Morning @ Cantor
Morning @ Cantor 6/10
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
EARLY US LANDSCAPE****
· US Stock Futures, SPs up 12 , Dollar weaker as risk is back…Rates are up in US, EU spreads better
· Gold dn $10, crude up 32c….
· ****breaking… BOE left them unched as expected, maintains asset purchase plan at 200billion
· The S&P Europe 350 (+0.9%) bounces back out of the red and moves above 1,000 level. However, upside is capped by further steep losses at BP.
o European equities have moved into positive territory on a recovery in BP's shares and good bond auctions from Spain and Italy
· Asian equity markets are higher on strong economic data from China, Japan, and Australia – also a host of central banks are tightening policy
· 3-Month Euribor Rises To 0.718% Vs 0.715% Wednesday
· spread between 10-year Italy/German Gov't Bonds below levels from the start of the ECB bond buying program
· Asian Markets: Nikkei +1.10%; Hang Seng +0.06%; Shanghai Composite (0.82%)
· Asian stocks extended gains on Thursday as China's official data confirmed faster trade growth… Miners led Australia higher on strong export data from China
o Global rates in focus today:
§ Brazil, NZ raise rates overnight
· An expected 25-bp interest-rate hike in New Zealand had little effect on the market
· BRAZIL CENTRAL BANK RAISES SELIC TARGET RATE 75 BPS TO 10.25% (AS EXPECTED)
· BANK OF KOREA (BOK) LEAVES RATES UNCHANGED AT 2.00% AS EXPECTED… hawkish comments from BOK
· Recall last week Bank of Canada became the first G7 economy to raise rates
§ Australia did not raise rates last night..but they have been on a rate rising campaign already ..and they had good jobs data last night
§ Peru’s central bank may raise its benchmark lending rate today for a second straight month as 8.8 percent economic growth and inflation exceed economists’estimates.
§ UK and ECB later…Faces Grilling on Euro Debt Storm, to Hold Rates
· The Bank of England is expected to hold rates unchanged at 0.50% and maintain its asset purchase scheme at £200B. Economists also expect the European Central Bank to hold rates at 1.00%
§ Trichet in focus today - what bonds will ECB buy?
· European Central Bank President Jean-Claude Trichet may seek to downplay divisions on a controversial bond buy program. MW
§ China has reported an unexpected 48.5pc rise in exports and near-record growth in property prices, raising concern that the government may step up policy tightening.
o China data – better as previews by Reuters wed
§ China's exports and its trade surplus jumped in May, putting new pressure on U.S. Treasury Secretary Timothy Geithner to placate congressional critics who say Beijing is keeping the yuan unfairly undervalued. CNBC
§ China's exports rose 48.5 percent in May from a year earlier and imports were up 48.3 percent
§ Sources told Reuters on Wednesday that export growth was up about 50 percent from a year ago
§ support for the Euro by the China Pension fund
o EU ups ante??...EU to Expand Rescue If Package Fails, Van Rompuy Says
§ (Bloomberg) -- European Union President Herman Van Rompuy said the 750 billion-euro ($905 billion) rescue package would be expanded if it doesn’t quell the debt crisis, becoming the first EU leader to float the idea of a larger fund.
o EUR: China Pension Head Says Euro to Survive Crisis, Reuters
o EUR: WSJ: Sarkozy and Merkel united over shared fear of weak euro currency
o EUR: Goldman Cuts Euro Forecast to $1.15 on Policy Risk.. Goldman Sachs Group Inc. reversed a forecast for the euro to rise,
o EU auctions go OK today:
§ Successful Bond Auction today In Spain Is A Good Sign
§ Italy Sells EUR3B 3-Month T-Bills
§ Hungary sold HUF35B (below allocation of HUF50B) in 12-month in T-Bills; avg yield 5.35% v 5.17% prior
o FT comments on how European banks are struggling to sell corporate bonds
o On Wednesday, the European Central Bank had a technical hiccup.
§ It accidentally published a “test message” outlining details of the planned sale of €10bn worth of three-month debt certificates to help mop up some eurozone liquidity. The sale was quickly squashed by ECB spokespeople, but the idea is continuing to appear in market commentary on Thursday.
§ http://ftalphaville.ft.com/blog/2010/06/10/257026/ecb-debt-certificates-live-on-in-analysts-minds/
o Italy raises the public sector retirement age for women to 65 years from 60
o BP Shares -6% , CDS Widen Sharply; Trade Equivalent To Junk
o GS under more scrutiny.. SEC investigating Goldman Sachs over a second CDO deal - FT
o IEA Ups '10 Global Oil Demand But Warns On US Drill Ban
o EU's Junker: Spain may need more reforms next year
o China central bank injects funds - Reuters
§ China's central bank is set for its biggest weekly net fund injection into the banking system in four months, aiming to improve money market liquidity with the approach of a holiday and hefty fundraising by commercial banks.
o World Bank Says ‘Double-Dip’ Possible in Some Europe Economies
o ‘Liquidity Seizure’ May Cause Recession, Nomura Says
· US vs china: U.S. Senator Charles Schumer said on Wednesday that he and other colleagues would push for a vote in the next two weeks on legislation that would allow the Commerce Department to use anti-dumping and countervailing duty laws against China or any other country with a fundamentally misaligned exchange rate. CNBC
o Recall Geithner delayed an April 15 report on whether China was manipulating its currency
· US vs china Amendment Requires Reports on Foreign Holdings of U.S. Debt
o The U.S. Senate voted Wednesday to require the Obama administration to examine the risks associated with foreign holdings of U.S. debt, a new sign of political concern about the nation's fiscal state and China's economic influence.
o China is currently the U.S.'s largest creditor, holding 10% of the $8.577 trillion in publicly held debt
· US vs china Theory and Politics Don't Mix On Yuan – WSJ notes a few wrinkles
o First, the European crisis means the yuan has actually been appreciating against global currencies this year, up 6% on a trade-weighted basis according to Tom Orlik at Stone & McCarthy. Against the euro alone, the yuan has risen 16%. With Europe being China's largest trading partner, Beijing's already taken a severe currency hit.
o Second, it's worth considering evidence of rising wage levels in China. Not just in high-profile cases such as those at Foxconn and Honda: Local governments have recently been raising minimum wages across China
o http://online.wsj.com/article/SB10001424052748704312104575297933856720818.html?mod=WSJ_newsreel_markets
· US vs china China Foreign Ministry Official Qin: Should not politicize China's US debt holdings – CNBC
· US vs china Bloomberg) -- U.S. President Barack Obama’s top military adviser said he has grown “genuinely concerned” over China’s motives for building up its armed forces
· US vs china today 10:00 (US) Sec Tsy Geithner testifies on China
· US vs china Google Says U.S., E.U. Should Pressure China on Web Censorship - BBG
· China Labor Unrest Spreads, Posing Challenge to Beijing
o http://www.cnbc.com//id/37603782
· Economists Expect Slow U.S. Growth – WSJ survey
o Survey suggests recovery will be steady but gradual despite increasing worries over Europe and job market
o On average, the 53 respondents to the Journal's monthly survey still expect the U.S. economy to grow about 3% in the second half of the year and to continue at that pace into 2011. That means adding jobs so gradually that unemployment, now at 9.7%, will be at a still-elevated 8.6% by the end of December 2011.
· Fed Unlikely to Reduce Rate on ECB Currency Swaps, UBS Says )per BBG)
o The Federal Reserve is unlikely to lower the rate financial institutions are charged to borrow dollars through the European Central Bank because of “increased scrutiny” from Congress
· Pimco Buys Treasurys in Recent Weeks
o Pimco had been the biggest and most vocal of a large group of Treasury bears
· Deflation Is Worrisome but Not a Certainty – WSJ
o Many investors think otherwise, flocking to the safety of U.S. Treasurys in spite of rock-bottom yields. Benchmark 10-year notes yield about 3.19%, against an average 4.4% from 2002 through 2007. The 30-year "long bond" is about 4.12%.
o http://online.wsj.com/article/SB10001424052748703890904575297021606404464.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29&utm_content=Google+Reader
· Now May Be the Time to Buy the Euro: Jim Rogers
o Everybody is so bearish about the euro that it looks like now is a good time to buy the single European currency, famous investor Jim Rogers told CNBC Thursday.
· Market Would Jump 2,000 Points if Reform Bill Died: Forbes
o Financial firms are still lobbying on Capitol Hill to weaken the proposed financial regulation bill. Steve Forbes, CEO of Forbes, Inc., gave his opinons.
o There’s so much bad stuff in this—it perpetuates too-big-to-fail, it hurts small banks and businesses.”
o http://www.cnbc.com/id/37593260
· Spanish labor talks end
o The Spanish government is poised to impose its own labor reform laws after talks with employers and major trade unions failed. MW
· short interest hits
o Nasdaq: short interest in all NASDAQ securities totaled 7,209,400,601 vs 7,175,835,162 shares at the end of the previous reporting period. This is 2.69 days average daily volume, compared with an average of 2.34 days for the previous reporting period.
o NYSE: short interest increased to 13,987,064,443 shares from 13,908,944,756 (revised) shares on 14-May. The short interest on 28-May was equal to 3.66% of the total shares outstanding.
o NYSE Amex: short interest decreased to 288,242,357 shares from 288,765,503 shares (revised) on 14-May.
· Data
o China
· May exports +48.5% y/y vs survey +32.0%.
· May imports +48.3% y/y vs Bloomberg +44.7% and Dow Jones +30.2%.
· May trade surplus $19.53B vs Bloomberg $8.20B.
§ More economic datapoint leaks put May Industrial Production y/y 16.5% v 17.0%e ahead of tomorrow's official release. In the property sector, TTN
§ China National Bureau of Stats said May property prices in 70 cities rose 12.4% y/y, down from 12.8% record high in April. The gradual decline could be perceived as a "soft landing" addressing the property market bubble without material impact on liquidity - TTN
o Greek unemployment rate
o GREECE MAR UNEMPLOYMENT RATE: 11.6% V 12.1% PRIOR
o Japan Q1 GDP +1.2% q/q vs survey +1.0%.
