Cantor Morning News | Morning @ Cantor

� BP bonds in focus:� �. 1.55 11 DOWN ~2.5PTS, HITTING A $92 BID IN THE STREET AFTER� TRADING $94.50-$95 YESTERDAY, 4.75 19 ARE OPENING $86-$89.50�� AFTER SPENDING YESTERDAY WRAPPED AROUND $90��

� S&P probing its 200 day at 1109 level and the EUR/USD rallies again

� Markets shake off weak German ZEW data and lingering peripheral concerns

� most equity markets have moved into positive territory, supported

� weaker than expected UK CPI.

� Spain and Italy auction results 'well received' at a 'higher price'

� Asian markets ended off earlier lows, aided by Chinese macro data and news that the Bank of Japan is offering JPY3tn in a new credit program

� Libor ticks up�3-month: Dollar: 0.539% vs prior 0.537%

� Traders focus: �the 200-day moving average on the S&P 500, which the index failed to reach Monday.� lot of focus on the 1040-1050 zone, the level the S&P 500 has successfully held after tumbling through the 200-day.

� But�.Washington may steal the market's focus from Europe Tuesday, as both the oil spill and financial regulatory reform get prominent play in headlines.

� Asian Markets: Nikkei +0.08%; Hang Seng +0.05%; Shanghai Composite (closed)

� Japan leaves overnight call rate unchanged at 0.1% - wires

� decision was expected.

� BOJ offers new stimulus � BBG

� The Bank of Japan will make $32.8 billion of low-cost funds available to private banks to lend to companies, a move aimed at encouraging firms to make long-term business investment.

� Something big is going to happen �Bond, Stock Volatility Surges Points to Breakout

� The correlation between volatility in Treasuries and stocks is approaching the highest on record, indicating either market may be poised to rally if Europe�s debt crisis worsens or the U.S. economy recovery accelerates� - BBG

� Transports Beating Industrials Signal Stock Gains

� Transportation shares rallying twice as fast as industrial stocks over the last week may be a sign economic growth is poised to push the equity market higher � BBG

� an early indicator that the economy is moving along�

� Bear mkt calls?� Twelve Dow Jones Industrial Average companies ie Exxon and Microsoft have dropped at least 20 percent from their peaks

� equity index may still avoid a bear market, according to Birinyi � BBG� �It�s not necessarily a bad sign.�

� Rates:� Fed Weighs Growth Risks - JON HILSENRATH in WSJ

� Officials Keep Fresh Eye on Slowing Inflation, Europe Even as the U.S. Recovers

� Fed officials, who meet next week to survey the state of the economy, believe a durable recovery is on track and their next move�though a ways off�will be to tighten credit, not ease it furthe

� if the recovery falters, potential steps

� One is asset purchases

� reinvesting cash in mortgage bonds or Treasurys

� The Fed also could alter the words it uses to guide markets.

� http://online.wsj.com/article/SB10001424052748703685404575306702627996126.html?mod=WSJ_hps_LEFTTopStories

� Rates: Fed Study Hints Rates to Stay at Record Lows Until 2012

� Mr. Rudebusch concluded from Fed decisions over the last two decades that there was a statistical relationship between core consumer price inflation and the gap between actual unemployment and the natural, or normal, rate of unemployment.

� The paper, released Monday by the Federal Reserve Bank of San Francisco, does not represent the official position of the central bank

� http://www.cnbc.com/id/37698477

� Global Recovery 'Slow & Tortuous': China Regulator

� The global economic recovery is likely to be "slow and tortuous" and China faces risks from a multitude of factors including trade protectionism and bad real estate loans, China's Banking Regulatory Commission (CBRC) said on Tuesday.

� "The chances in 2010 of some credit assets forming into substantive risks and losses has increased," the CBRC said in its annual report, published on its website on Tuesday.

� Among the risks faced by Chinese banks, it identified quite large risks from "unwise lending" to local government investment units, as well as the sovereign debt crisis and U.S. dollar exchange rates.

� http://www.cnbc.com/id/37698689

� Investors are "clearly overreacting" to the scale of the euro zone crisis, Joaquin Almunia, EU Commissioner for Competition Policy and vice president of the European Commission, said in a press conference in London late on Monday.� CNBC

� EU / UK caution rampant today again in the press�. Auctions go well

� EU auctions today�per TTN

� Spain Debt Agency Sold �5.2B (lower end of �5-6B range) in 12-month and 18-month Bills

� Ireland Debt Agency (NTMA) sold total �1.5B in two tranches (as expected)

� �Sold �750M in 4.6% in Apr 2016; avg yield 4.521% v prior 3.663%; bid-to-cover: 3.05x v 3.0x prior

� Hungary Auction Results: Sold HUF45B in 3-month Bills; avg yield 5.28% v 5.26% prior; Bid-to-cover 1.9x v 2.4x prior

� Merkel�s Coalition Under Pressure in Germany - NYT

� ECB To Drain Liquidity From Money Market

� ECB To Launch Quick Tender At 1300 GMT

� ECB Sees Large Positive Liquidity Imbalance - DJ

� GREEK 10-YEAR YIELD PREMIUM TO BUNDS RISES TO 600 BASIS POINTS overnight

� Brown Brothers Head of Currency Strategy Chandler said the impact of Greece downgrade by Moody's will be minimal because it is not expected to return to capital markets to raise funds � TTN

� Ambrose Evans-Pritchard, citing AXA analysts, noted that there is a serious likelihood the EU will break in half or disintegrate� - Telegraph

� ZEW Economists stated that financial market experts expected economic recovery in Germany to weaken by end of the year but that the overall outlook remained positive. It did note that the economic expectations survey posted its sharpest decline since Oct 2008 and that rumors about problems in Spain's financial markets had negatively impacted sentiment. It did add that expectations for USD appreciation had weakened � TTN

� S&P commented that it saw refinancing risks as a threat to the quality of credit in Europe

� EU's Rehn commented that Moodys timing of Greece's sovereign downgrade was 'surprising and unfortunate'� TTN

� BOJ Shirakawa: Aware That Europe Fincl Mkts Are Unstable - DJ

� Greek Bonds to Be Removed From Indexes End of June, Citi Says (BBG)

� Greek government bonds will be removed from the World Government Bond Index, the EMU Government Bond Index and the World Broad Investment-Grade Bond Index by the end of June after they were downgraded to junk by Moody�s

� Spain Says Banks in Credit Crunch - WSJ

� Investors are particularly concerned that Spain would be unable to supply its banks with more capital, if needed, without emergency aid from the European Union and the International Monetary Fund.

� Spain has been scrambling in recent weeks to convince markets that it can repair both its ballooning deficit and its troubled banking sector. Spain's Socialist government plans on Wednesday to begin pushing through a controversial labor-market overhaul

� http://online.wsj.com/article/SB10001424052748704324304575306471722364404.html?mod=WSJ_hps_LEFTWhatsNews

� Bond sales spark fears for Spanish economy - FT

� Government bonds were sold off sharply as the Spanish Treasury secretary and a leading banker admitted companies and banks were having difficulties raising funds

� http://link.ft.com/r/8P1R88/BMQDAH/SL6X6/0G5N74/YHOVUI/9A/h

� Societe Generale CEO: Rules Out Capital Increase To Fund Buys - DJ

� SocGen CEO: Co's Exposure To Weaker Euro-Zone Economies Modest

� SocGen CEO: Markets Overreacted On Weaker Euro-Zone Economies

� Fitch Sees �Increasing Concern� of Double-Dip Eurozone Recession

� Fitch Ratings sees �increasing concern that there will be a double-dip recession in the eurozone,� said Richard Hunter, managing director of Europe, the Middle East, Africa and Asia-Pacific.

� . �We stress the double-dip is not our central scenario.�� BBG

� The Bank of England�s �200Bn ($295Bn) bond-purchase program hasn�t undermined the bank�s independence and is consistent with its inflation- targeting mandate, policy maker Adam Posen said.� BBG

� UK Chancellor Osborne is expected to announce additional public spending cuts or tax increases of �34B p.a. in next week's emergency budget - FT

� Iceland�s banks face �radical� changes as the government bars them from making loans to fund purchases of their own shares after cross-ownership worsened the island�s economic crisis, Economy Minister Gylfi Magnusson said.� BBG

� Greek Hospitals near meltdown ... ekathimerini

� Doctors warn of deaths due to shortages caused by dispute with suppliers Doctors warned yesterday that hospital patients will begin to die soon unless the government can resolve an impasse with suppliers over more than 5 billion euros in debts

� http://www.ekathimerini.com/4dcgi/_w_articles_politics_100002_15/06/2010_117689

� Financial crisis might have crippled U.K. economy forever

� Britain's economy suffered greater damage than was earlier acknowledged and might never recover, according to the Office for Budget Responsibility. The economy is expected to expand 2.6% in 2011 and 2.8% in 2012, the office said, significantly less than previously forecast. The office called for major reform in public-sector pension. The Times (London) (15 Jun.)

� China May Avoid U.S.-Style Crash With Tightening, Grantham (BBG)

� Data overnight

� ZEW� misses�German Investor Sentiment Plunges on Debt Crisis

� Germany Jun ZEW Economic Sentiment: 28.7 v 42.0e (lowest reading since Apr 2009

� Euro Zone Jun ZEW Economic Sentiment: 18.8 v 39.0e

� China Leading Indicator Rises the Most in 14 Months

� �The measure gained 1.7 percent to 147.1 in April, compared with a revised 1.2 percent increase in March, The Conference Board said on its website today

� ��China is performing among the best of any economy around the world,�� BBG quote

� U.K. Inflation Slows for First Time in Three Months

� May RPI M/M: 0.4% v 0.3%e.. Core CPI Y/Y: 2.9% v 2.9%e

� A U.K. house-price gauge climbed in May to the highest level in four months as demand from homebuyers matched rising supply, the Royal Institution of Chartered Surveyors said.

� Money Raising:

� CBOE Holdings 11.7M share IPO priced at $29 through Goldman - Reuters

� The offering priced at the high end of the projected $27-29/share range.

� Jupiter Investment Management IPO price range 160-170 per share; covered within that range; order book expected to close 1300GMT � SA

� investment bank underwriting fees under pressure:� Resolution is close to securing a ground-breaking deal to slash investment bank underwriting fees on a rights issue to fund a �2.75 billion acquisition of Axa�s UK life business

� http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7150101.ece

� M&A stories:�

� AXA, Resolution (RSL.LN) hope to agree on sale by middle of next week - FT

� News Corp (NWS) makes new offer for BSkyB

� British Sky Broadcasting says News Corp (NWS) �7 per share offer significantly undervalues company

� British Sky Broadcasting Plc said its independent directors have indicated they would be prepared to support a proposal from News Corp. for an offer in excess of 800 pence per share.� BBG

� Starwood Opposes Extended Stay Sale to Centerbridge, Blackstone - BBG

� AIG American International Group appears no closer to sale of Taiwanese unit � WSJ

� YRC Worldwide Inc., the trucking company that hasn�t posted an annual profit since 2006, said it may sell some assets or business lines to raise the cash it needs to expand.� BBG

� GENZ:� Genzyme Isn�t for Sale After Icahn Fight, CEO Says - BBG

� Sunrise offers $4.8B for 29% stake in Exxon Mobil oil venture in Nigeria - FT

� IFX up 2% - hired JPM to find buyer for mobile chip unit � BBG

� Infineon Technologies hires JPMorgan to help search for a buyer for its mobile-chip unit � FTD

� BP stories:

� BP hires bankers but denies its to defend takeover � BBG

� BP long-term issuer default rating cut to BBB from AA; outlook evolving at Fitch

� BP's payment of damages to victims of the Gulf of Mexico oil spill is a more important priority than the company's profitability, a top Democrat said Monday. The Hill

� BP made cost-cutting decisions against the advice of contractors that increased the risk of problems in GoM � WSJ

� Exxon Distances Itself From BP�s �Dramatic Departure� in Gulf � BBG

� �We need to know if the levels of risk taken went beyond industry norms,� said Tillerson

� Efforts to Repel Gulf Oil Spill Described as Chaotic

� Officials in the gulf states say the sprawling cleanup effort is being hampered by a lack of clear authority and communication, among other problems.� The NYT reports.

� BP Bankruptcy Would Offer No Protection From Gulf Cleanup Costs - restructuring experts said - BBG

� OBAMA SAYS GULF SEAFOOD SAFE; U.S. WILL MONITOR FISH SAFETY � BBG

� Obama Picks Five Members for Panel Investigating BP Oil Spill

� Societe Generale [GLE.FR]: Targeted 2012 net earnings of �6B higher than estimates of �5.4B. Noted that the performance in the equity unit during Q2 was mixed due to lower risk appetite � TTN

� UBS:�� Switzerland's lower house has approved the crucial Swiss/US tax deal concerning UBS (+2.04%) in its second vote, but has again called for a referendum on the matter.� S&P

� LNC raises funds to exit TARP

� AIG to Be Final Insurer on TARP as Lincoln Plans Exit ..BBG

� �American International Group Inc., recipient of the first and the biggest of U.S. insurer bailouts, will become the last carrier with public funds now that Lincoln National Corp. plans to repay its rescue.

� UAUA UAL Corp guides Q2 traffic to +2.8-3.8%; guides Q2 capacity to +0.9%

� THC +3.3%- raised 2010 guidance mostly do to better cost management. THC also gave a volume update, and volumes look to be trending only slightly up following a disappointing Q.

� Consumer:� ELY -7.2%- issues Q2 guidance below expectations. ELY cited economic and political instability in Asia and Europe, a slower recovery in the U.S., and unfavorable weather. MGMT also seemed cautious saying ELY expects a return to profitability in 2010 when previous guidance in 210 was $0.25-35

� Consumer:�� LZB -2.1%- reported a slightly better Q4 and said SSS were up in the Q. There was some cautious guidance as LZB mgmt said they remain cautious going into FY11

� Consumer:�� HSY

� Consumer:�� Tesco Plc declined 0.5 percent after reporting sales growth that missed analysts� estimates

� Tesco's� a reassuring quarterly trading update, noting that while customers in the UK continue to face some uncertainties about their personal finances going forward, it still sees evidence of a steady consumer recovery � S&P

� Heidelberger Druckmaschinen AG declined 5.3 percent to 8.25 euros after saying its full-year loss narrowed to 229 million euros from a loss of 249 million euros. The maker of printing presses also plans a capital increase to raise about 420 million euros ($513 million).� BBG

� Tech:� Advanced Semiconductor Engineering (2311.TT) was unchanged despite a report it expects Q3 earnings to rise sequentially � SA

� Honda China Workers Suspend Strike as Talks Continue - BBG

� Caterpillar �Concerned� About Australian Mining Tax - BBG

� Caterpillar Inc., the world�s largest maker of construction equipment, said Australia�s proposed 40 percent tax on mining profits may hurt the company�s sales in the country.

� Posco (005490.KS) slipped on a report it may agree to a 25-30% price increase for iron ore for Q3 this week � SA

� Ambac Has Alternatives to Bankruptcy, Chairman Says - BBG

� Ambac Financial Group Inc. has alternatives to bankruptcy, including a possible infusion of capital from financial companies that have sold credit-default swap protection on it, the bond insurer�s chairman said

� �Someone who has sold protection has a strong interest in preventing a bankruptcy,� Michael Callen said today at Ambac�s annual shareholder meeting in New York. �Someone who sold protection could put money into your company.�

� Banks , credit cards, consumer:� master trust data today�COF Capital One reports May managed trust charge-off and delinquency data

� US Cards look better first blush .. annualized net charge-off rate 9.48% vs 9.68%

� GS:� Most of Goldman�s big customers are not bolting � NYT

� �We trust them,� Jeffrey R. Immelt, the chief executive of General Electric, told an audience at the 92nd Street Y in New York last month. �People need to tone down the rhetoric around financial services and stop the populism and be adults.�

� Most� of those clients reevaluating� are linked to government agencies, where appearances, and politics, matter

� http://www.nytimes.com/2010/06/15/business/15sorkin.html?adxnnl=1&ref=todayspaper&adxnnlx=1276588886-CB7XJrK0qVc/gmzrl53XJg

� Politics in focus:� Banks, Jobs, Private equity and Hedge fund taxes, credit-rating firms �.

� Financial reform:� WSJ: US Sen Lincoln Pitches Tamer Bank Bill

� The key senator who has championed strict rules on derivative trading for banks has offered a retooled version of her plan that would allow banks to keep derivatives-trading businesses but could force them to raise billions in capital to do so

� Regulators had opposed the original plan by Senate Agriculture Committee Chairman Blanche Lincoln (D., Ark.) which initially appeared to force banks to get rid of their derivatives businesses entirely

� The new proposal, which is opposed by Wall Street, is more likely to pass Congress. The two-page plan from Sen. Lincoln is one of the first in what is expected to be a series of offers and counteroffers as House and Senate Democrats reconcile differences between their dueling financial regulation bills.

� http://online.wsj.com/article/SB10001424052748703685404575307042349354142.html?mod=WSJ_newsreel_business

� Financial reform:�� Sen. Blanche Lincoln's derivatives-spinoff plan gains support in Congress - WP

� According to the clarifications, Lincoln's measure would force bank holding companies to spin off their swaps operations outside their federally insured bank but allow firms to retain that business in a separate affiliate. It also would give holding companies two years to institute the changes, and essentially exempt all but the largest banks

� http://www.washingtonpost.com/wp-dyn/content/article/2010/06/14/AR2010061404979.html?wpisrc=nl_cuzhead

� Financial reform:�� Lobbyists Can't Reach Lawmakers - WSJ

� Wall Street's lobbying army is working to shape the final financial-overhaul bill, but it has gotten harder to get through the door with some lawmakers.

� One bank has complained that it no longer has access to House Financial Services Committee Chairman Barney Frank

� http://online.wsj.com/article/SB10001424052748703685404575307081643180328.html?mod=WSJ_hps_LEFTWhatsNews

� Financial reform:� undue influence by industry??�

� WSJ(6/15) House Members In Ethics Inquiry

� A congressional ethics office has begun examining eight House lawmakers to see if there were improper links between campaign fund-raising and the financial regulatory overhaul bill still before Congress, according to lawmakers

� The Office of Congressional Ethics also sent letters to lobbyists in recent weeks requesting information. The office wants to know the times of possible donations and is requesting documents and correspondence about the donations, according to a letter sent to one such lobbyist.

� There is no obvious common thread to the eight lawmakers. The five Republicans voted against the� bill. The three Democrats voted for it

� Financial reform:� credit-rating firms

� House and Senate negotiators are heading for a clash over how to toughen oversight of credit-rating firms.

� House lawmakers are seeking to strip language from a financial-overhaul bill that credit-rating firms believe would put them at greater risk for private lawsuits, according to a summary of the House position circulated Monday.

� House lawmakers also want to nix a clearinghouse designed to address conflicts of interest inherent in the ratings business.

� If the House negotiators prevail in either endeavor, it would be a win for credit-rating firms that have chafed against some of the Senate bill's stiff regulatory provisions.

� On Tuesday, negotiators hammering out the differences between the House and Senate versions of the broader financial-overhaul measure are slated to debate the provisions covering credit-rating firms.

� http://online.wsj.com/article/SB10001424052748703685404575307403951378716.html?mod=WSJ_newsreel_business

� Financial reform:� credit-rating firms

� Financial-reform legislation might go easier on rating agencies

� A proposal to crack down on conflicts of interest by credit rating agencies might be set aside for the future as the House and the Senate work on reconciling their versions of legislation to overhaul financial regulation in the U.S. The Senate bill calls for a government panel empowered to eliminate rating agencies' conflicts of interest. However, Rep. Barney Frank, D-Mass., head of the House-Senate conference committee, wants a one-year study of the issue instead. Reuters (15 Jun.)

� Democrats' tax bill moves toward vote in US Senate

� (Reuters) - A Democratic plan to extend benefits for the jobless that would also more than double the tax rate for investment fund managers will likely get its first test on Wednesday in the U.S. Senate.

� the majority Democrats remain shy of the 60 votes necessary. They need to attract as least one Republican plus keep all of the 59 votes they generally hold in the chamber

� Republicans have offered a stripped-down alternative that would extend unemployment insurance for 30 days, but excludes the controversial tax-raising provisions. It also excludes a provision extending tax-exempt Build America Bonds

� http://www.reuters.com/article/idUSN1422565120100614

� jobs bill.�� Unions press Senate to change jobs bill - thehill

� The AFL-CIO is pressing the Senate to add an extension of unemployment and healthcare benefits to a new jobs bill.

� In arguing for the bill, Samuel cites an estimate by the Economic Policy Institute, a liberal think tank, that the bill would create 1 million jobs.

� http://thehill.com/business-a-lobbying/103135-unions-press-senate-for-changes-to-jobs-bill

� Congressional Democrats were stewing Monday over President Obama's urgent appeal for more spending on the economy, saying they share his goals but need more help from the White House to fend off rising concern among rank-and-file lawmakers about budget deficits.� WP

� http://www.washingtonpost.com/wp-dyn/content/article/2010/06/14/AR2010061405395.html?wpisrc=nl_cuzhead

� New York Fed�s Enhanced Powers May Come With Reduced Autonomy - BBG

� Senate and House negotiators meet today to begin hammering out a financial-regulation bill that puts the New York Fed at the forefront of the central bank�s new role as overseer for financial stability. Lawmakers also want its chief, now nominated by the bank�s board, to be a White House appointee

� Economics today :

� May Import Price Index, Jun Empire Manufacturing at 08.30 ET

� Apr TIC Flows at 09.00 ET

� Jun NAHB Housing Market Index at 10.00 ET

� ABC Consumer Confidence at 17:00 ET

� Earnings:

� Companies reporting before the open include: BBY

� CBOE, the Chicago Board of Options Exchange, is expected to trade as a public company for the first time.

� The executives of major oil companies�Exxon, Chevron, Royal Dutch Shell, Conoco Phillipsnd BP America �testify before the House Energy and Commerce Subcommittee on Energy and the Environment at 9:30 a.m.

� Obama addresses the nation on the oil spill crisis at 8 p.m. from the White House, ahead of his Wednesday meeting with BP executives.

� On the financial regulatory reform front, a joint House and Senate committee will convene to work on a compromise bill.

� Chile May Raise Rate From Record Low 0.5% as Economy Rebounds�. The board is scheduled to announce its decision after 6 p.m. New York time (BBG)

TODAY�S BIG STORIES

� Equity Wrap:

o We barely closed higher but then again, we shouldn�t have been up 1% across the board anyway. If it is Greece�s downgrade out of moody�s that created the sell-off then we really have issues. I think it is a classic example of the market not having a clue on the next move by investors. Einhorn is right, none of those guys should exist anyway, especially not in the manner in which they currently make a living. You need one only and not for profit. It was a really quiet day with most from what I saw not really participating with the early green, yet there were few sellers, which was sort of a melt-up and shorts did some covering earlier in the day and continued as the day wore on. Technically we couldn�t get thru the 200 day on the spz but all said and done, it was a ho hum day with not much to go by. You had some decent comments out of tech with tsm having kind words, and ITW and some of the industrial guys had reaffirmed guidance at the wells Fargo conference. It felt like Europe with most of the focus being on soccer fifa

o Breadth to the market had declining issues outnumber advancing issues by 1 � -1. While internally, sell names outnumbered buy names 1 �-1

o In the early going, S&P futures were up between 8 and 10 points, helped by strong overseas markets (in Asia, TSM�s CEO had positive comments, while Industrial Production in Europe surprised to the upside: up 0.8% vs. an expected 0.5%). Also helping equities was commentary that the �yield� on S&P earnings is at its highest level since November of 2008 (S&P profit divided by price is 4.4% higher than the average interest rate on investment grade bonds), making equity cheap relative to debt.

o Once the cash market opened, futures added to their gains, reaching 1101.50 by midmorning. At this level, futures encountered technical resistance (5/27 high, 6/03 high, as well as the 200 day moving average), just as Moody�s announced that it was cutting Greece�s credit rating four steps to junk. S&P�s spent the balance of the session giving up all their gains to close near unchanged on the day. The cash index ended off 0.2% after being up as much as 1.3%. The Industry groups that gained were mostly defensive: Utilities up 0.41% and Consumer Staples up 0.37%, while the risk trade fared poorly with Materials off the most, down 1%. In stock specific action, BP fell 9.7%, while SNDK rose 6.1% (positive Barron�s article). There were two M&A deals; however, the target in each case was not a publicly traded company: CVC (off 5%) agreed to buy Breslan for $1.36B, and Norsk will buy Vale�s Aluminum business (for a 22% stake in VALE).

o Financials underperformed: led lower by BKX (0.78%) on continued reporting of possible regulation, especially as related to swaps trading desks.

o (Billy Clark and team)

� Treasury�s Wrap:

o Relatively quiet day in Treasuries that found the market opening up lower overnight versus Friday's closes on profit taking and risk as the Euro bounced to as high as 1.23 coupled with world equities better bid (China and Australia were closed for holidays). The selling continued in the early New York session with a curve steepening bias on light flows. Treasuries found a quick bounce in the early afternoon as Moody's downgraded Greece to junk which once again put pressure on the Euro and equities. At 3PM, Treasuries erased much of their early loses with the curve steeper, 2/10s steeper by 3.5bps, 2/30s steeper by 4.5 (these levels were off the wides earlier in the morning).

o The market will once again eye the Euro world equities and the Sew economic sentiment from Germany for direction in Treasuries overnight. We continue to favour a small long with a curve flattening bias given the global uncertainly and diminishing inflation pressures. The US economic calendar picks up tomorrow with import prices and NAHB housing although many will be awaiting May's inflation reports on Wednesday and Thursday. The Treasury will also be announcing next week's coupon supply on Thursday. We expect them to continue to decrease their issuance sizes with the 2 year cut by $2Bln to $40Bln, 5 year cut by $1Bln to $39Bln and 7 year cut by $1Bln to $30Bln.

o Also to note short end of the Treasury bill curve continues to trade extremely well given quarter end approaching and SEC rule 2a-7.

o Primary Dealer

� Investment grade Wrap:

o Industrials/Energy/Utes � Salemo

o Mixed activity to start the week with spreads unchanged for the most part and the only new issue was $2BN from formerly AAA Toyota coming at +120 and +130 in 2015 and 2020 respectively. Buyers remain selective and we have a number of 3-5yr buyers of higher quality names as we traded CAT, ROSW, PEP, PFE, MDT, and others in 3-5yrs and went out buyers of NOVART 14s. The backup in treasuries saw little to no increase in the amount of long inquiry � we have some buy interest in pharma and more so in utilities. Gulf spill paper was mixed as well as BP cds leaked wider throughout the day and the BPLN 4.75 19 have run into renewed selling wrapped around $90. APC and RIG were better bid, we continue to have better sellers into the strength.

o Greece being cut to junk by S&P had seemingly no impact on spreads, guess everyone took comfort in the fact that they were left stable outlook.

o Front End � Pezzella

o Flows were thin, with a better tone

o Still seeing better buyers og A-AA non bank and finance GSK 13's traded 58-50 today...still seeing better sellers of paper........

� Credit Markets:� Euro Turmoil Sends Borrowers to Loonies, Francs - BBG

o A drop in the euro to near its lowest level in four years means Canadian dollars and Swiss francs are accounting for record shares of global bond sales as investors flee turmoil in Europe�s government debt market.

o General Electric financing arm has led C$5.66 billion ($5.48 billion) of bond sales in June, 10.5 percent of the total and double the share in May, according to data compiled by Bloomberg. Issuance in Switzerland�s currency jumped to 3.08 billion francs ($2.7 billion), or 5.1 percent of sales, from 1 percent in the previous month, as companies including Bayerische Motoren Werke AG of Munich tapped the market

� Companies loaded with cash restart stock buybacks alongside dividend bumps- LATimes

o AP) � Companies that have lots of cash but don't want to go on buying sprees or ramp up production are increasingly buying back their own shares this year, often announcing the plans in tandem with dividend increases

o The moves can bolster a stock's price by cutting supply. It also can boost the key Wall Street metric of earnings per share because the company's profit is measured against fewer outstanding shares

o By reinstating programs frozen during the recession or by starting new buybacks companies are indicating they feel comfortable cutting their record cash levels. But the trend also indicates companies expect slow growth, Marc Pado, a market strategist at Cantor Fitzgerald, said Monday

o http://www.latimes.com/business/nationworld/wire/sns-ap-us-buybacks-on-rise,0,4221266.story

� Muni�s:� Municipal-Debt Downgrades Rose in First Quarter, Fitch Says

o Municipal-debt downgrades outnumbered upgrades by almost 2 to 1 in the first quarter, extending a trend that began in early 2008 and that may continue at least through June, according to Fitch Ratings

o �The reduced credit grades on 38 issues, totaling $34.4 billion in state and local debt, compared with higher ratings given to 20 issues, or $5.5 billion, in the first quarter

� Muni�s:�� Illinois Downgrade, Tax Decline Weigh on $500 Million Bond Sale today - BBG

o plans to sell $496.7 million of debt backed by sales taxes today after two rating cuts and as consumers unexpectedly curbed buying in May.

� Muni�s:� The New York Legislature passed emergency spending bills for the 11th consecutive week, avoiding a state government shutdown as lawmakers debate how to close an $8.5 billion budget deficit for the year that began April 1 - BBG

�

� Taxes may weigh on stocks?:� Take Some Profits, Before the Tax Man Takes �Em � Kudlow on CNBC

o �As my old friend Art Laffer continually reminds us, the Tax Man is coming to town on January 1, 2011. Taxes are going up across-the-board. So investors should seriously consider selling into any stock market strength ahead of the tax deadline. Doing this will enable investors to lock in a lower capital-gains tax this year and beat next year�s higher rates. �

o http://www.cnbc.com/id/37690346

� Taxes:�� The Bush Tax Cuts�What Happens in December?

o The financial markets hate uncertainty and the 'Mother of All Uncertainties' is looming in December, when Congress is supposed to decide what will happen to the Bush tax cuts, which are set to expire at midnight on Dec. 31. This will become a dominant, and potentially negative story for the markets in the second half of this year.

o Most investors assume that there will be a fix, extending the tax cuts for most Americans, before Congress goes home. But of course, most investors and Washington watchers assumed there would be a fix last December on the estate tax, but the lawmakers abdicated. The gridlock is so pervasive that it could happen again.

o There are three scenarios for the tax cut end-game, and unfortunately it may not be certain which one will prevail until mid-December..see link for scenarios

o http://www.cnbc.com/id/37615962

� Taxes:�� Caymans Move Cut Transocean�s Tax by $2 Billion

o Tax Notes magazine, a weekly journal published by Tax Analysts, said Transocean�s filings with the Securities and Exchange Commission show it cut its overall global tax

� Hedge Funds: Hedge Fund Assets to Surpass Peak by Next Year - BBG

o The hedge fund industry�s assets should surpass $1.9 trillion, the record reached in mid-2008, as early as this year as U.S. pension funds add money to the pools, investment consultant Casey Quirk & Associates LLC said.

o The rebound in assets, which shrank to $1.4 trillion at the end of 2008, is being driven by inflows from U.S. institutional investors, particularly pension funds, Yariv Itah, a partner at the Darien, Connecticut-based firm, told the GAIM International hedge fund conference in Monaco today. He estimates U.S.

o investors will add about $400 billion to hedge funds before 2013, when assets will reach $3 trillion.

� Hedge Funds: Blackstone�s Wien Says Hedge Fund Returns May Halve � BBG

o Byron Wien, vice chairman of Blackstone Group LP�s advisory services division, said hedge fund returns may shrink by half as firms seek to protect investors� capital

o Returns may drop to 10 percent from 20 percent as funds lose their �zeal,� Wien, 77, told the GAIM International hedge fund conference at Monaco�s Grimaldi Forum today

o ��I�m worried that by trying to protect capital on the downside they give up too much on the upside,� he said. �The concept of hedge funds was to produce equity-like returns with bond-like volatility. The danger is we get bond-like returns with equity-like volatility.�

o �Hedge funds lost an average of 2.6 percent in May, the worst month since November 2008, according to the HFRX Global Hedge Fund Index. The S&P 500 retreated 8.2 percent

� Hedge Funds:�� Loeb�s Third Point Says U.S. SEC Has Dropped Its Probe, WSJ Says

o Daniel Loeb�s Third Pont LLC told investors in a letter dated June 11 the U.S. Securities and Exchange Commission has abandoned its investigation of the hedge fund

o probe began in 2008 and was related to New York-based Third Point�s communications with other hedge funds about investment and trading ideas, according to a letter to investors at the time.

� Fitch Says Hedge Fund Industry Showed Resilience This Year

o Fitch Ratings said that the hedge fund industry has show resilience in the year to date, but market volatility in May �highlighted funds� exposure to systemic risk and affected many strategies, including those focused on fundamental analysis and arbitrage.�

� Primedia Wins Dismissal of KKR Share-Buyback Suits � BBG

o Primedia Inc., publisher of free auto and real-estate guides, persuaded a judge to throw out claims that share buybacks unfairly benefited buyout firm Kohlberg Kravis Roberts & Co., the company�s controlling shareholder

o Delaware Chancery Court Judge Travis Laster today dismissed Primedia investors� lawsuits seeking to recoup monies for the company tied to the KKR buybacks after agreeing with the recommendation of an internal committee that the claims weren�t viable and could only recover a small amount of damages.

� UAW Hires BlackRock to Manage Part of Its VEBA Fund, WSJ Says

o The U.S. United Auto Workers Union, which controls about $45 billion in assets apart from its stakes in the three big U.S. car companies, hired BlackRock Inc. to manage parts of its UAW Retiree Medical Benefits Trust, the Wall Street Journal said, citing Eric Henry, the fund�s chief investment officer

o The trust, known as a VEBA, plans to switch half its funds in global stocks, 25 percent in fixed income, and 12.5 percent each in Treasury Inflation-Protected Securities and long-duration fixed income;

o it has started to draw down its hedge fund and real-estate investments, the WSJ said.

� US vs China:

o China criticizes U.S. request to let yuan increase in value

� The Chinese Foreign Ministry said U.S. officials shouldn't politicize the yuan's exchange rate. Ministry officials said the value of China's currency isn't responsible for the U.S. trade deficit. China is implementing policy to increase imports from the U.S., Foreign Ministry spokesman Qin Gang said. Imports from the U.S. in the first quarter increased 50% compared with the same period last year. China Daily (Beijing) (15 Jun.)

o Anti-China Trade Sanction in US a 'Huge Mistake': Roach

� America has trade deficits because we don't save, and America has trade deficits with over 90 countries," he said on CNBC Tuesday.

� However, with the Obama Administration "vulnerable" to both the House and the Senate leading up to the midterm elections, Roach said that there is a high possibility that President Obama will sign a bill to restrict the inflow of Chinese goods into the United States.

� http://www.cnbc.com/id/37699812

� Chinese Premier Urges Better Treatment of Workers

o Chinese Premier Wen Jiabao urged better treatment of the nation's vast army of migrant laborers as employees at a Honda factory suspended the latest strike that has laid bare growing worker assertiveness.

o In the most high-level comments to touch on migrant worker conditions since the strikes broke out, Premier Wen said he recognized that a new generation moving from poor villages to work in factories and on building sites would not be satisfied with the same tough conditions their parents endured.� CNBC

o http://www.cnbc.com/id/37698655

� China will make an announcement on Hong Kong�s political reform for 2012 by the end of this week, Radio Television Hong Kong reported today, citing Bruce Liu, chairman of the Association for Democracy and People�s Livelihood.

� Quants wanted:� SEC is hiring more experts to assess complex financial systems

o Although lawyers fill most of the SEC's ranks, the agency has been hiring experts with specialized quantitative skills and those who have worked on Wall Street who are hip to its tricks.

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/14/AR2010061404757.html

� France Cancels Bond Auction Scheduled For August 5

o The French Treasury Agency said Tuesday it has canceled a government bond auction scheduled for August 5, citing the advanced state of the country's funding program for 2010.� DJ

� On Capitol Hill, concern over Afghan war grows - WP

o A series of political and military setbacks in Afghanistan has fed anxiety over the war effort in the past few weeks, shaking supporters of President Obama's counterinsurgency strategy and confirming the pessimism of those who had doubts about it from the start.

o http://www.washingtonpost.com/wp-dyn/content/article/2010/06/14/AR2010061405553.html?wpisrc=nl_cuzhead

� High court rules in favor of immigrants - WP

o Immigrants convicted of minor drug offenses should not face automatic deportation, the Supreme Court ruled unanimously Monday, a decision that could allow thousands of legal immigrants the chance to argue for leniency from immigration judges

� Healthcare Deform?:� Commercial insurers inaccurate on 20% of claims, AMA says - WP

o One in five medical claims is processed inaccurately by commercial health insurers, often leaving physicians shortchanged, the American Medical Association reported Monday in its third annual assessment of insurers.

� To trim deficit, GOP wants freeze on federal pay levels� - WP

o Looking to demonstrate their commitment to balancing the budget, Republicans are increasingly targeting the federal workforce.

� Obama plans to renew push for climate-change bill, aides say

o U.S. President Barack Obama and Democrats in Congress hope to channel public anger about BP's oil spill into support for legislation on climate change, aides said. A pollster for the Democratic National Committee said a broad energy bill could give Democrats an important boost in the midterm election. The Politico (Washington) (14 Jun.) , Los Angeles Times/D.C. Now blog (14 Jun.)

� North Korea Instability Should Draw U.S. Attention, � US Policy on NKorea Nukes Halfhearted

o The U.S. should prepare for potential instability in North Korea and be willing to use military action to prevent further nuclear tests by the regime or the sharing of technology with rogue states and terrorists

o The Washington-based Council on Foreign Relations stresses in a report that the countries involved in stalled talks on North Korea�s nuclear program -- the U.S., Japan, Russia, South Korea and China -- will have to cooperate closely to rid the Korean peninsula of nuclear weapons.� BBG

� South Korea Seeks �Appropriate� UN Action Against North Korea - BBG

o South Korea called on the United Nations Security Council to take �appropriate action� against North Korea for torpedoing the Cheonan warship, hours after the government replaced its top military commander.

� Mexican drugs war reaches new heights � FT

o Mexico�s bloody drugs war reached new heights after 10 federal police officers were killed in a single attack and at least 28 inmates died following a clash of suspected rival drug gangs in a prison

o http://link.ft.com/r/8P1R88/BMQDAH/SL6X6/0G5N74/GKQJ4K/9A/h

COMPANY NEWS WITH MACRO IMPLICATIONS

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

o + DVN, GLW, SMG, FLR and BIDU

o - STV

� TRANSPORTS

o UAUA UAL Corp guides Q2 traffic to +2.8-3.8%; guides Q2 capacity to +0.9%

Energy

� APC � WSJ defends �Anadarko Petroleum

o If BP were found to have been grossly negligent, Anadarko might be able to contest having to pay its share of any punitive damages. And while Anadarko no doubt faces a tougher, higher-cost regime in its important deep-water operations, it doesn't appear to be in danger of losing them altogether.

o http://online.wsj.com/article/SB20001424052748704324304575306743714082672.html#mod=todays_us_money_and_investing

� DVN� CEO Interview: Larry Nichols, co-founder and executive chairman of Devon Energy (DVN), tells Cramer that he is surprised that the price of natural gas has been so high this early in the season given that so many companies are drilling. He adds that prices point to strong demand and the expectation of natural gas replacing coal-fired power plants. Nichols also notes that natural gas is the only fuel that does not need subsidies or mandates, adding that Washington just needs to get out of the way and let the fuel compete on a level playing field.� CNBC

� BP (+0.7%). Fox Business Network report that BP have hired Goldman Sachs and Blackstone Group to help ward off possible takeovers. Obama has said that preliminary conversations with regards to setting up a mechanism to ensure Gulf claims will be paid fairly and promptly.

� Batteries�VLNC -4.2% (earnings)

� KEG Key Energy Services reports May operating metrics

� FSLR, SPWRA CLSA initiates First Solar initiated outperform with $130 target; SunPower initiated underperform with $15 target

� CLB Core Labs announces two-for-one stock split

� ATW Atwood Oceanics announces drilling contract

� QTWW Quantum Fuel enters agreement for purchase and sale of ~5109 common stock units

� APC WSJ says investors feeling brave should not ignore Anadarko Petroleum

� XOM Sunrise offers $4.8B for 29% stake in Exxon Mobil oil venture in Nigeria - FT

� BP BP made cost-cutting decisions against the advice of contractors that increased the risk of problems in GoM -- WSJ

� UTILITIES

o AES AES Corp to acquire development pipeline in Poland

o AWK Missouri American Water acquires Lake Tamarack wastewater system in Cedar Hill

o ENOC EnerNOC secures Tennessee Valley Authority board approval for 10-year, 560 MW demand response resource

Tech/media/ telecom sectors

� MSFT: Target memo shows Xbox 360 price drops, second slim model planned- AfterDawn.com

� NWSA News Corp offered to buy all of BSkyB- Reuters

� http://www.reuters.com/article/idUSN1423171820100614

� NWSA: BSkyB rejects $11.6 bln News Corp buyout proposal, but it would be prepared to recommend an offer of over 800 pence per share � Reuters

� CVC: WSJ discusses the Cablevision for Bresnan Comm deal- WSJ

� TKTM Ticketmaster-CitySearch CEO defends deal- CNET

� IFX: Infineon mulls options for wireless business- FTD

� http://www.reuters.com/article/idUSLDE65E04720100615

� Twitter: TomTom To Announce Twitter Deal In Coming Days- DJ

� AMT: in talks for RComm's arm- Economic Times

� ASE: Advanced Semiconductor Engineering was unchanged despite a report it expects Q3 earnings to rise sequentially � SA

� RIMM is testing a touch-screen smartphone with a slide-out keyboard and is also experimenting with a tablet device to serve as a larger-screen companion to its BlackBerry phone- WSJ

� Virgin Gaming prepares to enter game wars - London Times

� http://business.timesonline.co.uk/tol/business/industry_sectors/media/article7150161.ece

� Wireless: Kerry, Snowe urge FCC to hurry up on freeing spectrum for wireless the hill

� Facebook: Some Game Developers Don't 'Like' Facebook's New Virtual Currency- WSJ

� http://online.wsj.com/article/SB10001424052748704764404575287123371328524.html?mod=WSJ_hps_sections_tech

� T-Mobile plans to give free phones to customers who sign up for group calling plans at its retail stores on Saturday- AP

� Solar: German government still leaning towards same FIT cut- Digtimes

� LCDs: Samsung takes lead in US LCD TV market in 1Q10- iSuppli

� Smartphones: Asia Pacific to become the largest smartphone market by 2012- Canalys

� GOOG: More Droid 2, Droid X details surface in leaked com- Engadget

� AAPL. T: iPad still has a major browser vulnerability, says group behind AT&T security breach- Engadget

� Music: Video games to triple music market by 2014- PwC

� Videogames: business poised for rebound- reuters

Miners/ steel sectors� etc

� Caterpillar �Concerned� About Australian Mining Tax - BBG

o Caterpillar Inc., the world�s largest maker of construction equipment, said Australia�s proposed 40 percent tax on mining profits may hurt the company�s sales in the country.

� Posco (005490.KS) slipped on a report it may agree to a 25-30% price increase for iron ore for Q3 this week � SA

� POT Potash reports May producer ending inventories

� CLF Spider Resources announces it receives superior proposal from Cliffs

� KMGB KMG Chemicals signs exclusive distribution agreement with Solvay Chemicals for farm hygiene product

� X U.S. Steel challenge of Investment Canada Act rejected by Federal Court of Canada - Globe and Mail

INDUSTRIALS

� Weekly USDA crop report says 77% of corn in good or excellent condition, compares to 76% last week and compares to 70% in prior year.

�

� BMS Bemis reaches agreement to sell 2 facilities to Exopack Holding for $81M

� VLNC Valence Technology guides Q1 revenue

� CPST -8.6% (earnings) ..CPST Capstone Turbine reports Q4 EPS

� GMR General Maritime files 25.5M share secondary offering through Goldman, Dahlman Rose, Jefferies and JPMorgan

� GEF Greif announces flexible products joint venture

� VLNC Valence Technology reports Q4 EPS

� NGA, AZZ AZZ Inc. completes offer for North American Galvanizing

Autos sector:�

� LAD Lithia Motors enters separation agreement with CFO Jeffrey DeBoer

� Volkswagen may spend NT$1B (�25.4M) to set up factory in Taiwan - Economic Daily

� Peugeot Citroen may get back into India - Economic Times

� Honda China Workers Suspend Strike as Talks Continue - BBG

� European Automobile Manufacturers' Association (ACEA) Commercial Vehicles Registrations (9.3%) y/y in May

o ACEA reports May new passenger car registrations for EU15 + EFTA of 1,129,508 (9.3%) y/y. Broken down by Group, percentage change representing change year over year:

o Volkswagen (VOW.GR) 249,100 (8.2%),

o PSA (UG.FP) 157,257 (5.3%),

o GM (GM) 93,947 (19.4%),

o Renault (RNO.FP) 118,631 +5.9%,

o Fiat (F.IM) 88,900 (22.7%),

o Daimler (DAI.GR) 58,681 (4.6%),

o Toyota (TM) 43,790 (23.1%),

o BMW (BMW.GR) 61,577 (2.7%),

o Nissan (NSANY) 30,035 +17.9%,

o Honda (HMC) 14,191 (24.5%).

o Ford (F) 106,485 (13.2%).

Financials:

� COF Capital One reports May managed trust charge-off and delinquency data

US Cards look better
net principal charge-offs $436.2M vs $451.7M;
annualized net charge-off rate 9.48% vs 9.68%
30 days + delinquencies $2.64B vs $2.81B for a rate of 4.80% vs 5.07%

� CBOE CBOE Holdings 11.7M share IPO priced at $29 through Goldman; priced at the high end of the projected $27-29/share range � Reuters

� HFBC Hopfed Bancorp to offer 3.04M shares in secondary offering through Howe Barnes Hoefer & Arnett

� KFS Kingsway Financial says it plans to sell its wholly owned subsidiary, Mendota Insurance Company

� VR Validus Holdings announces final results of modified Dutch auction tender

� CINF Cincinnati Financial Corporation announces Q2 catastrophe losses

� NYX NYSE Euronext and FINRA complete planned oversight agreement

� AIG American International Group appears no closer to sale of Taiwanese unit -- WSJ

� CCNE CNB Financial 2.9M-share secondary priced at $10.25/share through RBC Capital -SA

� LNC Lincoln National 12.3M-share offering priced at $27.25 per share through JPMorgan

� ORIT Oritani Financial initiated outperform at Keefe, Bruyette & Woods; target is $17.50.

o Financial reform:� WSJ: US Sen Lincoln Pitches Tamer Bank Bill

� http://online.wsj.com/article/SB10001424052748703685404575307042349354142.html?mod=WSJ_newsreel_business

o Financial reform:�� Sen. Blanche Lincoln's derivatives-spinoff plan gains support in Congress - WP

� http://www.washingtonpost.com/wp-dyn/content/article/2010/06/14/AR2010061404979.html?wpisrc=nl_cuzhead

o Financial reform:�� Lobbyists Can't Reach Lawmakers - WSJ

� Wall Street's lobbying army is working to shape the final financial-overhaul bill, but it has gotten harder to get through the door with some lawmakers.

� One bank has complained that it no longer has access to House Financial Services Committee Chairman Barney Frank

� http://online.wsj.com/article/SB10001424052748703685404575307081643180328.html?mod=WSJ_hps_LEFTWhatsNews

o Financial reform:� undue influence by industry??�

� WSJ(6/15) House Members In Ethics Inquiry

� There is no obvious common thread to the eight lawmakers. The five Republicans voted against the� bill. The three Democrats voted for it

o Financial reform:� credit-rating firms

� House and Senate negotiators are heading for a clash over how to toughen oversight of credit-rating firms.

� House lawmakers also want to nix a clearinghouse designed to address conflicts of interest inherent in the ratings business.

� If the House negotiators prevail in either endeavor, it would be a win for credit-rating firms that have chafed against some of the Senate bill's stiff regulatory provisions.

� http://online.wsj.com/article/SB10001424052748703685404575307403951378716.html?mod=WSJ_newsreel_business

o Financial reform:� credit-rating firms

Financial-reform legislation might go easier on rating agencies
A proposal to crack down on conflicts of interest by credit rating agencies might be set aside for the future as the House and the Senate work on reconciling their versions of legislation to overhaul financial regulation in the U.S. The Senate bill calls for a government panel empowered to eliminate rating agencies' conflicts of interest. However, Rep. Barney Frank, D-Mass., head of the House-Senate conference committee, wants a one-year study of the issue instead. Reuters (15 Jun.)

o Democrats' tax bill moves toward vote in US Senate

� the majority Democrats remain shy of the 60 votes necessary. They need to attract as least one Republican plus keep all of the 59 votes they generally hold in the chamber

� http://www.reuters.com/article/idUSN1422565120100614

o New York Fed�s Enhanced Powers May Come With Reduced Autonomy - BBG

o investment bank underwriting fees under pressure:� Resolution is close to securing a ground-breaking deal to slash investment bank underwriting fees on a rights issue to fund a �2.75 billion acquisition of Axa�s UK life business

� http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7150101.ece

o Ambac Has Alternatives to Bankruptcy, Chairman Says - BBG

o GS:� Most of Goldman�s big customers are not bolting � NYT

� Most� of those clients reevaluating� are linked to government agencies, where appearances, and politics, matter

� http://www.nytimes.com/2010/06/15/business/15sorkin.html?adxnnl=1&ref=todayspaper&adxnnlx=1276588886-CB7XJrK0qVc/gmzrl53XJg

o Societe Generale CEO: Rules Out Capital Increase To Fund Buys - DJ

� SocGen CEO: Co's Exposure To Weaker Euro-Zone Economies Modest

� SocGen CEO: Markets Overreacted On Weaker Euro-Zone Economies

o LNC raises funds to exit TARP

� AIG to Be Final Insurer on TARP as Lincoln Plans Exit ..BBG

o UBS:�� Switzerland's lower house has approved the crucial Swiss/US tax deal concerning UBS (+2.04%) in its second vote, but has again called for a referendum on the matter.� S&P

o Swiss Parliament OKs UBS Deal�� WSJ

� The Swiss Parliament Tuesday approved a treaty with the U.S. that will hand thousands of files on suspected tax cheats to U.S. authorities.

� A majority of 81 to 61 lawmakers in Switzerland's lower house have voted in favor of the government-backed deal. Fifty-three lawmakers abstained on the issue that has been portrayed as a nail in the coffin for Swiss banking secrecy.

� http://online.wsj.com/article/SB10001424052748704009804575307992271877132.html?mod=WSJ_hps_LEFTWhatsNews

o CM.CN Canadian Imperial to acquire $2.1B Canadian MasterCard portfolio from Citigroup� - SA

� The transaction is expected to be accretive to CIBC's earnings during the first year following its closing

Real Estate:

� REITS

o CYS Cypress Sharpridge files $750M mixed shelf

o CYS Cypress Sharpridge increases quarterly dividend by 9.1% to $0.60 from $0.55

o FCH FelCor Lodging announces 25M share secondary offering through JPMorgan, Goldman, BofA, and Deutsche

o STWD Starwood Property Trust authorizes repurchase of up to $50M in commons shares over the next year

� HOMEBUILDERS

o MHO M/I Homes announces new credit facility

o LEN, SPWRA Lennar, SunPower to partner to make solar-powered homes easier to afford - LA Times�

� SVLF Silverleaf Resorts extends revolving credit facility

� Starwood Opposes Extended Stay Sale to Centerbridge, Blackstone - BBG

o Starwood Capital Group, which lost an auction for Extended Stay Inc., said it will continue to compete for the hotel chain and try to defeat a planned sale to Centerbridge Partners LP, Paulson & Co. and Blackstone Group

o Starwood said in a court filing yesterday that the deal undervalues Extended Stay. It said it plans to seek a judge�s permission to propose a competing plan to restructure the hotel company and take it out of bankruptcy

o �Creditors should be given an opportunity to vote on each of the plans and select the plan that they believe results in the highest and best recovery,� Starwood said.� BBG

� Analysis: Commercial real estate market springs back to life

o The pace of commercial-property acquisition is picking up in a way that might continue for some time, Morningstar's Todd Lukasik writes. "We believe the large amount of capital that [real estate investment trusts], pension funds, and private investment funds have amassed for commercial real estate investment has, to date, overwhelmed the available supply of assets for purchase," Lukasik notes in an analysis of the commercial real estate market. Morningstar (14 Jun.)

o Radical Ideas From a Federal Housing Bureaucrat WSJ

� Mr. Lawler launched a frontal assault on the most sacred element in U.S. housing-policy dogma: the 30-year fixed-rate mortgage loan, providing the right to refinance at any time, with no prepayment penalty. If more members of the audience had been fully awake at this moment, I feel sure that their gasps would have been audible.

� http://blogs.wsj.com/developments/2010/06/14/radical-ideas-from-a-federal-housing-bureaucrat/

� Lennar (LEN), SunPower (SPWRA) to partner to make solar-powered homes easier to afford - LA Times

o Tomorrow, the companies will announce a plan allowing home buyers to lease rather than buy solar panels. Customers will make monthly payments to SunPower averaging $65 for ten years, or $7,800 total, basically buying the electricity that the panels produce, vs paying an extra $20K to purchase the entire system when buying the home. Rebates and tax credits reduced the $20K cost, and the article does not specify exactly how much cheaper the new option will be.
Reference Link

� Reid�s proposal on home tax credit boosts campaign theme - thehill

o Senate Majority Leader Harry Reid (D-Nev.) has underscored his campaign theme with a new proposal to help homebuyers.

o Political experts in Nevada say real estate could emerge as a major issue in Reid�s difficult reelection fight.

o Nevada has the highest property foreclosure rate in the nation

o http://thehill.com/homenews/senate/102901-reids-proposal-on-home-tax-credit-boosts-campaign-theme

� A U.K. house-price gauge climbed in May to the highest level in four months as demand from homebuyers matched rising supply, the Royal Institution of Chartered Surveyors said.

� HEALTHCARE

o THC +3.3%- raised 2010 guidance mostly do to better cost management. THC also gave a volume update, and volumes look to be trending only slightly up following a disappointing Q.

o Healthcare: FDA to Propose Tougher Rules for Outsourcing Drug Manufacturing- WSJ

� The Food and Drug Administration said Monday it will propose stronger regulations for pharmaceutical companies that outsource manufacturing, putting more responsibility on the companies to ensure the purity and safety of products made by contractors.

� the FDA's Brian Hasselbalch said the agency may soon require companies to conduct on-site audits at outside contract manufacturing facilities

� http://online.wsj.com/article/SB10001424052748704324304575307421660792654.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

o GSK GlaxoSmithKline says FDA has approved Jalyn to treat symptomatic BPH in men with an enlarged prostate

o AMRI, RDY AMRI receives approval of preliminary injunction against Dr. Reddy's

o THC Tenet Healthcare increases f10 adjusted EBITDA forecast

o ENDP, PPCO Endo Pharmaceuticals and Penwest amend alliance agreement regarding Opana ER

o SURG Synergetics USA reports Q3 EPS

o HTWR HeartWare receives conditional FDA approval to commence pivotal destination therapy clinical trial in the US

o CBMX CombiMatrix names Mark McGowan interim CEO effective 1-Jul

o TRBN Trubion Pharmaceuticals provides update on clinical development in RA

ATRC +15.6% (FDA clearance for device) .. AtriCure receives FDA clearance for AtriClip Gillinov-Cosgrove Left Atrial Appendage Exclusion system

o HGSI NY Times positively profiles Human Genome

o CTT Competitive Technologies reports Q3 EPS

Consumer sector:�

� CASY Casey's General reports�in line to better.. Company raises dividend 18%

� HSY: Upped guidance based on move towards modernization. Hershey introduced a new modernization plan to eliminate HSY�s 100 year old facility in Hershey, PA while expanding capacity to the newer facility in West Hershey. HSY will make 500-600 job cuts as well. The projected cost savings are significant which should be a strong boost to long term margins. The move will be $250-300M capital investment

� ELY -7.2%- issues Q2 guidance below expectations. ELY cited economic and political instability in Asia and Europe, a slower recovery in the U.S., and unfavorable weather. MGMT also seemed cautious saying ELY expects a return to profitability in 2010 when previous guidance in 210 was $0.25-35

� LZB -2.1%- reported a slightly better Q4 and said SSS were up in the Q. There was some cautious guidance as LZB mgmt said they remain cautious going into FY11

� Tesco Plc declined 0.5 percent after reporting sales growth that missed analysts� estimates

� Walgreen to Honor CVS Deal �- WSJ link

� P&G Goes on Offensive for Pampers �- WSJ link

� Nestle taking legal action against Sara Lee (SLE) for patent infringement of Nespresso system in France - DJ

� CKR ISS Proxy Advisory Services (MXB) recommends CKE Restaurants shareholders vote for $12.55/share purchase by Columbia Lake Aquisition Holdings � SA

� SMBL Smart Balance updates f10 outlook

� RL Polo Ralph registers 10.4M class A shares for Chairman/CEO Ralph Lauren

� HSY Hershey to make $250-300M capital investment; updates 2010 guidance

� STAN, NRI Standard Parking says Nationwide Realty Investors has extended its contract to manage NRI's Arena District Parking Portfolio

� LOPE Grand Canyon Education provides update relating to litigation with US Department of Education, Office of Inspector Genereal Investigation

� TULY Tully's Coffee discloses resignation of CFO Andrew Wynne��

� AOI Alliance One reports Q4 GAAP EPS

� KFY Korn/Ferry reports Q4 EPS

� LZB La-Z-Boy reports Q4 EPS

� GMCR Pine State Trading to purchase Northeast region customer support business unit of Green Mountain Coffee Roasters

� VOL Volt Information delays 10Q filing

� RENT Rentrak reports Q4 EPS

� LAKE Lakeland Industries reports Q1 EPS

� CMRO Comarco reports Q1 EPS

� DF Dean Foods seeks to amend, extend its existing senior secured credit facilities

� GAMING LODGING & LEISURE

o VCGH VCG Holding says Courtney Cowgill has resigned as CFO, effective 11-Jun

o SVLF Silverleaf Resorts extends revolving credit facility

�

From our EU/London desk

� BNP-PARIBAS:�� May bid for Allied Irish Bank's stake- S&P

� NATIXIS:�� 'Not the right time to sell Coface' � CEO- S&P

� SOC GEN:�� Targets EUR 6bn net earnings in 2012- S&P

� UNICREDIT's�� capital adequate even under Basel III rules- S&P

� CONTINENTAL� to issue more bonds than planned- S&P

� HEIDELDRUCK�� cancels dividend- S&P

� INFINEON�� hires JPM to offload wireless chip business- S&P

� CIR�� postpones listing of KOS- S&P

� Endesa receives 10 bids for natural gas assets- S&P

� ALEXON:� On track despite 5.4% fall in LFLv

� BELLWAY:� Reiterates FY guidance- S&P

� BSKYB� rejects NewsCorp bid- S&P

� TED BAKER:� Group revenue up 18%, margins in line- S&P

� �TESCO:� UK LFL up 3.8%, +1.1% ex petrol� - S&P

TODAY�S EVENTS

INVESTMENT BANKING WRAP

M&A

� AIG No Closer to Approval for Taiwan Deal- WSJ

o Prospective buyers of American International Group Inc.'s Taiwan arm appeared no closer to approval of the deal Monday despite announcing a plan last week to support the insurer's capital ratio to address regulatory concerns

o http://online.wsj.com/article/SB10001424052748704324304575305973281942444.

� HOT Starwood Opposes Extended Stay Sale to Centerbridge, BX Blackstone- BBG

o http://www.bloomberg.com/apps/news?pid=20601103&sid=afLlfl2tXaXY

� NWSA News Corp offered to buy all of BSkyB- Reuters

o Rupert Murdoch's News Corp BSkyB with a bid to take full control of the British satellite broadcaster that valued the company at roughly 12B pounds ($17.6B), but it was rebuffed

o BSkyB, which has News Corp as its largest shareholder and Rupert Murdoch's son James as its chairman, rejected the bid as too low, the source said

o http://www.reuters.com/article/idUSN1423171820100614

� BSkyB rejects $11.6 bln NWSA News Corp buyout proposal- Reuters

o BSkyB rejected a proposal by major shareholder News Corp (NWSA.O) to buy the rest of the company in a deal that would value BSkyB at 12.3B pounds ($19 billion) but said it would recommend a higher offer

o it said it would be prepared to recommend an offer of over 800 pence per share. It noted that the June 10 proposal from News Corp, headed by Rupert Murdoch, was not a formal offer and was subject to regulatory and financing pre-conditions.

o http://www.reuters.com/article/idUSLDE65E0B820100615

� NWSA News Corp buys e-reader company Skiff- Reuters

o News Corp� branched into the digital reader market with the acquisition of Skiff, a Hearst-backed company that helps distribute newspaper and magazine content to e-readers and other devices

o The financial terms of the deals were not disclosed

o http://www.reuters.com/article/idUSN1421277220100614

� FT looks at the NWSA offer for BSkyB- FT

o http://www.ft.com/cms/s/0/dd5b0276-7818-11df-a6b4-00144feabdc0.html

� investment bank underwriting fees under pressure:� Resolution is close to securing a ground-breaking deal to slash investment bank underwriting fees on a rights issue to fund a �2.75 billion acquisition of Axa�s UK life business

o http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7150101.ece

� WSJ discusses the CVC Cablevision for Bresnan Comm deal- WSJ

o http://online.wsj.com/article/SB20001424052748704324304575306604014087116.html#mod=todays_us_money_and_investing

� TKTM Ticketmaster-CitySearch CEO defends deal- CNET

o Pushing a line some investors aren't buying, CEO Charles Conn of Ticketmaster Online-CitySearch today defended the USA Networks-Lycos merger, which includes his company, saying the Internet would account for more than 50 percent of the company's revenues within three years

o http://news.cnet.com/Ticketmaster-CitySearch-CEO-defends-deal/2100-1017_3-222003.html

� CKR ISS Proxy Advisory Services (MXB) recommends CKE Restaurants shareholders vote FOR $12.55/share purchase by Columbia Lake Aquisition Holdings- BBG

� IFX Infineon mulls options for wireless business- FTD

o German chipmaker Infineon� has hired JP Morgan (JPM.N) to map out a possible divestment of its wireless chip business

o The U.S. investment bank is looking into a range of options, including a sale

o http://www.reuters.com/article/idUSLDE65E04720100615

� TomTom To Announce Twitter Deal In Coming Days- DJ

o TomTom To Provide Twitter With Data For "Twitter Places"

o No Fincl Details On Twitter Deal

� AMT American Towers in talks for RComm's arm- Economic Times

o American Tower (AMT.N) is one of the three firms in talks to buy the telecoms tower unit of Reliance Communications (RLCM.BO), India's No. 2 cellular carrier

o A consortium of private equity firm Blackstone (BX.N) and Crown Castle International (CCI.N), and India's GTL (GTL.BO) are the other suitors, the newspaper said

o http://economictimes.indiatimes.com/news/news-by-industry/telecom/Suitors-line-up-for-RCOM-tower-arm-via-demerger/articleshow/6048672.cms

� YRCW YRC Says It May Sell Some Parts of Trucking Business- BBG

o YRC Worldwide, the trucking company that hasn�t posted an annual profit since 2006, said it may sell some assets or business lines to raise the cash it needs to expand

o The company didn�t say today which of its businesses it would consider selling

� GENZ Genzyme Isn�t for Sale After Icahn Fight, CEO Says � BBG

o The CEO is seeking to revive the drugmaker after sales slumped 2 percent to $4.5 billion last year, following the contamination of Genzyme�s Allston Landing plant in Boston with a virus

o The company resolved a proxy fight with Icahn, its biggest shareholder, on June 9. In agreeing to seat two of Icahn�s board nominees, Genzyme resolved conflicts posed by the Icahn candidates� work for competing biotechnology companies, Termeer said, calling it a �good settlement.�

� BP hires investment banks in wake of spill- Reuters

o BP Plc (BP.L) has hired investment banks Blackstone Group LP (BX.N), Goldman Sachs Group Inc (GS.N) and Credit Suisse Group AG (CSGN.VX) as advisers in the wake of its massive oil spill in the Gulf of Mexico

o BP has lost more than 40 percent of its market value since the explosion of the Deepwater Horizon rig that led to the oil spill

o BP hires bankers but denies its to defend takeover � BBG

o http://www.reuters.com/article/idUSWEN586720100614

� X US Steel loses challenge to Canadian lawsuit- Reuters

o Canadian judge on Monday rejected United States Steel Corp's (X.N) bid to block the government from seeking penalties for allegedly breaking promises made when it won Ottawa's approval to buy Stelco.

o http://www.reuters.com/article/idUSN1423354320100615

� Buyout Firm KFN KKR May Take Stake in Hollywood Agency- CNBC

o The legendary buyout firm Kohlberg Kravis Roberts is in heavy talks to take a potential stake in the Hollywood talent agency Creative Artists Agency according to people familiar with the matter, that could be priced at as much as $200 million.

o http://www.cnbc.com/id/37694076

� Primedia Wins Dismissal of KFN KKR Share-Buyback Suits- BBG

o Primedia, publisher of free auto and real-estate guides, persuaded a judge to throw out claims that share buybacks unfairly benefited buyout firm Kohlberg Kravis Roberts & Co., the company�s controlling shareholder.

� KFS Kingsway Announces Intention to Dispose of Mendota Insurance- BBG

� EnCana seeks billions from joint-venture partners- Reuters

o Encana Corp, Canada's largest natural gas producer, is prowling for partners that could help speed development of its unconventional gas fields, with its chief executive saying on Monday the company could see as much as $2 billion in new investment.

o "I would like to have a least a billion dollars of third-party money coming per year and the possibility to be twice that high," Eresman said

o http://www.reuters.com/article/idUSN1422384120100614

� CSR Expects Bright Food to Firm Bid in Few Weeks, Narrows Loss- BBG

o CSR Ltd., Australia�s second-largest building-products maker, expects Shanghai�s Bright Food Group Co. to return with a firm bid for its sugar unit in a few weeks, giving it an alternative to a plan to spin off the business.

o http://www.bloomberg.com/apps/news?pid=20601081&sid=aMmm9Nwc_bfQ

� CIBC to buy C Citigroup's Canada MasterCard business- Reuters

o Canadian Imperial Bank of Commerce (CM.TO), Canada's No. 5 bank, said on Monday it agreed to buy Citigroup's (C.N) C$2.1 billion Canadian MasterCard business, becoming a dual credit card issuer

o http://www.reuters.com/article/idUSN1422759020100614

� RL Ralph Lauren to Sell Portion of Polo Shares- WSJ

o Ralph Lauren, chairman and chief executive of Polo Ralph Lauren Corp., is selling approximately a quarter of his holdings in the company he founded, a move that could raise up to $955 million at Monday's closing price

o http://online.wsj.com/article/SB10001424052748704324304575307571764887284.html?ru=yahoo&mod=yahoo_hs

� LAZ Lazard banker covets Le Monde, political heights- Reuters

o Lazard's top banker in France, Matthieu Pigasse, could soon take a joint controlling stake in elite newspaper Le Monde in a bid to expand his influence outside business and into the heart of French political life.

o http://www.reuters.com/article/idUSLDE65D1JD20100615

� Le Monde sets deadline to find buyer- FT

o Le Monde, France�s most venerable newspaper, last night set a new deadline of June 28 for finding a buyer, a timetable that leaves only two potential candidates, including France Telecom, in the race to recapitalise the cash-strapped daily

o Le Monde is looking for a new buyer in return for an urgent investment of between �80m ($98m) and �120m

o http://www.ft.com/cms/s/0/820420c2-77ed-11df-82c3-00144feabdc0.html

� BMS Bemis reaches agreement to sell 2 facilities to Exopack Holding for $81M- BBG

� Sunrise offers $4.8B for 29% stake in Exxon Mobil oil venture in Nigeria � FT

o The Nigerian company with close ties to China has offered $4.8bn to buy stakes in ExxonMobil�s oil venture in the country, intensifying a tussle for sub-Saharan Africa�s biggest energy reserves.�

o Industry analysts estimated the joint venture�s reserves at between 1.6bn and 2bn barrels, with potential for more

o http://www.ft.com/cms/s/0/4a3f77d6-77ca-11df-82c3-00144feabdc0.html

� Nomura, MBK Partners in talks for KEB bid- Reuters

o Nomura Holdings is in talks to join private equity firm MBK Partners in its pursuit of the $3.5 billion Korea Exchange Bank (004940.KS) stake up for sale

o Sources said the discussions were in their early stages and no decision had been made. Joining forces with MBK was only one of several options being considered by Nomura

o http://www.reuters.com/article/idUSTOE65D06C20100614

� PT investor dismisses Telef�nica offer- FT

o A leading shareholder in Portugal Telecom warned on Monday that it would vote against accepting a �6.5bn offer from Spain�s Telef�nica to buy the Portuguese group out of Vivo, their Brazilian mobile phone joint venture

o Nuno Vasconcellos, chief executive of Ongoing, a Portuguese investment company that owns just less than 7 per cent of Portugal Telecom, said: �If this is the offer on the table, our response will clearly be not to accept it.�

o http://www.ft.com/cms/s/0/f48c11c2-77b1-11df-802a-00144feabdc0.html

� SocGen, BNP Said to Consider Bids for Allied Irish Unit Stake- BBG

o Societe Generale SA and BNP Paribas SA are among banks considering a bid for Allied Irish Banks Plc�s stake in Bank Zachodni WBK SA of Poland valued at about $3 billion

o Poland�s PKO Bank Polski SA and OAO Sberbank of Russia are also interested in making an offer for the 70 percent stake, said the people, who declined to be identified because the matter is private

o http://www.bloomberg.com/apps/news?pid=20601085&sid=a.9rGv0DWLPo

$ RAISING

IPOs

� Tesla Motors Files to Sell 11.1 Mln Shares in IPO- BBG

o Tesla Motors, a startup electric-car developer backed by Toyota Motor Corp. and Daimler AG, said it will sell 11.1 million shares at $14 to $16 each in an initial public offering.

o TSLA Tesla Motors 11.1M share IPO is ecpected to price in the range of $14-16 via JPM, GS, MS, DB

� ZOO Zoo Entertainment 2.625M share IPO is expected to price at $8 per share through Roth and ThinkEquity

� PEP PepsiCo not planning bottler spin-off- Reuters

o PepsiCo Inc (PEP.N) has no plans to spin off its newly acquired North American bottlers as rival Coca-Cola Co (KO.N) may do, an executive said on Monday.

o "We have no plans at this point for any kind of spin-off scenario," Tom Greco, chief commercial officer of PepsiCo's Americas Beverages, said at a conference

o http://www.reuters.com/article/idUSN1427137620100614

� CBOE Holdings Raises $339 Million Pricing IPO at Top of Range- BBG

o CBOE Holdings Inc., the operator of the largest U.S. options exchange, raised $339 million selling shares at the top end of the price range for its initial public offering.

o The sale was the first by an American company in two weeks after the European debt crisis spurred at least 33 companies worldwide to postpone or withdraw IPOs since the beginning of May

� CBOE seat sales imply $3 billion market value ahead of IPO- Reuters

o The Chicago Board Options Exchange's biggest investor boosted his stake in the No. 1 U.S. options market on Monday in a bullish bet that puts CBOE's value on the eve of its initial public offering at $3 billion

o The seat sales value CBOE shares at $29.69 and $29.38, respectively, above the expected IPO range of $27 to $29. The IPO is to be priced after markets close Monday

o http://www.reuters.com/article/idUSTRE65D4Y520100614?type=innovationNews

PRICINGS

o Initial Offerings

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 CBOE CBOE Holdings 11.7M share IPO price at the top of the range: $29

o Secondary Offerings

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

o LNC Lincoln National 12.3M-share offering priced at $27.25 per share via JPM

o CCNE CNB Financial 2.9M-share secondary priced at $10.25/share through RBC Capital

NEWS

� Cowdery goes it alone to cut banks� fees- London Times

o Clive Cowdery�s Resolution is close to securing a ground-breaking deal to slash investment bank underwriting fees on a rights issue to fund a �2.75 billion acquisition of Axa�s UK life business.

o The Times has learnt that Resolution has devised a new underwriting model with its shareholders � who include some of Britain�s biggest institutional investors � to act as a co-ordinated group of subunderwriters on a deal, reducing the role of the investment banks

o http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7150101.ece

� VSTNQ Visteon offers shareholders up to 5 pct of company- Reuters

o The plan, the fourth in a series of reorganization proposals by the auto parts maker, depends on approval by a bankruptcy court.

o Unlike previous plans that canceled Visteon's stock, the current plan provides a recovery to shareholders who have been battling for months for a payout.

o http://www.reuters.com/article/idUSN1423170320100614

� CGS Canwest creditors back newspaper restructuring- Reuters

o Creditors of the newspaper unit of Canwest Global Communications Corp (CGS.V) have voted overwhelmingly in favor of an amended restructuring plan that will likely see the business emerge from bankruptcy protection next month

o "(The plan) was supported by 97.36 percent in number of registered voters that represent 99.45 percent of the total claims value in dollar terms,"

o http://www.reuters.com/article/idUSN1421108120100614

� BAM Groep says 92.2% take up in rights offering

� GMR General Maritime to offer 25.5 mln shares; shares down- Reuters

o Oil tanker company General Maritime Corp (GMR.N) said it expects to offer about 25.5 million shares under its existing shelf registration to fund a portion of its previously announced acquisition of seven tankers.

o Shares of the company were down as much as 8 percent at $7.21 in trading after the bell on Monday

o http://www.reuters.com/article/idUSSGE65D0JU20100614

� Jupiter Investment Management IPO price range 160-170 per share; covered within that range; order book expected to close 1300GMT- SA

� Thaicom shares jump 13 percent on acquisition plan- Reuters

o Shares in Thai satellite operator Thaicom PCL extended gains, jumping more than 13 percent, on Tuesday after the government said it planned to buy the company or its satellites

o http://www.reuters.com/article/idUSTRE65E0E320100615?type=innovationNews

� First Capital Realty to raise C$50 mln in bought deal- Reuters

o First Capital Realty (FCR.TO), a developer of shopping centers, said it would raise about C$50 million in a bought deal and use the proceeds to fund its acquisition and development activities.

o http://www.reuters.com/article/idUSSGE65D0JY20100614

� HK's Richard Li risks losing Bulgarian telco- SCMP

o Telecom and media tycoon Richard Li's private equity fund may lose control of a debt-laden Bulgarian telecommunications operator as junior lenders are battling to take it over

o Vivacom, Bulgaria's biggest fixed-line operator, was set to breach agreements on its 1.64 billion euros ($2 billion) in loans by the end of the month,

o http://www.reuters.com/article/idUSTOE65E01P20100615

� Bill Gates-backed nuclear startup raises $35 million- Reuters

o TerraPower, a nuclear energy startup backed by MSFT Chairman Bill Gates, has raised $35 million in a new round of funding to aid the development of a reactor fueled by nuclear waste

o TerraPower is a nuclear spin-off project from Bellevue, Washington-based incubator Intellectual Ventures, which is run by former MSFT chief technology officer Nathan Myhrvold.

o http://www.reuters.com/article/idUSTRE65D4FG20100614?type=innovationNews

� Leisure: FCH FelCor Lodging announces 25M share secondary offering via JPM, BoA, DB, GS

� Transportation: GMR General Maritime files 25.5M share secondary offering via GS, Dahlman Rose, Jefferies, and JPM

� Financials: CYS Cypress Sharpridge files $750M mixed shelf

� Financials: HFBC Hopfed Bancorp to offer 3.04M shares in secondary offering through Howe Barnes Hoefer & Arnett

DAILY VIEW

CONFERENCES

Tuesday June 15:

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

o Adam Smith Conferences Kazakhstan Growth Forum - Jun 15, 2010 - Jun 17, 2010

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

o Bank of America Merrill Lynch Global Transportation Conference - Jun 15, 2010 - Jun 16, 2010

� 8:05AM: LUV , WERN

� 8:45AM: CGI , DAL

� 9:25AM: LCC , ODFL

� 10:15AM: CAL , MRTN

� 10:55AM: ABFS , ALK

� 11:35AM: UAUA�

� 12:15PM: AAI

� 12:50PM: AMR , CNW�

� 2:10PM: JBLU , KNX

� 2:50PM: ACLI , ALGT , KEX

� 3:30PM: NM

o Borsa Italiana Italian Investor Conference - London� - Jun 15, 2010 - Jun 16, 2010

� BMPS.MI

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

� 11:50AM: GGR

� 12:30PM: TGA

o Deutsche Bank Securities Global Consumer, Food Retail and Luxury Goods Conference - Jun 15, 2010 - Jun 17, 2010

� 4:30AM: ADM�

� 6AM: K

� 10:45AM: BG

� CCHOF.PK , NATU3.SA , SCA.ST

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

� 10:55AM: BDX

� 11AM: LPNT�

� 11:35AM: IART , PFE

� 12PM: AUXL

� 12:10PM: THRX , ZMH�

� 12:45PM: CNC , INCY , MHS , NUVA

� 1:20PM: AGP , TMH , XNPT

� 1:45PM: PSSI

� 1:55PM: MGLN

� 2:30PM: AMSG , BMY , ELN , ESRX�

� 4:55PM: CYH , ONXX

� 5:30PM: AMAG , EMS

� 6:05PM: SGEN�

� 6:40PM: MYGN , OMI�

� HGSI , SBS.DE , SBS.F , SNY

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 International Capital Market Association (ICMA) Securities Markets Conference - Jun 15, 2010 - Jun 16, 2010

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

� ORMP

o Macquarie Securities Small and Mid-Cap Conference� - Jun 15, 2010 - Jun 16, 2010

� 8AM: ACF , TWGP

� 8:30AM: FCF , WAC

� 9AM: AFSI , KWK , RDN

� 9:30AM: SIGI

� 10AM: BXS , FPIC

� 10:45AM: CINF , SM�

� 11:15AM: EIHI

� 11:45AM: AF�

� 12:15PM: BOH , PL

� 2PM: LTM , NAVG

� 3:45PM: AMPH

� �4:15PM: FMR

� 4:45PM: HMN

� AGII

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 New York Society of Security Analysts Annual Technology Innovators Microcap Investment Conference - Jun 15, 2010

� 8:30AM: BITS , CHYR

� 11:45AM: CRYP

o P. E. Schall GmbH & Co. KG OPTATEC Forum� - Jun 15, 2010 - Jun 18, 2010

o Private Equity International Africa Forum - Jun 15, 2010 - Jun 16, 2010

o Raymond James Infrastructure & Construction Conference - Jun 15, 2010

� NOA

o SEMICON Russia - Jun 15, 2010 - Jun 16, 2010

o Singapore Exhibition Services BroadcastAsia Exhibition & Conference� - Jun 15, 2010 - Jun 18, 2010

o Singapore Exhibition Services' CommunicAsia: International Communication & Information Technology Exhibition & Conference� - Jun 15, 2010 - Jun 18, 2010

� CRNT

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

� 8:30AM: DE , KNX , MOGA

� 9:05AM: TRE.J

� 10:35AM: HUN , TNB�

� 11:10AM: HTZ , HUBB , NM

� 11:45AM: EGLE , RA

� 12:45PM: GWR

� 2PM: LII

� 2:35PM: UTX

� CAT , JBHT , KMT , KSU

o Wiener Boerse AG & CIRA Austrian Small Cap Day

� BWTAY.OTC

o William Blair & Company 30th Annual Growth Stock Conference - Jun 15, 2010 - Jun 17, 2010

� 8:30AM: CNQR , EM , NXTM , WSM

� 9:10AM: MDAS , RVBD

� 9:50AM: BMRN , INTU , RST

� 10:30AM: CHRW , QSII

� 11:10AM: DGX , DKS , DTSI , TMRK

� 11:50AM: CMG , IDXX

� 12:30PM: MYGN , NETL , RAX 1:10PM: BABY , JNPR , MD , WMT�

� 1:50PM: AXP , CPLA , JAH�

� 2:30PM: FORR , LSTR , PLCM , SIRO�

� 2:50PM: CFN� 3:10PM: ALXN , SYK , VPRT

� 3:30PM: PODD�

� 3:50PM: CRM , GPRO , ICFI , PX , THS , XRAY

� 4:30PM: CECO , SVVS

� 5:10PM: CTCT , IBI

� 11:50PM: SCOR,HMSY , HPY , LKQX , MDRX , NICE , SYNT

COMPANY MEETINGS/OTHER DAILY EVENTS

� Tuesday June 15:

o Shareholders meetings:

� BMNM, BONT, GETA, IACI, PRGX, ADG, AMSF, IDRA, NGS, PHH, PLCE, SSE, NLP, OME, AEZ, APAC, HUSA, SLG, UGNE, ULU, EHTH, SBSW, ARDNA, HNSN, IILG, LOCM, MGM, MMRF, SMRT, CDR, CATM, MTOX, UEIC

o MDSO Analyst Meeeting

o SRX Analyst meeting

o THQI Investor Meeeting

ECONOMICS

� Tuesday June 15:

o 0745 ICSC/Goldman Sachs Chain Store Sales

o 0830 NY Fed Empire State Survey

o 0830 Import Prices

o 0855 Redbook Index

o 0900 Tsy Intl Capital Flows

o 1300 NAHB Housing Index

o 1630 API Oil Industry Report

o 1700 ABC/Washington Post Consumer Confidence Index

EARNINGS

o Materials

� Tuesday June 15: MMG

o Industrials/Homebuilders

� Tuesday June 15: AUSI, CLC

o Consumer/Retail/Education

� Tuesday June 15: BBY

o Tech/Telecom

� Tuesday June 15: FTLK, FDS,

o Healthcare

� Tuesday June 15: MDXG,

o Energy

� Tuesday June 15: SUNV, KAZ

***All eco data from Bloomberg and DJ

Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal.