Cantor Morning News | Morning @ Cantor

· US Stock Futures … Stocks up 9, off highs…Commodities also Rise as Yen Weakens…EU stocks rally 1%..industrials and financials lead, BP dn 4%; Crude up over $1

· Dollar holds at lows at 7am et …dn over 1 to 86.505

· Spot gold was up $10 on Friday.. this morning, spot gold is up $5

· Stocks may extend its biggest weekly advance since March

· Rates are up in US Monday

· … risk appetite lifted European and commodity majors, with the recent underperformers EUR and AUD seeing most pronounced short covering

· EUR big move up Monday (over 1.22) … as good data overseas (Europe Industrial Output Rises More Than Forecast) helps and despite a bunch of neg currency sentiments on the EUR over the weekend ..EU officials still talk dn their currency

· Exxon Mobil and Chevron gained as crude oil traded above $75 a barrel in New York.

· Spain is lower though on debt contagion concerns remaining- BBG

· FX: GBP also benefited from 'hawkish' comments from BOE member Sentence in the weekend press when he questioned how long the UK could maintain its expansionary monetary policy

· FX: Japanese Yen was weak across the board… Yen Falls for Third Day on Global Recovery Signs; Euro Rises

· Base metals firm as China stockpiles fall to lowest in nearly 4 months.

· Copper gained for a fifth day Monday

· Asian Markets: Nikkei +1.80%; Hang Seng +0.90%; Shanghai Composite (closed

o Shanghai Composite is closed for the first 3 days of the week

o Asian equity markets are starting the new week on a firm footing, as risk appetite is looking increasingly less fragile following the last-hour Friday rally in the US

· Data

o Eurozone April Industrial Production +0.8% m/m consensus +0.5%

o India’s Inflation Unexpectedly Accelerates to 10.16%

o India May Wholesale Prices Y/Y: 10.2% v 9.6%e

o Japan govt sees improved CAPEX outlook

o JAPAN Q2 BSI LARGE ALL INDUSTRY INDEX Q/Q: 4.0 V -2.4 PRIOR (highest since Q3 of 2007); LARGE MANUFACTURING Q/Q: 10.0 V 4.3 PRIOR; Companies see FY10/11 CAPEX at +9.2% y/y vs -5.5% in Q1

· Rates: Fed's Bullard: Europe Woes Haven't Delayed Fed Moves – CNBC

o Europe's sovereign debt crisis has not pushed back the timing of a rise in the Federal Reserve's benchmark interest rate, St. Louis Federal Reserve Bank President James Bullard said on Monday.

o A recovery in the U.S. economy needs to become more firm in order for the Fed to raise the federal funds rate, Bullard said.

o said U.S. inflation is contained now but could become a risk in the mid term due to the large U.S. budget deficit and the Fed's ultra-easy monetary policy

o Bullard stressed that now was not the time to normalize Discount rate further but IF it was raised it would not be a sign of further monetary action.

o http://www.cnbc.com/id/37680677

· Rates: Three 'Ugly Sisters' Will Keep Rates Low: CNBC

o Interest rates in the United States, the euro zone and Britain are going to be left at a record low for a while, despite various noises made by central bankers, David Bloom, head of foreign exchange research at HSBC, told CNBC Monday.

· Rates: Free Markets Show U.S. Has Tamed the Bond Vigilantes – BBG

o Federal Reserve Chairman Ben S. Bernanke has tamed the bond vigilantes.

o While investors punish European nations from Greece to Spain for deficits by pushing up bond yields, Treasury rates of all maturities have fallen to an average of about 2 percent from 2.75 percent a year ago even as the amount of marketable debt outstanding increased 20 percent to $7.96 trillion.

· Bernanke Says Fed Does Not Engage In Stock Market Or "Individual Stock" Manipulation; ZERO HEDGE

o In a response letter sent to Alan Grayson, the Fed chairman has the following brief retort to the question of whether "the Federal Reserve- alone or in concert with the Treasury Department or any part of the government- ever taken any action with the purpose or effect of supporting the stock market or an individual stock": "The Federal Reserve has not intervened to support the stock market or an individual stock."

· The Euro Can't Defy Gravity Any Longer - WSJ says may fall more

o After all, the euro's latest rout has essentially unwound the premium investors assigned it the last five to six years

o http://online.wsj.com/article/SB10001424052748704463504575301090727092022.html?mod=ITP_moneyandinvesting_0

· Strong Euro Helped Hide Financial Crisis, Says EU Chief

o Herman Van Rompuy, president of the European Union, has blamed the strength of the euro in recent years for blinding the eurozone to its underlying fiscal problems. The Financial Times reports.

· European Union countries will coordinate budget plans ???

o Italy sees budgets set at EU level from next year- Reuters

o European Union countries will coordinate budget plans starting next year, rather than making their own national choices, Italy's Economy Minister Giulio Tremonti said on Sunday

o The European Union is trying to toughen up the rules of the Stability Pact governing public finances, and Tremonti's comments lend Italy's support to proposals for national budgets to be coordinated at the EU level before being approved by national parliament

o http://ca.reuters.com/article/businessNews/idCATRE65C1AM20100613

· ECB's Orphanides was upbeat on the progress of austerity measures in Greece, pointing to "concrete" signs that the program is on track.

· EU speakers supportive, will buy bonds until not needed…A pair of ECB members - Noyer and Nowotny - both said EUR levels are in a normal range supportive of export sector. Nowotny also noted ECB will continue govt bond purchases as long as credit markets remain volatile - TTN

· UK: deficit may be worse than thought - BBG

o OFFICE FOR BUDGET RESPONSIBILITY (OBR): CUTS FY10 AND FY11 GOV'T GROWTH EST

o UK Office for Budget Responsibility says UK’s deficit will be £22B lower than Treasury had forecast for 2010

o Forecasts 2011 GDP at 2.6% v 3.0% to 3.5% official gov't range

· China Foreign Min Qin reiterated the view that Yuan currency issue was not the main reason for the trade imbalances between US and China. He stressed that trade imbalances were caused by effects of globalization - TTN

· Japans PM Kan's approval rating meanwhile saw a 5pt slide to 59% after his first full week on the job.

· TAIWAN/ China: Third round of trade-related talks between China and Taiwan produced the most significant progress yet - TTN

· Fitch affirms India's Long-term local currency rating at "BBB-"; raises outlook to "Stable"from"negative"

· Korea Unveils Steps To Ease Impact Of Rapid Capital Flows

o South Korea announced on Sunday long-anticipated curbs on banks' currency trades, saying it aimed to rein in short-term foreign debt and volatile capital flows that posed a risk to the world's ninth-biggest exporter.

o http://www.cnbc.com/id/37666500

· Money Raising:

o 6 IPOs expected this week

o The IPO market has stumbled, with 32 deals pulled since April

o Bloomberg) -- Xinjiang Goldwind Science & Technology Co. shelved a plan to raise as much as HK$9.09 billion ($1.2 billion) in a share sale in Hong Kong, citing poor market conditions.

o Blockbuster Inc. is in talks for a new loan that would keep it afloat in bankruptcy court, a fresh sign the movie-rental chain could be forced to seek Chapter 11 protection from creditors to rework more than $900 million in debt. WSJ

o Agricultural Bank of China to raise $10-15B from Hong Kong IPO – WSJ

o APP American Apparel, Lion Capital near covenant deal – Reuters

§ http://www.reuters.com/article/idUSTRE65C1SL20100613

o General Motors IPO expected to be between $10-20B-- Reuters

o MTPK Metropark withdraws $100M IPO filing citing market conditions

§ Metropark filed its for its IPO through Goldman Sachs on 13-Jun-08

· M&A:

o Cablevision to Buy Bresnan – WSJ

§ Cablevision to probably announce share buyback as part of Bresnan Communications deal – WSJ

o BP won’t be rescued if a foreign predator attempts takeover- London Times

o Icahn says LGF Lions Gate may be headed for bankruptcy- Reuters

o CASY Casey's alleges Couche-Tard market manipulation- Reuters

o DIS Weinsteins still interested in Disney's Miramax - NY Post

o TWX Time Warner will not raise its bid for MGM studios -- NY Post

o MENT Mentor Graphics holder Carl Icahn discloses 7.97% stake in amended 13S filing; up from 6.86% disclosed on 27-May

o JCI Johnson Controls may drop $1.25B bid for Visteon's interiors and electronics businesses – FT

o Generali CEO says the company could look at AIG's Asian assets -- London Independent

o WEN Nelson Peltz happy to sit with his 23% of Wendy’s/Arby’s Group - NY Post

§ Billionaire fast food tycoon Nelson Peltz is not interested in partnering on a buyout of the Wendy's/Arby's chain or in selling his shares

o The Mosaic Co. is in talks to acquire Mexican fertilizer company Grupo Fertinal SA de CV in a deal that could be worth up to $1 billion,– WSJ

o AXA (CS.FP) confirms in talks with Resolution (RSL.LN) to sell part of its UK Life & Savings operations for approx €3.3B, sees approx (€1.4B) capital loss on deal. Resolution confirms talks and plans for £2B rights issue

· BP stories:

o BP stock falls again Monday dn 3% (FTSE is up 0.8%)

o BP Plc faces a U.S. deadline today for a plan to raise oil-containment capacity

o BP Board meets today.

o A number of meetings this week with BP officials and Congress/ White house - CNBC

§ On Tuesday, lawmakers will hold a hearing in Washington with all the big oil companies including the head of the U.S.-based BP operation.

§ And on Thursday BP Chief Executive Tony Hayward, who is expected to attend Wednesday's White House meeting, will testify to the U.S. House Energy and Commerce subcommittee in Congress.

o Obama speaks tomorrow from oval office on Gulf tragedy

§ On Monday Obama will make his fourth trip to the Gulf, visiting Alabama, Mississippi and Florida for the first time since the well blew out. He will stay overnight there for the first time during the crisis and then return to Washington Tuesday and address the nation at 8 p.m.

o Obama Wants BP to Establish Spill Escrow Account

§ A U.S. official told Reuters Sunday that Obama also will call for an independent panel to administer the payments when he meets Chairman Carl-Henric Svanberg and other BP officials at the White House Wednesday

o BP could lose power over US wells- BBG..would have to sell interests ; may be barred from US govt biz….no comment from BP or US.

o BP: Cost of the spill increases to US$1.60bn – S&P

§ BP provides update on GOM oil spill, says LMRP cap collected 127K barrels

o BP to set up clean-up fund – S&P

o A source told Reuters Sunday the company was unlikely to cancel the dividend, currently valued at about $10.5 billion annually.