§ Japan May domestic CGPI +0.4% y/y vs +0.3% y/y.
§ Japan Producer Prices Rise for First Time Since 2008
§ Japan May machine tool orders +191.8% y/y vs prior +220.9%.
o France Q1 Final Non Farm Payrolls +0.2% q/q vs consensus (0.1%)
o France Apr Manufacturing Production +0.4% m/m vs consensus +0.4%
o France Apr Industrial Production (0.3%) m/m vs consensus +0.1%
o Australia May employment change +26.9K vs survey +20.0K. May unemployment rate 5.2% vs survey 5.4%.
· Money Raising:
o Cramer likes the timing on the Chicago Board Options Exchange (CBOE) IPO, citing the near-term passage of financial reform legislation. However, he notes that he would not pay more than $29 for the stock (the expect price range is $27-$29) and would not be a buyer on the open market.
o China's stock regulator has approved Agricultural Bank of China's plans for an initial public offering in Shanghai and Hong Kong worth well over $20 billion that may be the world's biggest ever, despite current market doldrums.
· M&A:
o $1.1-1.4B bids come in for Bresnan Communications from Cablevision (CVC), Charter Communications (CCMM), others – WSJ
o ARM Holdings (ARM.LN) is trading higher, likely lifted by TSMC (2330.TT)'s reporting May unconsolidated revenue up 38.3% at NT$33.84B, renewed rumor of Apple (AAPL) interest may also be contributing to the move. SA
· . DEUTSCHE BANK (-0.71%) comes under pressure on a Handelsblatt report that it may have to inject billions of dollars into its US subsidiary Taunus, which acts as a bank holding for its parent, after the US agency for deposit protection criticised the drastically low capitalization - S&P
· Banks:
o Democrats in quandary over derivatives
§ When negotiators meet for the first time Thursday to finalize the Wall Street reform bill, House members will hear an annoyingly familiar refrain from their Senate colleagues: The legislation needs to stay largely as is.
§ Read more: http://www.politico.com/news/stories/0610/38346.html#ixzz0qRX9fTXM
· Citi: Citi finds few buyers for unwanted retail cards
o Citi faces obstacles selling $50 bln store card assets
o Investors cite slow market and pending card regulations
o Store cards are a specialty asset with higher losses
o Citi unwilling to sell at fire-sale prices - sources
o SHLD wants decision "as fast as possible" on its cards
o About 40 % of the loans in the portfolio are from Sears Holding (SHLD), with Macy's (M) and Home Depot (HD) the next 2 largest retailers.
· Citigroup Sells Bonds of Lone Star-Managed Delinquent Mortgages - BBG
o Citigroup Inc. has been leading a sale of securities backed by $356.9 million of mostly delinquent or previously past-due home loans, according to data compiled by Bloomberg.
o The amount of bonds backed by the mortgages made by CIT Group Inc., an average of 51 months ago, total $132 million, the data show. The private-placement transaction may close today, according to the data
· Citigroup shares are trading at a “meaningful” discount, partly because the banking giant has roughly $50 billion of assets and excess capital that the market hasn’t really spotted, hedge fund manager Bill Ackman wrote in a letter to investors this week. CNBC
· Citi:
o Citigroup(C) saw short interest fall in the second half of May, marking the second straight drop in shorting activity against the banking giant.
§ Shorting activity on Citigroup fell to 434 million shares at the end of May from 454 million through the first half of the month, and 482 million at the end of April. TheStreet
· Autos lead in EU on good news from Daimler – BBG
· AIG: According to a report by the Congressional Oversight Panel, US taxpayers remain at risk for "severe losses" in relation to AIG stake – WSJ
· AIG Plane Unit May Avoid S&P Downgrade After Sales
· AIG Can Still Get $35.5 Billion From AIA Unit, Treasury Says
· BP stories:
o UK vs US: David Cameron will speak to Obama this weekend on BP treatment by US – bbG
o StanChart makes case for PetroChina-BP deal- Reuters
§ A takeover of British energy giant BP by PetroChina makes economic sense and will help transform the Chinese oil company into a global oil champion, Standard Chartered said in a research note
§ Standard Chartered said a takeover of BP by PetroChina would transform China's biggest oil and gas producer from a low-growth company into a global oil champion and boost its earnings per share significantly.
§ http://www.reuters.com/article/idUSTOE65901Q20100610
o BP : The FT cites comments from leading British business organizations who note that the heightened political attacks on BP could affect energy security and dampen wider industry relations between the two countries.
o (Telegraph) -- The United States government has signalled it will take legal action to force BP to stop paying a dividend to shareholders in the latest in a series of attacks on the company by Barack Obama's administration
o BP eyes showdown with US govt on liability-BP source - reuters
§ Wednesday, U.S. Interior Secretary Ken Salazar told a Senate hearing he would ask BP to repay the salaries of any workers laid off because of the six-month moratorium on deepwater exploratory drilling imposed by the U.S. government after the spill
§ http://af.reuters.com/article/energyOilNews/idAFLDE6582NC20100609
o BP says its not aware of any reason for decline in share price in US trading last night
o BP WSJ argues that BP should resist any calls to cut its dividend
· GS faces scrutiny on new fund – FT
· GS Australian hedge-fund manager suing Goldman Sachs for over $1B over Timberwolf CDO – WSJ
· AAPL US antitrust regulators likely to investigate Apple's iPhone, iPad, iPod ads - FT
· iPad User Data Exposed by Security Flaw: AT&T
· TSMC- record sales in May. Up 3% in the month to NT$34.8B. Looks to be tracking ahead of guidance, and demand looks strong which could be a good sign for all semis.
· Consumer stocks Trading higher on earnings:
o SHFL +6.9%
o MW +4.7%
o WYNN Steve Wynn says Macau's forecast for 2010 gaming revenue growth is too conservative – SA
· KR Kroger, Michigan union extend discussions past contract expiration - Detroit News
o union criticized an offer that cuts health-care benefits and caps hourly wage increases.
· It’s happening: mining super-tax super-contagion FT Alphaville
o the Sydney Morning Herald reports on Thursday that China is now considering imposing a super-profits tax on resources companies.
· Steel mills in China, the world’s biggest, are resisting efforts by Vale SA, Rio Tinto Group and BHP Billiton Ltd. to raise contract prices after steel dropped and the European debt crisis roiled markets, the China Iron & Steel Association said. BBG
· More companies are expecting lower steel prices - Steel Business Briefing
· US foreclosures rose 1% y/y in May according to RealtyTrac
· US Foreclosures Fall, Bank Repossessions Hit Record High
o “What it looks like is that the lenders are focusing on processing the delinquent loans they already have rather than initiating new foreclosures,” said Rick Sharga, senior vice president of RealtyTrac. “They’re managing inventory to prevent a free fall in home prices.”
o http://www.cnbc.com/id/37599834
· Tehran Braces for Anniversary Protests – WSJ
· Iran Lawmakers to Mull Downgrading Ties With UN Nuclear Agency - BBG
· Russia is freezing a contract to deliver S-300 air defense missiles to Iran after the adoption of the new United Nations sanctions against Iran, a Russian source told the Interfax news
· Obama Urges Looser Gaza Curbs– WSJ
· North Korea Apologizes to China Over Border Deaths, Xinhua
· US’s Gates Says EU Pushed Turkey Away– WSJ
· A South Korean space rocket carrying a scientific satellite crashed two minutes into the flight on Thursday in the second failure in two tries to put a payload in orbit, YTN television
· South Africa public union threaten to strike during the World Cup – TTN
· Economics:
o Apr Trade Balance, Initial Jobless Claims at 08:30 ET
o Natural Gas Inventories at 10:30 ET
o May Monthly Budget Statement at 14:00 ET
o Treasury Secretary Geithner testifies to Senate Finance Committee on US-China relations at 10:00 ET
· Earnings:
o Reporting before the bell include: NSM
TODAY’S BIG STORIES
· Equity Wrap:
o Tough to get a grasp as to where this market wants to go these days, not seeing conviction as we head into the summer and we’re back to the herd trading on the news du jour. We got off to a good start on the back of better trading out of Asia with the jump in Chinese exports and some positive thoughts out of Bernanke – we’ve also been seeing some decent M&A activity, solid earnings/guidance, and further repurchases which have been giving a little boost, the Fed’s Beige book reported the economy doing a bit better however the improvement is modest. Consumers and real estate led the market – had energy taking a beating. BP fell about 16% on fears they’ll need to cut its dividend to pay for the oil spill - APC which has a 25% stake in the leaking well, dipped about 19% (to a 15 month low), XOM and BAC lost around 2% with energy and financials rolling over after the Beige Book survey said economic growth was subdued. Hedgies and value types have been the most active taking advantage of pricing when available, seeing some light shorting but still seeing an aversion to risk for the most part, internally most of the action we saw was in the industrial and tech spaces with financials and energy bringing up the rear. There was a big reweighting in C which created a billion dollars worth to buy, which gave folks a chance to raise some funds with the xlf. This BP really muddied up the waters and if you think about it, BP, RIG, HAL, APC all quality names prior to this BP mess, there is an opportunity here, but you need to be brave. Because as with most disasters, they tend to throw the quality out with the garbage but in this case, they can’t discern the impact of this and if you’re running money for a fund and are long any one of these, you are hard pressed to not have to see or else answer questions why didn’t you? Which therein lies the opportunity. Chatter was one of the 3 had been in talks with bankruptcy lawyers which is standard protocol in these cases and that’s all investors needed to hear. You also had the IWM not able to get thru its 200 day moving average of 63.33 and QQQQ unable to hold its 200 day of 44.83 which didn’t help. And throw in the AAPL and GS going red with some mixed fed tea leaves that didn’t really shed anything new and your back to your trend, sell all rallies. The money is tired and by far not anxious anymore and only when things get really ugly do they start talking valuations. Buy names here were 1 ½ -1 over sellers, the breadth of the market was about even giving the edge to advancing issues. Technically the 1050 support held closing @ 1055. Next stop 980
o In the early morning, S&P’s worked their way higher and were up 6 points by the 9:30, helped by upbeat economic news from China. For the first hour of the cash session, the 1070 level presented a problem for the bulls; at 10:30 they broke decisively above that level, moving from 1063 to 1077 in the space of 30 minutes. From then until the release of the fed’s beige book (2:00 pm) the bulls gave up 5 points or so; after that release, though, the decline picked up speed. From the 1077 intraday top, the total ground lost was 26 points, or 2.4%. Futures ended the session at 1053.70, just off their lows.
