Morning @ Cantor
Morning @ Cantor 6/9
BETA TEST
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
EARLY US LANDSCAPE****
· US Stock Futures, SPs up 1…mixed action…Crude up 80c, gold dn small,
· Dollar at weakest of session at 7am et
· Rates tick up in front of todays 10 yr auction
o European shares are broadly higher this morning, with the S&P Euro 350 up 0.6%, after leaked trade data from China indicated exports from the country jumped 50% in May. The official release is due tomorrow.
o EU equities have moved off of the earlier highs following trade data out of the UK and a downward revision to Greece's Q1 GDP
o the euphoria seemed to evaporate once again on reports that the ECB planned to issue debt certificates which would effectively drain liquidity from the market for three months. The ECB stated that the announcement was only a 'test' - TTN
o An announcement from Texas Instruments that its 2Q earnings would be at the high end of estimates helped the IT sector. However, rumours of a profit warning from Nokia dampened the spirit..BP dn 3%
o Gold off record highs today
o Base metals were higher yesterday…ie Zinc jumped 6.5%, tin up 2.9%.. base metals are up a little wed..Lead is up 2.5%
o yest copper was up 1.35 cents to $2.7795..and today copper is up almost 1%
o Spot gold was down $3 yesterday..this morning, spot gold is down a buck
o Bernanke speaking twice today
o Fed Chairman Ben Bernanke's testimony before the House Budget Committee Wednesday could temporarily shift investor focus from Europe to the U.S. economy.
§ Bernanke appears at 10 a.m. and is expected to speak on the state of the economy. Bernanke also speaks at 4 p.m. at a forum in Richmond, Va. on employment trends.
o ECB tomorrow
o UK Sovereign CDS 4 Bps Tighter At 90 Bps – at 5am et
· Asian Markets: Nikkei (1.04%); Hang Seng +0.69%; Shanghai Composite +2.78%
· The Shanghai Composite Index climbed 2.8 percent to close at 2,583.87, reversing a decline of as much as 0.5 percent to record the biggest gain since May 24.
· China Yuan Up After Reuters Report Says May Trade Data Were Strong
o the gains were capped by expectations Beijing won't allow the yuan to appreciate much any time soon
o China's exports rose about 50% in May from a year earlier to about $130 billion, up from April's growth rate of 30.5%, Reuters
o BBG looking about 32% - whispers 30% – 50% per BBG
o China's inflation rose to 3.1% in May from 2.8% in April
o China is due to issue its trade data for May on Thursday and the inflation data on Friday.
· Rates: Record-low inflation and prolonged unemployment mean the Federal Reserve will hold off raising interest rates until 2011, according to economists surveyed by Bloomberg News.
o “The Fed will be tightening before the ECB with the U.S. economy recovering at a faster pace,”
· Rates: Fed Officials Send Conflicting Signals on Rates
o Two top U.S. Federal Reserve officials on Tuesday offered opposing signals on the direction of interest rates, highlighting an increasingly salient split within the central bank
o Dovish Chicago Fed President Charles Evans vs Hawkish Thomas Hoenig reiterated his call for the U.S. central bank to begin raising rates soon, in Reuters story
o http://www.cnbc.com/id/37585383
· Fed’s Evans downplayed the impact of any slowdown in European growth on the United States, saying that the trade effects "are likely to be limited" because Europe accounts for just 15 percent of U.S. exports.
· Bernanke more than two-thirds of investors worldwide approve of the job being done by U.S. Federal Reserve Chairman Ben S. Bernanke. - BBG survey
· 75% oppose Volker rule - BBG survey
· EU stories:
o EU equities have moved off of the earlier highs following trade data out of the UK and a downward revision to Greece's Q1 GDP.
o Debt Auctions on the plate in session with Germany, Portugal and US today. Tomorrow Spain, Italy, and more US issuance
o Portugal debt sale OK: Portugal Debt Agency (IGCP) sells total €1.52B in OTs (upper end of estimates); Sold €701 M in 5.45% Sept 2013 OTs with avg yield 3.60% and Bid-to-cover: 2.4 v 1.6x prior; Sold €816M in 4.8% Jun 2020 OTs with avg yield 5.23% and a Bid-to-cover 1.8x v 1.7x avg – TTN
o Fitch again commented on the UK following the PM's budget outline on Tuesday. Fitch stated that the time for UK government to deliver on the deficits and the current UK Gov actions were only that start of multi-year process of cuts. A faster pace of deficit cuts was needed in the medium term
o Deposits at ECB Increase to Record 364 Billion Euros
§ Banks lodged 364.6 billion euros ($436 billion) in the ECB’s overnight deposit facility at 0.25 percent, up from 362 billion euros yesterday, the Frankfurt-based central bank said in a market notice today. That’s the most since the start of the euro currency in 1999
o Sarkozy, Merkel Seek EU Curbs on CDS Short Sales
o Spanish banks are being frozen out of the European interbank market, and only the biggest Spanish entities are managing to finance themselves, according to a report in newspaper Cinco Dias.
§ "Only the biggest Spanish banks are managing to get funding, but backed by bonds from other countries such as Germany, with our national bonds they are not managing to get anything," an executive at a Spanish savings bank was quoted as saying.
§ The situation had worsened since the start of this week, the report said.
o BBG survey neg on EU: Global investors have little confidence in Europe’s efforts to contain its debt crisis or in European Central Bank President Jean-Claude Trichet, with 73 percent calling a default by Greece likely. Only 23 percent say they expect the region’s almost $1 trillion rescue package to both keep the European monetary union together and prevent a debt default by a government, according to a quarterly poll of investors and analysts who are Bloomberg s
§ More than 60 percent of those surveyed say they expect the euro to fall further against the dollar over the next three months – BBG
§ U.S. investors are the most pessimistic, with only 14 percent expecting Europe’s efforts to work. A quarter of investors in Asia are also in that camp. – BBG
§ Thirty-five percent of those surveyed say a default by Portugal was likely, while more than a quarter say the same about Spain. Outside of Europe, the country seen as most likely to miss a debt payment was Argentina, with 31 percent.
o Greece is tapping China's deep pockets to help rebuild its economy
§ the Chinese are planning to pump hundreds of millions -- perhaps billions -- of euros into Greece even as other investors run the other way
§ http://www.washingtonpost.com/wp-dyn/content/article/2010/06/08/AR2010060805312.html?wpisrc=nl_cuzhead
o IMF not worried about situation in Hungary – Cash
· IMF Says Risks to Economy Have Risen ‘Significantly’ – BBG
o Most advanced economies are experiencing a “subdued” recovery, Shinohara said in a speech in Singapore today. “A key concern is that the room for continued policy support has become much more limited and has, in some cases, been exhausted.”
· China: Labor unrest grows. Authorities freeze IPOs on overcapacity concerns. TTN
· JAPAN: Prime Minister Kan was reported to call for Diet upper house elections as early as July 11th. This is ahead of prior expectations of Jul 25th.
· FX: New Japanese Finance Minister Yoshihiko Noda does not intend to guide yen up or down - Nikkei
o In an interview with media, Noda repeats that he thinks excessive fluctuuation in exchange rates is bad for the economy.
· Global rates: Bank of Korea’s Tilt Toward Rate Rise May Be Halted – BBG
o The Bank of Korea may keep the benchmark interest rate at a record low for a 16th month after its signal that higher borrowing costs may be coming was snubbed by government warnings about the impact of Europe’s crisis
o Governor Kim Choong Soo will leave the seven-day repurchase rate at a record-low 2 percent tomorrow, according to all 12 economists surveyed by Bloomberg
· Data
o MBA Mortgage purchase applications index (5.7%) in 4-Jun week; total market index (12.2%)
§ compares to (4.1%) and 0.9%, respectively, in prior week
§ refi index (14.3%) vs. 2.4% in the prior week
§ 30-yr fixed rate (2)bps to 4.81%
§ 15-yr fixed rate 1bp to 4.26%
o ABC Consumer Confidence (43) in 6-Jun week vs (44) in prior week
o Greece Q1 Final GDP Q/Q:-1.0% v -0.8%e;
o Japan April machine orders +4.0% m/m vs survey +1.7%.
· Money Raising:
o China visiting idea of having Agricultural Bank of China delay IPO - South China Morning Post
o Agricultural Bank of China ABC.UL has received regulatory approval for its planned initial public offering in Shanghai, three sources told Reuters on Wednesday, a sign that the mega-sized deal is moving along
· M&A:
o ECLP : Allscripts-Misys (MDRX), Eclipsys to merge in $1.3B all-stock deal
o Bloomberg) -- Sonic Healthcare Ltd. rose the most in more than nine months in Sydney trading after the Australian Financial Review said Quest Diagnostics is considering bidding for the company.
o VNO Vornado Realty Trust may end up with equity stake in LNR Property Corp. - WSJ
o STD, BAC: Santander to Buy BofA's Stake in Santander Mexico
§ BAC Banco Santander acquires the 24.9% stake in Bank of America's (BAC) Mexico unit for $2.5B
o Royal Bank of Scotland creates short lists for asset sales – FT
o Morgan Stanley (MS) and Jefferies (JEF) are on the list for RBS Sempra Commodities’ North America business
· Lodging:
o Hotel sales are beginning to recover -- WSJ
§ Lodging Funds, REITs and Distressed-Debt Players Drive Up Prices; Cash Is King and Market Remains Vulnerable
§ The recent deals by the Pebblebrook Hotel Trust show that hotel deal activity is picking up. In this year's first 4 months, 78 hotels were sold for $2.2B total compared to only 52 sales for $888M last year during the same time.