§ options include deferring the dividend, paying it in shares or paying into a ring-fenced account until the oil spill liabilities become clearer, the source said, adding that the issue probably would not be decided this week.

o Obama told British Prime Minister David Cameron Saturday that he had no interest in undermining the value of BP.In a 30-minute phone call the two leaders played down tensions over the oil spill and reaffirmed close ties - CNBC

o BP won’t get protection from the U.K. coalition government if a foreign company attempts a takeover of the distressed oil company, the Times reported, citing Business Secretary Vince Cable. Cable has said that some companies are so critical to England that they should be protected, and BP is not one of them. The business secretary backed a proposed overhaul of the country’s takeover rules earlier this month that would raise the minimum acceptance for approval of a takeover offer.

o U.S. to Demand BP Damage Fund - WSJ

§ The Obama administration plans to ask BP to establish an independently administered fund for reimbursing victims of the Gulf of Mexico oil spill.

o The New York Times was strongly critical of Obama's leadership on the oil spill in an editorial on Sunday.

· Energy sector: FT reported earlier that executives from Chevron and other companies will start to distance themselves from BP in testimony to a House subcommittee tomorrow.

· Energy sector: CVX in WSJ

o http://online.wsj.com/article/SB20001424052748704067504575304883167477548.html#mod=todays_us_marketplace

· Energy sector: BP Spill Is ‘Opportunity in Disguise’ for Rig-Makers - BBG

· Negative for Solar: The Spanish industry ministry is proposing a E 2.6bn subsidy cut to renewables plants already in operation; the cut will particularly affect solar and thermosolar plants, with a lesser reduction for wind power plants; the proposal has yet to be approved by the government - Cinco Dias

· Note important events this week:

o S&P Quarterly Share Rebalance: June 18, 2010

o Russell Rebalance for Close June 25th, 2010

· US banks: set to lose swaps fight – FT

o Banks are likely to lose a key lobbying battle in the US over whether they will be forced to spin off their lucrative swaps desks, according to people familiar with financial reform negotiations in Congresses

· US banks: WSJ says more banking losses may be necessary to avoid Japan-style lost decade

· U.K. Business Secretary to say the aim of banking commission is to separate retail and investment banking -- London Telegraph

· Data Show Big Exposure for Euro-Zone Banks - WSJ

o French and German banks continued to hold the greatest exposure to euro-zone countries facing market pressures at the end of last year, underscoring their interest in restoring investor confidence in the region

o http://online.wsj.com/article/SB10001424052748703389004575304661402558720.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

· Macro positives: Positive forecasts from European bosses

o Two of Europe’s leading industrial bosses have presented surprisingly positive forecasts for their businesses this year, in spite of the fiscal squeeze caused by the euro crisis.

o Peter Löscher, chief executive of engineering group Siemens, and Leif Johansson, head of truckmaker AB Volvo, said in separate interviews with the FT they saw no signs of a “double-dip” recession despite the austerity measures announced in several European countries in the wake of the Greek financial crisis.

o “Outside Europe and North America the markets are very strong,” Mr Johansson told the Financial Times. “Inside Europe and North America they are improving, but off extremely low levels.”

· Siemens AG CEO Peter Loescher says has surpassed what” General Electric Co. “is doing”. BBG

· E-gamers in focus with E3 show: THQI THQ Inc guides this morning

· THQI lowered Q1 and FY11 guidance on weak UFC game sales and the strengthening dollar. Expects Q1 loss of $0.20-$0.30 vs breakeven previously, and breakeven vs $0.25-$0.30 previously

· Defense Industry Braces for Cuts – WSJ link

o A week after the Pentagon announced cost-saving measures, the defense industry is bracing for possible cuts to the Pentagon's weapons-buying programs

· Honda Rises 4% After Most Workers End Strike in China - BBG

o Honda remains confounded by labor dispute in China, where a strike of 1,500 workers in Guangdong halted production for 5 days. In a move surely to exacerbate relations with the unions, management was reported to consider recruitment of replacements – TTN

· TV Ad Rates Heat Up

o Cable Networks Benefit From Rush to Buy Commercial Time

o http://online.wsj.com/article/SB10001424052748703389004575304642031297702.html?mod=WSJ_newsreel_business

· Some cable networks' ad rates increasing faster than free-to-air networks' - WSJ

· AT&T Blames iPad Incident On 'Malicious' Hackers - WSJ

· Tech: HTC traded sharply higher after US ITC agreed to review company petition to block Apple imports of iPhone, iPod, and iPad products on alleged patent infringement. – TTN

· Tech: TSM said global market for semiconductors may rise 6-7% per year over next 5 years on rising demand for electronics from China - up from prior expectations of a 5% increase. – BBG

· Tech: Advanced Semiconductor Engineering to raise salaries in China for second time this year - United Evening New

· Defense Industry Braces for Cuts – WSJ link

o A week after the Pentagon announced cost-saving measures, the defense industry is bracing for possible cuts to the Pentagon's weapons-buying programs.

· Australia mining tax.BHP continued to develop contingency plans, accelerating its intentions to develop A$6B iron ore hub in West Africa, also holding talks with ArcelorMittal about a prospective JV in the region – TTN

· Posco (005490.KS) rose 2% despite denying a report it plans to raise prices next month; the company said it is studying the market but has not made any decisions.

· Macro positive: Nation's Biggest Port Shows Surprise Jump in Traffic

o The Long Beach and Los Angeles ports released preliminary figures for May today. Long Beach showed a 25 percent increase in container traffic from a year ago. Imports rose nearly 27 percent. Exports grew 15 percent, the highest level in two years.

o Port officials say May was the sixth month in a row that imports and exports have grown, something that hasn't happened since 2006.

o http://www.cnbc.com/id/37647481

· Demand: Tanker Rates to Gain 43% as China Oil Buoys Frontline – BBG

o Supertanker rates are poised to surge to a two-year high by December as China’s demand for oil sends ships the equivalent of 11 extra times around the globe in a month

o The 31 percent jump in China’s imports increased return journeys for supertankers to about 1.13 million miles in April, or 284,000 miles more than a year ago, based on customs data and voyage lengths.

· Demand: Rio Tinto says spot iron ore prices remain strong; Europe debt crisis adding to negative sentiment

o Co says freight rates remain stable

o Quarterly contracts make up nearly half of iron ore sales

o Says not oposed to tax reform; supports guine reform

o To review all its projects through supertax lens

· Demand: ARCELORMITTAL (+3.82%) expects global steel production to come back to levels seen before the crisis with steel demand increasing by 10% this year, Euro am Sonntag writes

· Demand: WEIR: Trading stronger than expected

o Engineering group Weir has issued an unexpected update alongside news of a acquisition in Malaysia, pushing its shares sharply higher

· Demand: Car-Sales Optimism Fades - WSJ

o Optimism is fading regarding new-vehicle sales, as consumers show signs of more pessimism about the economy.

· Demand: Europe's Slide Threatens Some Major Pain in Asia - WSJ

o Economic woes in Europe and the accompanying decline in the euro are already digging into the profits of Asia's manufacturers. The worry is that the pain will spread more broadly if European demand for Asian exports falters.

o http://online.wsj.com/article/SB10001424052748704463504575300552171313506.html?mod=WSJ_hps_LEFTWhatsNews

· Obama pleads for aid package - WP

o President Obama urged reluctant lawmakers Saturday to quickly approve nearly $50 billion in emergency aid to state and local governments, saying the money is needed to avoid "massive layoffs of teachers, police and firefighters" and to support the still-fragile economic recovery.

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/12/AR2010061204152.html?wpisrc=nl_cuzhead

· Obama Faces Rare Defeat on Health Help for Jobless

o Congress allowed emergency health care assistance for unemployed workers to expire May 31, and seems unwilling to renew it despite pleas from President Barack Obama

o Moderates have rebelled against adding billions more to the deficit in a treacherous election year

o Democratic Sens. Bob Casey of Pennsylvania and Sherrod Brown of Ohio have introduced a measure that would allow the program to continue helping people who get laid off through Nov. 30. That would cover Lacasse.

o The lawmakers, who are seeking a vote this coming week, want to attach their nearly $7 billion provision to must-pass legislation that would extend unemployment benefits and make changes in dozens of federal programs. But a similar proposal was dropped from the House-passed bill, and Senate Democratic leaders also omitted it from their version.

o http://www.cnbc.com/id/37656144

· New York State Prepares for Government Shutdown, Just in Case - BBG

o As New York lawmakers debate an emergency spending bill to keep the government running for another week, agency heads and their 150,000 workers are making contingency plans if the measure fails, leaving the state without authority to pay all its bills.

o According to agency memos, employees were warned of the possibility that buildings might be closed and some of them wouldn’t be working tomorrow if the appropriation bill doesn’t pass by midnight tonight.

· Geopolitics:

o Kyrgyzstan Violence Threatens Region – WSJ

o Kyrgyzstan Russia turned down an appeal for peacekeeping troops from the fragile interim government of Kyrgyzstan on Saturday as deadly ethnic rioting there spread to a second city and prompted a panicked exodus from the former Soviet republic, which hosts a key U.S. air base. WP

o Israel Sets Up Inquiry Into Raid

o Israel can cross Saudi air space

§ Saudi Arabia has given the go-ahead to Israel to send bombers through a strip of its air space to bomb nuclear facilities in Iran, defense sources say

§ Tests have even been held to guarantee Saudi air defenses would not be activated against Israeli bombers, The Times in London reported Saturday.

o Iran Lawmakers Mull Gaza Trip If Egypt Issues Visas, ILNA Says

§ Four members of Iran’s parliament will consider making a trip to the Gaza Strip if Egypt issues them visas

o Iran’s Revolutionary Guard Corps denied a report that its naval forces will escort any Iranian ships that may carry aid for the Gaza Strip, the state-run Islamic Republic News Agency reported today, citing General Hossein Salami, deputy commander of the Guards.

o Afghan Karzai losing faith in US to defeat Taliban…may cut side deal- NYT

· Upcoming this week:

o Economics Monday:

§ No scheduled releases

o Earnings Monday:

§ There are no major companies due to report this session

o QUADRUPLE WITCHING: Friday June 19 is a quad witching day

o Rebalance: S&P will announce constituent share count changes resulting from the 2Q10 rebalance after the close on Friday, June 11, with all changes effective after the close on Friday, June 18.

o The economic data calendar next week brings early June regional manufacturing reports and initial jobless claims for the June employment survey week, along with inflation data, housing starts and industrial production for May.

o Fed speak

§ 6/ 16 Bernanke gives speech before conference on “The Squam Lake Report: Fixing the Financial System"

o Rates: Thurs we get the auction sizes for next week

o Rates: Treasury Is Set to Sell $54 Billion of Bills

§ The Treasury Department plans to sell $54 billion in short-term bills on Monday.

§ http://online.wsj.com/article/SB10001424052748703627704575298721366248284.html?mod=WSJ_Markets_LEFTTopNews

o Global Rates: Asia's Week Ahead: BOJ Rate Decision

o Germany's Chancellor Merkel and France's President Sarkozy are due to meet in Berlin later this morning and will be looking to put on show of unity ahead of a EU summit later this week

o EU leaders meet on 17-Jun and are expected to discuss Euro-region economic co-operation and budget discipline

o NY state financing in focus this week on threats to shut down state

o 6 IPOs this week

o Earnings quiet: ATU, SMOD, CASY, BBY, FDX, KR, SJM will report earnings this week, among others

o Credit cards, banks: master Trust data hits 6/15

o President Obama will address the nation about the BP oil spill on Tuesday night -- NY Times

o Financial Reform: Conference Committee to resume Tuesday (6/15)

§ The committee will meet at 11:00ET next Tuesday and will take up title 3 of the base text: OTS/OCC merger; thrift charter; title 5 of the base text: Insurance; title 4 of the base text: Private Fund; and title 9, subtitle C of the base text: credit rating agencies

o Conferences busy, including:

§ Wells Fargo Securities Industrial Conference

§ Bank of America Merrill Lynch Global Transportation Conference

§ Deutsche Bank Securities Global Consumer, Food Retail and Luxury Goods Conference

§ Goldman Sachs Global Healthcare Conference

§ William Blair & Company 30th Annual Growth Stock Conference –

§ E-gamers (ERTS, Sony, ATVI etc….all have events)

· E3: E3 begins Sunday (June 13) in Los Angeles

· E3 Expo videogame trade show . WSJ preview below

· http://online.wsj.com/article/SB10001424052748703627704575298780122010998.html?mod=WSJ_latestheadlines

TODAY’S BIG STORIES

· Equity Wrap:

o Another week of fears of issues in Europe, more spreads blowing out, GS issues, BP and energy issues and yet earnings for the most part have been consistently better for the most part and we barely moved once again for the week.

o We noticed a few more value guys participating on the extreme dips but it still feels like institutions are loaded to the gills with stocks, while hedge funds continue to hit and move, trying to catch up for a rough may and the quant’s a mixed bag on both the buy and sell side. But this time the market indexes ended up. Technically, we had resistance on the sp 500 hold while we took out the 200 day moving averages on the IWM and QQQQ

o Breadth to the market had advancing issues outnumbering declining issues by about 2-1 while internally here, buy and sell names were equal, albeit very quiet with soccer dominating the day

o (Billy Clark and team)

· Treasury’s Wrap:

o After the post 30 year auction selloff Thursday, the market opened up overnight better bid with the long end slightly outperforming. As the New York session opened the market remained slightly better bid with the buying continuing after the much worse than expected retail sales data (down 1.2% in May, expectations for up 0.2%). The Treasury market quickly reversed staging a small selloff mainly on profit taking in the midmorning on extremely light flows, this however, quickly reversed with the buying once again materializing as the Euro equity markets headed lower and investors preferred safety over the weekend. The market was extremely quiet throughout the late morning and afternoon session, mainly creeping higher to the 3PM close. At 3PM, Treasury benchmarks were ~5-10bps lower in yield with the intermediate through long end sector outperforming the short end. Also to note all of this weeks auction's are currently at a profit (3yr came at 1.22, 10yr came at 3.242 and 30yr came at 4.182)

o Thursday selloff was a surprise to the market with Fridays bid the more anticipated market direction with both the uncertainty in the global markets and the post auction relief rally the Treasury market has typically favored after 30year auctions. We look for the Treasury market to continue to trade well with a curve flattening bias.

o Primary Dealer

· Investors Seek Yield From CMBS Offering

o J.P. Morgan Chase Commercial Mortgage Securities Corp. sold a $716.3 million bond backed by commercial mortgages on Friday, the second such deal this year and the first to include a portion without an investment-grade rating. WSJ

· The Allure of Long Treasurys Endures - WSJ

o Tame Inflation, European Sovereign-Debt Woes Bolster U.S. Bonds Maturing in More Than 10 Years

o Treasurys maturing in more than 20 years—a sector that is made up mainly of 30-year bonds—posted a return of 8.72% this year through Thursday, a sharp reversal from 2009's 21.4% loss,

o http://online.wsj.com/article/SB10001424052748704463504575300973420333864.html?mod=WSJ_hpp_sections_markets

· AIG Rescue Spared European Banks From $16 Billion Capital Raise - BBG

o American International Group Inc.’s U.S. government rescue spared European banks from raising as much as $16 billion in capital during the depths of the global financial crisis, according to a Congressional panel

o ABN Amro Holding NV and Danske Bank A/S, Denmark’s biggest bank, were among the firms that bought the most derivatives from AIG to trim reserves they held against investment losses, the Congressional Oversight Panel said last week in a report.

o ABN Amro may have had to raise $3.5 billion if New York-based AIG was allowed to fail in 2008, and Danske Bank would have lost as much as $2.1 billion in relief, the panel wrote.

· Rapid Declines Rattle Even Optimists - WSJ

o The only other time in 80 years that the Dow has fallen this far, this fast so early in an economic rebound was in 1950, when North Korea invaded South Korea.

o http://online.wsj.com/article/SB10001424052748704067504575304740232216102.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

· Investors Ignore Red Flags in Muni Market - WSJ

o Investors are ignoring warning signs in the $2.8 trillion municipal-bond market, raising the risk of a reckoning, according to some market specialists.

o http://online.wsj.com/article/SB10001424052748704067504575304782084631368.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

· Jobs/ Taxes: Democrats Target Corporate Tax Rules

o Democrats are trying to boost their political fortunes ahead of this year's midterm elections by attacking corporate tax rules they say encourage U.S. multinationals to send jobs overseas.

o They want to eliminate several complex rules that give special tax breaks to overseas earnings, and some Democratic candidates are arguing in campaign ads that Republicans who oppose the changes are siding with big corporations over workers.

o http://online.wsj.com/article/SB10001424052748704726104575291051013957096.html?mod=WSJ_newsreel_us

· Dividends Reign as Market Pours

o Right now, there are a lot of good stocks paying comparatively very strong yields. "Dividend yields are at their most competitive levels relative to interest rates in 50 years,"

o And dividend yields are shooting higher in sectors not usually associated with strong yields, especially among consumer-products companies such as Kimberly-Clark (4.4%) and Coca-Cola (3.4%), technology companies like Automatic Data Processing (3.4%) and consumer discretionary companies such as McDonald's (3.3%).

o Beware: Sometimes, a skidding share price is a prelude to a dividend cut.

o The other caveat is future tax considerations. Currently, most dividend payouts are taxed at the capital-gains tax rate

o Beware: Sometimes, a skidding share price is a prelude to a dividend cut

o http://www.marketwatch.com/investing/stock/lgf/overview

· Investors plan to pour money into buyouts, study finds

o According to the Global Private Equity Barometer, released by Coller Capital, investors plan to commit more funds to private equity during the next 18 months. Weak returns are not deterring investment into the asset class, according to the study. "There is nothing that suggests investors are not very keen on the industry, but for individual firms it opens some tough and challenging discussions ahead," said Jeremy Coller, chief investment officer at Coller. Reuters (14 Jun.)

· Chinese banks are at risk from loans to finance agencies

o China's State Council told local governments to do a better job of managing their finance agencies. After lending hundreds of billions of yuan to these agencies, China's banks will have serious problems if the loans cannot be repaid, said the council, the country's Cabinet. The council instructed banks to allocate loans to specific projects, then keep an eye on how the money is spent. Shanghai Daily (China) (14 Jun.)

· Banks begin to sell Dubai World loans - FT

o Banks have conducted the first sales of loans they made to Dubai World, crystallising losses of nearly half the face value of the debt.

o The move also makes it more likely that Dubai World will use a special law and tribunal set up to aid the conglomerate’s $23.5bn debt restructuring in an effort to avoid any potential for the new debtholders to block a deal the company is hammering out with its banks, according to people close to the talks.

o http://www.ft.com/cms/s/0/0faf3f54-770f-11df-ba79-00144feabdc0.html

· Learning to Love Hedge Funds - WSJ

o Hedge funds have been reviled as slick opportunists that fanned the flames of the collapse. Yet Sebastian Mallaby argues that they hold the key to a more stable financial system

o http://online.wsj.com/article/SB10001424052748703302604575294983666012928.html?mod=WSJ_newsreel_business

· Buffett Auction Fetches $2.6 Million

o The eleventh annual charity auction of lunch with Berkshire Hathaway CEO Warren Buffett brought in more than $2.6 million, breaking the previous record of $2.1 million by investor Zhao Danyang

· Healthcare: Obama Concerned on Doctors' Pay - WSJ

o http://online.wsj.com/article/SB10001424052748703433704575302181555760128.html?mod=WSJ_hpp_sections_news

· 'Angry electorate' could be unpredictable at polls this fall - WP

o Midterm elections are generally seen as a referendum on the president and his party, particularly in the first term of a new administration. Halfway through this tumultuous year, it is clear there is more on the voters' minds than a judgment on President Obama.

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/12/AR2010061202182.html?wpisrc=nl_cuzhead

· Tea party loses some steam after primaries - WP

o The polls hadn't even closed Tuesday when "tea party" activists in Nevada started sniping at one another over whether Sharron Angle, the soon-to-be Republican nominee for U.S. Senate, was the best candidate to bring down Senate Majority Leader Harry M. Reid.

o Frustrated and lacking agreement on what to do next, self-identified tea party leaders say the movement may be in danger of breaking apart before it ever really comes together.

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/11/AR2010061105726.html?wpisrc=nl_cuzhead

· Obama Begins "Lifestyle Health Modification" Program, Mandating Behavioural Changes Within US Society from zero hedge

o http://www.google.com/reader/view/?hl=en&tab=wy#stream/user%2F08448190376867215484%2Fstate%2Fcom.google%2Freading-list

· Israel's defense minister is canceling a planned visit to Paris amid threats by pro-Palestinian groups to have him arrested there. AP

· Germans Probe Russia Iran Shipments - WSJ

o German prosecutors are investigating whether employees of Russia's primary nuclear exporter broke strict EU rules by routing Iran-bound cargo through Europe earlier this year.

· U.S. Identifies Vast Riches of Minerals in Afghanistan

o The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself

o http://www.nytimes.com/2010/06/14/world/asia/14minerals.html?partner=rss&emc=rss&pagewanted=all

COMPANY NEWS WITH MACRO IMPLICATIONS

· Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com

o CLH, NR, WM, EMC, ARST, NLY, KO and PEP

o -AINV, RIG and LDK

· Barron's summary:

o Cover: Mid-Year Roundtable discussion and stock picks.

o Felix Zulauf: On a 10-yr horizon, solid blue chips that will succeed even in tough times; 1-3 yrs horizons should look towards preservation with high quality bonds and a position in gold. He would short aluminum and is shorting the Spanish market.

o Bill Gross: He still likes everything recommended in January: PTY, the generic class of GMAC notes called SmartNotes.

o Abby Joseph Cohen: Positive on X, PFE and OXY but says all of energy deserves another look.

o Oscar Schafer: Positive on CCK and CNO.

o Fred Hickey: The only position he has added to is MSFT. His only short is CRM. He is playing gold every way he can including GLD, GDX. VZ is a play for the next 6 months.

o Marc Faber: Positive on TTAPF, VNM and everything he recommended in January but he wouldn't rush to buy now. Shorting the Australian dollar is a play on a slowing China.

o Meryl Witmer: Positive on GSM, PKG.

o Archie MacAllaster: Positive on MFC, HPQ and MET.

o Scott Black: Positive on CRMT, NVLS.

o Mario Gabelli: He still likes everything recommended in January but adds SLE, LVS, VIV.FP and reiterating his positive stance on NFG.

o BDX There is 40% possible upside in Becton Dickinson

o Cautious on Fujitsu, the shares could have another 10% downside.

o SNDK SanDisk is benefiting from the growth of flash memory.

o ROSE Positive on Rosetta Resources, stock could double.

o Economic Beat says Friday's retail sales report confirms that the economy is in rough shape and the recovery is on the slow track.

o Other Voices cautions against buying real estate, both commercial and residential, in Florida.

o Editorial says President Obama is taking too much responsibility in the oil spill; he does not have the expertise to solve this highly technical engineering problem.

o The Trader suggests a put strategy for technology companies, the recent drop in PCLN might be taking it towards a buying opportunity, still positive on CYD; CVS is the less damaged in the fight with WAG, at least near term; RMBS is still highly speculative but more reasonable for a bet on legal outcomes.

o Asia Trader says there will be plenty of solid listing candidates in India once the markets regain robust health.

o European Trader says TEF is being treated as a proxy for the Spanish markets and it shouldn't be.

o OLN, SVNT The Striking Price suggests a 'put-writes' strategy for OLN and SVNT.

o Commodities Corner says gold should continue to benefit from the fears of a double dip recession.

o Current Yield notes the losses suffered by those who have shorted Treasuries.

o AVII, DENN Follow Up is positive on AVII and says DENN will likely mark time until there is clarity on the management situation.

o BP Up and Down Wall Street considers recent market action, the BP oil spill and potential good news for natural gas prices.

o Streetwise says the market may be returning to the historical returns levels of the pre-bubble era.

o D.C. Current notes the legal problems derived from the Obama administration's move to cut off funding for Yucca Mountain in Nevada.

o AAPL Technology Trader notes the speculation about what is next from AAPL.

o APPL, T Plugged In looks at the current state of the AAPL / T relationship and notes Steve Jobs defense of T at recent events.

Energy

· BP stories:

o BP stock falls again Monday dn 3% (FTSE is up 0.8%)

o BP Plc faces a U.S. deadline today for a plan to raise oil-containment capacity

o BP Board meets today.

o A number of meetings this week with BP officials and Congress/ White house - CNBC

§ On Tuesday, lawmakers will hold a hearing in Washington with all the big oil companies including the head of the U.S.-based BP operation.

§ And on Thursday BP Chief Executive Tony Hayward, who is expected to attend Wednesday's White House meeting, will testify to the U.S. House Energy and Commerce subcommittee in Congress.

o Obama speaks tomorrow from oval office on Gulf tragedy

o Obama Wants BP to Establish Spill Escrow Account

o BP could lose power over US wells- BBG..would have to sell interests ; may be barred from US govt biz….no comment from BP or US.

o BP: Cost of the spill increases to US$1.60bn – S&P

§ BP provides update on GOM oil spill, says LMRP cap collected 127K barrels

o BP to set up clean-up fund – S&P

o A source told Reuters Sunday the company was unlikely to cancel the dividend, currently valued at about $10.5 billion annually.

o U.S. to Demand BP Damage Fund - WSJ

§ The Obama administration plans to ask BP to establish an independently administered fund for reimbursing victims of the Gulf of Mexico oil spill.

o The New York Times was strongly critical of Obama's leadership on the oil spill in an editorial on Sunday.

· Energy sector: FT reported earlier that executives from Chevron and other companies will start to distance themselves from BP in testimony to a House subcommittee tomorrow.

· Energy sector: CVX in WSJ

o http://online.wsj.com/article/SB20001424052748704067504575304883167477548.html#mod=todays_us_marketplace

· BP won’t get protection from the U.K. coalition government if a foreign company attempts a takeover of the distressed oil company, the Times reported, citing Business Secretary Vince Cable. Cable has said that some companies are so critical to England that they should be protected, and BP is not one of them. The business secretary backed a proposed overhaul of the country’s takeover rules earlier this month that would raise the minimum acceptance for approval of a takeover offer.

· BP Spill Is ‘Opportunity in Disguise’ for Rig-Makers - BBG

o Heightened U.S. scrutiny of offshore drilling after the BP Plc spill, the worst in the nation’s history, may spur oil companies to replace aging rigs with new platforms made in South Korea and Singapore

o Rig-makers Samsung Heavy Industries Co. and Keppel Corp. stand to benefit from drillers buying $300 million-plus semi- submersible rigs, which operate in waters as deep as 10,000 feet. About 57 percent of current units are more than 20 years old

o “Tougher regulations on offshore units could bump up prices and spur demand to replace older ones.”

· HLX, BP contracts Helix Energy Solutions Floating Production Unit to help with Gulf of Mexico oil-spill response

· GXP Great Plains Energy upgraded to buy from neutral at Goldman Sachs

· CSUN China Sunergy announces updates regarding company expectations for 2010

· CLNE WSJ is cautious on Clean Energy Fuels

· LLEN L&L Energy announces MOU to acquire Shunda Mining Co

· PXD Reliance Industries (RIL.IN) expected to pay less than $1.7B to buy into Pioneer Natural's shale gas assets - FT

· CVX In interview, Chevron chairman/CEO tells WSJ that six-month moratorium on deep-water drilling is unnecessary

· PXD Reliance Industries expected to pay less than $1.7B to buy into Pioneer Natural's shale gas assets - FT

· MIND Mitcham Industries to purchase 7500 channels of Sercel's Unite cable-free land acquisition system

· Drilling rig inspections scrutinized – WP

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/11/AR2010061106169.html?wpisrc=nl_cuzhead

· Energy sector: FT reported that executives from Chevron and other companies will start to distance themselves from BP in testimony to a House subcommittee tomorrow.

· Chevron Distances Its Ways From BP's - WSJ

o Chevron has come out swinging in its fight to continue drilling in the deep waters of the Gulf of Mexico, arguing that not all oil firms should be tarred with the brush of BP's Deepwater Horizon disaster.

o http://online.wsj.com/article/SB10001424052748704067504575304883167477548.html?mod=WSJ_hpp_MIDDLETopStories

· Chevron Pipeline Leaks Crude in Utah

· A leak in an oil pipeline in Salt Lake City owned by Chevron sent as much as 500 barrels of crude oil into the Red Butte Creek before work crews stopped the flow. WSJ

· Mexico Firm Sees Cartels Behind Abductions

o At least a handful of workers at several oil and gas installations belonging to state-run Petróleos Mexicanos have been abducted by presumed members of drug cartels in the past few week. WSJ

· Spain proposes EUR 2.6bn cut to renewables aid – S&P

· WEIR: Trading stronger than expected

o Engineering group Weir has issued an unexpected update alongside news of a acquisition in Malaysia, pushing its shares sharply higher

o The company, which specialises in valves and pumps for the oil, mining and power industries

· Bloomberg) -- Dana Petroleum Plc, a U.K. oil and gas explorer, agreed to buy Suncor Energy Inc.’s Dutch North Sea assets for 328 million euros ($400 million) in its biggest purchase to date.

· INDUSTRIALS

o SNIC WSJ notes the revisions to the recent Sonic Solutions initiation at JP Morgan

o GD, HRS, LMT WSJ discusses potential budget cuts in defense spending

o ATK Alliant Techsystems receives $41M contract modification to deliver non-standard ammunition for Afghan security forces

· TRANSPORTS

o XJT ExpressJet reports May performance

o TRMA Trico Marine Services enters amended credit agreement

o PAC Pacific Airport Group summarizes recent events

o RA RailAmerica reports May carloads +9.1% y/y to 70,293

o AMR Corp., the parent of American Airlines, rose 1 percent in early trading in New York after Deutsche Bank AG started coverage of the stock with a “buy” recommendation

Tech/media/ telecom sectors

· THQI lowered Q1 and FY11 guidance on weak UFC game sales and the strengthening dollar. Expects Q1 loss of $0.20-$0.30 vs breakeven previously, and breakeven vs $0.25-$0.30 previously

· TGAL- Loss Per Share Of $0.64 Vs. Loss $0.39 Last Year and revs $3.13 Mln Vs. $1.86 Mln Last Year

· ELTK- Posts Q1 Loss Per Share Of $0.10 Vs. Profit $0.02 Last Year. Revs basically in line with last yr results

· Barron’s Mid-Year Roundtable Tech Stock Picks (+MSFT, HPQ, NVLS) (-HPQ)

· http://feedproxy.google.com/~r/barrons/techtraderdaily/feed/~3/fy-zfV5HLyw/

· Taiwan Semi Lifts Long-Term Industry Outlook on China- BBG

o Taiwan Semi expects global chip-industry sales to rise 6 percent to 7 percent annually over the next five years, from an earlier estimate of 5 percent

o Rebounding demand from clients such as TXN Texas Instruments and Mediatek prompted Chairman Chang, 78, in April to raise his 2010 outlook for the wider chip industry to 22% from 18%, with the custom-chip market to climb 3%. Long- term industry growth will be slower than the past decade as the sector matures, he said

· ASE: Advanced Semiconductor Engineering to raise salaries in China for second time this year - United Evening News

· Advertising: TV Ad Rates Heat Up

o Cable Networks Benefit From Rush to Buy Commercial Time

o http://online.wsj.com/article/SB10001424052748703389004575304642031297702.html?mod=WSJ_newsreel_business

· BBI: Blockbuster Girds for Worst- WSJ

o Blockbuster is in discussions with bondholders to get up to $150 million in so-called debtor-in-possession financing,

o http://online.wsj.com/article/SB10001424052748703509404575300741916195132.html?mod=WSJ_business_whatsNews

· LGF: Icahn says Lions Gate may be headed for bankruptcy- Reuters

· CVC: to buy Bresnan for $1.3 billion- Reuters

· http://www.reuters.com/article/idUSN1315617220100613

· TWX won't raise bid for MGM- NYPOST

· GOOG: Says Wi-Fi Sweep Was Legal- WSJ

· http://online.wsj.com/article/SB10001424052748703509404575301012138471350.html?mod=WSJ_hpp_sections_tech

· AMZN, YHOO Amazon.com, Yahoo Japan to separately launch cloud-computing services in Japan - Nikkei

· Solar: The Spanish industry ministry is proposing a E 2.6bn subsidy cut to renewables plants already in operation

· DELL, INTC: Parsing Intel's Impact on Dell- WSJ

· http://online.wsj.com/article/SB10001424052748704067504575305003810938096.html#mod=todays_us_marketplace

· IBM in talks to buy Storwize for $140 mln- Reuters

· IBM is looking for acquisitions in India- LiveMint.com

· BT The Telegraph notes BT Group's efforts to deal with a strike

· http://www.telegraph.co.uk/finance/newsbysector/epic/btdota/7811235/BT-makes-new-two-year-pay-offer-in-attempt-to-halt-strike.html

· DIS Weinsteins still interested in Disney's Miramax - NY Post

· AAPL, T: AT&T blames hackers for iPad security breach - Silicon Alley Insider

· http://feedproxy.google.com/~r/typepad/alleyinsider/silicon_alley_insider/~3/ElDEt0gYweI/att-responds-to-ipad-security-breach-2010-6

· AAPL: Under Growing Government Pressure to Ease Software Limits- BBG

· Facebook's leadership: Time for an update?- WP

· http://www.washingtonpost.com/wp-dyn/content/article/2010/06/12/AR2010061200186.html?wpisrc=nl_cuzhead

· NTDOY: speculation that New Nintendo to be revealed at E3 next week, to be called Wii HiFi - SA

· HTC traded sharply higher after US ITC agreed to review company petition to block Apple imports of iPhone, iPod, and iPad products on alleged patent infringement- TTN

· ATVI: CEO Bobby Kotick is riding "World of Warcraft" out of the recession- WSJ

· MENT Mentor Graphics holder Carl Icahn discloses 7.97% stake in amended 13S filing; up from 6.86% disclosed on 27-May

· VZ Verizon expects to record a significant one-time charge in Q2 relating to agreement with unions

· ARBX Arbinet announces 1:4 reverse stock split

· TWTC tw telecom authorizes repurchaes of up to $50M in common shares

· FICO FICO announces new $250M stock repurchase program

· AKAM Akamai downgraded to hold from buy at Citi; target remains $44.

· CBB Cincinnati Bell enters into new senior credit facilities

· Hynix went up 1% on a report that creditors plan a 5% block sale later this month- SA

· DRAM: Price correction seen in DRAM spot market again- inSpectrum

· Foxconn moving from southern China to northern and western regions- Digitimes

· Foxconn: Inquiry Into Deaths at Foxconn Will Be Released to Public- Chinese Official Says

· LCDs: shipments in Taiwan to surge on orders for LED sets from Japan in 2H10- Digitimes

Miners/ steel

· Mosaic in Talks to Buy Mexican Firm

o The Mosaic Co. is in talks to acquire Mexican fertilizer company Grupo Fertinal SA de CV in a deal that could be worth up to $1 billion, people familiar with the matter said.

o A deal for Grupo Fertinal, one of Latin America's leading fertilizer makers, would give the publicly traded Mosaic its first footprint in Mexico.

o It is unclear if and when a deal could be completed but the parties have been in talks for about six months, the people familiar with the matter said

o http://online.wsj.com/article/SB10001424052748704067504575304833572540728.html?mod=WSJ_newsreel_business

· Demand: Rio Tinto says spot iron ore prices remain strong; Europe debt crisis adding to negative sentiment

o Co says freight rates remain stable

o Quarterly contracts make up nearly half of iron ore sales

o Says not oposed to tax reform; supports guine reform

o To review all its projects through supertax lens

· Demand: ARCELORMITTAL sees markets returning to pre-crisis levels – S&P

· U.S. Identifies Vast Riches of Minerals in Afghanistan

o The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself

o http://www.nytimes.com/2010/06/14/world/asia/14minerals.html?partner=rss&emc=rss&pagewanted=all

· Demand: ARCELORMITTAL (+3.82%) expects global steel production to come back to levels seen before the crisis with steel demand increasing by 10% this year, Euro am Sonntag writes

· Nikkei reported without citing sources that Vale (VALE3.BZ) to sell Amazon aluminum business to Norsk Hydro (NHY.NO) for 22% stake in Norsk Hydro.

· Tokyo Steel said it may cut prices for July H-beam shipments by ¥7K/ton just as Korea's Posco looked to raise steel product prices as early as next month. – TTN

· Posco (005490.KS) rose 2% despite denying a report it plans to raise prices next month; the company said it is studying the market but has not made any decisions.

· NXG Northgate Minerals raises f10 gold production guidance to 316K oz from 310K

Autos sector:

· Car-Sales Optimism Fades - WSJ

o Optimism is fading regarding new-vehicle sales, as consumers show signs of more pessimism about the economy.

o http://online.wsj.com/article/SB10001424052748704067504575304951455734906.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

· JCI Johnson Controls may drop $1.25B bid for Visteon's interiors and electronics businesses – FT

o In an interview, Johnson Controls CFO Steve Roell says JCI would be less interested in the purchase if Visteon comes out of bankruptcy. Visteon will seek approval to propose a plan to get out of Chapter 11 tomorrow.

· Honda Rises 4% After Most Workers End Strike in China - BBG

· Honda remains confounded by labor dispute in China, where a strike of 1,500 workers in Guangdong halted production for 5 days. In a move surely to exacerbate relations with the unions, management was reported to consider recruitment of replacements – TTN

· Nissan was said to boost SUV output in UK by 30% with a third-shift production line, aiming to produce about 24K units per month – TTN

· Daimler AG CEO Dieter Zetsche said the company is seeking market leadership in the small premium car market. BBG

· Daimler aims to pass BMW (BMW.GR) in small premium car market – FT

· HMC Honda Motor to import more low-cost motorcycle parts from emerging countries - Nikkei

· NSANY Nissan Motor to add third shift at UK production line for SUVs - Nikkei

· GM General Motors IPO expected to be between $10-20B--

· JCI Johnson Controls may drop $1.25B bid for Visteon's interiors and electronics businesses – FT

· FIAT (+3.19%) rallies after reaching a preliminary deal over working conditions at the Pomigliano D'Arco plant with four out of five trade unions.

Financials:

· US banks: set to lose swaps fight – FT

· MMC Marsh & McLennan's Mercer unit settles litigation with Alaska Retirement Management Board

· RNR RenaissanceRe files $750M automatic mixed shelf registration

· NVSL Naugatuck Valley Financial files to sell up to 3.6M shares at $10 through Stifel relating to acquisition of Southern Connecticut Bancorp (SSE)

· KFN KKR Financial Holdings files mixed shelf of indeterminate amount

· TIBB TIB Financial enters agreement to raise $150M in capital; stock remains halted, pending dissemination

· Agricultural Bank of China to raise $10-15B from Hong Kong IPO – WSJ

· EWBC East West Bancorp acquires Washington First International Bank in FDIC-assisted transaction

· EWBC East West Bancorp upgraded to outperform from market perform at Keefe, Bruyette & Woods

· WSJ says more banking losses may be necessary to avoid Japan-style lost decade

o US banks: wholesale restructuring of bank balance sheets needed? To fix econaomy… WSJ

o One reason for the lending freeze may be that the Bush and Obama administrations completed only half of the bank restructuring required. After applying a huge Band-Aid to the system, in the form of big capital injections, they didn't push a wholesale restructuring of bank balance sheets that might have involved big sales of questionable assets, including toxic loans.

o Such asset sales would in theory speed up asset-price adjustments across the economy and get prices to a level from which they can rise sustainably. Right now, banks and borrowers may feel asset prices haven't adjusted fully. This adjustment is being distorted in key parts of the economy, which may put a crimp on bank lending for years.

o http://online.wsj.com/article/SB20001424052748704463504575301050875673476.html#mod=todays_us_money_and_investing

· Analysis: Study calls for breaking up U.K.'s big banks

o U.K. consumer-lobbying group Which released a study recommending that major banks in the nation be broken up. One of the study's backers is Business Secretary Vince Cable, who said a government commission set up to look into the financial system should consider separating retail banking from investment banking. Cable "is a longstanding fan of radical surgery and several officials at the Bank of England, including its governor, Mervyn King, are sympathetic too," according to The Economist. The Economist/Newsbook blog (13 Jun.) , The Independent (London) (14 Jun.) , BBC (13 Jun.)

· U.K. Business Secretary to say the aim of banking commission is to separate retail and investment banking -- London Telegraph

o http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7823572/Vince-Cable-in-new-bid-to-split-banks.html

· Data Show Big Exposure for Euro-Zone Banks - WSJ

o http://online.wsj.com/article/SB10001424052748703389004575304661402558720.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

· UBS: Accounts of 500 UBS clients already sent to US – S&P

· SANTANDER lone bidder for RBS branches – S&P

· LLOYDS BANKING mulling GBP4bn float of branches – S&P

· Pressure grows for PRUDENTIAL's Thiam to quit – S&P

· Les Echos reported that Societe Generale (GLE.FP) is in talks to acquire SMC from BPCE for €872M in cash

· AIG: American International Group to place $325M from Nan Shan sale into escrow for 4 years – WSJ

· AIG: Generali CEO says the company could look at AIG's Asian assets -- London Independent

· AIG: AIG Asset Sale in Taiwan Takes Payment Hit

o American International Group Inc. absorbed a small setback to its plans to raise cash from asset sales to repay its bailout debt to U.S. taxpayers.

o AIG amended a $2.15 billion agreement to sell a Taiwanese life-insurance unit to a consortium of investors, saying that $325 million of the sum would be placed in an escrow account for four years, effectively delaying AIG's receipt of the deal's full purchase price

o http://online.wsj.com/article/SB10001424052748704463504575301002347884886.html?mod=WSJ_business_whatsNews

· Prudential shareholders Fidelity and Legal & General Group have requested meetings with the insurer’s board to discuss the role of CEO Tidjane Thiam, the Sunday Times reported. The two shareholders, which together own 6.5% of the insurer, are displeased with the executive’s handling of the takeover bid for AIG’s AIA Group

· Resolution may announce this week a 2.2bln£ rights offer to fund its purchase of Axa SA’s U.K. life insurance arm, the Sunday Express reported. Resolution shareholders will be offered new shares at 36.2p, or 40% less than June 11’s closing share price

· Apollo Global Management has meet with its advisers this weekend to decide whether to raise its 785mln£ offer for Brit Insurance, the Daily Telegraph reported. The U.S. buyout firm has started talks with Brit shareholders after the company rejected a 10 pounds a share cash offer

· BarCap to compete in dark pools of Europe

o Barclays Capital, the investment banking unit of UK-based Barclays, plans to launch a pan-European “dark pool” trading platform as it completes an 18-month drive to build an equities trading business from scratch.

o http://www.ft.com/cms/s/0/77d6c7bc-7702-11df-ba79-00144feabdc0.html

Real Estate:

· REITS

o KIM Kimco Realty and BIG Shopping Centers buy 15 shopping centers for $422M -- Globes

o AEC Associated Estates files $500M mixed shelf

· PHM Pulte Group upgraded to buy from hold at Citi

· U.S. Housing Recovery Dependent on Jobs, Harvard Report Says - BBG

o Job growth will be the key factor in whether the U.S. real estate market can extend a recovery after the end of the federal homebuyer tax credit, according to a Harvard University study

o High unemployment is fueling the foreclosure crisis and discouraging the household formation that drives property demand, according to the State of the Nation’s Housing report issued today by Harvard’s Joint Center for Housing Studies. The weak labor market resulted in people “doubling up,” or sharing residences, rather than buying their own home, the report said

o “What happens with jobs will matter the most to the strength of the housing rebound,” said Eric Belsky, executive director for the center in Cambridge, Massachusetts. “If employment growth surprises on the upside or downside, housing numbers could too.”

· Housing-market recovery is a long way off

o You may prefer to focus on data that point to a real-estate market rebound, but there are plenty of signs pointing the other way. – MW

· Mortgages plumb depths

o Bond yields fall and mortgage rates follow, pushing mortgage rates toward 2009's all-time lows – MW

· Troubled MGM Resort Expects Quarterly Profit

o City Center, the troubled Las Vegas mixed use casino project, is on track to be profitable for the three months ending June 30, MGM Mirage Chief Executive Jim Murren said Friday.

o The improvement was led by higher occupancy at Aria, the largest hotel at City Center, which meant more money spent on food and entertainment, as well as more stays at the other hotels at the development, Mr. Murren said in an interview. He is also encouraged by more convention bookings

o http://online.wsj.com/article/SB10001424052748703509404575301240228061152.html?mod=WSJ_business_whatsNews

· 3-year backlog of foreclosures in courts Washington Post

o Shortly after Orlando Eslava's bank started to push him through the foreclosure process last year, he got some good news: He was eligible for a government mortgage relief program that would lower his loan payments. But the lender plowed ahead with the foreclosure sale anyway, taking back the condo.

o Bank repossessions jumped more than 40 percent in May, to more than 90,000, compared with the same period last year, according to data released Thursday by RealtyTrac

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/11/AR2010061104812.html?wpisrc=nl_cuzhead

· Big Banks Move to Short Sales, but Will It Help Housing?

§ Said Bank of America exec, Matt Vernon, whose official title is National REO, Short Sale and Deed in Lieu Executive:

§ We understand the reality; a large number of homeowners won't meet the eligibility for the HAMP (the government's Home Affordable Modification) program," Vernon says. He also noted the sheer volume of borrowers now coming through the short sale process. He expects to see far more.

§ The big difference, he says, is that BofA, as well as some other big banks, are changing the model from reactive to proactive. In other words, instead of waiting for a borrower or real estate agent to approach the bank with an offer for a short sale, they are using a "cooperative approach, with homeowner, Realtor and servicer on behalf of investor, working to move that property through the process. All three of the interested parties holding everything together," Vernon explains

§ http://www.cnbc.com/id/37644643

· Equity Residential May Start California Project Within a Year

o (Bloomberg) -- Equity Residential, the largest publicly traded U.S. apartment landlord, may start building a new development in California within the next year, Chief Executive Officer David Neithercut said.

o “We have a land parcel in Los Angeles that we’ll look at; we’ve got a land parcel in the Bay Area that we’ll look at as well,” Neithercut said in an interview in Chicago. A project on either property “could start within the next year” if the company chooses to build, he said.

· HPP Hudson Pacific Properties files amended S-11; to offer 12.8M shares in range of $17-19 through BofA, Barclays, and Morgan Stanley

o The IPO was originally filed 16-Feb and the proposed symbol is "HPP".

Consumer sector:

· MTPK Metropark withdraws $100M IPO filing citing market

· OSK Oshkosh awarded $34.8M US Army contract on 9-Jun

· FRPT Force Protection awarded $10.8M MRAP contract modification

· XIN Xinyuan Real Estate announces that holders terminate their previously announced 9.5M ADS offering

· BNHNA Benihana reports Q4 EPS

· SBUX WSJ says Starbucks could be a buy despite valuation

· WEN Nelson Peltz happy to sit with his 23% of Wendy’s/Arby’s Group - NY Post

· GAMING LODGING & LEISURE

· WYNN Casino expansion back on track in Macau - South China Morning Post

· APP American Apparel, Lion Capital near covenant deal – Reuters

§ http://www.reuters.com/article/idUSTRE65C1SL20100613

· travel-sector stocks …Paid vacations = MW link

o Pack your portfolio with these travel-sector stocks to profit from an expected upswing in summer vacation spending. MW

· Macau good news? Casino firms push expansion on Cotai

o Soaring revenues spur Steve Wynn and SJM to plan more mega-resorts in Macau

o Macau may be set for another round of mega-resort expansion as soaring casino revenues tempt developers to get more shovels into the ground

o http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/?vgnextoid=ae8f410ad9139210VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Companies&s=Business

· Bloomberg) -- Amazon.com Inc., the world’s largest online merchant, won the top spot in an annual survey of the healthiest U.S. and Canadian retailers for a second year in a row as more shoppers make purchases online. Amazon.com’s technology keeps inventory levels and expenses down, said Consensus Advisors Chief Executive Officer Michael O’Hara, whose firm did the survey. Aeropostale Inc., Urban Outfitters Inc., CVS Caremark Corp. and Wal-Mart Stores Inc.round out the top five in the list, which comes out tomorrow.

· HEALTHCARE

o BTIM Biotime to join Russell 3000 Index, Russell Global Index

o JNJ Johnson & Johnson and House investigators dispute meaning of Motrin documents -- NY Times

o CELG Celgene announces updated results of phase III study evaluating continuous REVLIMID therapy in newly diagnosed multiple myeloma

o SNY, AMRI, RDY Dr. Reddy's provides update on the fexofenadine-pseudoephedrine 24 hour preliminary injunction hearing

o PFE Congress launches probe of Wyeth's promotion of Rapamune for off-label usage -- Pharmalot

o GSK GlaxoSmithKline receives FDA complete response letter on Menhibrix-- Bloomberg

o OLGX Osteologix entered into purchase agreement with Nordic Biotech Opportunity Fund

o QCOR Questcor receives notification that the PDUFA date for Acthar has been extended to 11-Sept.

o HGSI Washington Post looks at Human Genome

o ONXX Bayer and Onyx Pharmaceuticals say phase III trial of Nexavar did not meet primary endpoint

o CTIC Cell Therapeutics announces that Italian Medicines Agency, AIFA, approves NerPharMa facility to produce pixantrone

o CTIX New Autism drug research by ellceutix on compound km-391 results in significant behavioral changes

o IPCI IntelliPharmaCeutics files ANDA with FDA for generic Protonix

o Healthcare: Obama Concerned on Doctors' Pay - WSJ

§ http://online.wsj.com/article/SB10001424052748703433704575302181555760128.html?mod=WSJ_hpp_sections_news

From our EU/London desk

· Energy

o Nomura raise Euro Oils to Bullish vs Neutral.

o BP (-3%)—Board meets today.

o Dana Pete. (-0.25%). Buys Suncor’s North Sea assets, adding 31 mln barrels of reserves.

o United Utilities(+1.5%). Sells non regulated water assets to Veolia (+1.3%).

o National Grid (+1%) Rights issue 94.2% taken up.

· Mining

o Base metals firm as China stockpiles fall to lowest in nearly 4 months.

o US Govt discovers $ 1TRLN of mineral resources in Afghanistan (NYT)

o Rio Tinto (+2.5%)

o Vedanta (+3%)

o Kazakhmys (+4%)

· Financials

o Societe Generale +4% In Talks To Acquire SMC From BPCE

o LLOYDS -0.25% PRICE EST. CUT TO 50P VS 65P AND CUT TO `UNDERWEIGHT' VS `EQUAL-WEIGHT' AT MORGAN STANLEY

o Axa +3.3% in Talks to Sell Unit to Resolution for 2.75 Billion Pounds, SAYS IT WOULD TALKE EU1.4 BLN CAPITAL LOSS IN 2010

· BAYER: Nexavar does not meet primary endpoint in trial

· BMW to create 600 jobs with Megacity electric car – S&P

· FRAPORT cautions on revenue in face of new tax on air

· Karstadt to renogotiate rent or go under – Berggruen

· LUFTHANSA's Swiss unit aims to lift passenger figures

· PFLEIDERER expects to return to profit next year

· RWE says nuclear tax will dent earnings

· ARCELORMITTAL sees markets returning to pre-crisis levels – S&P

· SANTANDER lone bidder for RBS branches – S&P

· LLOYDS BANKING mulling GBP4bn float of branches – S&P

· Pressure grows for PRUDENTIAL's Thiam to quit – S&P

· Spain proposes EUR 2.6bn cut to renewables aid – S&P

· WEIR: Trading stronger than expected

o Engineering group Weir has issued an unexpected update alongside news of a acquisition in Malaysia, pushing its shares sharply higher

o The company, which specialises in valves and pumps for the oil, mining and power industries

TODAY’S EVENTS

DAILY VIEW

CONFERENCES

Monday June 14:

o ABA Regulatory Compliance Conference - Jun 13, 2010 - Jun 16, 2010

o ASME International Fuel Cell Science, Engineering & Technology Conference - Jun 14, 2010 - Jun 16, 2010

o Brean Murray, Carret & Co., Inc Global Resources & Infrastructure European Conference - Jun 14, 2010

· IEX , MPR , PMFG , RTK

o Canadian Association of Petroleum Producers (CAPP) Oil & Gas Investment Symposium - Jun 14, 2010 - Jun 16, 2010

· 10AM: ERF

· 11:15AM: NAE_UN.TO , PWE

· 11:55AM: BTE

· CMZ

o Credit Suisse Group Internet & Software Conference

· LOGM

o Euroconvention The Moldova Business and Investment Summit - Jun 10, 2010 - Jul 10, 2010

o Gartner IT Infrastructure, Operations & Management Summit - Jun 14, 2010 - Jun 16, 2010

o Gartner SOA & Application Development and Integration Summit - Jun 14, 2010 - Jun 15, 2010

o Goldman Sachs Global Healthcare Conference

· 1PM: HNT

· BSLN.S , IPSEY.PK , ISIS , PRX , RCDTF.PK

o Hart Energy's Energy Capital Conference - Jun 14, 2010 - Jun 15, 2010

o IBC Life Sciences Vaccine Production Summit - Jun 14, 2010 - Jun 16, 2010

o Kenes Exhibitions ILSI-Biomed Israel Conference - Jun 14, 2010 - Jun 16, 2010

· PLX

o Marcus Evans Emerging Market Investments Summit - Jun 13, 2010 - Jun 15, 2010

o Massachusetts Biotechnology Council BioNJ's BioPartnering Conference - Jun 14, 2010 - Jun 15, 2010

o Middle East Global Advisors World Islamic Banking Conference: Asia Summit - Jun 14, 2010 - Jun 15, 2010

o Nomura Securities Co., Ltd. Conference

· BBVA , WTKWY

o Roth Capital Partners Midwest Semiconductor Conference - Jun 14, 2010

o SWIFT Latin American Meeting of Members - Jun 14, 2010 - Jun 16, 2010

o Wells Fargo Securities Industrial Conference - Jun 14, 2010 - Jun 15, 2010

· 10AM: CBE , ITW

· 10:35AM: CRDN , OLN

· 11:10AM: AYR , CAR

· 11:45AM: AME , ORB , SON

· 12:55PM: BEAV , TEN

· 2:05PM: AXE , SEE , WERN

· 2:40PM: GR

· 3:15PM: CCIX

· 3:50PM: HUBG

· AER , BWA

COMPANY MEETINGS/OTHER DAILY EVENTS

· Monday June 14:

o Shareholders meetings:

§ PKT, KBW, ATEA, TTES, SQNM, UTIW, ABK, UXG, CYPB

o ATVI Investor Event

ECONOMICS

· Monday June 14:

o No major Economic Data scheduled for today

EARNINGS

o Materials

· Monday June 14: NOEC, FRD

o Industrials/Homebuilders

· Monday June 14: TIK, IGC, DSWL, FEIM, CPST, NTSC, BUKS

o Consumer/Retail/Education

· Monday June 14: LAKE, MSN, ROX, CASY, LZB, CRWS, GAI, KFY, MOC

o Financials

· Monday June 14: FLFL, CARV, OSBK, LMLP

o Tech/Telecom

· Monday June 14: COOL, TIGR, NOIZ, CRWG, WPCS, CMRO,

o Healthcare

· Monday June 14: CLDA, OCBT, CHDX, AEMD, SURG, ADMP, CYAN

o Media

· Monday June 14: RENT, VALU

o Utilities

· Monday June 14: HOO

o Autos

· Monday June 14: CIEC, MPAA

o Energy

· Monday June 14: MMEX, QTWW, TOTY, BQI, MILL, MXC, SNRV

INVESTMENT BANKING WRAP

M&A

· Investors plan to pour money into buyouts, study finds

· BP won’t be rescued if a foreign predator attempts takeover- London Times

o Vince Cable, the Business Secretary, believes that BP should be left to fend for itself if its distressed state triggers an unwanted takeover approach from a foreign rival

o While the Business Secretary has argued that some companies may be so critical to Britain’s national interest that they should be protected, BP is not thought to be one of them

o http://www.timesonline.co.uk/tol/news/uk/article7148606.ece

· Icahn says LGF Lions Gate may be headed for bankruptcy- Reuters

o But the company fired back to say it had a "strong balance sheet and ample cash" to continue operations, and has been in discussions with creditors to avert a potential debt default.

o If Lions Gate cannot find other funding or convince its lenders to waive defaults, it "may find it necessary to pursue a voluntary bankruptcy filing," Icahn wrote in an open letter to the Lions Gate board on Friday.

o http://www.reuters.com/article/idUSN1111872520100611

· CASY Casey's alleges Couche-Tard market manipulation- Reuters

o U.S. convenience store chain Casey's General Stores Inc (CASY.O) said on Friday it has filed a complaint alleging market manipulation by Canadian rival Alimentation Couche-Tard Inc in its (ATDb.TO) $1.9 billion hostile takeover bid

o The complaint says Couche-Tard accumulated 1.97 million Casey's shares, or about 3.9 percent of those issued, prior to its April 9 bid. Shortly after Couche-Tard announced its cash offer of $36 a share, it sold almost all of its shares for $38.43 each, the complaint said

o http://www.reuters.com/article/idUSN1116935720100611

· WEN Nelson Peltz happy to sit with his 23% of Wendy’s/Arby’s Group - NY Post

o Billionaire fast food tycoon Nelson Peltz is not interested in partnering on a buyout of the Wendy's/Arby's chain or in selling his shares

o http://www.nypost.com/p/news/business/hold_the_sizzle_on_buyout_of_wendy_CCagRYfyjRQrtQZKpJfMDM?CMP=OTC-rss&FEEDNAME=#ixzz0qolvrHsr

· China Strategic: may seek AIG Taiwan deal extension- Reuters

o China Strategic (0235.HK), one of the buyers of AIG's (AIG.N) Taiwan unit, could talk about extending the stalled $2.2 billion deal if needed, but hopes for a conclusion soon

o "If necessary, we will talk to AIG to extend the deadline," China Strategic's Raymond Or told Reuters. But it is still early now. From the management point of view we will try our best (to close the deal)."

o http://www.reuters.com/article/idUSTPV00165320100614

· Generali interested in AIG’s AIA assets- Independent

o First AIG "has to decide what they want to do ... If they want to sell parts of it we could look at them," Giovanni Perissinotto told reporters on the sidelines of a conference yesterday

o "The framework is not clear," he said, referring to whether AIG will list or sell its Asian business, AIA.

o http://www.independent.co.uk/news/business/news/generali-interested-in-aia-assets-1998365.html

· AIG Asset Sale in Taiwan Takes Payment Hit- WSJ

o American International Group Inc. absorbed a small setback to its plans to raise cash from asset sales to repay its bailout debt to U.S. taxpayers.

· CVC Cablevision to buy Bresnan for $1.3 billion- Reuters

o The deal is expected to announced on Monday, said the source, who declined to be identified because they were not authorized to speak with the media.

o http://www.reuters.com/article/idUSN1315617220100613

· TWX Time Warner won't raise bid for MGM- NYPOST

o Time Warner is not raising its bid to buy the ailing Metro-Goldwyn-Mayer movie studio, making it more likely MGM's lenders will foreclose on the business

o Warner continues to take the view it is not going to bid against itself, believing that after a long auction process there is no one else interested in buying the business and MGM's lenders, which are not interested in running it, will eventually have to sell to them.

o http://www.nypost.com/p/news/business/time_warner_won_raise_bid_for_mgm_1qDUFuumShMcoTkseJoIpL?CMP=OTC-rss&FEEDNAME=#ixzz0qonyFcal

· America Movil gets closer to telecom consolidation- Reuters

o Carlos Slim's consolidation of his telecommunications empire is nearly done after cellphone giant America Movil successfully wrapped up tender offers for Telmex Internacional and Carso Global Telecom

o http://www.reuters.com/article/idUSN1112146620100611

· JCI Johnson May Drop $1.25B VSTNQ Visteon Bid- EMii.com

o The U.S. diversified manufacturer will consider calling off the bid if Visteon’s management moves ahead with a plan to exit from bankruptcy as an independent company

o http://www.emii.com/Articles/2595078/Capital-Markets/Capital-Markets-Articles/Johnson-May-Drop-1.25B-Visteon-Bid.aspx

· IBM in talks to buy Storwize for $140 mln- Reuters

o IBM Corp (IBM.N) is in talks to acquire U.S.-Israeli data storage company Storwize Inc for $140 million, Israel's TheMarker financial news website reported

o http://www.reuters.com/article/idUSLDE65C0B720100613

· IBM is looking for acquisitions in India- LiveMint.com

o Armed with a $20 billion war chest, International Business Machines Corp. (IBM) is scouting for potential acquisitions in India and across the globe as it seeks to almost double earnings in five years by expanding in emerging economies and focusing on software and services

o http://www.livemint.com/2010/06/13232421/IBM-is-looking-for-acquisition.html?h=A1

· MOS Mosaic in talks to buy Mexico's Grupo Fertinal- WSJ

o Fertilizer producer Mosaic Co (MOS.N) is in talks to buy Mexico's Grupo Fertinal in a deal that could be worth up to $1 billion

o It is uncertain when a deal could be reached, but the companies have been in talks for about six months, the newspaper said in its electronic edition. Negotiations could still falter

o http://www.reuters.com/article/idUSN1313826220100613

· KKR to invest in Hilcorp joint venture – WSJ

o Private equity firm Kohlberg Kravis Roberts & Co [KKR.UL] is investing $400 million in a joint venture with Hilcorp Energy Co to develop the Eagle Ford Shale in South Texas

o Hilcorp will control 60 percent of the joint venture and run its operations, the newspaper said in its electronic edition. Hilcorp also will contribute about 100,000 acres to the partnership

o http://www.reuters.com/article/idUSN1313937120100614

· BIG Big, Kimco buy US malls- Globes

o BIG and Kimco Realty Corporation have bought 15 shopping centers in the US for $422 million. The company expects to close the purchase by the end of June.

o Big will own 49.9% of the properties and Kimco will own 50.1%. Kimco already manages the shopping centers, and will continue to do so, in exchange for management fees.

· TPG has paper losses on four big deals - FT.com

o The firm's paper losses on four buy-outs amount to nearly $2.9 billion, the newspaper said in its electronic edition. TPG invested $4.7 billion in the deals

o The four mega-deals included Energy Future Holdings, the former TXU, as well as Freescale Semiconductor, Harrah's Entertainment [HAMLEH.UL] and Univision Communications

o http://www.reuters.com/article/idUSN1314126820100614

· S.Korea Hana unit buys $333 mln U.S. skyscraper- Reuters

o A real estate investment arm of South Korea's Hana Financial Group (086790.KS) said on Monday it had bought a major skyscraper in San Francisco's financial district occupied by Wells Fargo (WFC.N) for $333 million

o http://www.reuters.com/article/idUSTOE65D03C20100614

· DNX Dana to buy Petro Canada unit from SU Suncor for 270 mln stg- Reuters

o British oil and gas company Dana Petroleum (DNX.L) said it agreed to buy Petro Canada Netherlands for around 270 million pounds ($393.3 million), its biggest ever acquisition

o Dana, which holds oil and gas assets in the UK and North Africa, said on Monday the deal would give it exposure to the Dutch North Sea and could raise Dana's previous 2010 production guidance by about 10-12 percent on an annualised basis

o http://www.reuters.com/article/idUSLDE65D07320100614

· TEVA Teva raises stake in diabetes treatment developer- Reuters

o Teva Pharmaceutical Industries (TEVA.O) has exercised an option to raise its stake in Andromeda Biotech, which is developing a treatment for juvenile Type I diabetes, Clal Biotechnology Industries

o According to the agreement, Teva and Clal will invest $17.5 million in Andromeda, of which $5.6 million will come from Clal and the rest from Teva.

o http://www.reuters.com/article/idUSLDE65D0BI20100614

· Paternoster hires bankers to value company- Independent

o British pension buyout firm Paternoster has hired bankers to put a valuation on the company as investors look to exit the business

o Deutsche Bank (DBKGn.DE), the largest shareholder in Paternoster, will most likely buy out investors and merge the Paternoster business into its Abbey Life insurance operation

o http://www.reuters.com/article/idUSTRE65C1HJ20100613

· Reliance Industries to invest $5 billion in telecoms- Reuters

o Reliance Industries (RELI.BO), which decided to buy a telecoms firm last week, will invest about $5 billion in the venture over the next two years

o On Friday, Reliance Industries made a dramatic return to telecoms, agreeing to buy Infotel Broadband, which was the only company to win a nationwide license in India's broadband wireless spectrum auction

o http://www.reuters.com/article/idUSTRE65D0MP20100614

· Reliance Industries eyes more US shale gas- FT

o Reliance Industries is in talks to acquire what would be its second US shale gas interest in as many months as India’s largest private sector oil refining and production group seeks to build a foothold in overseas markets

o Reliance, controlled by Mukesh Ambani, India’s richest man, is considering buying a stake in shale gas assets owned by Pioneer Natural Resources, which is developing a large field in south Texas

o http://www.ft.com/cms/s/0/2d211bc8-7711-11df-ba79-00144feabdc0.html

· MENT Mentor Graphics holder Carl Icahn discloses 7.97% stake in amended 13S filing; up from 6.86% disclosed on 27-May- SA

· Dubai private equity firm's board dissolved in January- Reuters

o Dubai International Capital (DIC) said its board was dissolved six months ago, allowing its parent conglomerate Dubai Holding to take control of its dwindling investment portfolio and manage its $2.6 billion debt pile.

o A company statement on Sunday said the private equity firm's board was dissolved in January, after a report in the UK's Sunday Times paper mentioned Sameer al Ansari, former chief executive of DIC, as having left his non-executive role on the board

o http://www.reuters.com/article/idUSTRE65C1M120100613

· OT sale talks continue after MTN deal fails- Reuters

o Egypt's Orascom Telecom (ORTE.CA) is still negotiating the sale of some of its African assets, a newspaper reported on Sunday, reviving hopes for a possible deal after failed talks with South Africa's MTN

o "Orascom Telecom Holding continues to hold a number of negotiations to sell its African units, with the exception of its (Algerian) unit Djezzy,"

o http://www.reuters.com/article/idUSTRE65C0F320100613

· Pension hole trips electricity sale- London Times

o THE £4 billion auction of Britain’s biggest electricity distribution network could be delayed by a dispute over how to fill a hole of £100m or more in its pension fund

o EDF Energy, the French power group, put the business — which provides power to 7.8m homes in southeast England — up for sale a year ago. Final bids are due on June 21.

· Santander cuts offer for RBS branches as loan quality falls- FT

o Santander has cut its offer for Royal Bank of Scotland's retail branch network in advance of Monday's deadline for final bids, after a close examination of the quality of the government-backed bank's loan portfolio

o The Spanish bank is expected to submit a final offer of £1.7bn-£1.8bn for the 318 branches that RBS has to sell to comply with state aid rules, say people familiar with the situation.

o http://www.ft.com/cms/s/0/889accae-75ba-11df-86c4-00144feabdc0.html

· Resolution in talks to buy Axa UK units- Reuters

o British buyout firm Resolution Group (RSL.L) is in talks about buying the UK life operations of French insurance group Axa (AXAF.PA) in a deal that would cost around 2.8 billion pounds

o A person close to the matter told Reuters that Resolution, a vehicle set up by insurance entrepreneur Clive Cowdery, had made an informal offer and hoped to make a firm offer in about two weeks

o http://www.reuters.com/article/idUSTRE65B0W120100612

· Societe Generale in talks to acquire SMC from BPCE for €872M in cash- Les Echos

o The group led by François Perol announce this morning must be entered into exclusive talks with Credit du Nord, which he will sell the Société Marseillaise de Credit for 872 million euros

o http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fwww.lesechos.fr%2Finfo%2Ffinance%2F020601756775-bpce-cede-la-societe-marseillaise-de-credit-au-credit-du-nord-pour-872-millions-d-euros.htm&sl=auto&tl=en

· Redundancy fears as Resolution buys Axa's UK life business- Telegraph

o Fears are mounting that Resolution's proposed £2.8bn deal to buy Axa's UK life assurance business will trigger significant job losses – dealing yet another blow to the beleaguered financial sector.

o Roughly 2,000 employees of Axa's 15,000 UK workforce will be "transferred" to Resolution, said people familiar with the matter.

o http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/7825395/Redundancy-fears-as-Resolution-buys-Axas-UK-life-business.html

· KBC bank could pull sale of Peel Hunt if a management buyout stalls- The Independent

o The Belgian bank KBC could pull the sale of its Peel Hunt broking business in London in the coming weeks, if a management-led buyout stalls.

o Peel Hunt was put up for sale last summer and received a large amount of interest from potential buyers. The process was handled by the corporate finance boutique, Lexicon. But the buyers have fallen away

o http://www.independent.co.uk/news/business/news/kbc-bank-could-pull-sale-of-peel-hunt-if-a-management-buyout-stalls-1998856.html

$ RAISING

IPOs

· U.S. taxpayers could profit on pre-owned GM- Reuters

o When GM was sputtering toward collapse last year, it was hard to see how the U.S. auto market leader could keep selling cars -- let alone how it could one day sell itself as a success story to investors

o But almost a year after emerging from an unpopular U.S. government-funded bankruptcy, GM is driving toward a stock listing that could deliver a paper profit to U.S. taxpayers and an important political win for the Obama administration.

o General Motors IPO expected to be between $10-20B-- Reuters

o http://www.reuters.com/article/idUSN1115222520100611

· China's AgBank seeks record $23 billion IPO- Reuters

o The Agricultural Bank of China ABC.UL is seeking to raise more than $23 billion through a dual Hong Kong and Shanghai listin putting it on course for the world's biggest IPO.

o Over the weekend, China's second-largest wind turbine maker, Xinjiang Goldwind Science & Technology Co, pulled its $1.2 B IPO, the fifth Hong Kong offering to be shelved since last month

o http://www.reuters.com/article/idUSTRE65D0S720100614

· Agricultural Bank of China to raise $10-15B from Hong Kong IPO– WSJ

o Agricultural Bank of China(ABC) may raise as much as $15 billion in the Hong Kong part of what could be the world's largest initial public offering, according to an e-mail sent to investors.

o http://www.chinaplus1.com/content/abc-may-raise-15b-hk-part-ipo

· Temasek to invest up to $300 million in AgBank IPO- Reuters

o Temasek's commitment to China's third largest bank is a positive step for the offering, though it is less than the $1 billion that AgBank's underwriters are hoping to get from Middle East and Asian sovereign wealth fund cornerstone investors

o Reuters earlier reported that Temasek, and sovereign funds from Kuwait and Qatar were expected to sign on to AgBank's offering

o http://www.reuters.com/article/idUSTRE65B1AS20100612

· China's Goldwind pulls $1.2 billiion Hong Kong IPO- Reuters

o China's second-largest wind turbine maker, Xinjiang Goldwind Science & Technology Co, pulled its up-to-$1.2 billion initial public offering, a source said on Sunday, the fifth Hong Kong IPO shelved since last month

o With around $3.8 billion in public offerings pulled from the Hong Kong Stock Exchange in the last few weeks, the dead deals reveal the impact of the sharp drop in China's stock markets and the global fears surrounding the euro zone debt crisis

o http://www.reuters.com/article/idUSTRE65C1CU20100613

· Lloyds considers listing 600 branches in new bank- London Times

o Britain's largest retail bank Lloyds Banking Group (LLOY.L) is considering a stock market flotation of the chain of 600 branches that it is forced to sell by European Union regulators

o The listing would create a new British bank worth between 3 and 4 billion pounds ($5.8 billion) that would account for about 5 percent of the retail banking sector

o http://www.reuters.com/article/idUSTRE65C1OJ20100613

· FN Fabrinet files amended S-1; to offer 8.5M shares in range of $12-14 through Morgan Stanley and Deutsche Bank

o Of the 8.5M shares, 2.83M are being sold by the company and 5.67M are being sold by holders. The IPO was originally filed 20-Nov-09 and the proposed symbol is "FN".

· HPP Hudson Pacific Properties files amended S-11; to offer 12.8M shares in range of $17-19 through BofA, Barclays, and Morgan Stanley

o The IPO was originally filed 16-Feb and the proposed symbol is "HPP".

PRICINGS

o Initial Offerings

o CBOE CBOE Holdings 11.7M share IPO expected to price 6/14 via GS, BoA, Citi, JPM, UBS, Barclays, Citadel: price talk $27-29

o CIL China Intelligent Lighting 3.5M share IPO expected to price 6/14 via Rodman & Renshaaw: price talk $4-5

o BSFT BroadSoft 7.5M share IPO expected to price 6/15 via GS and Jefferies: price talk $9-11

o ONE Higher One Holdings 14.3M share IPO expected to price 6/16 via GS: price talk $15-17

o MOTR Motricity 6.8M share IPO expected to price 6/16 via GS and JPM: price talk $14-16

o OAS Oasis Petroleum 42M share IPO expected to price 6/16 via MS and UBS: price talk $13-15

o MTPK Metropark withdraws $100M IPO filing citing market conditions

o Secondary Offerings

o CCNE CNB Financial $27M secondary expected to price 6/14 via RBC

o RBCN Rubicon Technology $49.1M secondary expected to price 6/15 via UBS

NEWS

· FICO board gives nod for $250 mln share repurchase- Reuters

o Fair Isaac Corp (FICO.N), which provides "FICO" credit scores used by millions of Americans, said its board has approved a stock repurchase program of up to $250 million of the company's outstanding common stock\

o http://www.reuters.com/article/idUSSGE65A0HD20100611

· PBR Petrobras set for $25 billion share sale- FT

o Brazil's state-run oil company Petrobras is preparing a share sale to raise an estimated $25 billion to fund the development of the country's vast subsalt oil reserves

o Details of the rights issue remained unclear but a share placing could take place as early as next month and would allow the company to raise capital without harming its investment grade credit rating

o http://www.reuters.com/article/idUSTRE65D09P20100614

· MS Morgan Stanley, JPM JPMorgan set to lead GM IPO- Reuters

o Banks were competing fiercely to underwrite an offering that could be $10 billion to $20 billion, a person briefed on the matter said

o At that size, the deal would be the largest U.S. IPO since Visa Inc's (V.N) offering of $19.7 billion in March 2008, according to Thomson Reuters data, and one of the biggest U.S. offerings of all time

o http://www.reuters.com/article/idUSTRE65A3PI20100611

· APP American Apparel lender may offer lifeline- Reuters

o Investors' patience with Charney, a self-described hustler and the company's founder and CEO, is waning as the eccentric apparel visionary finds himself in troubled financial situations time and time again, they say.

o Sources close to the company said they fully expect American Apparel (APP.A) and its main backer, British-based private equity firm Lion Capital, to reach an agreement that will prevent the company from a looming debt covenant breach.

o http://www.reuters.com/article/idUSTRE65C1SL20100613

· TIBB TIB Financial enters agreement to raise $150M in capital- SA

o TIBB announced that it entered into an agreement with Marty E. Adams, Kevin T. Thompson and John S. Loeber to assist the company in raising $150M in capital through an offering of shares of the company's common stock and/or newly created shares of mandatorily convertible preferred stock

· Resolution in £2.8bn cash call for Axa buy- Telegraph

o The insurance industry consolidator, run by tycoon Clive Cowdery, confirmed on Friday that it was in talks to buy the bulk of Axa's UK arm in a £2.8bn deal, just a year after buying Friends Provident for £1.9bn

o Although Resolution has about £300m in cash and huge potential borrowing powers, it has always publicly said it would go to shareholders for the money to do the deal

o http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/7823486/Resolution-in-2.8bn-cash-call-for-Axa-buy.html

· BBI Blockbuster Inc. is in talks for a new loan that would keep it afloat in bankruptcy court, a fresh sign the movie-rental chain could be forced to seek Chapter 11 protection from creditors to rework more than $900 million in debt. WSJ

o http://online.wsj.com/article/SB10001424052748703509404575300741916195132.html?mod=rss_whats_news_us

· Real Estate: AEC Associated Estates files $500M mixed shelf

· Financials: KFN KKR Financial Holdings files mixed shelf of indeterminate amount

· Financials: RNR RenaissanceRe files $750M automatic mixed shelf registration

**All eco data from Bloomberg and DJ

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