be handled by a specific judge in Houston, Texas, U.K. daily The Times
· UK Police Probing Threats Against BP CEO's Family – DJ
· Consumer sector:
o DG Dollar General reports and guides beter
o NWY -7.9% (guidance)
o PBY Pep Boys reports
· HUM in hmo’s reaffirms.
· ABK up 145 after rhs… Ambac Financial says it has commuted all of its remaining $16.4B of exposure to CDOs of ABS
· Financial reform impact today? Bloomberg) -- Arkansas Democrats decide today whether U.S. Senator Blanche Lincoln will stand for re-election or become the year’s fifth congressional incumbent denied re- nomination in a sign of voter discontent.
· Banks, "Volcker Rule,": JPM JPMorgan Chase may have lost $200-250M on coal trade this quarter - NY Post
o ammunition for backers of the "Volcker Rule,"
· UBS shares fell 2% on the news.
o UBS: Swiss Parliament Lower House rejects US-Swiss tax dispute deal over UBS
o The rejection follows a supporting vote by the upper house last week, meaning that the two houses will now have to work out differences
· Tech busy today
o Teleco equipment, Semis positive: -- Sales of Equipment to Wireless Carriers Are Curbed by Electronic-Parts ShortageWSJ
§ Telecom-gear firms say they are hunting for new suppliers, paying higher prices for components and rushing deliveries by plane. Parts suppliers are hiring more workers, deferring plans to shut factories and rationing parts to their best customers—but demand still outstrips supply.
§ The problem stems from the recession, when electronics-component manufacturers scaled back production. That created fewer parts to sell to companies, such as Alcatel-Lucent SA and Telefon AB L.M. Ericsson
§ Other mentions: FCS, STM, TXN, Samsung, HTC, Verizon Wireless
o Negative: HTCH Hutchinson updated its outlook noting customer build plans have been reduced in the Q. HTCH also expects to see a decline in suspension assembly. The Q is moving towards normal seasonality of flat to down 3% q/q.
o United Micro reports May revenue NT$10.09B, +34.3% y/y
o ALTR up 1% Altera slightly ups guidance.
o LSCC Lattice Semiconductor reiterates Q2 guidance
o SAP reiterates 2010 guidance
· Macro negative: China steelmakers face tough Q3 -Baosteel chairman
o Iron ore prices will definitely fall in Q4
o Steel demand from auto, housing sectors to weaken
o http://asia.news.yahoo.com/rtrs/20100608/tbs-baosteel-7318940.html
· Macro negative: Salzgitter Says Steel Unit’s Order Intake Fell in April and May
o (Bloomberg) -- Salzgitter AG said order intake at its steel unit fell in April and May. Chief Executive Officer Wolfgang Leese made the comments in a copy of a speech he is giving to shareholders in the German town of Braunschweig today.
· FuelCell Energy .'s (FCEL) fiscal second-quarter loss narrowed on lower product costs, but the fuel-cell maker fell short of analysts' expectations.
o Shares were down 2.7% at $2.20 in after-hours trading
· Inflation: Honda Hit by Second Strike - WSJ link
o Fresh from settling a strike in southern China that paralyzed its car production in China for days, Honda was hit by another strike in the same city at an affiliated parts company.
· Inflation BHP Billiton (BLT.LN), Rio Tinto (RIO.LN) to raise iron-ore prices for Japanese steelmakers 23% q/q for July-September – Nikkei
· Inflation British Airways CEO says airline will not give in to strikers – FT
o Walsh does not rule out the possibility of firing striking employees
· Inflation BT Group "considerably" increases pay offer to 55K blue-collar workers - London Times
o London Times says BT has made a new offer to the Communication Workers Union even though it said it wouldn't. BT's initial offer was for a 2% raise and a bonus of up to £500; the new offer is believed to be lower than the 5% the union is seeking.
· China: North Korea Shot Dead 3 Chinese Residents At Border Friday - DJ
o The shooting occurred during an alleged illegal border crossing on Friday Morning
o China is taking the incident seriously and is investigating the incident
· Iran Putin Says Iran Sanctions "Practically Agreed Upon" – AFP
o Fresh United Nations sanctions against Iran over its suspect nuclear program have been "practically agreed upon," Russian Prime Minister Vladimir Putin was quoted as saying here by Russia's ITAR-TASS news agency.
· Iran Iran Says No Talks On Nuclear Issue If Sanctioned AFP
o Iran won't agree to talks on its nuclear program if the United Nations Security Council adopts fresh sanctions, President Mahmoud Ahmadinejad said Tuesday.
· Obama To Meet Abbas As Gaza Fallout Mounts (AFP)--Palestinian president Mahmud Abbas will ask President Barack Obama Wednesday for "bold decisions" on the Middle East but U.S.-led peace moves face a torrid climate after Israel's Gaza flotilla raid.
· South Korea Says Not Seeking Sanctions On North Korea (AFP)--A senior South Korean official left Tuesday to seek China's support for U.N. censure of North Korea over the sinking of a warship, but reaffirmed that Seoul wouldn't ask for new sanctions.
· Eleven states hold primaries or run-offs today to choose candidates for November’s midterm elections. A U.S. House seat also will be filled by one of two Republicans in a special election in Georgia. Some of the results will offer clues about the perils of incumbency, the clout of the Tea Party and the prospects for wealthy, self-funded Republicans.
· Tuesday Primaries: Races to Watch - WSJ link
o Voters in 11 states are casting ballots in primary elections, giving new signals about the reach of the anti-Washington tide that has left its mark on earlier races.
- Economics:
- May NFIB Small Business Optimism at 07:30 ET
- Treasury Auctions in 3-yr notes at 13:00 ET
- API Crude Inventories at 16:30 ET
- ABC Consumer Confidence at 17:00 ET
- Among Fed speakers:
- Fed Governor Duke speaks at the Consumer Bankers Association conference on "Moving Beyond the Financial Crisis" at 08.25 ET
- Chicago Fed President Evans speaks on the US economic outlook at the University Club of Chicago's Civic Affairs Breakfast Forum starting at 09:10 ET
- Kansas City Fed President Hoenig gives the dinner speech at the bank's 2010 Agricultural Symposium, "Farming, Finance, and the Global Marketplace" at 19:00 ET
- Earnings:
- Reporting after the close include: PLL
· Treasury Secretary Geithner to face questions on China from Senate Finance Committee this Thursday - Reuters
TODAY’S BIG STORIES
· Equity Wrap:
o Another day another 2%. They had them unched to higher earlier when we came in, to rally them to midmorning, then we started to fold as Europe sold off near their close and it just got ugly as the day wore on.
o It was a quiet day for the most part and we saw some early bids , but by day’s end, most buy tickets were on hold, which left sellers forced to do something, but it wasn’t widespread panic.
o There is still money out there being put to work but honestly, buyers have the luxury of picking their spots and seeing a lot of cases in which guys are selling some stuff that they bought within the last quarter or so.
o Technically, 1050 support held on the spz, but closing below 1056 Feb low is not a good sign - if we go lower look for 1040 / 1044 (1040 intra-day low from May 25th / 1044 intra-day low from Feb. interim bottom. Next up 980 spz. Breadth to the market had declining issues outnumbering advancing issues by almost 3-1 while internally here, buy and sell names were relatively flat
o Very early Monday morning, overseas markets were all under great pressure. Asia was weakest, as the Nikkei fell 3.8% on worries that a European (and perhaps US) slowdown would hurt exporters. European indices were off less (about 1%), when they managed to turn to the upside on better German factory numbers. At their low point in the overnight session, S&P futures were off 15 points (off 1.4%); by the time US traders arrived at their desks, however, S&P’s had rallied all the way back to even. Once the cash market opened, futures swung back and forth between a 4 point gain and a 6 point loss. After a fourth attempt at 1:30 to move above 1070, the bears took over and sold stocks steadily into the bell; futures closed on their lows, off 18 points at 1048.
o Of 10 S&P Industry groups, only Utilities rose (up 0.52%). Industrials were the worst performers, ending off 2.55%. Also of note was the RTY’s (Russell 2000) close below its 200 day moving average. The S&P and Dow have already broken this level. One could argue that the Russell had represented the strongest of the Indices: it had rallied the farthest on a percentage basis (on 4/26/2010, was within 12.5% the October 2007 high vs. a 22.5% shortfall in the S&P). Now we have all the major domestic indices showing serious technical deterioration.
o (Billy Clark and team)
· Treasury’s Wrap:
o Treasury market opened up overnight slightly better bid as the Asian equities markets caught up to the loses from here on Friday. The market found its highs early grinding lower throughout the European session as their equities were semi stabile and the Euro bounced off its intraday lows around 1.188. As the New York session opened Treasuries found a small bid off these lows trading range bound for the entire morning and into the afternoon session. The market found a vicious bid in the late afternoon led by the belly of the curve, the buying continued into the close and thereafter as the Euro once again slid and US equities retreated to their lows.
o The eco calendar remains light tomorrow with all eyes once again pointing towards Europe and the sentiment around the US economy after Friday's payrolls report. The Treasury will also start this weeks coupon supply with $36Bln 3 year notes. Setups will once again be extremely hard with the recent volatility and rates at the lower end of their recent range.
o Primary Dealer
· high yield Wrap:
o HIGH YIELD CLOSING DOWN ABOUT 1/2 WITH INDEX OFF MORE LIKE 1 POINT.
o OC 6.5 16 FAIRLY ACTIVE BUT OVERALL ANOTHER ABISMAL DAY IN ACTIVITY.
o IF IT WASNT FOR THE HELP FROM SLMA AND WELLS FARGO, WE WOULD NOT BREAK 1 BIL IN HIGH YIELD VOL AS PER BBERG
o DEFINITELY NO NEED FOR SELLING AND WE DEFINITELY FEEL BETTER THAN EQUITIES.
o STILL STAND BY THE FACT THAT PEOPLE WOULD RATHER SEE FRESH NAME OFFERS AT CHEAPER PRICES THAN SEE BIDS FOR PAPER IN HERE
o HOMEBUILDERS RATHER STAGNANT WITH BID ACTIVITY IN SHORTER PAPER 2YRS AND IN.BUILDING PRODUCTS FIRM AND MUCH OF IT HARD TO FIND. HEALTHCARE HOLDING IN VERY WELL WITH SECURED PAPER OFF JUST 1/4 TODAY
o ADAM VENGROW
· Investment grade Wrap:
o For the second trading day in a row IG spreads were surprisingly firm to tighter in lighter volume. Gulf name activity was down from the flurry of last week as they drifted wider throughout the day, benchmark BPLN 4.75 19 are going out +247-242 and have only traced once all day after being active every day last week and going out +240-235 Friday. Better activity than Friday away from the gulf name although more add-on’s and line item clean ups today as it was the first day back for some after taking “study days” for the CFA last week
o The Euro remains below $1.19 and equities swooned in the afternoon on little news away from the new iPhone being launched at $199 and it is 24% thinner. The VIX was up again to 36, up 20% from Thursday’s 29 level and crude was below $70 briefly in the morning
o We are seeing some more buyers coming in, many of them five years and in as the desire to add risk out the curve has waned with the olb making another run inside 4.10%. Buyers can and do remain selective and are shunning smaller, less liquid deals in favor of the larger on the run deals as liquidity on the periphery is not what it was a month ago.
o Michael Salemo
· CMBS DAILY RECAP
o Its all about technicals right now. Light selling and renewed retail interest the past few days. With only $220mm in BWICs including a meager $50mm of '06/'07 lcfs, its tough for cmbs to widen. GG10s are 10bps tighter on the day (+410/$94-30) despite corps, HY and stocks off. CMBS continues the trend from last week- out performing corps with the re-emergence of retail interest last Wed. Today's GG10 price activity does feel like a potential short squeeze- maybe a large GG10 reremic on the way?
o JPM is out with the second CMBS deal of the year. $716mm. Will be interesting to see where guidance is relative to good '05 lcfs.
o Seen a few stories recently regarding an increase in expected losses for delinquent loans.
o GEORDIE WALKER
· Credit Markets: JPMorgan May Pay More Than RBS to Sell CMBS – BBG
o JPMorgan Chase & Co. is selling $716.3 million of bonds tied to loans on commercial properties at higher relative yields than when the debt was last issued in April, just before the worst month for credit since markets froze in 2008. A top-rated portion maturing in five years may yield at least 115 basis points, or 1.15 percentage points, more than the benchmark swap rate
· Credit Markets: Two More Test High-Yield Bonds - WSJ
o A couple of corporate borrowers returned to the high-yield bond market, hoping the lone bond offering to price last week can generate enough momentum to carry a few deals this week.
o Triumph Group Inc., which first said it intended to come to market a month ago, and Bway Holding Co. began shopping around deals, encouraged that Spectrum Brands Inc., maker of Remington shavers and Rayovac batteries, was able to sell $750 million of eight-year notes Friday despite weeks of volatility and another stock-market rout.
· Credit Markets: Global rates of corporate default in decline
o May level drops from 9% to 7.5% on improving economic outlook and credit conditions, but S&P ratio flags more defaults
o http://link.ft.com/r/4RNQTT/ZBA9MH/R18W8/RNOOVC/JISXSG/GX/h
· Credit Markets: NB Distressed Debt Fund Raises $197M In IPO, Exceeds Target – DJ (hit yest)
o NB Distressed Debt Investment Fund Ltd. said Monday it had raised $197.2 million in its initial public offering in London, well above the company's target of $150 million and one of the few companies to pursue a listing amid volatile markets.
o NB Distressed Debt Investment Fund Ltd, a vehicle of privately held U.S. asset manager Neuberger Berman
· Money managers have turned more bullish on emerging-market stocks and bonds because of an economic recovery, according to a survey by HSBC Holdings Plc - BBG
· Exchanges are coming close to the edge - FT
o Overly-progressive trading technology will lead to alienation, writes Michael Gordon at BNP Paribas Asset Management
o http://www.ft.com/cms/s/0/c42d74c6-723e-11df-a0fd-00144feabdc0.html
· Bond-Fund Managers See Signs of a Bubble
o Heavy Inflows and Naivete About Losses
o From 1985 through 2009, bond-fund returns, on average, dipped into negative territory just three times, with losses of 4.7% in 1994, 1.2% in 1999 and a 7.8% decline in 2008
· US Senate Nears Deal On Fund-Manager Tax Hike - DJ
o U.S. Senate Democrats neared agreement late Monday to raise taxes on investment fund managers, with discussions centering on an effective tax rate of 32.7% on much of those fund-manager profits
o The Senate proposal is expected to be made public late Monday or Tuesday as part of a broader package of changes to legislation passed by the House in May.
o Venture Capitalists May Win Lower Rate For Long-term Gains
· Fund Firms Change Pay Plans - WSJ
o Money managers are changing the way they pay their staff by linking remuneration more closely to group-level results as the industry tries to fend off regulatory pressure on financial-services pay
o Until now, most money managers' incentive plans were rooted in cash awards linked to individuals' results. But in recent months, firms have moved to paying a larger portion of compensation in company stock that vests over several years.
· China anecdote:
o Talk to a western businessmen, and Asia is the future. For those on the ground, the crystal ball is somewhat less clear.
o On a recent trip, Byron Wien, Blackstone's market sage, asked investors in Hong Kong and China how many had seen a higher standard of living than their parents. Every hand went up.
o He then asked how many thought their children would also see an improvement. No hands. As he wrote in his latest investment letter: "In America I usually see ten to twenty-five percent of the hands go up with the second question." WSJ
· Two more NATO soldiers were killed in Afghanistan on Tuesday, the military said, a day after international forces lost 10 soldiers in a string of attacks. AFP
· Iran Presses Case Of Nuclear Scientist Says Held In US - AFP
o Iran said Tuesday it will use legal channels to secure the release of its nuclear scientist Shahram Amiri, who in a video clip screened on Iranian television channels said he was kidnapped by U.S. agents.
o In the clip, the man identified by the IRIB channel as Amiri said he was now "in the city of Tucson, Arizona" in the United States and that he had been kidnapped by U.S. agents en route to Mecca in Saudi Arabia in June 2009.
o he television said Iranian intelligence services had obtained the film "by special methods," without elaborating.
· China Defends "Great Firewall"
o (AFP)--China on Tuesday defended its right to censor the Internet, saying it needed to do so to ensure state security, and cautioned foreign governments to respect and obey its online policies
o The government's white paper on the Internet in China - where more than 400 million people are now online - comes after a very public row with Google Inc. (GOOG) over web freedoms which prompted the U.S. firm to shut down its Chinese search engine.
· Medical-marijuana shops began closing in Los Angeles as a new ordinance took effect. WSJ
· Internet Addicts Stage Uprising At China Boot Camp
o A group of young Chinese web addicts staged a mutiny at an Internet "boot camp", tying up their instructor and fleeing the facility over its tough military-like techniques, state media said Tuesday
o The 14 mutineers, aged 15 to 22, were all caught by police when they failed to pay a taxi fare following their escape from the rehabilitation center in east China's Jiangsu province last week, the Global Times said.
· California Is Stuck In 1st Gear - WSJ
o California is rebounding more slowly than the rest of the U.S., weighing down the nation's recovery and underscoring how hard-hit the state remains on the eve of Tuesday's primaries
o In April, the last month for which state data are available, California nonfarm employment fell 2.5% from a year earlier, compared with a 1.1% national drop, as the state lost a higher percentage of jobs in the recession and has added a smaller percentage this year. The state's 12.6% jobless rate far exceeded the 9.9% U.S. rate in April, as reported by the Labor Department.
· Israel is considering setting up an international television news channel as a rival to al Jazeera, The Jerusalem Post
· Support low for elected officials WP link
o As voters head to the polls Tuesday for a crucial set of primary elections, a new Washington Post-ABC News poll finds antipathy toward their elected officials rising and anti-incumbent sentiment at an all-time high.
· China vs US: Chinese close ranks on criticism of U.S. – WP link
o Everything, Guan said, that is going right in U.S. relations with China is because of China. Everything, he continued, that is going wrong is the fault of the United States. Guan accused the United States of being a "hegemon" and of plotting to encircle China with strategic alliances. The official saved the bulk of his bile for U.S. arms sales to China's nemesis, Taiwan -- Guan said these prove that the United States views China as an enemy.
o U.S. officials have since depicted Guan's three-minute jeremiad as an anomaly
o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/07/AR2010060704762.html?wpisrc=nl_cuzhead
COMPANY NEWS WITH MACRO IMPLICATIONS
Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
+ ARMH, EGO and EXC
- IRE, FSLR, DE and MNKD
Energy
· Obama to Reopen Oil Drilling
- HERO +6.2%
- HP +3.7%
- RDC +3.5%
o New Rules on Shallow-Water Exploration Expected as Economic Woes Mount
o The Obama administration, facing rising anger on the Gulf Coast over the loss of jobs and income from a drilling moratorium, said Monday that it would move quickly to release new safety requirements that would allow the reopening of offshore oil and gas exploration in shallow waters.
· BP bankruptcy talks: might one day file for bankruptcy, particularly as part of a merger that would enable it to cordon off its liabilities from the spill, is starting to percolate on Wall Street.
o Shell and Exxon Mobil are both said to be licking their chops.
o http://www.nytimes.com/2010/06/08/business/08sorkin.html?ref=todayspaper
· BP PLC (BP) has requested that all pre-trial matters in litigation relating to the Gulf of Mexico oil spill be handled by a specific judge in Houston, Texas, U.K. daily The Times
· UK Police Probing Threats Against BP CEO's Family - DJ
· Mexican organised crime stealing Fuel…per Pemex - FT
o Pemex, Mexico’s state oil monopoly, on Monday filed legal proceedings against BASF Corporation, the German chemicals group, and several US-based energy trading companies in a case involving illicit fuel sales.
o In a statement, the Mexican oil company said that the lawsuit aimed to recover the value of fuel that was stolen from Pemex installations in Northern Mexico and then sold by a handful of US-based trading companies to BASF, Murphy Energy Corporation and others.
o part of an ongoing investigation in collaboration with US authorities into a multi-million-dollar market of contraband fuel smuggled across the border by Mexican organised crime groups.
o http://www.ft.com/cms/s/0/7035b950-7284-11df-9f82-00144feabdc0.html
· A former Massey Energy (MEE) miner has filed a whistleblower complaint with the Labor Department, alleging that he was fired after he made comments about conditions at two of the company's mines, including one where 29 miners were killed in April. DJ
· XOM Exxon Mobil talking with Chinese national oil companies about partnerships – Reuters
· PETD Petroleum Development to expand acreage position in the Wattenberg Niobrara to 70,000 acres; terms not revealed
· BP to make immediate payment of $60M for Louisiana's barrier islands project
· SOL ReneSola Ltd announces adjustment to Q4 earnings
· CEO CNOOC announces that production capability of BZ25-1/BZ25-1South oilfields has recovered to its normal level
· SPWRA SunPower to build 9.1 MW solar power plant in Alange, Spain, for Naturener Group
· FCEL dn after hrs… FuelCell Energy reports Q2 EPS
· EPD Enterprise Products shuts down part of Texas intrastate pipeline after fire-- wires
· DTE DTE Energy reaffirms full year EPS guidance of $3.45-3.80 vs Reuters $3.59
· TAC TransAlta declares force majeure for its Sundance 3 thermal power plant
· EOG EOG Resources has voluntarily suspended operations in the Commonwealth of Pennsylvania, effective immediately
· Oil well explodes in Johnson County, six injured--WFAA.com
· VQ Venoco expects no impact to 2010 production guidance due to MMS moratorium
· NR Newpark Resources provides update on Gulf of Mexico operations
· BP BP declares Q1 dividend of $0.14/share, or $0.84/ADS
· BP NY Times Dealbook speculates on what a BP bankruptcy/merger might look like
· Pemex files US lawsuit to recover value of stolen fuel - FT
· XOM Exxon Mobil talking with Chinese national oil companies about partnerships - Reuters
· PETD Petroleum Development to expand acreage position in the Wattenberg Niobrara to 70,000 acres; terms not revealed
· BP BP to make immediate payment of $60M for Louisiana's barrier islands project
· TRANSPORTS
o UAUA UAL Corp estimates May PRASM rose 25.5%-26.5% y/y
o BAIRY British Airways CEO says airline will not give in to strikers – FT
· Qantas, Virgin Look To Mergers In Consolidation Trend – Bloomberg
· Gol Linhas Aereas reports May demand +14.5% y/y
· Dow Jones)--Virgin Blue Holdings Ltd. (VBA.AU) said Tuesday it expects to know by the end of August whether U.S. airline authorities will allow it to proceed with its proposed joint venture with Delta Airlines Inc. (DAL) on the Trans-Pacific route between Australia and the U.S.
· Walsh throws down gauntlet to strikers
o airline industry leaders: ‘I don’t think we’ve been brave enough in the past to stand up and say “No” ‘
o http://link.ft.com/r/4RNQTT/ZBA9MH/R18W8/RNOOVC/HDQ4Q4/GX/h
· Qantas CEO Says Premium Travel Rebounds Despite Disruptions
o Qantas Airways Ltd.'s (QAN.AU) chief executive said its business class travel was showing signs of improvement, despite disruptions caused by the temporary closure of European airspace due to the volcanic ash clouds and civil unrest in Thailand
o The number of passengers traveling in business class between January and June was down 7% from levels before the global economic crisis, Alan Joyce told Dow Jones Newswires in an interview Monday at the International Air Transport Association's annual meeting.
o That compares with premium travel numbers down 14% from pre-crisis levels in the second half of last year.
· Aviation Still Hampered By Fragile Consumer Confidence – IATA
· Emirates Airline to Order Additional Airbus A380s Superjumbos - BBG
Tech/media/ telecom sectors
· SAP- reiterates guidance. The company said “looking forward to a strong 2010.” The co-CEO said "We believe that our return to growth in the first quarter is the beginning of a new SAP." He also said the company is still open to large acquisitions after SY purchase- Reuters
· LSCC- reiterates guidance for Q2. Expects revs up 6-10% sequentially
· ALTR up 1% Altera slightly ups guidance. The slight change was is attributed to new products showing strong growth in Q2.
· HTCH Hutchinson updated its outlook noting customer build plans have been reduced in the Q. HTCH also expects to see a decline in suspension assembly. The Q is moving towards normal seasonality of flat to down 3% q/q.
· Mediatek, Richtek: First-tier Taiwan-based IC design houses MediaTek and Richtek Technology both posted lower-than-expected revenues for May in part due to seasonal factors- Digitimes
· Inventec may revs rose 54.7% q/q due to a push from gaining some new Toshiba netbook orders
· UMC reported May sales of NT$10.09B (30 month high), up 34% y/y. The foundry has not given a revenue estimate for the second quarter, but expects wafer shipments to rise by a high single-digit percentage rate on quarter.
· Hon Hai Fallout Could Include Relocations- All Things Digital
· Hon Hai Chairman: Wage Hike Impact On Margin Less Than Estimated By Market- DJ
· Foxconn: Hope To Conclude Price Talks With Clients In 3rd Quarter- DJ
· Foxconn: Need To Raise Wages To Recruit Labor In China- DJ
· Mobile Infrastructure Hardware Has “Brutal” Q1 Decline- Barron’s
· GOOG: Hires Security Firm Stroz Friedberg To Investigate WiFi Snafu- DJ
· AAPL: iAd plans to eat up half the mobile ad market- AppleInsider
· AAPL: releases Safari 5- CNET
· AAPL: rides high-margin hardware to competitive supremacy- iSuppli
· AAPL: Inside the iPhone 4--courtesy of Steve Jobs- CNET http://news.cnet.com/8301-13924_3-20006904-64.html
· Elpida/ProMOS: Speculation arises about possible ProMOS-Elpida partnership for China plant- DIGITIMES
· LED: Philips to recruit LED experts in Taiwan- Digitimes
· Optical touch technology to gain advantage in future- NextWindow
· PC Makers: More say they are not considering following Foxconn's pay hikes- Digitimes
· PCs: market hits record growth of 22.7% in 1Q10- iSuppli
· Components: Most passive component makers report revenue growth for May- Digitimes
· Pay-TV: Global pay-TV subscribers to grow 7% as more set-top box solutions enter the market- Digitimes
· Media: China's rise challenges western media- FT
· http://www.ft.com/cms/s/0/fe1ad2da-7259-11df-9f82-00144feabdc0.html
· Vivo: Portugal Telecom to consider increased bid for Vivo stake- IntoMobile
· Internet: China vows no let-up to state control of Internet- Reuters
· BIDU: aims for 79 percent share of China search market- Reuters
· Teleco equipment, Semis: Sales of Equipment to Wireless Carriers Are Curbed by Electronic-Parts Shortage- WSJ http://online.wsj.com/article/SB20001424052748703630304575270521458797364.html#mod=todays_us_marketplace
· ARMH: Cramer is positive on the name. Says it is a great speculative way to play his mobile Internet tsunami thesis
· LPL LG Display in talks to quadruple iPad panel shipments next year - Korea Herald
· ELX Emulex announces acquisition of ServerEngines; reiterates Q4 (Jun) revenue guidance
· BR Broadridge board authorizes 10M share repurchase program
· DIET eDiets.com completes debt conversion and raises additional capital from officers and directors
· BT BT Group "considerably" increases pay offer to 55K blue-collar workers to avoid strike - London Times
· EMR Emerson says considering position regarding Chloride offer; will make announcement in due course
· Patni has formed an IT services joint venture with Kyushu Railway- Nikkei
· Telecoms: Supply constraints impacting sales of telecommunications equipment -- WSJ
· Telecoms: Zain, Bharti close African deal- Reuters
· ATML Atmel announces resolution of stock option backdating litigation
· YHOO Yahoo! fires part of search team in restructuring move - TechCrunch
· YHOO Yahoo! CEO Carol Bartz creates list of desired partners/targets - NY Post
· http://www.nypost.com/p/news/business/bartz_eyes_mate_r5J6n6iyxVYT6l6Z2aCOTK
· VIP VimpelCom Ltd resumed as overweight at Morgan Stanley
· IVAC Intevac initiated buy at Hapoalim Securities
· CAVM, MRVL, MSCC, NETL, VLTR, ATHR, CY, IDTI, MPWR, NVDA Janney Capital initiates; Cavium Networks initiated buy with $30 target; Marvell initiated buy with $27 target; Microsemi initiated buy with $25 target; Netlogic Microsystems initiated buy with $35 target; Volterra Semiconductor initiated buy with $33 target; Atheros Communications initiated neutral with $35 target; Cypress Semiconductor initiated neutral with $12 target; Integrated Device initiated neutral with $6 target; Monolithic Power initiated neutral with $21 target; NVIDIA initiated neutral with $12 target
· INTC, BRCM, NVDA, MCHP Intel, Broadcom downgraded at Susquehanna; firm initiates coverage on NVIDIA and Microchip; INTC downgraded to neutral from positive. BRCM downgraded to neutral from positive. Firm notes checks suggest a broader slowdown in end-market demand. NVDA initiated negative with a $10 price target. MCHP initiated positive with a $33 price target.
· HEALTHCARE
o WMGI Wright Medical announces results from study of its GRAFTJACKET Matrix for augmenting rotator cuff repair
o ABT, SNY District Court rules in favor of Glenmark Pharmaceuticals vs ABT and SNY regarding generic of Tarka
o DRAD Digirad announces reduction in workforce
o ELGX District court rules in favor of Cook Inc to lift stay on its patent infringement case against Endologix
o CRL, WX Charles River Laboratories holder Jana Partners believes acquisition of WuXi is suboptimal for the company's shareholders
- WX -5.7% (Jana Partners believes acquistion by CRL is suboptimal)
o DRRX, HSP DURECT Corp hosted webcast to discuss agreement with Hospira
o CBMX CombiMatrix announces Board restructuring
- DEPO +12.2% (NDA for DM-1796 accepted by FDA)
o HSP Hospira and DURECT (DRRX) sign agreement to develop and commercialize Posidur (saber-bupivacaine) in the US and Canada
o BIIB Biogen Idec provides update on CEO search and management changes
o OSIP Astellas completes tender for OSI Pharmaceuticals
o MRK Merck KGaA submits NDA to FDA for Cladribine Tablets
Miners/ steel sectors etc
· Macro negative: China steelmakers face tough Q3 -Baosteel chairman
o Iron ore prices will definitely fall in Q4
o Steel demand from auto, housing sectors to weaken
o http://asia.news.yahoo.com/rtrs/20100608/tbs-baosteel-7318940.html
· Macro negative: Salzgitter Says Steel Unit’s Order Intake Fell in April and May
o (Bloomberg) -- Salzgitter AG said order intake at its steel unit fell in April and May. Chief Executive Officer Wolfgang Leese made the comments in a copy of a speech he is giving to shareholders in the German town of Braunschweig today.
· BHP Billiton (BLT.LN), Rio Tinto (RIO.LN) to raise iron-ore prices for Japanese steelmakers 23% q/q for July-September – Nikkei
· Goldcorp likely to need to shut Marlin mine in Guatemala - Globe and Mail
· Xstrata Stands By Australian Jobs Claim –
o Anglo-Swiss mining giant Xstrata PLC (XTA.LN) has rejected any need to clarify a press release announcing the loss of potential jobs, despite admitting some of its wording had caused confusion, the Age reported Tuesday.
o Xstrata announced it had suspended A$586 million of expenditure on two major projects last Thursday, and said 3,250 new jobs that would have been created were now at risk due to the federal government's planned 40% resource super profits tax.
· SSRI Silver Standard Resources updates on Pirquitas Mine and exploration project
· GHDC Goldcorp likely to need to shut Marlin mine in Guatemala - Globe and Mail
· TATLY Tata Steel raises stake in New Millennium Capital Corp
· BHP,RTP BHP Billiton, Rio Tinto to raise iron-ore prices for Japanese steelmakers 23% q/q for July-September
INDUSTRIALS
· GE General Electric trying to sell BAC-Credomatic GECF - Reuters
· SSW Seaspan accepted delivery of a 4250 TEU containership named the CSAV Lebu from Jiangsu Yangzijiang Shipbuilding on 4-Jun
· CWST Casella Waste reports Q4 EPS
· ENG ENGlobal's board has approved the repurchase of up to an aggregate of 1M shares
· TXT Textron awarded $84.7M US Army contract on 28-May
· LMT Lockheed Martin awarded three US Air Force contracts
· BA, LMT NOC Northrop Grumman, Boeing, DCS Corp, BAE Systems National Security Solutions and Lockheed Martin were awarded a $919.6M US Air Force contract
· CHP C&D Technologies reports Q1 EPS
· GVA Granite Construction awarded a $22M contract by the California Department of Transportation
· SNA Snap-On holder Value Act discloses a 5.2% stake in a 13D filing; up from 3.3% disclosed on 31-Mar
· AONE, NAV A123 Systems signs battery supply agreement with Navistar
· KBR KBR subsidiary awarded $87M contract for building construction
· FDX FedEx increases quarterly dividend by 9.1% to $0.12 from $0.11
· CASC Cascade reports Q1 EPS
· MWA Mueller Water removed from the Americas Conviction Sell list at Goldman Sachs; stock remains sell rated. Target is $3.80.
· BA Boeing teams with Finmeccanica to bid for Marine One helicopter contract - FT
Autos sector:
· Audi: US May Sales Stronger Than Expected
o Audi's May China Sales Rise 40% On Year – DJ
o Audi May Sales +15% On Year At 94,900 Cars
· General Motors (Dow Jones)--General Motors Co.'s request for German state aid has been rejected by a government steering committee because it "doesn't fulfill the necessary requirements," according to an economics ministry document viewed by Dow Jones Newswires on Tuesday.
o "General Motors has sufficient financial resources to finance the restructuring of its European division on its own," the document said.
o The document is dated June 8. GM has requested state aid to restructure its Adam Opel GmbH unit in Germany
· China Auto companies led the broader market higher after China's largest auto maker by output, SAIC Motor, said it sold 289,239 vehicles in May, up 26.1% from the same month last year. SAIC rose 1.1% to CNY12.41, and Dongfeng Automobile was up 1.2% at CNY4.93. DJ
· Dow Jones)--Hyundai Motor Co.'s (005380.SE) India unit hopes to resume production Tuesday at its south Indian plant, where output was stopped Monday due to a strike by workers, a company executive said.
· Chrysler Group LLC confirmed Monday it is voluntarily recalling more than 683,000 Jeep Wranglers and minivans world-wide over brake-line and sliding-power-door issues. DJ
· Legislators, automakers reach compromises on vehicle safety bills
o Automakers have reached a series of compromises with lawmakers over both the House and Senate versions of auto safety legislation aimed at forcing the National Highway Traffic Safety Administration to set and enforce stricter standards, according to records and interviews.
Financials:
· Banks, Financial reform impact today? Bloomberg) -- Arkansas Democrats decide today whether U.S. Senator Blanche Lincoln will stand for re-election or become the year’s fifth congressional incumbent denied re- nomination in a sign of voter discontent.
· Banks, "Volcker Rule,": JPM JPMorgan Chase may have lost $200-250M on coal trade this quarter - NY Post
o ammunition for backers of the "Volcker Rule,"
o wagering on the differentials between the costs associated with shipping coal in northwest Europe and the price of delivering coal in South Africa's Richards Bay.
o http://www.nypost.com/p/news/business/jpmorgan_coal_hole_p6EJ4K57rYa9Rz8VfQpTVP?CMP=OTC-rss&FEEDNAME=
· GS: WSJ recap of Mondays FCIC annmmct
o AIG: The commission is particularly interested in Goldman's dealings with American International Group
o The commission is asking for audio tapes of internal discussions at Goldman, a type of disclosure that hasn't previously figured in the firm's public battles
o Many of the commission inquiries appear to be in preparation for a coming FCIC hearing on derivatives, at which Goldman executives could testify.
· Ambac Financial Group (ABK) jumped 14%, to $1.17 in after-hours trading
o Ambac Financial Group Inc. (ABK) said it commuted all of its remaining $16.4 billion of exposure to collateralized debt obligations of asset-backed securities.
· UBS: Swiss Parliament Lower House rejects US-Swiss tax dispute deal over UBS
· KCG Knight Capital To Make Strategic Investment In Equiduct >
· SYA Symetra Financial announces departure of CEO Randall Talbot; names Thomas M. Marra as president and CEO
· WSJ discusses concerns about the impact of a bond bubble on bond mutual funds
· EWBC, GBCI B. Riley & Company upgrades East West Bancorp upgraded to buy from neutral; target is $20; Glacier Bancorp upgraded to buy from neutral; target is $18
· PZN Pzena Investment Management reports 31-May AUM
· DFR Deerfield Capital receives Wells notice from SEC
o As previously disclosed, the SEC has been investigating certain mortgage securities transactions effected by Deerfield Capital Management LLC,
Real Estate:
· REITS
· PLD ProLogis signs two new build-to-suit agreements
Consumer sector:
o DG Dollar General reports and guides beter
·
· Casey's Rejects Hostile Bid
· CASY Casey's General expected to recommend that shareholders reject $1.9B hostile bid from Couche-Tard (ATD.B.CN) - WSJ
· CPKI California Pizza Kitchen attracting small amount of interest from private equity - NY Post
o American Securities Capital Partners is deep in talks on a purchase, and another says Harvest Partners is interested. The deadline for bids is within four weeks.
· HAIN Hain Celestial CEO Irwin Simon says the company is looking forward to working with 13.24% holder Carl Icahn—CNBC
· BWS Brown Shoe repeats guidance in investor presentation
· CRVL Corvel reports
· CVS vs WAG : WSJ(6/8) Heard On The Street: Spat Means Now Is Time To Shop CVS
o When drugstores flex their muscles, investors get squeezed.
o Walgreen took its spat with CVS Caremark to a new level Monday with a pledge to stop taking new customers from the latter's pharmacy-benefits-management business.
o The problem is that CVS has been favoring its own stores by offering lower prices, thus helping it grow faster than Walgreen recently.
o Investors overreacted in wiping 8.1% off CVS's share price Monday.
o There is some risk the rivals will part ways. More likely it is a question of which company will blink first.
· Harrah's Entertainment: Macau Remains Top Priority For Firm
o (Dow Jones)--Harrah's Entertainment Inc. (HET) Asia president Michael Chen said Tuesday Macau remains a top priority for the Las Vegas-based casino operator, even though the company doesn't have a presence in the Chinese gambling enclave's gaming market and the territory's government isn't ready to license any new casino operators yet
· Neiman Marcus reports Q3 (Apr) revenues $895.2M vs. $810.1M y/y
· CVS WSJ is positive on CVS Caremark
· CAG ConAgra to sell Gilroy Foods & Flavors dehydrated and vegetable product operations to Olam International for $250M
· HLYS Heelys names Craig Storey COO/CFO, effective today
· NWY New York & company guides Q2 EPS to loss to widen vs prior guidance and Reuters
· HOFT Hooker Furniture reports Q1 EPS
· BWS Brown Shoe reports May consolidated net sales +16.9%
· GLW Corning upgraded to outperform from market perform at Bernstein
· Weekly USDA crop progress report says 94% of the corn crop has emerged; compares to 85% of corn crop emerged last week and 91% average of 2005-09.
· RVI Retail Ventures reports Q1 GAAP EPS
· THS Treehouse Foods initiated equal-weight at Stephens - wires
· SPLS Staples to resume share buyback program
· DG WSJ is cautious on Dollar General
· CPKI California Pizza Kitchen attracting small amount of interest from private equity - NY Post
· CASY Casey's General expected to recommend that shareholders reject $1.9B hostile bid from Couche-Tard
· AMCN AirMedia Group names Qing Xu executive president
From our EU/London desk
· Oils
· BP (-2.5%). Containment cap continues to improve with the company claiming to have captured 11k barrels of oil on Sunday.
· Rockhopper (+2.7%). Proposes a £48.5m share sale to fund it's exploratory activities in the Falklands.
· Miners
· Xstrata (-0.9%). Australian Govt. says that Mining companies are exaggerating the effects of the proposed super tax, but Xstrata immediately counter-claim that it will impact 'Real jobs and real communities'.
· Financials:
· MUNICH RE -1.85% RAISES CHILE EARTHQUAKE LOSS FORECAST TO $1bn
· UBS -3.26%...SWISS LOWER HOUSE REJECTS U.S. TREATY ON UBS IN FIRST VOTE
TODAY’S EVENTS
DAILY VIEW
CONFERENCES
Tuesday June 08:
o Accredited Members Inc. Summer Small Cap/Micro Cap Investment Conference - Jun 07, 2010 - Jun 09, 2010
o ACG Detroit Annual M&A Conference - Jun 08, 2010
o Adam Smith Conferences: Russian Real Estate Summit - Jun 07, 2010 - Jun 09, 2010
o Adam Smith Conferences: Russian Retail Banking Forum - Jun 08, 2010 - Jun 09, 2010
o American Society of Clinical Oncology (ASCO) 2010 Annual Meeting - Jun 04, 2010 - Jun 08, 2010
· 9AM: KERX
o Association for Corporate Growth Kansas City Capital Connection & Private Equity Forum - Jun 08, 2010 - Jun 09, 2010
o Bank of America Merrill Lynch Gems Conference - Jun 08, 2010 - Jun 10, 2010
· EC , NVTK.RTS , ORSDF.PK , RSID3.SA , VALE
o Bank of America Merrill Lynch Small and Mid Cap Conference - Jun 08, 2010 - Jun 09, 2010
· 8AM: CBST , SF , UTEK
· 8:50AM: GXDX , NR , SWS , VOLT
· 9:40AM: HLIT , KLIC
· 10:30AM: EAT , ENTG , SMRT
· 11:20AM: MKSI , PL
· 2:30PM: ORCH
· 3:20PM: HBI , MENT
· 4:10PM: HTCH
· HMSY
o Bank of America Merrill Lynch Telecommunications, Media and Technology Conference - Jun 07, 2010 - Jun 09, 2010
· AIXA.F , GFK.F , PSM.F , SOW.F
o Bellevue Medtech Conference - Jun 08, 2010
· PHBN.S , STMN.S
o Borsa Italia Conference
· PECI.MI
o CF&B Communication Equita Mid Cap Conference
· SESG.LU
o Citi Power, Gas, Coal and Alternative Energy Conference
· AWK , OKE , OKS , OKS
o Credit Suisse Group Pan European Small & Mid Cap Conference - Jun 08, 2010 - Jun 09, 2010
· IPM.L
o Deutsche Bank Securities Inc. Financial Services Investor Conference - Jun 08, 2010
· EWBC
o DVFA Life Science Conference - Jun 08, 2010
o Emerson Process Management Global Petroleum Show - Jun 08, 2010 - Jun 10, 2010
o Environmental Finance Carbon Finance North America Conference - Jun 08, 2010 - Jun 09, 2010
o Equita Limited Conference
· MTELF.PK
o Futures Industry Association International Derivatives Expo - Jun 08, 2010 - Jun 09, 2010
o GARP Research and Securities Investor Conference - Jun 08, 2010 - Jun 10, 2010
o Gartner PPM & IT Governance Summit - Jun 07, 2010 - Jun 09, 2010
o Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference
· 8:30AM: DIN
· 9AM: CAKE
· 9:30AM: DPZ
· 2PM: IILG
· 2:45PM: CHH
· 3:45PM: PENN
o IBF (International Business Forum) Blue Tech Innovation Forum - Jun 08, 2010
o IncreMental Advantage Negotiating Transactions Seminar - Jun 08, 2010
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 Institutional Investor Annual Japan Investment Forum - Jun 08, 2010 - Jun 09, 2010
o IntertechPira NanoMaterials - Jun 08, 2010 - Jun 10, 2010
o Jacob Fleming PPP in CEE & SEE Summit - Jun 08, 2010 - Jun 09, 2010
o Jefferies Global Life Sciences Conference - Jun 08, 2010 - Jun 11, 2010
· 8AM: ALNY , CYNO , HOLX , SUPG
· 8:30AM: AUXL , GIVN , LMNX
· 9:30AM: CRY , IMA , SLXP
· 10AM: BABY , NTY
· 10:30AM: CNMD , CPHD , GHDX
· 11AM: EBS , SNTS
· 11:30AM: BIOS
· 12PM: GPRO
· 1PM: CLRT , SGEN
· 1:30PM: STE
· 2PM: AVNR , KCI
· 2:30PM: CYTK
· 3PM: CLDX , HALO , POZN , XRAY
· 3:30PM: BCRX , CBST , ELN
· 4PM: PTIE
· 4:30PM: DCTH , MNTA
· ADDXF.PK , ARNA , COPN.S , COX.PA , EVT.F , GLPG.BR , ISIS , MDGEF.PK , MPSYY.PK , PLX , ROG.S , ROVI.MC , UTHR , VICL
o JPMorgan Diversified Industries Conference - Jun 08, 2010 - Jun 09, 2010
· 8:30AM: DOW
· 9:15AM: DD , MMM
· 10AM: PX , ROP , URS
· 10:45AM: DHR , RSG
· 11:30AM: SHW
· 1:45PM: ETN , JEC
· 2:30PM: TYC , USG
· 3:15PM: GNRC , MTW
· 4:45PM: ST , UTX
· WCN , WM
o Marcus Evans Investment Consultants Summit - Jun 06, 2010 - Jun 08, 2010
o Microsoft UC Partner Conference
· AUDC
o Needham & Company Internet & Digital Media Conference - Jun 08, 2010
· 9:20AM: DSCM
· 10AM: WWWW
· 10:40AM: ADAM
· 11:20AM: GSIC , MOVE
· 2PM: PRTS
· 2:40PM: ANSW
· 4PM: LEDR
· 4:40PM: LPSN
· KNOT
o New York University International Hospitality Industry Investment Conference - Jun 06, 2010 - Jun 08, 2010
o Noble Financial Equity Conference - Jun 07, 2010 - Jun 08, 2010
· 8AM: NSSC , UTEK
· 8:30AM: CMTL , DEST , SMED
· 9AM: BMTI , VCI
· 9:30AM: AMAC , ATRC , OUTD
· 10AM: GNET , MRCY
· 10:30AM: ARWR , ONTY , WYY
· 11AM: HYC
· 11:30AM: CELH , LAKE
· 12PM: ACPW
· 12:30PM: IDRA , NABI
· 1PM: ONSM , TBIO , VRTU
· 1:30PM: GTF , RWC , TMM
· 2PM: FUEL , PRSC , TSYS
· 2:30PM: DIET
· FORR
o Nomura Asia Equity Forum - Jun 07, 2010 - Jun 10, 2010
o Opal Financial Group European Family Office & Private Conference - Jun 07, 2010 - Jun 09, 2010
o Oppenheimer & Co. Insurance CEO Summit - Jun 08, 2010 - Jun 09, 2010
· 8:15AM: SBX
· 8:30AM: ALTE , AXS , ENH , VR
· 9:30AM: ACAP , AMPH , AWH , PRA
· 10:40AM: RNR , VR
· 11:40AM: AFSI
· 2:40PM: AWH
· 3:40PM: AGII , NAVG
o Piper Jaffray Consumer Conference - Jun 08, 2010 - Jun 09, 2010
· 8:30AM: DENN
· 9:10AM: LF
· 9:50AM: BONT , GMCR
· 10:30AM: MSSR
· 11:10AM: DECK , LOW
· 11:50AM: FOSL
· 12:30PM: JMBA , LKQX
· 1:10PM: BAGL , LL
· 1:50PM: ZUMZ
· 2:30PM: FACE , JAKK , SKX
· 3:10PM: BGS , NWY , PLCE
· 3:50PM: TRLG , VLCM
o RBC Capital Markets Canadian REIT Investor Sessions - Jun 08, 2010 - Jun 11, 2010
o RBC Capital Markets Global Energy & Power Conference - Jun 07, 2010 - Jun 08, 2010
· 8AM: BTE
· 8:30AM: RIG , VLO
· 9AM: TDW
· 10:30AM: PXD
· 11AM: MEOH
· 3:30PM: CXO
· ITRI
o RBC Capital Markets Global Mining & Materials Conference - Jun 08, 2010 - Jun 09, 2010
· 3:35PM: IMN.TO
o RBC Capital Markets North American Technology, Media & Communications Conference - Jun 08, 2010 - Jun 10, 2010
· NICE
o Reed Elsevier (UK) Ltd Global Gaming Expo Asia (G2E Asia)
· IGT
o Richmond Events, Inc. Conference Logistics & Supply Chain Forum - Jun 06, 2010 - Jun 08, 2010
o Standard & Poors HealthCare Conference: Trends & Rating Considerations Amid Reform - Jun 08, 2010
o Standard & Poors Insurance 2010 Conference - 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 Terrapinn Vietnam Investment Summit - Jun 08, 2010 - Jun 09, 2010
o The CWC Group Nigeria Oil &Gas Tech Conference - Jun 08, 2010 - Jun 09, 2010
o Thomas Weisel Partners Boston Executive Summit - Jun 08, 2010
o UBS Aerospace & Defense Conference
· AER
o UBS Global Technology and Services Conference - Jun 08, 2010 - Jun 10, 2010
· 8AM: V
· 9AM: QCOM , RFMD , TECD
· 9:30AM: FLEX , SMSC , SPWRA
· 10AM: CECO , CSCO , FIRE
· 10:30AM: ADSK , ARTG , LRN
· 11AM: ELX
· 11:30AM: ARRS , CA , TMRK
· 12PM: MSFT
· 1PM: GLW , PLCM , SAP , UIS
· 1:30PM: CSGS , NETL , TKLC , VIRL
· 2PM: IVAC
· 2:30PM: CDNS , KOPN , LOGI
· 3PM: AZPN , BRCD , CYMI , EPIQ , LSI , MLNX
· 3:30PM: ALTR , CAVM , CELL , CRNT
· 4PM: EPIC , GLUU , XXIA
· 4:30PM: CVLT , FNGN , RAX , VECO
· CHKP , DBTK , FORR , NICE , PLT , ZRAN
o WBR TradeTech Japan Conference - Jun 07, 2010 - Jun 08, 2010
COMPANY MEETINGS/OTHER DAILY EVENTS
· Tuesday June 8:
o Shareholder meetings
§ EVR, POWR, CMG, IPGP, MWW, RJET, RPT, SNHY, ULBI, BWY, CBSO, EXPE, WOLF, CLRT, HOTT, BDMS, BJRI, IPAS, IPCM, KALU, SENO, GRZ, ALGT, ARII, COSI, CRDN, SKS, TPC, VIRC, VTIV, AFFM, CDZI, HOFT, WBSN, WHRT, IKAN, MGRC
o DPS investor day
o ORBK Investor & Analyst day
o IRC Analyst day
o PLXS investor day
o RIG presents at RBC oil conf
o A trial begins for the former Societe Generale trader who was blamed for $6.7 billion in losses the bank said resulted from his "unauthorized deals."- Barron’s
o A Spanish union is set to strike to protest proposed government pay cuts.
o A number of states hold primaries.
ECONOMICS
· Tuesday June 8:
o 0730 NFIB Small Business Optimism Index
o 0745 ICSC/Goldman Sachs Chain Store Sales
o 0855 Redbook Index
o 1000 US IBD/TIPP Economic Optimism Index
o 1630 API Oil Industry Report
o 1700 ABC/Washington Post Consumer Confidence Index
EARNINGS
o Materials
· Tuesday June 8: MSB
o Industrials/Homebuilders
· Tuesday June 8: MFRI, AGX, CHP, NCS, PLL,
o Consumer/Retail/Education
· Tuesday June 8: BOBE, DG, OXM, TLB, GMTC, AOI, CPY, RHGP
o Transports
· Tuesday June 8: AIRT
o Tech/Telecom
· Tuesday June 8: MLNK, TTWO
o Autos
· Tuesday June 8: PBY
o Healthcare
· Tuesday June 8: CMN, CRVL
o Real Estate:
· Tuesday June 8: FCE/A
o Energy
· Tuesday June 8: MIND
INVESTMENT BANKING WRAP
M&A
· GE's LatAm unit BAC-Credomatic on block- Reuters
o General Electric (GE.N) is trying to sell BAC-Credomatic GECF, its Latin American bank and credit card issuer, as it looks to pare back its global finance unit
o The company has been looking at selling its investment in the business since last year
o http://www.reuters.com/article/idUSN0722207220100607
· YHOO Bartz eyes a mate- NYPOST
o In addressing the the 25 percent drop in time visitors spend at the Web portal, Bartz has created a wish list of hot companies she'd like to partner with or buy, sources tell The Post
o The list included: Associated Content, Demand Media, Foursquare, Huffington Post and Twitter.
· PE firms' appetite for CPKI California Pizza Kitchen- NYPOST
o American Securities Capital Partners is deep in talks to buy the 253-location restaurant chain with the final bidding deadline coming within four weeks, a source said. Harvest Partners, a second PE shop, is also interested, a second source said
· Dealbook discusses BP’s next move (possible bankruptcy)
o It seems unthinkable, even now, that the disastrous oil spill in the Gulf of Mexico could bring down the mighty BP. But investment bankers get paid to think the unthinkable — and that is just what they are doing.
o The idea that BP might one day file for bankruptcy, particularly as part of a merger that would enable it to cordon off its liabilities from the spill, is starting to percolate on Wall Street
o http://www.nytimes.com/2010/06/08/business/08sorkin.html?ref=todayspaper
· KO Coke to pay DPS Dr Pepper $715 mln to sell drinks- Reuters
o Coca-Cola Co (KO.N) will pay Dr Pepper Snapple Group Inc (DPS.N) $715 million for the right to continue selling Dr Pepper drinks once it acquires its main North American bottler.
o http://www.reuters.com/article/idUSN0718661720100607
· Billionaire wins bid for Germany's Karstadt stores- Reuters
o Billionaire Nicolas Berggruen, the son of a well-known art collector, appears to have won a key victory in the bidding for Karstadt, the German department store chain
o Berggruen has said he wants to save the Karstadt brand and the 25,000 jobs at stake and is asking for further concessions from property owners, like Highstreet, which owns about two-thirds of the Karstadt store space
o http://www.reuters.com/article/idUSLDE6560RM20100607
· Karstadt landlord could scupper sale- Reuters
o Property group Highstreet warned Karstadt's prospective buyer Nicolas Berggruen that the insolvent German retailer could be liquidated if no deal is struck soon on rents
o Should this offer, available to all potential Karstadt buyers, not be taken up, "the probability of a Karstadt liquidation rises significantly.” "An agreement with Highstreet is a core component of rescuing Karstadt."
o http://www.reuters.com/article/idUSLDE6570KW20100608
· THC Tenet out of talks to buy Australia's Healthscope- Reuters
o U.S. hospital operator Tenet Healthcare said on Monday that it has pulled out of talks regarding the purchase of Australia's Healthscope, sending its shares up 4 percent.
o Tenet cited the premature disclosure of non-public information regarding its preliminary interest in Healthscope and its inability to complete the work necessary to thoroughly convey to shareholders the potential value of the deal as reasons for ending the discussions
o http://www.reuters.com/article/idUSTRE6565KH20100607
· Shares in HAIN have surged 18% since Carl Icahn has reports a position around May 13th- CNBC
o The flurry of buying stems from a belief that Icahn sees untapped value in this organic food and personal care products company
o http://www.cnbc.com/id/37558159
· SNA Snap-On holder Value Act discloses a 5.2% stake in a 13D filing; up from 3.3%- BBG
· WFC Wells Fargo brokerage chief says no deals looming- Reuters
o Wells Fargo Advisors LLC, the second-largest U.S. brokerage, is on track to add up to 1,600 new brokers this year but has no immediate plans to buy smaller rivals, the firm's CEO said
o Chief Executive Danny Ludeman said the Wells Fargo & Co (WFC.N) unit is focused foremost on integrating the brokerage operations of Wells Fargo and Wachovia
o http://www.reuters.com/article/idUSWEN558920100607
· CASY Casey's to ask shareholders to reject Couche-Tard bid-WSJ
o U.S. convenience store Casey's General Stores is expected to ask its shareholders to reject the $1.9 billion hostile bid from its Canadian rival, Alimentation Couche-Tard
o Couche-Tard, Canada's largest convenience store operator, saw its $36 per share offer rejected in April by the board of Iowa-based Casey's. It then said it would take its offer directly to Casey's shareholders if the board failed to reconsider its rejection
o http://www.reuters.com/article/idUSSGE65706C20100608
· Zain, Bharti to close African deal on Tuesday- Reuters
o Zain will receive $7.9 billion from Bharti on Tuesday before both firms make an announcement about the final closing
o http://www.reuters.com/article/idUSTRE6570VJ20100608
· Three bids on final WorldPay shortlist- Reuters
o Joint suitors Advent International and Bain Capital, TPG and Clayton, Dubilier & Rice make up the bidding group, the sources said. The sources declined to be identified because the auction process is private
o TPG and CD&R could join forces, two of the sources said
o http://www.reuters.com/article/idUSWLA581820100608
· AZZ extends offer for NGA North American Galvanizing to 17:00 CT, 14-Jun
· Miner Red Back an M&A target, but pricey, BMO says- Reuters
o In a note, the Bank of Montreal-owned brokerage said Kinross Gold's recent move to take a 9.4-% stake in Africa-focused Red Back has opened the door to other players interested in Red Back because of the rapid production growth it is expected to have over the next few yrs
o BMO named Kinross, Newmont Mining (NEM.N) , AngloGold Ashanti (ANGJ.J), Gold Fields (GFIJ.J), Eldorado Gold (ELD.TO) and Randgold (RRS.L) as buyers with the means and interest to acquire the company
o http://www.reuters.com/article/idUSN0720351720100607
o Swiss engineering group ABB (ABBN.VX) is buying UK-based Chloride Group (CHLD.L) for an agreed 860 million pounds ($1.25 billion), as it seeks to improve its automation offering
o In April, Chloride, whose products protect against power shortages, had rejected an offer for 723 million pounds from Emerson Electronic (EMR.N).
o http://www.reuters.com/article/idUSLDE65704Q20100608
· EMR Emerson said considering position regarding Chloride offer; will make announcement in due course- BBG
· Former Blackwater pursues sale of the company- Reuters
o Xe Services, the U.S. security firm formerly known as Blackwater which has faced criticism for its work in Iraq and Afghanistan, is pursuing a sale of the company
o http://www.reuters.com/article/idUSSGE65704U20100608
· Stada open to takeovers, seeks driver's seat- Reuters
o German drugmaker Stada aims to take part in consolidation of the generics sector and could use acquisitions in the medium term to complement the growth it generates itself
o He said Stada would review potential offers for Stada itself without prejudice and reiterated he would rather be in the driver's seat for any transactions.
· Providence to acquire MMC's Kroll in $1.13 bln deal- Reuters
o Marsh & McLennan agreed to sell investigations unit Kroll to a firm led by former Marsh CEO Michael Cherkasky for $1.13B, less than the amount paid for it six years ago.
o Private equity firms are eager to do new deals after spending 18 months fixing companies and are encouraged by improving economic conditions and better availability of debt
o http://www.reuters.com/article/idUSN0718807920100607
· ELX Emulex to buy chipmaker ServerEngines for $155 mln- Reuters
o Storage-equipment maker Emulex Corp (ELX.N) agreed to buy privately held fabless semiconductor maker ServerEngines Corp for $155.2 million in cash and stock
o http://www.reuters.com/article/idUSSGE6560JS20100607
· London & Stamford acquires 57 units at Bridges Wharf for approx £27.5M- SA
· Olam to buy CAG ConAgra dried vege ops for $250 mln- Reuters
o ConAgra Foods (CAG.N) has agreed to sell its Gilroy Foods & Flavors dehydrated and vegetable product business to Singapore's Olam International Ltd (OLAM.SI) for $250 million, as it aims to focus on its core brands
o http://www.reuters.com/article/idUSN0719816620100607
· SAP still open to large acquisitions- Reuters
o German software group SAP is on the lookout for acquisitions, including big ones, even after a $5.8B deal last month to buy database specialist SY Sybase, its co-CEO told shareholders
o "We are also open to larger acquisitions, if it means more value for our customers and shareholders."
o http://www.reuters.com/article/idUSFAB01565620100608
· Australia's Newcrest sees Lihir deal by September- Reuters
o At least four of the world's biggest gold producers have looked at the books of Lihir but Newcrest was seen as the only bidder
o AngloGold Ashanti, Barrick Gold, Newcrest and NEM Newmont Mining looked at Lihir's books before the company's data room closed on June 8, but no new bid was imminent
o http://www.reuters.com/article/idUSSGE65700720100608
· Tata Steel increases stake in New Millennium Capital Corp- BBG
· Groupe Amaury says launched strategic review- Reuters
o French media company Groupe Amaury said it had started a strategic review of its assets with the help of investment bank Rothschild but had not yet made a decision on the future of its Le Parisien newspaper
o In e-mailed comments to Reuters, the group said a "partial tie-up" of Le Parisien was among scenarios under review
o http://www.reuters.com/article/idUSLDE6562CU20100607
· Guangzhou Auto sweetens Denway buyout offer by 25%- Reuters
o "They are making the whole offer more attractive by revising the share exchange ratio," said an analyst at DBS Vickers
o Last month, Guangzhou Auto announced that it would issue $3.3 billion in new shares to privatize Denway as part of its own listing. Shareholders were to receive 0.378610 new Guangzhou Auto share for every Denway share held
o http://www.reuters.com/article/idUSTRE6571E620100608
· Qantas, Virgin Look To Mergers In Consolidation Trend- Bloomberg
o Australia's Qantas prefers an intercontinental deal, its CEO Alan Joyce said, while the U.K's Virgin is looking at U.S. and European mergers
o "Consolidation isn't easy to do and cross-border intercontinental mergers have not occurred yet, but I think they will and Qantas will be at the forefront of that," Qantas CEO said
o "We would be looking potentially just to grow ourselves, to become part of a bigger group. We just need to look at what happens in the industry over the next 18 months," UK Virgin CEO said
o http://www.bloomberg.com/apps/news?pid=20601080&sid=aH5DGIL5hjXY
· Jana Opposes CRL Charles River Purchase of China’s WX WuXi- BBG
o Jana, which owns 7 percent of Charles River, is the largest shareholder of the Wilmington, Massachusetts-based drug-testing company. The firm said it would vote against the stock issuance needed to complete the proposed acquisition
o Charles River said in April it would pay about $1.6 billion, or $21.25 a share in cash and stock, for WuXi as a way to expand into China, where it would benefit from cheaper labor and laboratory costs. It would be the largest foreign takeover of a Chinese company
· Colonial, open to mergers- Expansion
o Inmobiliaria Colonial breathes the air of a new stage in his speech.. Following restructure its entire debt, currently EUR 4050 million, the company recognizes that the heritage character of the new business plan is what has saved the group
o "There's been a few banks willing to exchange debt for equity, which is the big difference with other processes," said the chief executive
· Swire Offers to Buy Out Haeco as Cathay Sells Stake- BBG
o Swire Pacific, the biggest shareholder in Cathay Pacific Airways, offered HK$9.4B ($1.2B) for the remaining shares of Hong Kong Aircraft Engineering as travel demand rebounds
· Ferrovial is considering selling the Naples airport- Expansion
o Ferrovial has enabled the sale of the Naples airport, which operated from 2006 through BAA. According to sources close to the Spanish company in recent weeks, have received several offers that are in analysis, without having made a decision.
o The Italian airport was among the first candidates to join the list of available for sale, although Ferrovial never set a timetable for divestment.. Now, several investment firms have put the focus on the installation, when its license expires in 2043.
$ RAISING
IPOs
· Tornier NV files for a IPO worth up to $205M – filing
·
- The
lead underwriters are Bank of America/Merrill and JP Morgan.
- The company is a global medical device company focused on surgeons that treat
musculoskeletal injuries and disorders of the shoulder, elbow, wrist, hand,
ankle and foot.
· Logan's files for IPO, hopes to raise $200 million- DNJ.com
o Nashville-based LRI Holdings, parent company of the bar and grill chain Logan's Roadhouse, filed for an initial public offering on Monday, another sign that more confidence in consumer spending is trickling into restaurant and retail businesses.
o The filing comes nearly four years after three private equity firms and company executives bought the company from Nashville-based Cracker Barrel Old Country Store for $485 million
· Toys 'R' Us: Test Case For IPO Of KKR- WSJ
o Five years ago, Toys "R" Us was such a crummy business that its board simply gave up, selling the company to a group of buyout shops for $6.6 billion
o Toys "R" Us is now headed back to the public markets, last week filing paperwork to raise $800 million in an IPO. This time, its owners -- including Kohlberg Kravis Roberts and Bain Capital -- have a different attitude: "We operate in an attractive industry that has proven to beresilient due to the demand for toys,"
· China soldier-turned-banker takes aim at mega IPO- Reuters
o Xiang Junbo is a war hero and award-winning scriptwriter. He's also chairman of China's third-largest bank, founded by Mao Zedong, and had hoped to be launching the world's biggest-ever initial public offering.
o But a slump in China's markets means Agricultural Bank of China's IPO may now raise nearer $20 billion than the hoped-for $30 billion, and Xiang will need all his long banking experience and business acumen to pull off the state-run group's much-needed fund raising
o http://www.reuters.com/article/idUSTRE6571EK20100608
· QR National IPO on track for Q4, interest high, CEO- Reuters
o Interest in the privatisation of QR National, Australia's biggest rail freight business, has exceeded expectations and the sale remains on track for the fourth quarter
o http://af.reuters.com/article/energyOilNews/idAFSGE65704V20100608
· 'Petronas hires bankers for US$2b unit IPO'- Business Times
o Malaysia state energy company Petronas has hired Deutsche Bank, CIMB and Morgan Stanley as book-runners to advise on a planned US$2B listing of its petrochemcial business
o The listing will likely take place in the fourth quarter of this year depending on market conditions
· Malaysia's budget, long-haul carrier AirAsia X eyes listing in 2011+-BreitBart
o Malaysia's low-cost, long-haul air carrier AirAsia X said Tuesday it plans to go for public listing by the second half of 2011 to fund fleet expansion.
o http://www.breitbart.com/article.php?id=D9G6VIK01&show_article=1
· RealPage will apply to list on NASDAQ under proposed symbol RP- (SA)
· Petronas hires bankers for $2 bln IPO of unit- Asiaone
o Malaysia state energy company Petronas (PETR.UL) has hired Deutsche Bank DBKGn.DE , CIMB CIMB.KL and Morgan Stanley MS.N as book-runners to advise on a planned $2 billion (S$8.5bil) listing of its petrochemical business
o The listing will likely take place in the fourth quarter of this year depending on market conditions
· Pertamina Plans To Sell 20% Stake In Unit Via IPO- Fox business
o State-owned gas and oil company PT Pertamina plans to sell a 20% stake in its unit, PT Pertamina Hulu Energi, via an initial public offering slated in late 2010 or early 2011
o "We expect to raise IDR10 trillion (from the IPO)," Investment Director Ferederick Siahaan told Dow Jones
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
· Colonial Seeks 500 Million-Euro Capital Increase- Expansion
o Inmobiliaria Colonial SA, the Spanish real estate company that restructured 5 billion euros of debt this year, aims to raise a further investment, Chief Executive Officer Pere Vinolas told Expansion
o The company wants to increase its capital by 500 million euros to reduce its loans to 50 percent of the value of its real estate holdings from 65 percent and would consider a merger
· DIET eDiets.com Completes Debt Conversion and Raises Additional Capital from Officers and Directors- (PR)
o Recent Equity Transactions Raised Approximately $5.2 Million
o In addition, certain of eDiet's officers and directors provided $1 million of additional capital through the purchase of $500,000 of newly issued shares of common stock in a private placement and the conversion of a $500,000 note
· Falklands explorer set for £40m cash call- FT
o The Aim-quoted oil company, one of three small UK wildcat explorers drilling for Falklands oil, has been working with broker Canaccord Adams to sound out institutional investors to take part in an accelerated book build
o The company also said last week that an independent report had concluded that a “best case” of 242m barrels of oil could be recoverable from the discovery, an increase of 42 per cent from previous estimates
o http://www.ft.com/cms/s/0/347fe504-7278-11df-9f82-00144feabdc0.html
· New public shareholding norm may help Premji net Rs4,332 cr- Live Mint
o Azim Premji, chairman of Wipro Ltd, could mop up around Rs4,331.52 crore based on current prices by divesting an around 4.52% stake in the company.
o Premji has several options to meet the new norms, of which selling a part of his stake in Wipro seems the most likely
***All eco data from Bloomberg and DJ
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