o FCH Lodging real-estate investment trust FelCor says RevPAR strong, to repay debt at discount
o AVB AvalonBay guides Q2 FFO
· Australia defends mining tax as China considers pullout from A$3B project - TTN
· Oil spill stories:
o British Petroleum [BP.UK] lower on dividend concerns - TTN
o BP says 'virtually all' oil to be captured soon – AP
§ chief operating officer Doug Suttles told The Associated Press on Tuesday in Gulf Shores, Ala., that the flow should decrease "to a relative trickle" by Monday or Tuesday.
o Plumes of Oil Deep in Gulf Have Spread Far, Tests Find
§ Tests confirmed that some toxic compounds that would evaporate in a shallow-water spill are instead spreading, just as President Obama plans his fourth trip to the region. The NYT reports.
o BP was collecting so much oil from its broken well in the Gulf that it didn't have a big enough boat to hold it—the latest in a series of miscalculations stoking a political backlash against the global oil industry. WSJ
o BP Big shareholders back BP CEO Hayward - FT
o BP shareholder support for chairman Carl-Henric Svanberg dwindling - London Times
o BP Not A Public Company By End Of Summer? CNBC
§ http://www.cnbc.com/id/37578731
o RIG Congressional committee questioning Transocean over staffing levels on Deepwater Horizon – WSJ
§ Rep. Nick Rahall, chairman of the House Natural Resources Committee, has sent a letter to the company
o Norway bans deepwater drilling until investigation into Gulf of Mexico oil spill is complete – FT
o DO Taylor Energy says spill which used to average 9 gallons a day is now substantially reduced - DJ
§ Taylor Energy leases the previously reported leaking Saratoga Ocean rig from DO.
§ Taylor the well has been leaking as a result of 2004 hurricane Ivan, but it has now substantially reduced the leak. The company said it is continuing its ongoing well intervention
§ The Taylor wells altogether are leaking an average of less than one-third of a barrel of oil each day, the Interior Department said.
o Anadarko Outlook to Negative by S&P; Transocean on CreditWatch
o BP Says World 2009 Proven Oil Reserves 0.05% Lower Than in 2008
§ in its 2010 Statistical Review of World Energy, released today
· ABK: Ambac warns of default as bondholders organize
o Says considers filing bankruptcy, raising capital
o Shares fall 16 percent after hours
o http://www.reuters.com/article/idUSTRE65802Z20100609
· Navistar (NAV) Posts Q2 EPS of $0.42, Tops Views; Reaffirms Outlook
· Banks: 75% oppose Volker rule - BBG survey
· Banks: Lincoln's Win: Support for Derivatives Plan May Firm Up- WSJ
o http://online.wsj.com/article/SB10001424052748703302604575295483533430868.html
· Banks have not changed pay to reduce risk-taking say regulators -- NY Times
o Federal Reserve has found that many of the compensation practices that economists say contributed to the financial crisis remain in place.
o The official Fed report is not expected until next year.
o http://www.nytimes.com/2010/06/09/business/09pay.html?ref=todayspaper
· Hedge funds hit in 'monstrous' May- telegraph
· Goldman unlikely to settle Timberwolf- Reuters
o http://www.reuters.com/article/idUSTRE65801J20100609
· Demand positive: Waste on Freight Cars Gains Most Since ’94 Confirming Rebound - BBG
o If garbage is any indication, the U.S. economy is strengthening
o The number of freight cars carrying waste jumped 45 percent in April and May from the same period last year to 79,044, according to the Washington-based Association of American Railroads. Waste freight hasn’t grown as fast for any quarter since at least 1994
o Shipments of waste and scrap have a higher correlation with economic growth than coal or copper, according to data compiled by Bloomberg
· Demand negative : Baltic Dry was down 4.1% yesterday…
· Demand negative : ship builder Mitsubishi Heavy wants steel plate price cut on lower shipping demand..
· GM, Ford Accelerate Shift to Mexico Workers Making $26 a Day – BBG
o Mexico’s gains will come at the expense of workers in the U.S. and Canada
· Honda (Bloomberg) -- Honda Motor Co.’s production in China was halted by a strike for the second time in less than a month as workers at an affiliated parts supplier walked out demanding higher pay
· Tech news busy
o NOK: (EMS) NOKIA profit warning talk
§ NOKIA (-1.88%) on market talk that the group will issue a profit warning. No figures have been tied to the speculation. A spokesperson for the company tells MarketScope he is not aware of any such announcement
o TXN mid-Q update- upped guidance to the top end of the range, which was mostly in line with street expectations
o TXN Texas Instruments says not seeing any slowing out of Europe yet
o STMicroelectronics NV, Europe’s biggest chipmaker, rose 2.3 percent after Texas Instruments
o MCHP Microchip affirms Q1 guidance
o MSFT Microsoft unlikely to maintain its dominance of the operating system market – WSJ
o E-gamers: TTWO +2.1% (earnings)
· CBS Said to Boost Ad Sales by ‘High Teens’ Percentage - BBG
· GWR Genesee & Wyoming reports May traffic +19.0% y/y
· Communication Workers Union rejects improved offer from BT Group – FT
· Inditex SA, the world’s biggest clothing retailer, gained 4.4 percent after profit beat analysts’ estimates
· Mexico anger high as US Border Patrol kills teen - AP
o 15-Year-Old Mexican Is Shot by U.S. Border Agent on Mexican Soil;
o Mexicans are seething over the second death of a countryman at the hands of U.S. Border Patrol agents in two weeks, an incident near downtown El Paso that is threatening to escalate tensions over migrant issues.
o U.S. authorities said Tuesday a Border Patrol agent was defending himself and colleagues when he fatally shot the 15-year-old as officers came under a barrage of big stones while trying to detain illegal immigrants on the U.S. side of the Rio Grande.
· Two Tech Chiefs Triumph in California
o Republican voters in California sent two former Silicon Valley CEOs, Meg Whitman and Carly Fiorina, into the races for governor and U.S. Senate against establishment Democrats.
· Tea-Party Favorite to Face Reid
o Conservative outsider and tea-party pick Sharron Angle appeared on track to win the GOP nomination for U.S. Senate in Nevada—which would give Democratic Sen. Harry Reid the opponent he had hoped to face.
· Lincoln Beats Back Liberal Challenge
o Arkansas Sen. Lincoln survived a strong challenge from Lt. Gov. Halter in a Democratic primary runoff, on a night when results showed the power and limits of the anti-establishment tide
o Unions vowed to make an example of the centrist after she did not support the "public option" during the health-care debate. She also opposed a union-backed bill designed to make it easier for workers to organize -- one of labor's top priorities.
· S.C. state With neither candidate projected to get more than 50 percent of the vote, S.C. state Rep. Nikki Haley and Rep. J. Gresham Barrett will face a June 22 runoff for the GOP nomination for South Carolina governor, according to the AP
· Jobs bill, oil tax, fund managers tax: Lawmakers will begin debating plan while aiming for a final vote by early next week
o Democrats, who control the Senate with 59 votes, need the support of at least one Republican to overcome efforts to stall the measure
o Some Republicans complained that Democrats were proposing to use proceeds from the oil-tax increase to pay for jobless benefits – BBG
o provisions would extend unemployment benefits, restore a series of tax cuts, increase municipal bond subsidies and increase Medicare payments to doctors.
o Democrats Propose Trimming Tax Rise on Fund Managers – BBG
§ A House-approved tax increase on investment managers would be trimmed, while a levy on oil companies would be quintupled under a revised jobs measure announced today by Senate Democrats.
§ The plan would raise the effective tax rate on fund managers’ share of profits to between about 31 percent to 33 percent, less than the 35 percent approved last month by the House. Fund managers now often pay about 15 percent.
§ Oil companies would make up some of the revenue difference through an increase
o Senate Democratic leaders on Tuesday expressed confidence they can pass the tax extenders bill through their chamber next week.
§ “We’re going to pass this good jobs bill that is on the floor,” said Senate Majority Leader Harry Reid (D-Nev.).
§ The bill introduced by Senate Finance Committee Chairman Max Baucus (D-Mont.) deviates from the House-passed version by extending $24 billion in state aid for Medicaid and easing the tax burden on so-called carried interest paid by hedge fund managers, venture capitalists and real estate partnerships.
§ Schumer said Tuesday that Reid will have the 60 votes necessary to pass the bill, even though no Republicans have indicated support.
§ http://thehill.com/homenews/senate/102129-harry-reid-extenders-bill-will-pass
o banks: Collins Pulls Back on Proposal to Ban TruPS Capital - BBG
§ In the face of opposition from bankers, U.S. Senator Susan Collins has agreed to ratchet back a proposal that would prevent banks from using so-called trust- preferred securities to appear better capitalized.
§ The Federal Deposit Insurance Corp. helped craft the language before Collins inserted it in the Senate’s financial- overhaul bill last month
· UN Security Council Expected to Adopt Iran Sanctions - BBG
o The UN Security Council is expected to adopt today a resolution that would impose a fourth round of sanctions on Iran because of its nuclear programme.
- Economics:
- MBA Mortgage Applications at 07:00 ET
- Apr Wholesale Inventories at 10:00 ET
- DOE Crude Oil Inventories at 10:30 ET
- Treasury to auction $21B in 10-yr notes
- Fed Beige Book at 14:00 ET
- Among Fed speakers:
- Fed Chairman Bernanke testifies at the House Budget Committee on economic and financial conditions and the federal budget at 10.00 ET
- Bernanke speaks at a Fed Bank of Richmond conference which starts at 16:00 ET
- 10 yr auction today
TODAY’S BIG STORIES
· Equity Wrap:
o We were waffling earlier in the day with Europe on their lows but odd thing, Europe closed stronger and we rolled over. But then as the day wore on, we started to firm up in the last hour or so. They tested that 1042 which was February 5th’s lows but bounced back with a vengeance at day’s to close in the green but follow thru lower after the bell. I won’t insinuate the govy had a fat finger but honestly, we had some short covering in the latter part of the day, but sellers were more than happy to sell them as they turned green. Breadth to the market had 1 ½ advancing issues vs. every declining issue, while internally here, buy and sell names were equal albeit still quiet for the most part. Still a good amount that are waiting for lower levels, while the action has been, shorts pressing some stuff, friend of mine, called it complacency amongst short sellers, but quant’s were towards sell side, vanillas on both sides, a little of everything
o Despite weakness in European equity markets (Fitch described Britain’s deficit challenge as “formidable”), S&P futures were up a few points in the early going. Once the cash session got underway, neither the bulls nor the bears could decisively gain control as prices swung on either side of even. In the bears favor, tech was again under pressure as the SOX renewed a decline that has seen that index lose almost 9% over the last three sessions. In the bull’s favor was a positive report from the NFIB (small business sentiment) as well as a sharp intraday rally in the Euro (attributed to Swiss intervention). The severity of the recent decline has left us close to important support: 1035.95 (the 2/5/10 low) and 1036.6 (the 5/25/10 low). Just before lunch, the bears pressed prices to within 1 ½ points of this area. Buyers emerged and drove S&P’s up a quick 10 points. At 2:00, the bears tried again and came up short. The balance of the session was spent in a rally that left S&P’s closing at their highs, up 11 points (and 18 points above the morning low). In another positive for the bulls, volume picked up, topping Friday’s tally, when prices were off more than 3%.
o All 10 S&P Industry groups rose, with tech the weakest (up 0.1%) and Materials the strongest (up 2.5%). In the Materials group, Copper stocks shone with SCCO (Southern Copper) moving up 6.3% and FCX (Freeport McMoran) rising 4.8%. Gold rallied to a record high of $1254.50/oz (though giving up some of these gains by the close); the XAU followed, rising 1.3%. In the Energy sector, Coal stocks were standouts: CNX rose 5.7% and BTU rallied 4%. Exploration and Production names also did well with EOG moving up 4.2%. The drillers, however, declined as Goldman downgraded the group: RIG fell 5.8% and DO was off 3.8%.
o (Billy Clark and team)
· Treasury’s Wrap:
o A back and forth day in Treasuries (more of the more subdued of the recent weeks) with the market eyeing every move in equities the Euro and cable. After an aggressive bid in the midmorning hours the market backed up into the start of this weeks coupon supply. The $36Bln 3 year notes were auctioned near the lows of the day coming at 1.22%, through by .4bps, 46% indirects, 16.3% directs, 3.23 bid to cover.
o The choppy market continued post auction with the 3 year trading at a profit throughout t he afternoon. At 3PM Treasuries ended the day mixed (short end lower in price, long end higher) with the curve marginally flatter even as the remainder of this weeks supply $21Bln 10 year notes and $13Bln 30 year bonds still await us. Please look for our preview in the morning.
o Primary Dealer
· Investment grade Wrap:
o IG spreads were mixed today in better volume than we have seen in a couple of days as higher quality names were firm to better and lower quality BBB’s and gulf names were both weaker. After the President came out looking for some “Ass to Kick” and speculation percolated that Diamond Offshore (DO) had a leaking rig the gulf names were wider, 20-30bps in BPLN and down 3-5 points in RIG and APC. We have seen some buyers come in on the lower dollar paper on this weakness. DO was out nearly 100bps as the 19’s traded inside +200 the past few days only to go out hitting a +270 bid and leaving for sale. Curves remain inverted as dollar price remains a larger concern for sellers more so than the spreads (BP 13s mid-400s, 19s mid-200s).
o Away from the gulf, BBB’s like KFT and DOW were out 3-10bps although high quality pharma was firm if not better, we were active in ROSW and other intermediate paper while the long continues to have few buyers with a 4.10% olb, MMM 37s traded +90 today after we traded PG 37s inside +90 yesterday. Again, a similar theme with buyers remaining selective and preferring five years and in rather than out the curve. Only one new issue today in IG with 800MM in a 5.25yr from Altria (MO Baa1/BBB).
· CMBS DAILY RECAP
o Despite the late day stock and corp CDS rallies, CMBS finished a touch weaker. GG10s were out 5bps (+415/$94-18) while quality '05 paper was unchanged. Despite today's under performance, GG10s have crushed corps/HY recently and will continue to do so till we see some selling. Saw ZERO '06/'07 lcf paper out for the bid.
o Continue to see a decent amount of selling from insur cos, $125mm today
o Commercial Property Values Inch Higher in May and are now up about 20% from their Trough- Newport Beach, CA, June 3, 2010 - The Green Street Advisors Commercial Property Price Index (GSA CPPI) rose by 1% in May. Property values have now risen roughly 20% since hitting a trough in May '09, but they remain about 25% below the '07 peak.
o "The lodging industry's recovery continues to accelerate and has been more robust than we anticipated, leading to much stronger than expected RevPAR. Our diversified, well-located and high-quality portfolio continues to outperform the industry," said Richard A. Smith, FelCor's President and Chief Executive Officer. Revenue per available room ("RevPAR") for our 83 consolidated hotels increased 8.0% during May and 5.2% during the first two months of the quarter, compared to the same period in 2009, which was significantly better than the company's expectations
o GEORDIE WALKER
· Credit Markets: Microsoft Convertible Sale May Revive Issuance:
o Microsoft Corp.’s sale of $1.15 billion of convertible notes may help the market recover from a two-month slump
o Sales of debt in the U.S. that can be exchanged for stock dropped 41 percent last month to $2.24 billion from this year’s peak of $3.79 billion in March, according to data compiled by Bloomberg
· Credit Markets: Investors wary of new CDS contracts
o Liquidity in the European sovereign credit default swaps market has fallen, highlighting concerns for the sustainability of government debt in the region
o http://link.ft.com/r/S4XZQQ/GKRA2T/007S7/S302HO/NS39BY/RF/h
· Credit Markets: RBS tests water over covered bonds
o Turmoil in the European markets has led many banks to turn to covered bonds because senior unsecured funding has become too expensive – more than €4.5bn of these have been sold this week alone
o http://link.ft.com/r/S4XZQQ/GKRA2T/007S7/S302HO/S3TNCN/RF/h
· Jobs: GM, Ford Accelerate Shift to Mexico Workers Making $26 a Day – BBG
o Mexico’s gains will come at the expense of workers in the U.S. and Canada
· Teens Face Worst Summer Job Market in 41 Years
o Employment among 16-to 19-year olds in May grew by just 6,000, the smallest increase since 1969, when teen jobs fell by 14,000, according to government data analyzed by employment firm Challenger, Gray & Christmas. In May 2008 and 2009, teen employment grew by over 110,000.
o http://www.cnbc.com/id/37573330
· US Debt to Rise to $19.6 Trillion by 2015
o The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.
o The report that was sent to lawmakers Friday night with no fanfare said the ratio of debt to the gross domestic product would rise to 102 percent by 2015 from 93 percent this year.
o http://www.cnbc.com/id/37587490
· Stimulus Talk Yields to Calls to Cut Deficits - NYT
o At a moment when many economists warn that the American economic recovery is likely to be imperiled by prolonged high unemployment and slow growth, President Obama is discovering that the tools available to him last year — a big economic stimulus and action by the Federal Reserve — are both now politically untenable
o The mood in both parties of Congress has turned decidedly anti-deficit, meaning that the job-creation programs once favored by the White House and Democratic leaders in Congress have been cut back, then cut again. It is a measure of the mood that Mr.
o Obama on Tuesday hailed an initiative by his administration to cut the budgets of most major government agencies by 5 percent, at a time when conventional theory would call for more government spending to lift the economy.
· Stock trading: Limit-Down Alternative to Stock Halts Proposed in SEC Letters - BBG
o Regulators should guard against a repeat of the May 6 selloff in U.S. stocks by imposing limits on how far shares can fall instead of halting trading, investors and a former Securities and Exchange Commission economist said
o Twenty-six letters have been posted to the SEC’s website addressing a plan to impose trading halts on stocks that rise or fall 10 percent over five minutes, a pilot program that may begin next week.
· U.S. Hits China With Steel Penalty
o In a move that could escalate trade tensions between the U.S. and China, the Department of Commerce found that Chinese drill-pipe makers were selling roughly $200 million of pipes in the U.S. for less than their market value.
o
· China Sovereign Fund pos on USS?? Wants More to Invest After May, June Loss - BBG
o CIC Calls 2010 'Very Challenging'
o China’s $300 billion sovereign wealth fund is asking the government for more funds after a 10 percent mark-to-market loss in May and June amid the European debt crisis, said Executive Vice President Jesse Wang
o “We believe the overall recovery is on track,” Wang of China Investment Corp. said at a conference in San Francisco yesterday. “We still anticipate the S&P 500 will go to 1,250” and may do so “before the end of the year.”
o The U.S. economic recovery is proceeding “better than expected” with the nation’s markets remaining the world’s most- liquid and mature, Wang said
o CIC has about 18% of its holdings in fixed income, 24% in public equity, 18.9% with what Mr. Wang called "special situation" investments, 7% in private equity and around 9% each with hedge funds, inflation-protected securities, and cash, Mr. Wang said
· Stringer, Ghosn to Reveal Pay as Japan Increases Disclosure - BBG
o Sony Corp.’s Howard Stringer and Nissan Motor Co.’s Carlos Ghosn may be among executives in Japan to reveal their salaries for the first time this month as companies increase transparency
o Publicly traded companies will need to provide the names of executives earning at least 100 million yen ($1.1 million) and a breakdown of their compensation packages, including stock options, bonuses and retirement payouts under new corporate disclosure rules.
· NATO allies to make deep cuts – WP link
o European allies are bracing for their deepest cuts in military spending since the end of the Cold War, fueling concerns in Washington that an already wide gap in military power between the United States and the rest of NATO will grow.
· Israel 'To Accept British Plan to Ease Gaza Blockade' (Telegraph) -- Israel is poised to accept a British plan to ease its blockade of Gaza in exchange for international acceptance of a watered-down investigation into last week's deadly raid on a Turkish aid ship,
COMPANY NEWS WITH MACRO IMPLICATIONS
· Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
o + WFT, POM, IBN and VOD, NYB, EGP, DECK and NLY
o - FL and AGNC
Energy
· Oil spill stories:
o Index heavyweight BP is also under pressure on speculation that it may suspend dividend, following calls from a letter from 42 US congressmen urging CEO Tony Hayward to halt the planned dividend payout and cancel the advertising campaign until the hard work of capping the well and cleaning up the Gulf Coast is complete. S&P
o
o BP says 'virtually all' oil to be captured soon – AP
§ chief operating officer Doug Suttles told The Associated Press on Tuesday in Gulf Shores, Ala., that the flow should decrease "to a relative trickle" by Monday or Tuesday.
o Plumes of Oil Deep in Gulf Have Spread Far, Tests Find
§ Tests confirmed that some toxic compounds that would evaporate in a shallow-water spill are instead spreading, just as President Obama plans his fourth trip to the region. The NYT reports.
o BP was collecting so much oil from its broken well in the Gulf that it didn't have a big enough boat to hold it—the latest in a series of miscalculations stoking a political backlash against the global oil industry. WSJ
o BP Big shareholders back BP CEO Hayward - FT
o BP shareholder support for chairman Carl-Henric Svanberg dwindling - London Times
o BP Not A Public Company By End Of Summer? CNBC
§ http://www.cnbc.com/id/37578731
o RIG Congressional committee questioning Transocean over staffing levels on Deepwater Horizon – WSJ
§ Rep. Nick Rahall, chairman of the House Natural Resources Committee, has sent a letter to the company
o Norway bans deepwater drilling until investigation into Gulf of Mexico oil spill is complete – FT
o DO Taylor Energy says spill which used to average 9 gallons a day is now substantially reduced - DJ
§ Taylor Energy leases the previously reported leaking Saratoga Ocean rig from DO.
§ Taylor the well has been leaking as a result of 2004 hurricane Ivan, but it has now substantially reduced the leak. The company said it is continuing its ongoing well intervention
§ The Taylor wells altogether are leaking an average of less than one-third of a barrel of oil each day, the Interior Department said.
o Anadarko Outlook to Negative by S&P; Transocean on CreditWatch
o BP Says World 2009 Proven Oil Reserves 0.05% Lower Than in 2008
· in its 2010 Statistical Review of World Energy, released today
· Bloomberg) -- Oil and gas companies drilling in the Gulf of Mexico’s shallow waters must verify that they meet new requirements for blowout preventers by June 17, U.S. regulators said.
· WFT CEO Interview: Bernard Duroc-Danner, chairman, president and CEO of Weatherford International (WFT), tells Cramer that from an industry perspective, the Gulf only represents 3-4% of all oil service investments. He adds that the spill will likely shift capital from the US to international markets, a dynamic that would benefit his company in the long run. Cramer remains bullish, particularly with the stock down 26% since the Gulf spill – CNBC
· LGCY Legacy Reserves says it has closed acquisitions of oil & gas properties in the Permian Basin for $9.2M in three separate transactions
· DO Taylor Energy says spill which used to average 9 gallons a day is now substantially reduced-- wires
· BP Simmons & Co Chairman Emeritus Matthew Simmons says BP not likely to last for "many more months" -- CNBC
· BP Big shareholders back BP CEO Hayward - FT
· XCO Exco Resources expects Q2 oil production 130-141 Mbbls; Q2 gas production 24.9-25.7K Mmcf
· API reports crude inventories (4.54M) vs. prior (1.42M); gasoline inventories +1.48M vs. prior (962K), distillate inventories +3M vs. prior +852K.
· Interior Department issues new safety regulations to allow offshore oil and gas exploration to resume in shallow waters, as expected; drilling operations in water deeper than 500 feet remains under a six-month moratorium.
· MIND Mitcham Industries reports Q1 EPS
· European Independent Refiners sector upgraded to neutral from negative at Barclays Capital
· RIG Congressional committee questioning Transocean over staffing levels on Deepwater Horizon -- WSJ
· Norway bans deepwater drilling until investigation into Gulf of Mexico oil spill is complete - FT
· BP BP shareholder support for chairman Carl-Henric Svanberg dwindling - London Times
UTILITIES
· PNY Piedmont reports Q2 EPS
· CNP CenterPoint announces offering of 22M shares through J.P. Morgan, Credit Suisse, Morgan Stanley and Wells Fargo Securities
· ETR Entergy initiated perform at Oppenheimer; target is $79
· MSEX Middlesex Water 1.7M-share secondary priced at $15.21/share through Janney Montgomery Scott
TRANSPORTS
· LFL Lan Airlines reports May traffic +13.9%; Capacity +10.7%; Load factor +2.0 points to 74.3%
· In no hurry, John Fredriksen prepares to swoop on vulnerable listed shipping groups - FT
· GWR Genesee & Wyoming to acquire assets of FreightLink for A$334M ($277.2M)
· GWR Genesee & Wyoming reports May traffic +19.0% y/y to 71,659
INDUSTRIALS
· Navistar (NAV) Posts Q2 EPS of $0.42, Tops Views; Reaffirms Outlook
· PLL Pall Corp reports Q3 EPS
o Pall Corp (PLL) Q3 EPS $0.58 ex-items vs Rts $0.50, expects FY EPS to be at the high end of its previous guidance range
· SLGN Silgan Holdings engages Deutsche Bank and BofA to arrange a proposed new credit facility
· NCS NCI Building Systems reports Q2 GAAP EPS
· AOS A.O. Smith initiated buy at Sterne, Agee; target is $55.
· ADGE American DG Energy files $50M equity shelf
· KBR KBR announces 10M share repurchase program
· BRS Bristow Group announces departure of CFO Brumley, effective 15-Jun
· GRB Gerber Scientific to consolidate Northeastern US manufacturing facilities
· HCCI Heritage-Crystal Clean 3M-share secondary priced at $8/share through William Blair
Tech/media/ telecom sectors
· NOKIA (-1.88%) on market talk that the group will issue a profit warning. No figures have been tied to the speculation. A spokesperson for the company tells MarketScope he is not aware of any such announcement
· TXN mid-Q update- upped guidance to the top end of the range, which was mostly in line with street expectations. The analog and Embedded business are driving to the upside in the Q. Says orders remain stron in the industrials segment which is a positive for both LLTC and ADI (both have 50% exposure). The company is ramping production even as lead times continue to decline. This could lead to order cuts, and cuts could start in the Asian PC and consumer supply chains. The increasing lead times have also caused backlog to decrease sharply. It is believed most of these negative factors will begin to affect TI numbers in 2H10
· MCHP: Reaffirms guidance as backlog and booking in the first two months were strong.
· TTWO: beat and raise Q2. ‘Red Dead Redemption outperformance caused TTWO to raise it’s outlook for Q3 and FY10. ‘Max Payne 3’ release was pushed from 4Q to FY11, as was announced previously. TTWO continued to defer discussion of the next GTA title
· Winbond May revenues rise 5% on month despite low season due to strong demand from the Nor flash segment- Digitimes
· VZ Strives to Close iPhone Gap- All Things Digital
· http://voices.allthingsd.com/20100609/verizon-strives-to-close-iphone-gap/?mod=ATD_rss
· Hon Hai: Chairman Terry Gou downplayed Tuesday the impact of recent wage increases and said it is accelerating automation to reduce its reliance on labor.- All things Digital
· Foxconn axes suicide compensation, relocating some production to Vietnam or Taiwan- Engadget
· Foxconn plans to issue 880 million new shares for floating GDR- Digitimes
· Radio: New bidders make play for radio stations- Globe Investor
· MSFT: Convertible Sale May Revive Issuance: Credit Markets- BBG
· MSFT unlikely to maintain its dominance of the operating system market– WSJ
· http://online.wsj.com/article/SB10001424052748703302604575294943210912542.html
· NOK: speculation of a Profit Warning talk out this morning. A spokesperson for the company said he was not aware of such an announcement being made.
· CBS Said to Boost Ad Sales by ‘High Teens’ Percentage- BBG
· Power semiconductor market plummets in 2009- IMS Research
· PSC: Powerchip Semiconductor Corporation has changed its corporate name to Powerchip Technology- digitimes
· Semis: Chip equipment billings up 32% sequentially in 1Q10- SEMI
· Semis: Motherboard makers slash chipset orders- digitimes
· DRAM contract price starts losing strength- inSpectrum
· Facebook: Social networking sites, led by Facebook , are now more popular among UK web users than Google and its rival search engines, a study has found- FT
· Hulu plans to charge, expand to devices- Reuters
· S: Sprint Nextel Corp said on Tuesday it had inadvertently overstated the launch day sales of the much anticipated EVO 4G phone from HTC- Reuters
· Twitter hits two billion tweets a month- Telegraph
· YHOO: Arianna Huffington (co-founder and editor-in-chief of HuffPo): 'Yahoo! is not buying The Huffington Post'- Telegraph
· Healthcare IT M&A: MDRX Allscripts to buy ECLP Eclipsys for about $1.35 bln. Misys will sell bulk of its 54.6% Allscripts stake and return proceeds to shareholders- WSJ
· http://online.wsj.com/article/SB10001424052748703302604575295482610823318.html?mod=rss_Technology
· BT Group: Communication Workers Union rejects improved offer from BT Group – FT
· INTC Barron's Weekday Trader is positive on Intel
· AMD Graphics Properties announces favorable ruling in litigation with ATI Technologies and AMD
· TXN Texas Instruments says not seeing any slowing out of Europe yet - conf. call
· FSII FSI International announces intent for secondary stock offering via Craig-Hallum Capital
· GOOG Google introduces Caffeine, a new Web indexing system to provide users with more up-to-date search results - Silicon Alley Insider
· NVMI Nova Measuring announces first standalone optical CD metrology order from a large DRAM manufacturer
· CRUS: reaffirms guidance
Miners/ steel sectors etc
· Australia defends mining tax as China considers pullout from A$3B project – TTN
· ARCELOR MITTAL (+0.69%) is in focus on news Brazil does not exclude abandoning steel import tariffs in order to dissuade the country's steelmakers from increasing prices. Notes Brazil's steel import tariffs stand at around 12% for flat products. S&P
· Credit Suisse upgrades European building materials to overweight from market weight. The broker says Northern Europe is still on a recovery path. S&P
· Bloomberg) -- K+S AG, Europe’s biggest potash producer, is considering selling its Compo home-and-garden fertilizer unit to focus on potash and salt - U.S. Hits China With Steel Penalty
o In a move that could escalate trade tensions between the U.S. and China, the Department of Commerce found that Chinese drill-pipe makers were selling roughly $200 million of pipes in the U.S. for less than their market value.
Autos sector:
· Jobs: GM, Ford Accelerate Shift to Mexico Workers Making $26 a Day – BBG
o Mexico’s gains will come at the expense of workers in the U.S. and Canada
· GM’s Treasury-Led IPO May Hand Bankers Lowest Fees Since 1999 – BBG
· Honda (Bloomberg) -- Honda Motor Co.’s production in China was halted by a strike for the second time in less than a month as workers at an affiliated parts supplier walked out demanding higher pay
· Honda (7267.JP) declined 3% on concerns about labor relations and wages in China
· BMW Group unit sales in May rise 10.8% to 120,843
· Chrysler Aims to Rebuild Image - WSJ
o After hunkering down for months, Chrysler is preparing a sustained marketing push to energize dealers and reconnect with American consumers following its reorganization a year ago.
· Bloomberg) -- Volkswagen AG, Europe’s largest carmaker, will build a new plant in southern China, doubling production capacity in the country as car demand booms.
·
Financials:
· ABK: Ambac warns of default as bondholders organize
o Says considers filing bankruptcy, raising capital
o Shares fall 16 percent after hours
o http://www.reuters.com/article/idUSTRE65802Z20100609
· financial-regulation
· Banks: 75% oppose Volker rule - BBG survey
· Banks: Lincoln's Win: Support for Derivatives Plan May Firm Up- WSJ
o http://online.wsj.com/article/SB10001424052748703302604575295483533430868.html
· Banks have not changed pay to reduce risk-taking say regulators -- NY Times
o Federal Reserve has found that many of the compensation practices that economists say contributed to the financial crisis remain in place.
o The official Fed report is not expected until next year.
o http://www.nytimes.com/2010/06/09/business/09pay.html?ref=todayspaper
· financial-regulation
o A House-Senate conference designed to craft a single bill from measures passed by the two chambers will begin June 10 with opening statements from negotiators, Frank told reporters today after a meeting with Dodd in Washington. The talks will be public, said Frank, the Massachusetts Democrat who leads the House Financial Services Committee. BBG
o Conferees will hold meetings next week from June 15 through June 17, and resume talks on June 22, working through that week, Frank said. If they finish by June 26, the House and Senate can hold final votes by the end of June
· EU to press ahead with bank levy plan
o European Union finance ministers have pledged to pursue a levy on the banking sector, in spite of the lack of global consensus signalled at last weekend’s G20 meeting and differences amongst EU states over how any funds raised should be used
o http://link.ft.com/r/S4XZQQ/GKRA2T/007S7/S302HO/S3TNCO/RF/h
· Banks, V, MA etc….With Billions On the Line, Banks Push To Dilute Bill
o The banking industry unleashed a last-ditch effort to strip new debit-card restrictions from the proposed financial-overhaul legislation, including the removal of the word "incremental" from the 1,500-page bill.
o The measures are under siege from the nation's largest banks, which have said they would lose billions of dollars in revenue from fees that they charge to merchants for debit-card transactions, known as interchange fees
o Some large banks are particularly focused on lobbying to change the language in the Senate bill, which gives the Fed the power to review interchange rates that are set by Visa Inc. and MasterCard Inc
· Geithner seeks unity on bank rules – WP link
o Treasury Secretary Timothy F. Geithner convened senior bank regulators Tuesday, warning them that their differences could undercut the U.S. government as it negotiates new international bank standards with other countries, according to sources who have been briefed on the gathering or were present.
· IG Group Holdings Plc surged 9.2 percent to 428.3 pence.The owner of the IG Index financial spread-betting brand forecasts full-year adjusted pretax profit will climb 25 percent as it benefits from volatility in foreign-exchange and stock markets.
· RBS draws up shortlist for £4bn asset sale
o The bank narrows the field of bidders for its £2.5bn payment processing arm to two US private equity consortiums that are vying to seal the UK’s biggest buy-out deal for almost three years
o http://link.ft.com/r/S4XZQQ/GKRA2T/007S7/S302HO/8A42QJ/RF/h
· Prudential investors raise heat over chief
o Institutional shareholders are to meet the UK assurer to raise concerns over Tidjane Thiam’s role as CEO and whether a board shake-up is needed following the collapse of its AIA bid
o http://link.ft.com/r/S4XZQQ/GKRA2T/007S7/S302HO/2628WB/RF/h
· FCF First Commonwealth initiated buy at Sterne, Agee
· IBKC IberiaBank comments on its potential exposure regarding events in the Gulf of Mexico
· CCNE CNB Financial files $27M common stock offering through RBC Capital
· BEN Franklin Resources reports 31-May AUM of $572.7B vs month ago $602.5B
· CTBI Community Trust Bancorp acquires LaFollette First National for $16.1M
· RBS Royal Bank of Scotland creates short lists for asset sales - FT
· China visiting idea of having Agricultural Bank of China delay IPO - South China Morning Post
· TCRD THL Credit initiated outperform at Keefe, Bruyette & Woods
· CSE CapitalSource upgraded to outperform from market perform at Keefe, Bruyette & Woods
· Agricultural Bank of China gets regulatory approval for IPO in Shanghai - Reuters
· Banks have not changed pay to reduce risk-taking say regulators -- NY Times
· BAC Banco Santander acquires the 24.9% stake in Bank of America's Mexico unit for $2.5B
· ABK Ambac Financial considering pre-packaged bankruptcy – Reuters
· Real Estate:
o MBA Mortgage purchase applications index (5.7%) in 4-Jun week; total market index (12.2%)
§ compares to (4.1%) and 0.9%, respectively, in prior week
§ refi index (14.3%) vs. 2.4% in the prior week
§ 30-yr fixed rate (2)bps to 4.81%
§ 15-yr fixed rate 1bp to 4.26%
· REITS
· VNO, LNR Vornado Realty Trust may end up with equity stake in LNR Property Corp. - WSJ
o AVB AvalonBay guides Q2 FFO
o FCH FelCor Repaying $177M of debt; says RevPAR and EBITDA significantly ahead of expectations
· Hotel sales are beginning to recover -- WSJ
o Lodging Funds, REITs and Distressed-Debt Players Drive Up Prices; Cash Is King and Market Remains Vulnerable
o The recent deals by the Pebblebrook Hotel Trust show that hotel deal activity is picking up. In this year's first 4 months, 78 hotels were sold for $2.2B total compared to only 52 sales for $888M last year during the same time.
o http://online.wsj.com/article/SB20001424052748704256604575294740255987902.html#mod=todays_us_money_and_investing
· Housing's Double Dip: Numbers Tell How Bad It Is
o a lot of anecdotal information about life after the home buyer tax credit, but now we're starting to get some numbers. A new report from ZipRealty.com shows more
o http://www.cnbc.com/id/37575536
o Vornado to Get Stake in LNR – WSJ link
§ Cerberus Capital Management has found a way to possibly salvage its investment in real-estate company LNR Property. But it will have to share ownership with an old adversary—Vornado Realty Trust.
· Fed Study Finds ‘Real’ Homeownership Rate
o http://blogs.wsj.com/developments/2010/06/07/fed-study-finds-real-homeownership-rate/
· TPG and Vernon form €900m venture
o The opportunity to buy distressed commercial property assets in the UK and Ireland has prompted the US private equity group to form a joint venture with a British property entrepreneur
o http://link.ft.com/r/S4XZQQ/GKRA2T/007S7/S302HO/FXEW3Y/RF/h
o
Consumer sector:
· MW Men's Wearhouse to open Women's Wearhouse chain next year - NY Post
· Lodging real-estate investment trust FelCor says RevPAR strong, to repay debt at discount
o RevPAR and EBITDA Significantly Ahead of Expectations
· HOT Starwood Hotels, Hilton Worldwide talk about settling civil corporate espionage charges - NY Post
· Inditex SA, the world’s biggest clothing retailer, gained 4.4 percent after profit beat analysts’ estimates
· Bloomberg) -- Walgreen Co. can proceed with a lawsuit challenging San Francisco’s first-in-the-nation ordinance banning the sale of tobaccco products in some pharmacies, a California court ruled today, reversing a judge’s earlier decision to dismiss the company’s case.
· JNY Jones Apparel reinstated neutral at Goldman Sachs; target is $19.
· OSK Oshkosh awarded $138.8M US Army firm-fixed-price contract
· STEI Stewart Enterprises reports Q2 GAAP EPS
· BOBE Bob Evans reports Q4 GAAP EPS
· ODC Oil-Dri reports Q3 EPS
· ANW Aegean Marine Petroleum takes delivery of bunkering tanker newbuilding
· SPAR Spartan Motors awarded multiple subcontract orders in excess of $27M from defense contractor BAE Systems
· BG Bunge Ltd announces $700M stock repurchase program through 31-Dec-11
· OWW Orbitz announces planned retirement of CFO Marsha Williams
· DLM Consensus segment results for Del Monte
· OXM Oxford Industries reports Q1 EPS
· EZPW EZCORP Inc completed the acquisition of eight pawn stores located in Central and South Florida
· CASY WSJ is cautious on the offer for Casey's General after Couche-Tard sold its stake
· MW Men's Wearhouse to open Women's Wearhouse chain next year - NY Post
· DENN Denny's appoints board chair Debra Smithart-Oglesby interim CEO
· GAMING LODGING & LEISURE
· CKEC Carmike Cinemas files $175M mixed shelf
· Hotel sales are beginning to recover -- WSJ
· HOT Starwood Hotels, Hilton Worldwide talk about settling civil corporate espionage charges - NY Post
· Hotel sales are beginning to recover -- WSJ
o Lodging Funds, REITs and Distressed-Debt Players Drive Up Prices; Cash Is King and Market Remains Vulnerable
o The recent deals by the Pebblebrook Hotel Trust show that hotel deal activity is picking up. In this year's first 4 months, 78 hotels were sold for $2.2B total compared to only 52 sales for $888M last year during the same time.
· HEALTHCARE
o CLDA Clinical Data reports Q4 EPS
o BSX Boston Scientific removed from Conviction Sell List at Goldman Sachs
o TSPT Transcept Pharmaceuticals plans to resubmit Intermezzo NDA in 1Q11 - 8K
o CRA Celera publishes data regarding risk of coronary heart disease in carriers of two LPA gene variants
o DSCO Discovery Laboratories receives guidance from the FDA regarding preclinical program for Surfaxin approval
o CLDA Clinical Data to offer all remaining shares of common stock under its existing shelf registration through BMO
o EVVV ev3 downgraded to neutral from outperform at RW Baird; target is $22. The downgrade follows the acquisition announcement by Coviden (COV) for $22.50/share cash.
o ECLP,MDRX Allscripts-Misys, Eclipsys to merge in $1.3B all-stock deal
§ Misys Plc soared 19 percent to 266.3 pence. The company agreed to sell its majority stake in the Allscripts health-care information business for about $1.3 billion, facilitating an all-stock merger between the unit and Eclipsys Corp. DJ
o MRK Merck presents results of Phase IIb study of investigational insomnia therapy MK-4305
From our EU/London desk
· Oils
· Goldmans cut their view on the deepwater drilling sector to neutral.
·
· Norwegian Govt. say it's 'not appropriate' to allow new deepwater drilling until the Deepwater Horizon incident is fully investigated.
· Barcap raise European refining stocks to Neutral from Negative.
· Tullow Oil (-1%). Mahogany appraisal well in the Jubilee oil field, Ghana, has successfully returned results as expected.
· Miners
· Australian Prime Minister weighs in heavily behind the proposed Super-Tax saying the proposed 40% rate is "right".
· Euro Fin News
· Santander +0.2% Pays $2.5 Bn for Bank of America Stake in Mexico Unit
· Bank of Ireland +1.64% Says Received 95% Take-up For Rights Issue
· PRUDENTIAL +0.5% GIVEN PRICE EST. OF 830P AT HSBC, RATED NEW `BUY' AT UBS; PRICE EST. SET AT 641P & GIVEN NEW PRICE EST. OF 613P AT JPMORGAN
· ITX SM Q1 figs beat on all levels hearing pre mkt +2-3%
TODAY’S EVENTS
DAILY VIEW
CONFERENCES
Wednesday June 09:
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 Adam Smith Conferences: Russian Retail Banking Forum - Jun 08, 2010 - Jun 09, 2010
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
o Bank of America Merrill Lynch Small and Mid Cap Conf - Jun 08, 2010 - Jun 09, 2010
· 8AM: BBG , CCOI
· 8:50AM: NTGR
· 9:40AM: AF , TMH
· 10:30AM: CWST
· 11:20AM: ALNY , PLCM
· 1:40PM: VECO
· 2:30PM: ALKS , KBW , VRGY
· 3:20PM: AVEO , PAET , SIG
· BPFH
o Bank of America Merrill Lynch Telecommunications, Media and Technology Conference - Jun 07, 2010 - Jun 09, 2010
· 4:15AM: BSY.L
· 5:10AM: LOGI
· VIV.PA
o BCP Securities Annual Investor Conference
· EVGPF.PK
o Billing & OSS 2010 World Conference and Expo
· LHS AG
o Credit Suisse Diversified Financial Conference
· PGHN.S
o Credit Suisse Group MENA Conference - Jun 09, 2010 - Jun 10, 2010
· ORSDF.PK , ORSDF.PK , QTED.L
o Credit Suisse Group Pan European Real Estate Conference
· AOX.F , GRRMF.PK
o Credit Suisse Group Pan European Small & Mid Cap Conf. - Jun 08, 2010 - Jun 09, 2010
· AIXA.F
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 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
· 9:30AM: MYGN
· LMNX , POWI
o Gartner PPM & IT Governance Summit - Jun 07, 2010 - Jun 09, 2010
o Goldman Sachs Financials Services Conference
· DB.CO
o Government Technology Pacific Northwest Digital Government Summit - Jun 09, 2010 - Jun 10, 2010
o IBF (International Business Forum) 21st Annual Venture Capital Investing Conference - Jun 09, 2010 - Jun 10, 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 Institutional Investor Corporate Financial Executive Summit - Jun 09, 2010 - Jun 10, 2010
o InterShow: The Traders Expo Los Angeles - Jun 09, 2010 - Jun 12, 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: ISTA
· 8:30AM: ARRY , GTXI , WST
· 9AM: AMGN , BMTI , CMN
· 9:30AM: AMLN , OPTR
· 10AM: NKTR , SQNM
· 10:30AM: CELG , EXAS , LCI
· 11AM: MNKD
· 11:30AM: ABAX , GILD
· 1PM: ARTC , CRIS , MEND
· 1:30PM: CAH , ELGX , HRC , NBIX , TELK
· 2PM: DHR , MITI , STAA
· 2:30PM: BSTC , INCY , ZIOP
· 3:30PM: INFI , JAZZ , TFX
· 4PM: ATRC , VPHM
· 4:30PM: HAE , LGND
· BVT.ST
o JPMorgan China Conference - Jun 09, 2010 - Jun 11, 2010
· CMED , CTC , QNTA , VALE
o JPMorgan Diversified Industries Conference - Jun 08, 2010 - Jun 09, 2010
· 8:30AM: GE
· 9:15AM: AGCO , ES , ROK
· 10AM: OSK
· 10:45AM: APD , CVGI , WGOV
· 11:30AM: ECL , ITW
· 12:40PM: PWR
· 1:45PM: RKT , SHAW
· 2:30PM: AVY , PIKE , SON
· 3:15PM: ARM , EMN
o Lazard Capital Markets Alternative Energy Investor Summit - Jun 09, 2010 - Jun 10, 2010
· 11AM: FSYS , RTK
· 3:30PM: PWR
· 4:15PM: ES
· ISE.TO
o Metzler Immobilien Day Conference
· DEQ.F , IVGHF.PK
o Morgan Joseph Best Ideas Conference
· 8AM: AVNW
· 8:30AM: CRNT , PLXT
· 9AM: INWK
· 9:30AM: URS
· 10AM: DCO
· 11AM: EME
· 12PM: SJI
· 12:30PM: WTR
· 3PM: IMGN
· 3:30PM: JAKK
· 4PM: CLRT , TWER
· 4:30PM: CAMP
· CETV , HIL , MEA
o Nasdaq Private Investor Meeting
· LFCYF.PK
o Needham & Company Healthcare Conference - Jun 09, 2010 - Jun 10, 2010
· 8AM: SUPG
· 8:40AM: MNKD , SGEN
· 9:20AM: CLDX , DYAX , HOLX , SNMX , TRGT
· 10AM: CELG , CYNO , MATK
· 10:40AM: DCTH , GIVN , NPSP , SNSS , ZIOP
· 11:20AM: ALXN , CYTK , PPHM
· 12PM: GPRO
· 1:20PM: CPTS , CRIS , CYTX , KERX
· 2PM: BABY , CHTP , MELA , ONC.TO
· 2:40PM: CNMD , INO , MRNA , OSUR
· 3:20PM: ACAD , NGSX , VRTX , YMI
· 3:30PM: SLTM
· 4PM: BLTI , LMAT
· ARNA , ISIS , VICL
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
o Piper Jaffray Consumer Conference - Jun 08, 2010 - Jun 09, 2010
· 8:30AM: JCG , KONA
· 9:10AM: CAB , JCP , PFCB
· 9:50AM: DEST , RUE
· 10:30AM: CAKE , GIII , JWN
· 11:50AM: DBRN , PSS , WRC
· 12:30PM: CROX , LTM , TSCO
· 1:50PM: VSI , WWW
· 2:30PM: BWS , URBN
o Private Equity International Investor Relations & Communications Forum - Jun 09, 2010 - Jun 10, 2010
o RBC Capital Markets Canadian REIT Investor Sessions - Jun 08, 2010 - Jun 11, 2010
o RBC Capital Markets Global Mining & Materials Conference - Jun 08, 2010 - Jun 09, 2010
· CCJ
o RBC Capital Markets North American Technology, Media & Communications Conference - Jun 08, 2010 - Jun 10, 2010
· 8AM: HPQ
· 9AM: CSCO , EXFO , JBL , PAR
· 9:30AM: FTNT , WWWW
· 10AM: FIS , SMSC
· 10:30AM: ALSK , ARUN , KNOL
· 11AM: OCLR
· 11:30AM: ABVT , FFIV , JCOM
· 1PM: MSFT , TRAK
· 1:30PM: QCOM
· 2PM: CSR.L , LINTA , OPWV , SNPS , SVVS
· 2:30PM: HLIT , S , VOLT
· 3PM: ADS , ARRS , ELX , V
· 3:30PM: CA , CDNS , TMRK
· 4PM: BWC.TO , TSYS
· 4:30PM: FLEX
· CALD , CEVA , CHKP , DSPG , MLNX , ZRAN
o RedChip Resources Small-Cap Equities Virtual Conference III: Undiscovered Growth & Value Opportunities - Jun 09, 2010
o REITWeek: NAREIT's Investor Forum - Jun 09, 2010 - Jun 11, 2010
· 9AM: SKT
· 9:15AM: PCH
· 10AM: CUZ , ESS , UMH
· 10:45AM: AHT , IVR
· 11:30AM: HPT
· 4PM: DDR
· 4:45PM: FRT
· 5:30PM: GOV , HCP
· DFT , GRT , OFC , WRI
o Stifel, Nicolaus & Company Stifel Nicolaus Investor Conference
· HUM
o Terrapinn Central Asia Mining Congress - Jun 07, 2010 - Jun 10, 2010
o Terrapinn Private Equity World Latin America Conference - Jun 09, 2010 - Jun 11, 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 Armed Forces Communications and Electronics Association (AFCEA) Industry Partnership Symposium with Matchmaking - Jun 09, 2010
o The CWC Group Nigeria Oil &Gas Tech Conference - Jun 08, 2010 - Jun 09, 2010
o UBS Basic Materials Conference - Jun 09, 2010 - Jun 10, 2010
· AKE.PA , HOLN.S , HOLN.S , SDF.F , SKG.L , SYT , VALE
o UBS Global Technology and Services Conference - Jun 08, 2010 - Jun 10, 2010
· 8AM: AMAT
· 9AM: ACTG , MSCC , UCTT
· 9:30AM: AMD , SFSF
· 10AM: ACTU , ADVS , BRCM , XRX
· 10:30AM: ATHR , CY , KLIC
· 11AM: CTV , XLNX
· 11:30AM: NVDA , NZ , RVBD
· 1PM: DOX , MRVL , SMSI
· 2PM: HHS , JBL , SIMO
· 2:30PM: ATML , AVT , HURN
· 3PM: BCSI , COHU , PMTC , VSEA
· 3:30PM: CATM , DIOD , MCHP , QTM
· 4PM: ENTG 4:30PM: ENER , SGI
· 5PM: BRKS
· ACN , ITRI , MOLX , SOW.F
o Windhover Information Inc IN3 East - Jun 09, 2010 - Jun 11, 2010
COMPANY MEETINGS/OTHER DAILY EVENTS
· Wednesday June 9:
o Shareholder meetings
§ ACIW, BIIB, CHP, KATY, ANCI, AXPW, DFR, GRM, HTGC, ICXT, NCIT, OHI, TAST, UFPT, MNTA, VIA, ARSD, BDCO, INOD, OMNI, PARD, ODLI, BGFV, IM, CAT, RZ, TGT, CXO, MTEX, SOMX, XPO, QADI, WGAT
o BRCD tech day
o CBLI investor day
o TEN investor day
o BOBE analyst meeting
o President Barack Obama meets the Palestinian president in Washington.
o Portugal's parliament votes on the government's austerity plan
ECONOMICS
· Wednesday June 9:
o 0700 Mortgage Applications
o 1000 Wholesale Trade
o 1030 US Energy Dept Oil Inventories
o 1400 Federal Reserve Beige Book
EARNINGS
o Materials
· Wednesday June 9:CGC
o Industrials/Homebuilders
· Wednesday June 9: KTII, UHAL, NAV, TITN
o Consumer/Retail/Education
· Wednesday June 9: FOH, HOFT, LAKE, LUB, MW, VIRC, BF/B, KFY, STEI
o Financials
· Wednesday June 9: ALD, AMFI, CTBK
o Gaming,, Lodging, & Leisure
· Wednesday June 9: MTN, SHFL
o Tech/Telecom
· Wednesday June 9: MEAS, ULCM, CIEN, QXM
o Autos
· Wednesday June 9: THO
o Healthcare
· Wednesday June 9: GNBT, PURERGEN, ALOG
o Utilities
· Wednesday June 9: FGP, PNY
o Energy
· Wednesday June 9: CRED
INVESTMENT BANKING WRAP
M&A
· MDRX Allscripts to buy ECLP Eclipsys for about $1.35 bln- WSJ
o Shareholders in Eclipsys -- also a health information technology company -- are likely to receive 1.2 Allscripts shares for each share they own, representing a premium of about 19 percent to its Tuesday's close price
o Misys to sell bulk of its 54.6% Allscripts (MDRX) stake and return proceeds to shareholders
o http://www.reuters.com/article/idUSSGE65806H20100609
· VNO Vornado could take stake in LNR Property Corp- Reuters
o Vornado Realty Trust (VNO.N) could take a stake in LNR Property Corp, owned by Cerberus Capital Management, as part of a possible debt restructuring
o The restructuring plan, which may also see other creditors get a stake in the property company, could be completed by the end of this month
o http://www.reuters.com/article/idUSN0810481120100609
· Santander to buy $2.5 bln stake of Santander Mexico- Reuters
o Spain's Banco Santander (SAN.MC) said it has agreed to pay Bank of America (BAC.N) $2.5 billion for a 24.9 percent stake of its Mexican affiliate Santander Mexico
o The deal, which gives the Spanish bank full ownership of the affiliate, had been expected over the last year by analysts
o http://www.reuters.com/article/idUSMDT00908620100609
· RBS draws up shortlist for £4bn asset sale- FT
o Morgan Stanley and Jefferies are among the final bidders for RBS Sempra Commodities’ North America business, which focuses on natural gas and power trading and could potentially reach a total value of $2bn (£1.4bn), people familiar with the process said.
o RBS has also narrowed the field of bidders for its £2.5bn payment processing arm to two US private equity consortiums that are vying to seal the UK’s biggest buy-out deal for almost three years………below
o http://www.ft.com/cms/s/0/f4723930-733a-11df-ae73-00144feabdc0.html
· Three bids on final RBS WorldPay shortlist- Reuters
o Four U.S. buyout firms -- TPG [TPG.UL], Clayton, Dubilier & Rice and joint bidders Advent International and Bain Capital -- make up the shortlist
o TPG and CD&R could join forces to boost their chances of winning the race, two of the sources said. Final bids are likely to be submitted in the next month, after weeks of intense negotiations and further due diligence
o http://www.reuters.com/article/idUSLDE6570ZP20100608
· JPM JPMorgan’s Lee on Deal-Making- Dealbook
o Few people are as plugged into Wall Street’s deal machine than James B. Lee Jr., the JPMorgan Chase vice chairman known as the money man of mergers and acquisitions
o “The road to recovery is never straight,” Mr. Lee said. “The signs are set however for a lot of M.&A. activity, the normal signs.”
o According to Lee, there are three basic principles that typically get companies into trouble: Too much Debt, Too little liquidity, and Poor Risk Management
o http://dealbook.blogs.nytimes.com/2010/06/08/jpmorgans-lee-on-deal-making/
· It’s Just a Few Deals, but Office Market Is Stirring- Dealbook
o RXR Realty, has agreed to pay $279.3 million for a 49 percent interest in 340 Madison Avenue, at 43rd Street. That price values the building at $570 million, or $687 a square foot. The transaction is expected to close on Wednesday
o It will be one of only five transactions so far this year for office buildings of over 100,000 square feet. But an additional seven such deals are in contract, according to the research firm Real Capital Analytics. Only nine sales like that were completed during all of last year, compared with 101 in 2007
o http://dealbook.blogs.nytimes.com/2010/06/09/its-just-a-few-deals-but-office-market-is-stirring/
· WSJ looks cautios on the CASY deal- WSJ
o It wasn't unusual for Canadian convenience-store operator Alimentation Couche-Tard to own a stake in Casey's General Stores ahead of launching a bid. In the days before making its $36-a-share offer public on April 8, Couche-Tard picked up even more stock at $31.44, increasing its stake to 3.9%.
o But rather than keep the position, Couche-Tard cashed in on the hype.
o http://online.wsj.com/article/SB10001424052748703302604575295111176543290.html?mod=googlenews_wsj
· Prudential investors raise heat on Thiam- FT
o Leading institutional shareholders in the Prudential have called a meeting with the UK assurer to raise concerns over Tidjane Thiam’s role as chief executive following the collapse of its $35.5bn bid for the Asian assets of AIG
o Several institutional investors have asked to meet James Ross, senior independent director on the Pru board, to air concerns.
o http://www.ft.com/cms/s/0/01cc5034-7331-11df-ae73-00144feabdc0.html
· Hotel Deals Pick Up as Tide Begins to Turn- WSJ
o Part of the reason: Distressed properties are working their way through the workout and foreclosure process.
o Real Capital calculates that 42% of the hotel deals so far this year involved properties with distressed debt, meaning they were delinquent, foreclosed or otherwise under pressure from their lender. That compares with 11% last year and 1% in 2008. http://online.wsj.com/article/SB10001424052748704256604575294740255987902.html?mod=WSJ_latestheadlines
· Merged Quadra FNX eyeing deals with Vale, Xstrata- Reuters
o Quadra FNX Mining (QUX.TO) may seek joint ventures or agreements with Vale (VALE5.SA) and Xstrata (XTA.L) to mine small-sized deposits in the mineral-rich Sudbury, Ontario, region
o Speaking just two weeks after the company was created by the merger of Quadra Mining and FNX Mining, CEO Paul Blythe said Quadra FNX would be eager to lend its expertise in mining small orebodies to its neighbors
o http://www.reuters.com/article/idUSN085338220100608
· Sonic Shares Rise After Report of Interest From DGX Quest- BBG
o Sonic Healthcare rose the most in more than nine months in Sydney trading after the Australian Financial Review said Quest Diagnostics is considering bidding for the company.
o A deal would add to more than A$2.5 billion of takeover bids for Australian health-care companies announced in the past month, spurred by increasing medical expenses
· GWR Genesee & Wyoming To Buy FreightLink For A$334M- WSJ
o U.S. freight rail operator Genesee & Wyoming has agreed to buy FreightLink, the owner and operator of Australia's Darwin to Adelaide railway, for A$334M in cash and existing debt facilities.
o In a statement released Wednesday, GWR said its Australian arm, which has managed the above rail services of FreightLink since its inception in 2004, expects to generate significant cost and capital efficiencies from combining FreightLink's operations with its own
· Former Blackwater pursues sale of the company- Reuters
o Xe Services, the private U.S. security firm formerly known as Blackwater which has faced criticism over work in Iraq and Afghanistan, is seeking a sale of the company
o Xe Services, based in Moyock, North Carolina, has faced intense scrutiny over its security work in Iraq and Afghanistan. Some of its guards were accused of wrongly killing Iraqi civilians in 2007 while protecting U.S. diplomats there
o http://www.reuters.com/article/idUSN089573520100608
· Half of British execs want takeover changes- Reuters
o Half of Britain's top executives support changes to the country's takeover code to protect domestic companies from foreign takeovers
o Nearly three-fourths of the respondents said they expected an increase in the number of British firms acquired by foreign-owned companies unless takeover rules are changed
o http://www.reuters.com/article/idUSLDE6572HQ20100609
· Redflex Gets A$275M Takeover Approach From Macquarie Group Unit- WSJ
o Traffic camera group Redflex Holdings said it has received a takeover proposal from an unidentified Macquarie Group Ltd. (MQG.AU) subsidiary, valuing the group at A$275 million
o The board hasn't formed a view on the approach, which was offered at a near 8.7% premium to Redflex's Tuesday closing price of A$2.30. Redflex recommends shareholders take no action at this stage.
o http://online.wsj.com/article/BT-CO-20100609-702115.html?mod=WSJ_World_MIDDLEHeadlinesAsia
· PT says Telefonica can't block Vivo dividends- Reuters
o Lawyers have assured Portugal Telecom that Spain's Telefonica cannot block the dividends or disband their joint venture running mobile operator Vivo, which Telefonica is seeking to buy out
o PT CEO Zeinal Bava told Reuters by telephone that "Telefonica is telling investors that it will block the dividends and dissolve Brasilcel",
o http://www.reuters.com/article/idUSLDE6580FP20100609
· Property trusts strike $2.5 billion merger- Reuters
o The F&C Commercial Property Trust (FCPTL.L) and UK Commercial Property Trust (UKCM.L) have agreed to merge, creating Britain's sixth largest listed property company with a market capitalization of around 1.6 billion pounds
o Gary Hutcheson, investment director (property) at Ignis, said the trust's property portfolios were an "excellent strategic fit."
o http://www.reuters.com/article/idUSTRE6580ZM20100609
· Dassault Systèmes Acquires Exalead- (PR)
o Dassault Systèmes a world leader in 3D today announced that it acquired the French company Exalead for about €135 million.
o "To accelerate the deployment of Search-Based Applications in all market sectors, we needed a strong international partner,” said Exalead
· Fredriksen poised to swoop on ailing groups- FT
o John Fredriksen, the shipowner, is holding billions of dollars of assets in liquid form with a view to swooping on listed shipping groups that become vulnerable in any future downturn
o Mr Fredriksen, whose fortune is estimated at $10bn, said only 20 per cent of his assets were tied up in shipping
o His companies had stepped up the search for targets but, with earnings fairly strong, were biding their time. “When the market drops, if we see an opportunity we’ll do it.”
o http://www.ft.com/cms/s/0/02798c2c-7331-11df-ae73-00144feabdc0.html
· New bidders make play for radio stations- Globe Investor
o At the end of April, Corus announced it had reached an agreement to sell 11 of its 12 stations in that province to cable company CCA Cogeco Cable, to allow it to expand its radio offerings and compete with the largest radio broadcaster in Canada
o Tuesday, a new offer for the stable of radio stations was put forward by former Montreal city councillor and real estate agent Nicolas Tétrault, and Paul Tietolman, the son of a pioneer in the radio business in Montreal.
$ RAISING
IPOs
· GM’s Treasury-Led IPO May Hand Bankers Lowest Fees Since 1999- BBG
o Wall Street bankers may be pushed to charge the lowest fees in at least a decade to arrange the Treasury’s sale of General Motors Co. in what could be the second-largest initial public offering in U.S. history
o Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are vying to lead the automaker’s share sale, which may raise as much as $12 billion, an estimate by Independent International Investment Research Plc showed
o http://www.bloomberg.com/apps/news?pid=20601087&sid=ak0q3HVXTtBA&pos=7
· AgBank receives approval for China IPO- Reuters
o Agricultural Bank of China ABC.UL has received regulatory approval for its planned initial public offering in Shanghai, a sign that the mega-sized deal is moving along.
o Beijing-based AgBank was initially expected to raise up to $30 billion in a dual listing, which would be the world's largest, but concerns over the size of the IPO have grown recently.
o http://www.reuters.com/article/idUSTRE65810220100609
· AgBank dismisses reports China asking for IPO delay- Reuters
o An executive with the Agricultural Bank of China dismissed as "nonsense" reports that its government shareholders were pushing it to postpone its planned share issue due to weak market conditions
o http://www.reuters.com/article/idUSTRE65802V20100609
· OXF Oxford Resource Partners files amended S-1; to offer 8.75M common units in range $19-$21 through Barclays and Citi
o The new information is the number of shares to be offered and the range. The IPO was initially filed on 24-Mar and the proposed symbol on the NYSE is 'OXF.
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 ULTA Ulta Salon Cosmetics & Fragrance 9.8m share secondary expected to price 6/8 via Wells Fargo and William Blair
o HCCI Heritage-Crystal Clean 3M-share secondary priced at $8/share via William Blair
o MSEX Middlesex Water 1.7M-share secondary priced at $15.21/share via Janney Montgomery Scott
NEWS
· Microsoft Convertible Sale May Revive Issuance: Credit Markets- BBG
o Microsoft Corp.’s sale of $1.15 billion of convertible notes may help the market recover from a two-month slump.
o Investors rocked by rising volatility stemming from Europe’s expanding government debt crisis may be attracted to the securities by Microsoft’s AAA credit rating
· ABK Ambac warns of default as bondholders organize- Reuters
o Ambac Financial Group (ABK.N), the bond insurer whose toxic assets were seized by Wisconsin state regulators in March, said it could default on its loan obligations and was still considering filing a prepackaged bankruptcy
o Holders of some of Ambac Financial Group's $1.24 billion senior debt, have formed an ad hoc committee and will try to push the company into a prepackaged bankruptcy
o http://www.reuters.com/article/idUSTRE65802Z20100609
· CNP CenterPoint starts 22 mln stock offering; shares fall- Reuters
o Energy delivery company CenterPoint Energy Inc (CNP.N) said it started a public offering of 22 million of its common shares, sending its stock down about 5 percent in extended trade
o The Houston-based company expects to grant the underwriters an option to purchase up to an additional 3.3 million shares to cover any over-allotments.
· BG Bunge to buy back up to $700 mln shares- Reuters
o Bunge said it authorized a plan to buy back up to $700 million common shares through December 31, making use of a stronger balance sheet after the sale of its Brazilian business.
o The repurchases will be made periodically through means including sale in the open market and privately negotiated transactions
o http://www.reuters.com/article/idUSN083290320100608
· Bankrupt companies wary of financing jitters- Reuters
o The easy days of bankruptcy financing may be drawing to a close as volatility in global markets has made investors nervous about putting money into this already uncertain sector
o Bankruptcy-related financing went from drought conditions caused by the worldwide credit crisis in 2008 and early 2009 to a flood earlier this year as markets rebounded.
o http://www.reuters.com/article/idUSTRE6572PA20100608
· Utilities: CNP CenterPoint announces offering of 22M shares via JPM, CS, MS, and WFC
· Media: CKEC Carmike Cinemas files $175M mixed shelf
· Healthcare: CLDA Clinical Data to offer remaining $27.82M in common stock under existing shelf registration via BMO
· Energy: ADGE American DG Energy files $50M equity shelf
· Energy: Solon launches 4.7M share rights issue
· Tech: FSII FSI International announces intent for secondary stock offering through Craig-Hallum Capital
***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.