o Of 10 Industry groups, none rose. Consumer Discretionary did best (flat), while energy fell 1.3%, paced by a 15% drop in BP and an 18% decline in APC. Second weakest were the Financials, off 1%, as Blanche Lincoln won her primary race and may provide stronger resistance to K street lobbyists (who wish to water down financial reform legislation).
o (Billy Clark and team)
· Treasury’s Wrap:
o With a sense of calmness in the global landscape, the "risk on" trade back and $34Bln of supply still remaining to be bid upon in Treasuries this week, the overnight and morning session found the UST market coming under small pressure from the intermediate sector out facing most of the selling. The market priced in a relatively decent concession into today's 10 year throughout the morning ( relative considering 10s were auctioned over 30bps cheaper last month and traded 3.38% late last week) with the issue trading near its lows at auction time. The $21Bln 10s came at 3.242%, a small .2bp tail from the 1PM levels, over 40% purchased by indirects and 13.5% by directs and a
o As the case was after yesterday's $36Bln 3 year note auction, both the Euro and equities made a quick 180 degree turnaround lower which gave a firm bid to Treasuries throughout at the afternoon (the 10 year at the close was up 14 ticks versus the auction stop). At 3PM Treasuries were flat to slightly lower in price, erasing much of the early loses.
o The economic calendar will remain light once again tomorrow with the main attraction the $13Bln 30 year bond re-opening. We will once again turn our eyes to the Euro and equities for direction in Treasuries but look for the market to price in some concession in the long end ahead of the auction.
o Primary Dealer
· Investment grade Wrap:
o Fear and paralysis were in the market today with the gulf names getting hit before stabilizing somewhat in the front end after dropping nearly 10pts. APC and RIG down 2-7 points as the “get me out” trade continues as some buyers from the past week step back and shorts get cleaned up. BPLN 4.75 19 are going out wrapped around +350 from +265-260 yesterday and +240-235 Friday…always fun to think that these were +32-28/10yr (no handle) even after the spill first happened.
o
o Away from the gulf, spreads were 2-3bps better in the morning before softening along with equities in the afternoon but it almost didn’t matter as accounts were figuring out their APC/RIG/BPLN/CAM/HAL/DO exposure. Even soon to be AAA XTO is out 40bps in the past week.
o One would imagine that gulf names will remain the focus and BBB’s will be under pressure in the near term, we continue to see buyers more selective and looking for the up in quality trade while of course balancing the need for yield.
o Michael Salemo
·
· Dividends are up
o Corporate dividends in U.S. is up $10.4 billion this year
o Only two companies in the U.S. have cut their dividend this year, while 135 corporations have initiated, reinstated or increased it, according to Standard & Poor's. Payout has been up $10.4 billion this year, compared with a $39.8 billion drop last year. USA TODAY/The Associated Press (10 Jun.)
· Bernanke says European woes might require Fed to act
o
Ben
Bernanke, chairman of the U.S. Federal Reserve, told the House Budget Committee
that private demand is sustaining the economic recovery, although it isn't as
strong as he would like. He also said the European debt crisis could threaten
the recovery and might force the Fed to take further action. Bernanke did not give
any indication that the central bank will back away from its pledge of keeping
interest rates low for an "extended period." He also urged lawmakers
to devise a plan for reducing the deficit. 
CNBC (09 Jun.) , Bloomberg (09 Jun.) , The
Wall Street Journal (09 Jun.) , The
Washington Post (10 Jun.)
· World Bank: Double-dip recession is still possible in some countries
o Some economies still face the risk of slipping into a double-dip recession, particularly if Europe fails to cope with its sovereign-debt crisis, according to the World Bank. So far, the developed world hasn't suffered from fears that Greece's fiscal problems will spread to other weak economies, but that could change, the bank said. "If markets lose confidence in the credibility of efforts to put policy on a sustainable path, global growth could be significantly impaired and a double-dip recession could not be excluded," the World Bank said. iMarketNews.com (09 Jun.) , Reuters (09 Jun.) , Winnipeg Free Press (Manitoba)/The Canadian Press (09 Jun.)
· Eurozone should leave door open for debt restructuring, Zoellick says
o The eurozone shouldn't rule out restructuring for a country that can't repay its government debt, World Bank President Robert Zoellick told German conservatives. "If it becomes clear that a particular debtor cannot pay back its borrowings, a managed restructuring, combined with financial support, can create confidence that growth can be restored," he said. Reuters (09 Jun.)
· Bankruptcy: ’Vulture’ Investors May Shield Prices in Bankruptcy – BBG
o Distressed-debt investors shouldn’t have to disclose the price or purchase date of their securities when they participate in bankruptcy cases, a U.S. judiciary advisory group said
o Hedge funds and other so-called vulture investors that form a group during a bankruptcy won’t be forced to make public details of their debt holdings under a proposed change to the bankruptcy code drafted by an advisory panel of the Administrative Office of the U.S. Courts.
o The move is a victory for funds that invest in the debt of ailing companies and sometimes seek to take control after a bankruptcy
· Munis: San Francisco Sells $400 Million Build Americas as Spread Grows
o (Bloomberg) -- San Francisco’s Public Utilities Commission, the third-largest municipal utility in California, offered more than $417 million in Build America Bonds, with the yield premium over Treasuries close to the widest in six months.
· Senators to Push New Powers for President to Face Cyber Attacks 2010 – BBG
o The president could take emergency steps to respond to an attack on U.S. computer networks under legislation to be announced tomorrow by three senators, according to a summary of the bill obtained by Bloomberg News
o Under the legislation, the president’s specific powers would be developed with companies and wouldn’t allow the government to take over private networks or give it more surveillance authority, the summary said.
COMPANY NEWS WITH MACRO IMPLICATIONS
· Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
o + CBOE, WFMI, HAIN, CMG and WTW, DNDN, SPF and INTC
o - AA, AMD and YGE
Energy
· IEA Ups '10 Global Oil Demand But Warns On US Drill Ban
o (Dow Jones)--The International Energy Agency Thursday raised its 2010 world oil demand forecast, on stronger-than-expected demand but said up to 300,000 barrels a day of future U.S. output may be at risk if a U.S. drilling moratorium is extended.
o In its monthly oil market report, the Paris-based agency increased its global oil demand forecast by 60,000 barrels a day to 86.4 million barrels a day in 2010.
· HTM US Geothermal reports Q4 GAAP EPS
· TRP TransCanada Corp files $300M mixed shelf
· BP FT discusses British business concerns about the Obama administration's attacks on BP
· RIG Barron's Weekday Trader is positive on Transocean
· EEP Enbridge Energy Partners announces $150M common unit sales agreement with UBS
· RCON Recon files amended S-1; adds Rodman & Renshaw as underwriter to previously announced $23.3M unit offering
· NOA North American Energy Partners reports Q4 EPS
· MCF Contango Oil & Gas revises offshore natural gas and oil reserve estimate down 48.5 Bcfe to 300.0 Bcfe as of 1-Jun
· BP BP target decreased to £5.75 from £7 at Bank of America Merrill Lynch
· BP WSJ argues that BP should resist any calls to cut its dividend
· BP BP not aware of any reason for decline in share price in US trading last night
· BP BP target decreased to £5.90 from £7.30 at Citi
· BP BP bristling at US government - Reuters
· UTILITIES
o CNP CenterPoint announces 22M share offering priced at $12.90 per share through JPMorgan, Creidt Suisse, Morgan Stanley and Wells Fargo
Tech/media/ telecom sectors
· TSMC- record sales in May. Up 3% in the month to NT$34.8B. Looks to be tracking ahead of guidance, and demand looks strong which could be a good sign for all semis.
· Asustek: reported non-consolidated May sales of NT$21.83B down 22% m/m, and up 80% y/y and that it is likely to revise down its 2Q sales guidance to down 5-10% q/q vs. prior guidance of up 0- 10% q/q
· IRF: announced that F4Q revenues are tracking to the high end of its $255-260M guidance range vs. $257M consensus, due in part to share gains.
· Asustek Moves Into Tablets as Netbook PC Market-Growth Slows- BBG
· DIS: ABS finishes its upfront sales. ABC Said to Sell $2.4 Billion in Advertising Ahead of TV Season, and average prices for prime time shows rose 8-9%- BBG
· RMBS, MU, Hynix: Rambus Falls 17% on Rehearing of Micron, Hynix Cases- BBG
· AAPL Security breach exposes iPad owners - Valleywag
· AAPL US antitrust regulators likely to investigate Apple's iPhone, iPad, iPod ads - FT
· http://www.ft.com/cms/s/0/e7ae5066-7408-11df-87f5-00144feabdc0.html
· ARM shares rise on renewed AAPL takeover spec- SA
· AAPL: New iPhone to trigger explosive growth in mobile gyroscope market- iSuppli
· PALM, HPQ: PALM Settles With Shareholder Challenging HPQ Buyout Bid- BBG
· NYT New York Times reaffirms previously announced 2010 expectations
· CVC, CCMM $1.1-1.4B bids come in for Bresnan Communications from Cablevision (CVC), Charter Communications (CCMM), others - WSJ
· http://online.wsj.com/article/SB10001424052748704575304575297311710746070.html
· VMED Both sides file challenges to Ofcom's pay-TV ruling - FT
· CBS suggests cable companies redistribute fees they pay - NY Post
· MSFT WSJ looks at Microsoft's efforts to expand its search business - WSJ
· MOT: Motorola selling Droids faster than it can make them, has up to four videophones in pipeline- engadget
· GOOG: Says U.S., E.U. Should Pressure China Over Censorship of Internet Google- BBG
· http://www.bloomberg.com/apps/news?pid=20601204&sid=aBx7uYsYzyBs
· Samsung Unit to Invest $3.6 Billion to Expand Chip Plant in Austin, Texas- BBG
· DRAM module makers see May revenues decline- Digitimes
· DELL: sees 25% revenue rise in China this year- Shanghai Daily
· http://www.shanghaidaily.com/article/?id=439684&type=Business
· AUO says no to salary raise at its China plants- digitimes
· AUO urges Taiwan government to speed up China investment approval to allow its makers to set up fabs in China- Digitimes
· Motherboards: First-tier motherboard makers see over 10% on-month drop in May revenues- Digitimes
· Solar: Abu Dhabi Prepares to Build Solar Plant- WSJ
· VIP VimpelCom Ltd reinstated outperform at Credit Suisse
· Semis: Worldwide chip sales will grow by 28.4 percent to $290.5 billion in 2010. The forecast projects 6.3 percent growth in 2011 to $308.7 billion, followed by 2.9 percent growth in 2012 to $317.8 billion- SIA
· http://www.businesswire.ca/news/ca-fr/20100610005439/en
· PCB: Global flexible PCB production to grow 8-10% in 2010, says Flexium chairman- Digitimes
· Macronix NOR flash capacity gap is 40% and it expects price to continue to rise in 3Q- Digitimes
· LGF: Canada won't block Icahn's LGF Lions Gate offer- Reuters
· CMCSA, GE: Comcast/ NBCU deal to be judged on evidence-DOJ- Reuters
· PBI to buy Portrait Software for 44 mln stg- Reuters
NICE Nice Systems to buy eglue for $29 mln in cash- reuters
Miners/ steel sectors etc
· It’s happening: mining super-tax super-contagion FT Alphaville
o the Sydney Morning Herald reports on Thursday that China is now considering imposing a super-profits tax on resources companies.
· Steel mills in China, the world’s biggest, are resisting efforts by Vale SA, Rio Tinto Group and BHP Billiton Ltd. to raise contract prices after steel dropped and the European debt crisis roiled markets, the China Iron & Steel Association said. BBG
· More companies are expecting lower steel prices - Steel Business Briefing
·
· As expected, Toyota Motor, Nippon Steel (5401.JP) agree to average ¥20K/ton steel price hike for six months ending 30-Sep - Nikkei
o the Nikkei says this is the first price rise in two years
· CGC Capital Gold Corp reports Q3 EPS
· SEH Spartech reports Q2 EPS
· CXDC China XD Plastics Co files $100M mixed shelf
· GSI General Steel Holdings enters into debt repayment agreement with Guangzhou Hengda Industrial Group
· AUMN Minera San Cristóbal informs Golden Minerals that it plans to terminate Management Services agreement
· Goldcorp issues statement regarding Marlin mine in Nicaragua
INDUSTRIALS
· GTI GrafTech International receives US antitrust second request regarding proposed acquisitions of Seadrift Coke and C/G Electrodes
· AIR AAR Corp guides Q4 EPS to upper end of its previously disclosed range
· UHAL AMERCO reports Q4 EPS
· DY Dycom closes on new $225M 5-year revolving credit agreement
· LLL L-3 Communications unit has been temporarily suspended from receiving any new contracts or orders from U.S. Federal Government agencies
· MEAS Measurement Specialties reports Q4 EPS
· GR Goodrich acquires Crompton Technology Group
· DRYS DryShips chairman/CEO promises not to do any more related-party transactions – FT
TRANSPORTS
· BRK.B Berkshire Hathaway's Burlington Northern reports weekly carloads (week ended 5-Jun); total carloads and intermodal +2.4% to 162,173; last week +17.3%.
· DRYS DryShips chairman/CEO promises not to do any more related-party transactions - FT
· AIR AAR Corp guides
Autos sector:
· Honda Motor to hire 600 contract factory workers this month – Nikkei
· Honda China Shutdown Continues Amid Supplier Strikes ( BBG)
· ALV Autoliv starts new operation in China
· F Detroit News discusses Ford's new Explorer and how it relates to company's overall strategy
· TM Toyota Motor, Nippon Steel agree to average ¥20K/ton steel price hike for six months ending 30-Sep - Nikkei
· HMC Honda Motor to hire 600 contract factory workers this month - Nikkei
Financials:
· . DEUTSCHE BANK (-0.71%) comes under pressure on a Handelsblatt report that it may have to inject billions of dollars into its US subsidiary Taunus, which acts as a bank holding for its parent, after the US agency for deposit protection criticised the drastically low capitalization - S&P
·
· JPM JPMorgan forms China IPO joint venture- FT
o The venture will be allowed to underwrite initial public offerings on the mainland bourses of Shanghai and Shenzhen, but not to trade stocks in China’s booming secondary market
o Arranging IPOs in China can be lucrative. Last year mainland bourses raised $31bn in stock market listings, more than in any other country.
o http://www.ft.com/cms/s/0/121a72f8-739b-11df-bc73-00144feabdc0.html?ftcamp=rss
· Neuberger Berman, proudly private, seeks an IPO- Reuters
o In May last year, Neuberger's executives acquired a 51 percent stake of their company from bankrupt Lehman Brothers and re-emerged as an employee-owned firm. Now as the Lehman bankruptcy approaches two years and business improves, Neuberger employees intend to increase their ownership in the fund manager and, in time, return to public markets
o http://www.reuters.com/article/idUSTRE6584BF20100609
· Next Week’s IPO to Watch- CNBC
o The timing could not be better, Cramer said Wednesday, for the Chicago Board Options Exchange to come public.
o The US’s largest options exchange, which will trader under symbol CBOE, plans to hold its IPO early next week just as the final negotiations on financial regulatory reform begin in Congress, on June 15. A vote on the bill could happen in the last days of June or the first two days of July. While no one yet knows the fine print of the legislation, we do know there’s a huge push for transparency, specifically by moving financial derivatives onto exchanges.
o http://www.cnbc.com/id/37593896
· Banks:
o Democrats in quandary over derivatives
§ When negotiators meet for the first time Thursday to finalize the Wall Street reform bill, House members will hear an annoyingly familiar refrain from their Senate colleagues: The legislation needs to stay largely as is.
§ Read more: http://www.politico.com/news/stories/0610/38346.html#ixzz0qRX9fTXM
· Citi: Citi finds few buyers for unwanted retail cards
o Citi faces obstacles selling $50 bln store card assets
o Investors cite slow market and pending card regulations
o Store cards are a specialty asset with higher losses
o Citi unwilling to sell at fire-sale prices - sources
o SHLD wants decision "as fast as possible" on its cards
o About 40 % of the loans in the portfolio are from Sears Holding (SHLD), with Macy's (M) and Home Depot (HD) the next 2 largest retailers.
· Citigroup Sells Bonds of Lone Star-Managed Delinquent Mortgages - BBG
o Citigroup Inc. has been leading a sale of securities backed by $356.9 million of mostly delinquent or previously past-due home loans, according to data compiled by Bloomberg.
o The amount of bonds backed by the mortgages made by CIT Group Inc., an average of 51 months ago, total $132 million, the data show. The private-placement transaction may close today, according to the data
· Citigroup shares are trading at a “meaningful” discount, partly because the banking giant has roughly $50 billion of assets and excess capital that the market hasn’t really spotted, hedge fund manager Bill Ackman wrote in a letter to investors this week. CNBC
· Citi:
o Citigroup(C) saw short interest fall in the second half of May, marking the second straight drop in shorting activity against the banking giant.
§ Shorting activity on Citigroup fell to 434 million shares at the end of May from 454 million through the first half of the month, and 482 million at the end of April. TheStreet
· Autos lead in EU on good news from Daimler – BBG
· AIG: According to a report by the Congressional Oversight Panel, US taxpayers remain at risk for "severe losses" in relation to AIG stake – WSJ
· AIG Plane Unit May Avoid S&P Downgrade After Sales
· AIG Can Still Get $35.5 Billion From AIA Unit, Treasury Says
· AIG Kushner Cos offers $165-190M for American International Group's equity stake in 17K apartments - Bloomberg, citing source
· GS SEC investigating Goldman Sachs over a second CDO deal - FT
· DFR Deerfield Capital announced the closing of its acquisition of Columbus Nova Credit Investments Management
· LKFN Lakeland Financial repays $56M loaned to the company under TARP
· IVZ Invesco reports AUM as of 1-Jun of $430B, (5.9%) m/m ($17.65)
· NFP National Financial Partners announces pricing of $125M of 4.0% convertible senior notes due 2017
· CLFC Center Financial names Douglas Goddard interim CFO
· GS Australian hedge-fund manager suing Goldman Sachs for over $1B over Timberwolf CDO -- WSJ
· US foreclosures rose 1% y/y in May according to RealtyTrac
· Volcker upbeat on "reasonable" reform bill Reuters
o There is a good chance that a sweeping U.S. financial reform bill will be passed in a "reasonable form," White House economic adviser Paul Volcker said on Wednesday, adding the bill could provide a basis for international coordination on coherent legislation.
· Citigroup shares are trading at a “meaningful” discount, partly because the banking giant has roughly $50 billion of assets and excess capital that the market hasn’t really spotted, hedge fund manager Bill Ackman wrote in a letter to investors this week. CNBC
· Lincoln's Win Juices Overhaul Effort
o Ms. Lincoln wrote a controversial provision in the bill that could force banks to spin off their lucrative derivatives-trading operations. Bankers and many lawmakers assumed the provision would wither once Ms. Lincoln lost her primary—or even if she won, given the diminished political imperative to look tough on Wall Street.
o But her victory appeared to have the opposite effect, with Democrats saying her standing is now strengthened, particularly as it appears the populist provision resonated with voters.
· Small banks: concerned that they won't be able to handle financial-reform provisions - LA Times
o http://www.latimes.com/business/la-fi-small-banks-20100609,0,4132109.story
· Small banks: Pay Czar Unlikely to Demand Cuts at Small Banks
o Federal pay czar Kenneth Feinberg said he is unlikely to recommend pay cuts for senior executives at hundreds of smaller banks that received TARP bailout money.
o This is the first time Feinberg has said compensation at smaller banks is likely to emerge unscathed from his review
o He will spend the next three weeks scrutinizing the pay plans at some 400 smaller TARP banks
o http://www.cnbc.com/id/37596248
· WSJ is positive on Banco Santander
· How the United States Became a PR Disaster for Deutsche Bank
o Deutsche Bank is deeply involved in the American real estate crisis. After initially profiting from subprime mortgages, it is now arranging to have many of these homes sold at foreclosure auctions. The damage to the bank's image in the United States is growing. Spiegel
o
· Real Estate:
· REITS
o IRC Inland Real Estate announces new jv with PGGM Private Real Estate Fund
o DEI Douglas Emmett files automatic mixed securities shelf
o FUNCedar Fair holder Q Funding files lawsuit requesting the companys' books and records relating to its financing
o LTC LTC Properties files $400M mixed shelf
· US Foreclosures Fall, Bank Repossessions Hit Record High
o “What it looks like is that the lenders are focusing on processing the delinquent loans they already have rather than initiating new foreclosures,” said Rick Sharga, senior vice president of RealtyTrac. “They’re managing inventory to prevent a free fall in home prices.”
o http://www.cnbc.com/id/37599834
· Mortgage Reform Can't Ignore Sacred Cows – WSJ
o The biggest concern is what to do about Fannie Mae and Freddie Mac, as Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke said recently. But housing support extends well beyond the mortgage giants. Any debate also needs to consider a long-taboo topic: the large tax subsidies for housing.
o Chief among them is the tax deductibility of mortgage interest, expected to cost the government nearly $600 billion from 2009 to 2013
o http://online.wsj.com/article/SB10001424052748704575304575296961016780570.html?mod=WSJ_newsreel_markets
· Lack of Refinancing Is Another Blow For Housing
o Despite the rate on the 30-year fixed still hanging around 4.8 percent, refinances took a plunge last week for the first time in a month, down 14.3 percent.
o http://www.cnbc.com/id/37596631
· AIG Kushner Cos offers $165-190M for American International Group's equity stake in 17K apartments – Bloomberg
o AIG has not yet decided to sell the interest in the venture with Morgan Properties
· Centro Properties Group Industry may sell its syndicates management business - The Australian
o The Australian names some potential buyers, none of which are listed outside Australia
· £1.6bn property trust merger runs into opposition
o from Telegraph Finance
o Fund manager F&C Reit has threatened to derail proposals to create the UK's sixth largest listed property company.
· Florida Appraisers Ask to Cut Value of Gulf Property Hit by Oil - BBG
o Two of Florida’s elected property appraisers asked state lawmakers to let them cut the value of coastal real estate to reflect damage from BP Plc’s oil spill in the Gulf of Mexico and get BP to make up for lost tax revenue
o Coastal property values have fallen as oil washed up on beaches and as hotel reservations tumbled as much as 50 percent, said Gregory Brown, property appraiser in Santa Rosa County in the state’s western panhandle, in a phone interview. The appraisers, who held a press conference today at the Escambia Emergency Operations Center in Pensacola, said it was too soon to quantify the valuation change
· Hartford Says Money to Be Made in Commercial Property – BBG
o Hartford Financial Services Group Inc., the insurer that sold commercial mortgage assets after more than $1 billion of writedowns since the end of 2007, may increase its real-estate holdings amid signs of a rebound
o “We may even opportunistically get into commercial real estate,” Chief Executive Officer Liam McGee said today in an interview with Bloomberg Television. “We do think some money is going to be made there in the months ahead.”
o McGee, 55, hired in October, scaled back real-estate market bets that contributed to five straight unprofitable quarters under his predecessor, Ramani Ayer. The new CEO, who promised to reduce risk at 200-year-old Hartford, has been seeking investments that yield more than Treasuries to improve returns on Hartford’s $75 billion fixed-income portfolio.
· Banks Face Short-Sale Fraud as Home ‘Flopping’ Schemes Spread – BBG
o crime involve persuading lenders to approve the sale of homes for less than the balance owed -- known as a short sale -- without disclosing that there were better offers. They then flipped the houses for a profit.
o The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth. The scams threaten to deepen losses for lenders that are increasingly agreeing to short sales as an alternative to more costly foreclosures.
Consumer sector:
· ANF: Shareholders Reject A&F Incentive Plan
o Abercrombie & Fitch shareholders defeated a long-term incentive plan and narrowly re-elected a member of the board's compensation committee.
· Walgreen Can Make Up for Lost CVS Business, CEO Says – BBG
· KID Kid Brands files 4.4M share secondary offering for holder through Roth Capital
· FORD Forward Industries adopts temporary shareholder rights plan in response to 13D filings by holder LaGrange
· UTI Universal Technical's board has declared a special cash dividend of $1.50 per share; payable on 16-Jul; record as of 6-Jul.
· AEO American Eagle increases quarterly dividend by 10.0% to $0.11 from $0.10; payable 9-Jul; record 28-Jun.
· GYMB Gymboree announces $100M share repurchase program through June 8, 2011
· LUB Luby's reports Q3 EPS
· TRIS Tri-S Security sells Paragon Systems for ~$34.5M
· ALTI Altair Nanotechnologies enters "at the market" agreement for sale of up to $15M in shares through Thomas Weisel
· SYUT Synutra International reports Q4 EPS
· MW trades up after hrs….Men's Wearhouse reports Q1 EPS
· IFSIA Interface enters distribution agreement with Bravo Network of flooring distibutors
· APEI NY Times looks at American Public Education's recent deal with WalMart
· GAMING LODGING & LEISURE
o FUN Cedar Fair holder Q Funding files lawsuit requesting the companys' books and records relating to its financing
o SHFL trades up after hrs…. Shuffle Master reports Q2 EPS
o WYNN Steve Wynn says Macau's forecast for 2010 gaming revenue growth is too conservative - RTHK
o DIS Walt Disney to unveil part of the overhaul of California Adventure park today -- NY Times
· Wynn Shareholder Universal May Sell Stock in Manila Casino Unit
o (Bloomberg) -- Universal Entertainment Corp., the biggest shareholder of Wynn Resorts Ltd., plans a Hong Kong initial public offering within three years for the unit building a $2.7 billion Manila casino resort.
· HEALTHCARE
o IMMU Immunomedics says TF2 delayed tumor growth and prolonged survival in an animal model of human colonic cancer
o OME Omega Protein announces fishing update
o CSE, OHI CapitalSource closes second sale of long-term care facilities to Omega Healthcare Investors
o BVX Bovie Medical cancels 11-Jun appearance at Jeffereis Global Life Sciences Conf due to corporate activities
o CYXN China Yongxin Pharmaceuticals files $23M equity offering through Rodman &
o BCR C.R. Bard increases quarterly dividend by 5.9% to $0.18 from $0.17; authorizes $500M for share repurchases
o NVDL Novadel Pharma sees Duromist NDA filing in Q3-11
o ENZ Enzo Biochem reports Q3 EPS
o ALOG Analogic reports Q3 EPS
o CPHD Cepheid enters agreement for new $15M revolving credit line
o PURE Pure Bioscience reports Q3 EPS
o NVS Tecan Group AG signs global OEM agreement with Novartis Diagnostics for blood safety instruments
o GSK GlaxoSmithKline likely to appeal recommendation that NHS not pay for oral lapatinib (Tyverb) - FT
From our EU/London desk
· BP (-5.1%). Stock falls heavily after renewed attacks from the US government. Opened -11% but has recovered to -5%. CDS spread on the stock widens to 570 bps, junk bond equivalent.
· Miners
· UK Coal (-1.8%). Company confirms it is no longer in merger talks with Hargreaves services.
· fianicnails
· Rights Offerings, IPO Fees Probed by U.K. Antitrust Regulator
· GS pushing Spanish banks with international exposure i.e. BBVA +2.6% and Santander +1.8% not regional with mainly domestic exposure.
· UBS -0.15% 2010 eps forecasts cut by Credit Suisse and Soc Gen.
· Bar Cap go more positive on Italian Banks UCG +2.2% Intesa +2.1%
TODAY’S EVENTS
DAILY VIEW
CONFERENCES
Thursday June 10:
o Baader Bank Small and Mid Cap Conference - Jun 10, 2010
· BWB.F , CWC.F
o Bank of America Merrill Lynch Gems Conference - Jun 08, 2010 - Jun 10, 2010
· BEZQ.TA
o Bank of America Merrill Lynch Technology Sector 1on1 Forum - Jun 10, 2010
o Bank of America Merrill Lynch US Media Conference - Jun 10, 2010
· 3AM: TWC
· 3:40AM: LINTA
· 5:55AM: CBS
o BMO Capital Markets Advertising & Marketing Services Conference - Jun 10, 2010
· 8:15AM: OMC
· 8:45AM: ACXM
· 9:15AM: MDCA
· 9:45AM: VCLK
· 10:30AM: IPG
· 11AM: ADS
· 11:30AM: SAPE
· 12PM: **PUB
· 1PM: EXPN.L
· 1:30PM: WPPGY
· 2PM: VCI
· 2:30PM: QNST
· 3:15PM: MCHX
· 3:45PM: RENT
· 4:15PM: UNCA
o C5 CEE Private Equity Conference - Jun 10, 2010 - Jun 11, 2010
o Cleantech Venture Network LLC Focus Boston - Jun 10, 2010
o Credit Suisse Group Homebuilding & Building Products Conference - Jun 10, 2010
· 8AM: BZH
o Credit Suisse Group MENA Conference - Jun 09, 2010 - Jun 10, 2010
o Credit Suisse Group Oil and Gas Conference - Jun 10, 2010
o Deutsche Bank Securities Inc. European Leveraged Finance & Credit Products Conference - Jun 10, 2010
· PSM.F
o Emerson Process Management Global Petroleum Show - Jun 08, 2010 - Jun 10, 2010
o Erste Bank Investor Conference
· OEEW.VI
o Exane BNP European Seminar
· 3:15AM: BNP.PA
· VIV.PA
o GARP Research and Securities Investor Conference - Jun 08, 2010 - Jun 10, 2010
· PLT
o Goldman Sachs Financials Services Conference
· BMPS.MI , BPSAF.PK , MUV2.F
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 Imperial Capital Consumer Summit - Jun 10, 2010
· 2PM: FACE , FACE
· 5PM: LCUT
· 7PM: DIET
o Information Management Network (IMN) 10th Annual Scandinavian Institutional Investors Summit - Jun 10, 2010
o Institute for International Research In-Building Summit - Jun 07, 2010 - Jun 10, 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 IPAA's Oil and Gas Investment Symposium - Jun 10, 2010
o Jefferies Global Life Sciences Conference - Jun 08, 2010 - Jun 11, 2010
· 8AM: ALXN , CYTX , MELA , RIGL , SNSS
· 9AM: AVII , KERX
· 9:30AM: ACL
· 10AM: STEM
· 10:30AM: CFN , DRRX , ICUI
· 11AM: SPNC
· 11:30AM: QCOR , SOMX
· 1PM: DYAX
· 1:30PM: HNAB
· 2PM: CPTS
· 2:30PM: COO , PODD
· 3PM: IRIS , MATK , MMSI
· 3:30PM: ALOG , ARIA , CYBX , SIRO , SNTA
· 4PM: IDIX , NXTM
· 4:30PM: ALKS , IMGN
· RMD , SBS.DE , SBS.F
o JPMorgan Capital Goods Sector Conference - Jun 10, 2010 - Jun 11, 2010
· ANDR.VI , MAN.F , OUKPY.PK , PHGFF.PK , SI
o JPMorgan China Conference - Jun 09, 2010 - Jun 11, 2010
o Lazard Capital Markets Alternative Energy Investor Summit - Jun 09, 2010 - Jun 10, 2010
· 12:15PM: CPST , ENER
· ITRI , QNTA
o Morgan Stanley European Property Conference
· AOX.F , COR.AS , DAZ.F , DEQ.F , IIA.AT , IMOIF.PK , IVGHF.PK , PSPSF.PK
o Needham & Company Healthcare Conference - Jun 09, 2010 - Jun 10, 2010
· 8:40AM: CUTR , MITI , MYRX , NBIX , OPTR
· 10AM: CMN , MEND
· 11:20AM: DEPO , ONTY
· 1:20PM: MSHL
· 2PM: ALOG , OMER , TELK
· 2:40PM: ELOS , ISPH , TRBN
· 3:20PM: AEZS , EBS
· 9:20PM: CPHD
o New York Society of Security Analysts Annual High Yield Bond Conference - Jun 10, 2010
o Nomura Asia Equity Forum - Jun 07, 2010 - Jun 10, 2010
o Platts European Renewable Energy Conference - Jun 10, 2010 - Jun 11, 2010
o Private Equity International Investor Relations & Communications Forum - Jun 09, 2010 - Jun 10, 2010
o Private Equity International Responsible Investment Forum - Jun 10, 2010
o Raymond James Boston Spring Investors Conference - Jun 10, 2010
· CXO , RRGB
o RBC Capital Markets Canadian REIT Investor Sessions - Jun 08, 2010 - Jun 11, 2010
o RBC Capital Markets North American Technology, Media & Communications Conference - Jun 08, 2010 - Jun 10, 2010
· 8AM: AOL
· 9AM: NANO , PRTS , ST
· 9:30AM: JDSU , RVBD , SAAS
· 10AM: ATHR , BRCD , NVLS
· 10:30AM: FTWR
· 11AM: CCOI
· 11:30AM: ALLT , QLGC
· 1PM: ABT.TO , BRCM
· 1:30PM: COGT , VSEA
· 2PM: CIEN , MRVL
· 2:30PM: ARBA , CRNT
· 3PM: PAET
· 3:30PM: PVSW
· 5PM: BHE
· MOLX , ORBK
o REITWeek: NAREIT's Investor Forum - Jun 09, 2010 - Jun 11, 2010
· 9AM: MAC
· 9:15AM: PSB , SNH
· 10AM: CLP
· 10:45AM: CBL
· 12:15PM: HME , RYN
· 4:45PM: KRG
o Richmond Events, Inc. Financial Industry Strategy Forum - Jun 10, 2010 - Jun 12, 2010
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 Thomas Weisel Partners Energy Conference - Jun 10, 2010 - Jun 11, 2010
o UBS Basic Materials Conference - Jun 09, 2010 - Jun 10, 2010
· LIN.F , UPMKY.PK
o UBS Global Technology and Services Conference - Jun 08, 2010 - Jun 10, 2010
· 8AM: MA
· 9AM: CIEN
· 9:30AM: FFIV , PMCS
· 10AM: AVGO , RNOW , SIMG , UTEK
· 10:30AM: CACI , ENTR
· 11AM: BBOX , SNX , TIVO
· 11:30AM: TTMI , TYL
· 1PM: ADI
· 1:30PM: EFII , ESIO
· 2PM: ARW , PLXT
· 2:30PM: IDCC , PSEM
· 3PM: BBND , TLAB
· 3:30PM: HLIT
· 4PM: LSCC , NTGR
· 4:30PM: ACTL , JCOM
· ADCT , ADV.F , ANAD , CSR.L , WIN.F
o WestLB Securities at Intersolar - Jun 10, 2010
o Windhover Information Inc IN3 East - Jun 09, 2010 - Jun 11, 2010
o Wood & Company Energy Conference
· AKENR.IS
Friday June 11:
o C5 CEE Private Equity Conference - Jun 10, 2010 - Jun 11, 2010
o California Equity Research California Investor Conference - Jun 11, 2010
o Exane BNP European Seminar
· SYT
o Goldman Sachs Financials Services Conference
· BBVA , BILBAO_CHILE , HBC , HBCUSA , NDA.ST
o Incisive Media Family Office Investment Summit - Jun 11, 2010
o InterShow: The Traders Expo Los Angeles - Jun 09, 2010 - Jun 12, 2010
o Jefferies Global Life Sciences Conference - Jun 08, 2010 - Jun 11, 2010
· 8AM: SONO
· 8:30AM: CRTX , IVC
· 9AM: ISPH
· 9:30AM: BRKR
· 10AM: FSCGF.PK , NPSP
· 10:30AM: INHX , MYRX
· 11AM: LCAV
· 11:30AM: IDRA
· 12:15PM: NGSX
· 12:45PM: CALP
· 1:15PM: GNMSF.PK
o JPMorgan Capital Goods Sector Conference - Jun 10, 2010 - Jun 11, 2010
· MXTOF.PK
o JPMorgan China Conference - Jun 09, 2010 - Jun 11, 2010
· 12AM: CHDX , MR
o Platts European Renewable Energy Conference - Jun 10, 2010 - Jun 11, 2010
o RBC Capital Markets Canadian REIT Investor Sessions - Jun 08, 2010 - Jun 11, 2010
o REITWeek: NAREIT's Investor Forum - Jun 09, 2010 - Jun 11, 2010
· 9:15AM: CYS
o Richmond Events, Inc. Financial Industry Strategy Forum - Jun 10, 2010 - Jun 12, 2010
o Terrapinn Private Equity World Latin America Conference - Jun 09, 2010 - Jun 11, 201
o Thomas Weisel Partners Energy Conference - Jun 10, 2010 - Jun 11, 2010
o Wall Street Analyst Forum Conference - Jun 11, 2010
· 9:05AM: ANGN
· 10:35AM: PCCC
· NOA
o Windhover Information Inc IN3 East - Jun 09, 2010 - Jun 11, 2010
COMPANY MEETINGS/OTHER DAILY EVENTS
· Thursday June 10:
o Shareholder meetings
§ ATAC, BTH, CBST, TRGT, ACHN, JAS, NVD, PRO, VTRO, LCC, GTEC, IDSA, IVD, KVA, MAIN, MAKO, MNKD, TOF, TRMA, UAUA, WCG, SUF, HTH, LLNW, NR, UDRL, VCGH, LXU, AMED, MPWR, SCLN, EQIX, AVD, EAR, AHC, GEOI, SNTS, ZPCM, RNIN, CRM, NVTL, SUPG, UCTT, ADSK, BKOR, DDD, MNOV, CTFO
o MCO investor day
o NPO analyst meeting
o JCI analyst day
o IRF analyst dat CODI analyst meeting
o 6/10 May 2010 Tractor Sales…. Association of Equipment Manufacturers to report North American April agricultural tractor sales
o The USDA will issue its monthly update of 2010/11 crop supply/demand estimates in the
o World Agricultural Supply and Demand Estimates (WASDE) report on June 10 at 8:30 a.m.
o National Semiconductor reports
o A House panel looks at the effects of the Deepwater Horizon spill.
o The Hong Kong stock exchange rules on Agricultural Bank of China's pending $30 billion IPO, which would be the biggest ever
o Deutsche Bank's CEO leads a discussion about the outlook for European financial integration.- Barron’s
· Friday June 11:
o Shareholder meetings
§ ABTG, BPAX, EME, TAXI, TGE, UACL, WTT, ACAD, CHK, RVP, VGR, ARNA, RAE, ALSK, DIVX, INET
o Washington Mutual shareholders seek bankruptcy court approval to hold a long overdue meeting, where they'll have a chance to oust the board.
ECONOMICS
· Thursday June 10:
o 0830 Jobless Claims
o 0830 Trade Balance
o 1000 DJ-BTMU Economic Barometer
o 1030 EIA Natural Gas Inventories
o 1400 Federal Budget Balance
o 1630 Foreign Central Bank Holdings
o 1630 Money Supply
o 1630 Fed Discount Window Borrowings
· Friday June 11:
o 0955 U of Michigan Confidence Index
o 1000 Business Inventories
EARNINGS
o Materials
· Thursday June 10: SHE
· Friday June 11: UEC
o Industrials/Homebuilders
· Thursday June 10: AEPI, APWR
· Friday June 11: HRLY, PBSO, TOD, TRCI
o Consumer/Retail/Education
· Thursday June 10: CHKE, LULU, SCHS, CRAI, CZZ, DLM
· Friday June 11: BNHN, DUCK, FUQI, DLM, CHBT, PAS
o Financials
· Friday June 11: FCEC
o Transports
· Thursday June 10: DAC
o Tech/Telecom
· Thursday June 10: ARST, NSM, CIDM, FNSR, IDT, NAVI, OCCF
· Friday June 11: EGMI
o Healthcare
· Friday June 11: TAROF, KAD
o Real Estate:
· Friday June 11: AMRR, MAYS
o Media
· Thursday June 10: NOOF, CMM, XSEL
o Energy
· Friday June 11: NEP
INVESTMENT BANKING WRAP
M&A
· StanChart makes case for PetroChina-BP deal- Reuters
o A takeover of British energy giant BP by PetroChina makes economic sense and will help transform the Chinese oil company into a global oil champion, Standard Chartered said in a research note
o Standard Chartered said a takeover of BP by PetroChina would transform China's biggest oil and gas producer from a low-growth company into a global oil champion and boost its earnings per share significantly.
o http://www.reuters.com/article/idUSTOE65901Q20100610
· M&A in defense space heating up- Reuters
o Merger and acquisition activity in the defense industry is heating up, and is expected to far surpass the deal volume last year as larger companies target smaller ones with niche technologies.
o The Obama administration's decision to move funding from traditional weapons to areas of unmanned war is pushing prime contractors to buy smaller companies in that sector
o http://www.reuters.com/article/idUSTRE65909D20100610
· Canada won't block Icahn's LGF Lions Gate offer- Reuters
o Canada won't stand in the way of Carl Icahn's offer to buy Vancouver-based Lions Gate Entertainment Corp (LGF.N) after the billionaire pledged to maintain the Hollywood studio's Canadian operations
o http://www.reuters.com/article/idUSSGE6580IL20100609
· AIG Can Still Get $35.5 Billion From AIA Unit- BBG
o American International Group may still receive $35.5B for an Asia division after a purchase agreement with Prudential Plc collapsed last week, the U.S. Treasury Department said
o “Treasury officials have indicated to the panel that they believe that AIG will be able to realize value equivalent to the $35.5 billion negotiated sale price through an alternate strategy, perhaps involving an IPO,”
o http://www.bloomberg.com/apps/news?pid=20601103&sid=aRbWTw0hwiMg
· Kushner Said to Offer to Buy AIG’s Stake in 17,000 Apartments- BBG
o Kushner Cos. is seeking to buy American International Group Inc.’s equity stake in about 17,000 apartments, almost three years after selling the units near the property market’s peak
o Kushner offered $165 million to $190 million for the equity interest, said the person, who asked not to be named because the talks are ongoing. AIG and Morgan Properties
· Providence's Bresnan attracts 7 bids- Reuters, WSJ
o Bresnan Communications, owned by private equity firm Providence Equity Partners, got seven bids of more than $1 billion
o Bidders included Cablevision Systems Corp (CVC.N), Suddenlink Communications and media mogul John Malone, said the source, who declined to be named. The source was not authorized to speak with the media.
o http://www.reuters.com/article/idUSN0918235320100610
o http://online.wsj.com/article/SB10001424052748704575304575297311710746070.html
· ARM shares rise on renewed AAPL takeover spec- SA
· PALM Settles With Shareholder Challenging HPQ Buyout Bid- BBG
o Palm Inc., the money-losing handset maker, tentatively settled a lawsuit filed by a shareholder who contended his stock was undervalued in a planned $1.2 billion takeover by HPQ Hewlett-Packard
o Investor Steve Ubaney sued Palm, based in Sunnyvale, California, last month in Delaware Chancery Court claiming the deal “unfairly favors” holders of preferred Series B shares
· CMCSA Comcast/GE’s NBCU deal to be judged on evidence-DOJ- Reuters
o Asked about the deal by Senator Al Franken, who expressed concern about loss of independent programming and higher cable bills because of consolidation in the sector, Varney said that it would be looked at thoroughly and a court would make any remedies binding
o http://www.reuters.com/article/idUSN0917862120100609
· Orascom Telecom Holding Drops in Cairo After MTN Talks End- BBG
o Orascom Telecom Holding SAE fell as much as 5.4 percent in Cairo trading after it said talks with MTN Group Ltd. of South Africa over the sales of some its operations terminated because of failure to reach an agreement
· Orascom Telecom's Algeria Exit Would Raise Rev,Strategy Issues- Zawya
o Egypt's Orascom Telecom may have edged closer to a deal with Algeria for its DjezzyDjezzy unit after ending asset sale talks with South Africa's MTN GroupMTN Group, but life for the Arab world's largest mobile phone provider without its profitable Algerian business could prove more uncertain, analysts said
o http://www.zawya.com/story.cfm/sidZW20100610000091
· C Citi finds few buyers for unwanted retail cards- Reuters
o Citigroup Inc (C.N) is having trouble finding buyers for its $50 billion portfolio of retailers' credit card loans, and it might end up holding onto the business for years
o Buyers are reluctant to buy credit card assets of any kind now, because regulators are revamping rules for the industry, making profits more difficult to forecast.
o http://www.reuters.com/article/idUSN0323949820100609
· PBI Pitney Bowes to buy Portrait Software for 44 mln stg- Reuters
o Pitney Bowes Inc (PBI.N), a U.S.-based provider of mail processing equipments, on Thursday said it agreed to buy British software development firm Portrait Software Plc (PST.L) for 44.4 million pounds ($64.6 million) in cash
o http://www.reuters.com/article/idUSSGE65909S20100610
· BNP Paribas CEO: Not Interested In Retail M&A In New Markets- DJ
· LLY Lilly CEO eyes deals to enhance pipeline- Reuters
o Eli Lilly and Co (LLY.N) will look to do deals that enhance its pipeline of products in development, but the drugmaker remains uninterested in matching the big mergers of rivals, the chief executive said on Wednesday
o http://www.reuters.com/article/idUSTRE6585XF20100609
· NML New Millennium Capital says Tata Steel may raise stake- Reuters
o On Tuesday, Tata Steel, the world's eighth-largest steel producer, raised its holding in New Millennium to 27.4% from 19.8% , after having initially bought a stake in October 2008.
o "I think Tata would like to increase its stake to at least 33 percent, which would give them a blocking position," New Millennium Capital Chief Executive Robert Martin told Reuters.
o http://www.reuters.com/article/idUSTRE6584BX20100609
· Uranium One shares dive as Russia deal questioned- Reuters
o Uranium One shares deepened their slide on Wednesday, a day after the company agreed to sell a controlling stake to Russia's state-owned nuclear company, with some analysts cutting share-price targets and questioning whether the deal will be approved
o http://www.reuters.com/article/idUSN0916523020100609
· ORI Old Republic to Buy PMACA PMA Capital for $228 Mln in Stock- BBG
o Old Republic also will assume about $137 million in debt, the company said in a statement.
· GS Goodrich Corporation Acquires Crompton Technology Group, terms not disclosed- BBG
· NICE Nice Systems to buy eglue for $29 mln in cash- reuters
o Israeli digital recording systems maker Nice Systems (NICE.O) said it had agreed to buy guidance software maker eglue for $29 million in cash to expand its call centre and back office support offering
o http://www.reuters.com/article/idUSLDE6590AI20100610
· Final Bids For KFT Kraft Polish Unit Due 3rd Week Of June- DJ
o The disposals have been imposed by the European Union as a condition of allowing the takeover. The company has whittled down the list of potential buyers to a shortlist of six, including two buyout firms and four strategic players
o Bridgepoint and Advent International have made the cut, along with Swiss giant Nestle SA , and Hershey Co. (HSY) of the U.S. However, one source familiar with the process told Dow Jones Newswires that Ukrainian confectioner Roshen may no longer be in the running.
· Halfords Says Won't Use M&A To Re-Enter Overseas Markets- DJ
U.K. automotive and leisure products retailer Halfords Group PLC Thursday said it won't use acquisitions as a way of re-entering Europe and other overseas markets, and its focus is very much on domestic opportunities.
· Carlsberg Pays $349 Million to Boost Chongqing Stake- BBG
o Carlsberg A/S, the world’s fourth- biggest brewer, agreed to pay 2.39 billion yuan ($349 million) to raise its stake in Chongqing Brewery Co., strengthening its hold on the dominant beermaker in China’s largest municipality
o The acquisition brings Valby, Denmark-based Carlsberg closer to a controlling interest in a company with 15 plants and operations in seven Chinese provinces
· FORD Forward Industries adopts temporary shareholder rights plan in response to 13D filings by holder LaGrange- SA
· UCB Increases Stake in Cancer Drug Partner Wilex- BBG
o UCB Pharma SA increased its stake in German biotechnology company Wilex AG, which is developing the Belgian company’s portfolio of cancer medicines, to 18 percent.
o http://www.bloomberg.com/apps/news?pid=20601100&sid=aAaowmCfoDSk
· ARC Energy to buy Storm Exploration for C$680 mln- Reuters
o Canadian firm ARC Energy Trust (AET_u.TO) has agreed to pay about C$680 million ($652 million) to buy Storm Exploration Inc (SEO.TO), which has assets near ARC's Dawson field, identified as the lowest cost unconventional gas play in Canada
o http://www.reuters.com/article/idUSSGE65904D20100610
· Hargreaves Says No Longer Planning Merger With UK Coal- BBG
· Irish Life & Permanent re-emerges as possible suitor for EBS- irishTimes
o IRISH LIFE & Permanent has re-emerged as a potential suitor for the EBS after the building society said it was expanding its discussions with private equity investors to include other parties.
o http://www.irishtimes.com/newspaper/finance/2010/0610/1224272193922.html
· Vivendi Says Acted In Line With Market Rules When Buying GVT- WSJ
o Brazilian market regulator CVM has opened an administrative procedure against Vivendi over possible irregularities over the purchase of GVT.
o The spokesman said that Vivendi has cooperated with the inquiry, which opened in December last year, and is providing any information requested.
o http://online.wsj.com/article/BT-CO-20100609-709743.html?mod=WSJ_Deals_LEFTLatestHeadlines
· First Quantum says new projects may double revenue- Reuters
o First Quantum Minerals' (FM.TO) revenue could double once new production from recently acquired copper and nickel projects comes on line in the next three years
o http://www.reuters.com/article/idUSN0917848420100609
· Centro to divest assets as investors desert syndicates- The Australian
o DEBT-LADEN Centro Properties Group is about to launch a marketing campaign to sell its syndicates management business, which controls $3.2 billion of Australian shopping centres.
o The troubled group may have to sell more than $1bn of centres as investors desert syndicates whose life terms will expire in the next 18 months, forcing Centro to seek a partner
o Parties that may be interested are Colonial First State, AMP and Challenger, which have retail distribution networks.
· BASF to buy Cognis for 3 bln eur next week- Reuters
o BASF stands to pay slightly more than 3 billion euros ($4.03 billion) including debt for Cognis, controlled for the past nine years by buyout firms Permira [PERM.UL] and Goldman Sachs Capital Partners (GS.N), the sources said on Wednesday
o http://www.reuters.com/article/idUSWEA555020100609
· Le Monde's Italian suitor is out, Spanish in- Reuters
o Italian media group L'Espresso bowed out of bidding for French newspaper Le Monde, while Spain's Prisa said it wanted to take part in the paper's recapitalization but asked for more time to make a final bid.
o http://www.reuters.com/article/idUSLDE65815P20100609
· PKO BP Can't Rule Out Bidding For BZ WBK- WSJ
o PKO Bank Polski can't rule out bidding for rival Bank Zachodni WBK SA although its strategy focuses on organic growth, Chief Executive Jagiello told said "Our strategy is based on organic growth," "However, we cannot exclude mergers that lead to a growth in assets. As managers, we can't rule out taking steps that would strengthen our market position,"
o http://online.wsj.com/article/BT-CO-20100610-702303.html?mod=WSJ_latestheadlines
· Paris airports operator sees no merger with Amsterdam- Expatica
o There is no immediate prospect of a merger between the operator of the Paris airports and its counterpart, Schiphol, in Amsterdam, the head of Aeroports de Paris said on Wednesday
· Blow for Le Monde as Prisa delays bid- FT
o Prisa, the Spanish media group, on Wednesday declared its intention to bid for Le Monde, France’s most prestigious newspaper, but demanded a delay that may prove unacceptable for the cash-strapped daily
o The number of potential bidders for the newspaper dwindled when L’Espresso, the Italian press group, and Ringier, the leading Swiss media group, ruled themselves out of the running
o http://www.ft.com/cms/s/0/8913537c-73c1-11df-bc73-00144feabdc0.html
· TRIS Tri-S Security Corporation Announces Sale of Paragon Systems- BBG
· Shinsei’s Toma Replaces Executives, May Seek Merger- BBG
o Shinsei Bank Ltd., the Japanese lender part owned by U.S. investor J. Christopher Flowers, said it will replace executives and may seek a new merger partner after two annual losses and a failed tie-up with Aozora Bank
o “It will take about two years for us to build up our strength to stand alone,” said Toma, 61, in an interview in Tokyo yesterday, adding he would consider allying with a foreign or domestic bank as long as Shinsei’s autonomy over operations could be maintained
$ RAISING
IPOs
· PMG Patriot Risk Management officially withdraws IPO- SA
· Space Systems/Loral files $100M IPO via CS and JPM- SA
· Rights Offerings, IPO Fees Probed by U.K. Regulator- BBG
o Britain’s antitrust regulator is planning to investigate equity underwriting in the investment banking industry to determine its effects on competition
o The probe, which will start later this year, will include fees, rights issues and other types of equity-raising following complaints of “dissatisfaction” from corporations, the U.K. Office of Fair Trading said today in a statement
· AgBank closes in on investors, size of IPO- Reuters
o The Agricultural Bank of China plans to sell a greater than expected amount of its roughly $20 billion initial public offering to pre-IPO investors such as Middle East and Asian sovereign wealth funds, as well as other global corporations
o Sources directly involved with the offering said sovereign funds, including China Investment Corp (CIC), Qatar, Kuwait and Temasek, were seen as likely buyers of pre-IPO stakes in AgBank, along with Dutch group Rabobank, which just signed a strategic agreement with China's third-largest lender.
o http://www.reuters.com/article/idUSTRE65802V20100609
· JPM JPMorgan forms China IPO joint venture- FT
o The venture will be allowed to underwrite initial public offerings on the mainland bourses of Shanghai and Shenzhen, but not to trade stocks in China’s booming secondary market
o Arranging IPOs in China can be lucrative. Last year mainland bourses raised $31bn in stock market listings, more than in any other country.
o http://www.ft.com/cms/s/0/121a72f8-739b-11df-bc73-00144feabdc0.html?ftcamp=rss
· Neuberger Berman, proudly private, seeks an IPO- Reuters
o In May last year, Neuberger's executives acquired a 51 percent stake of their company from bankrupt Lehman Brothers and re-emerged as an employee-owned firm. Now as the Lehman bankruptcy approaches two years and business improves, Neuberger employees intend to increase their ownership in the fund manager and, in time, return to public markets
o http://www.reuters.com/article/idUSTRE6584BF20100609
· Next Week’s IPO to Watch- CNBC
o The timing could not be better, Cramer said Wednesday, for the Chicago Board Options Exchange to come public.
o The US’s largest options exchange, which will trader under symbol CBOE, plans to hold its IPO early next week just as the final negotiations on financial regulatory reform begin in Congress, on June 15. A vote on the bill could happen in the last days of June or the first two days of July. While no one yet knows the fine print of the legislation, we do know there’s a huge push for transparency, specifically by moving financial derivatives onto exchanges.
o http://www.cnbc.com/id/37593896
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 SAVB Savannah Bancorp-10.5 Million in shares expected to price Wednesday via FIG Partners.
o USAT USA Technologies- 8.4 million shares expected to price Wednesday via Source Capital Group Inc.
o CNP CenterPoint announces 22M share offering priced at $12.90/ shr via JPM, CS, MS, WFC
NEWS
· AIG Plane Unit May Avoid S&P Downgrade After Sales- BBG
o American International Group Inc.’s plane-leasing unit is less likely to have its credit ratings downgraded by Standard & Poor’s in the next 90 days after issuing more than $4B in debt
o ILFC “has made significant progress in addressing 2010 and 2011 debt maturities through aircraft sales, raising new secured and unsecured debt, and amending its bank credit agreements,” DeNicolo wrote. “However, maturities in 2012 and beyond are still large.”
· Petrobras poised for $25bn rights issue- FT
o Brazil’s senate was expected to approve a bill late on Wednesday allowing a US$25bn rights issue by Petrobras as early as next month, enabling the national oil company to complete an ambitious investment programme without putting its investment-grade rating at risk
o The bill is part of a legislative programme that would alter regulations governing offshore “pre-salt” fields. These are potentially enormous deposits of oil and gas discovered in 2007, trapped several kilometres under the sea bed beneath a hard layer of salt.
o http://www.ft.com/cms/s/0/cd609c34-73ed-11df-87f5-00144feabdc0.html
· HSBC targets significant amount from A-share float- SCMP
o HSBC Holdings is looking to raise a significant amount of capital from the A-share market to finance its ambitious expansion plan on the mainland
o Chief executive Michael Geoghegan told a briefing yesterday the bank will "stay focused on preparing for a listing in Shanghai" even though Beijing has yet to publish rules governing foreign companies' share offerings on the mainland
· VSTNQ Visteon's trade claimants step up bankruptcy fight- Reuters
o Holders of trade claims of bankrupt Visteon are stepping up their fight against the auto parts maker's reorganization, which they said would pay similar creditors in full while giving them 50 cents on the dollar.
o http://www.reuters.com/article/idUSN0914149420100609
· GYMB Gymboree plans to buy back $100 mln in stock- Reuters
o At current prices, about 8 percent of its shares could be repurchased under this program, Gymboree said in a filing with the U.S. Securities and Exchange Commission
o http://www.reuters.com/article/idUSSGE6580KI20100609
· Iliad arranges a 5-year €1.4B credit line- SA
· Energy: TRP TransCanada Corp files $300M mixed shelf
· Industrials: CXDC China XD Plastics Co files $100M mixed shelf
· Consumer: KID Kid Brands files 4.4M share secondary offering for holder through Roth Capital
· Real Estate: LTC LTC Properties files $400M mixed shelf
***All eco data from Bloomberg and DJ
Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal.