Morning @ Cantor
Morning @ Cantor 6/17
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
***Sal Catrini is out today. He will return on Monday
EARLY US LANDSCAPE****
· US Stock Futures S&P +3.5pts; crude dn 22c – of 6 wk highs; Dollar down vs Euro as risk appetite perseveres on good Spain auction; BP trading up 7% note BoA just d/g the stock
· GOLD up to 1237.4 advanced in Asia on concern that Europe’s financial turmoil will be prolonged, boosting the appeal of the precious metal as a store of value- BBG
· base metals are lower...Zinc is down about 3.5%, nickel is down 2.5%, lead, aluminum and copper are down 1.5%, Spot gold was down $4 yesterday..this morning, spot gold is up $5 to $1234 ($1229-$1235 over night),
· Rates tick up…30-yr Treasuries advanced as speculation the global economy is slowing boosted demand for the relative safety of U.S. debt.- BBG
· European Markets: FTSE 100: +0.5%; DAX: (0.05%); CAC 40: +0.1%
o as of 5:40 EST, equities have moved higher on sharp gains in shares of BP and initial relief following Spain's government bond auctions
· Asian Markets: Nikkei (0.65%); Hang Seng +0.34; Shanghai Composite (0.06%)
o Asian markets were mixed this morning as many investors chose to take profits or wait to see how Chinese stocks performed on their return to trade for the first since 11-Jun.- SA
· Euro Data
o UK May Retail Sales +0.6% On Mo; +2.2% On Yr vs Forecast +0.3% On Mo; +2.1% On Yr
o Greece Q1 Unemployment rate: 11.7% v 10.3% prior
o Hong Kong May Unemployment: 4.6% v 4.4%e
· Spain Bond auction results: Sold total €3.5B in 10 and 30 year Bonds- TTN
o Sold €3B in 4% Apr 2020 bonos; avg yield 4.864% v 4.045% prior; bid-to-cover: 1.89x v 2.03x prior
o Sold€479.2M in 4.7% Jul 2041 bonos; avg yield 5.908% v 4.758% prior; bid-to-cover: 2.45x v 1.38x prior
· US Housing: TOL business update: Toll Brothers Flip-Flops, Says Demand Is Choppy, Sales Are Down, And That The Oil Spill Is Hurting Business. "In the three weeks following our earnings conference call on May 26, 2010, our per-community deposits have been running about 20% behind the comparable period
· India Central Bank's Chakrabarty: Domestic inflation concerns are a bigger worry than the European debt crisis- TTN
· China Positive: China Vanke - nation's biggest property developer - said demand is still strong and no cuts to development plans were expected.
· China Steel: China State Council: sought the top 10 steelmakers to have more than 60% of production by 2015
· Steel: Germany’s Steel Federation raised its 2010 production forecast to 43M tons, +30% y/y
· Support for the euro Head of China Pension Fund, whose comments supported EUR and weighed on gold, reiterated he expects Euro to stabilize and the dollar to weaken in the long term.- TTN
· Fed Rates: Pimco’s McCulley Sees Fed on Hold for a ‘Very’ Extended Time- BBG
· Demand Positive: Maersk says sees demand surging, sees unprecedented container shortage- Reuters
· UK Bankers Tax: UK tax to cost US banks $2bn
o US banks will foot a total bill of about $2bn (£1.35bn) in their second-quarter results to pay for the UK tax on bankers’ bonuses – a charge that could significantly reduce earnings at US financial groups such as C Citigroup, JPM JPMorgan Chase and BAC Bank of America.
o http://www.ft.com/cms/s/0/43660fce-7978-11df-b063-00144feabdc0.html
· Tax: Austrian Chancellor says Could Have Financial Tax In Euro Zone- DJ
· Banks: JPM JPMorgan expects to double Asian revenue- SCMP
· Autos: Toyota China Supplier Strike Over; Honda Still in Negotiations
o Toyota Motor said production is continuing in China after a brief strike at a supplier ended, while Honda tried to stop workers at a parts maker from resuming a walkout tomorrow.
o http://www.bloomberg.com/apps/news?pid=20601087&sid=aPf1t9P1ARGQ&pos=6
· Autos: Toyota Motor to build second assembly plant in Brazil - Nikkei
· Inflation: China's Baosteel has reportedly accepted a 23% increase in iron ore prices from BHP and Rio Tinto for July- TTN
· SNB on Deflation: SNB's Hildebrand commented that currency purchases had been effective in avoiding deflation, and said the country’s deflation threat has largely disappeared.- TTN
o The CHF was sharply higher following the lack of concern from the SNB on the recent CHF appreciation trend
· Global Mining News: Moody’s says outlook for Eurosteel industry is stable
o China to adjust steel export rebate within 2010-Steel Guru
o China to make efforts to stabilize imported iron ore prices; they encourage mill development overseas- Steel Guru
o BHP and Rio agree on 23% Q3 iron ore price hike with Japanese steelmakers, $147 a ton-Nikkei
o China’s Baosteel agrees to accept 23% increase from BHP and Rio-UC361.com
o Steel Dynamics guided lower last night on lower scrap prices, lower flat rolled volumes and lower margins- Seeking Alhpa
· Mining: first round of top-level negotiations on the resource super-profit tax failed to make progress yesterday.- the Australian
· Mining: Citi says Time is ripe for mining consolidation- the Austrlian
o Citi said the gap between the big and small players in Australia’s mining sector was increasing, citing that in 2001 BHP Billiton was three times larger than the number three miner, whereas today the mining giant is 25x larger.
· Stress tests: The German govt has dropped its resistance to publishing the results of bank stress tests, removing one of the biggest obstacles to the European Union adopting a measure pioneered by the US government to reassure markets.- FT
· SEC said to end probe of AIG and executives- Reuters
o The Securities and Exchange Commission ended its probe focusing on AIG Financial Products head Joseph Cassano and others several weeks after the Department of Justice closed its criminal investigation in May
o http://www.reuters.com/article/idUSTRE65F74E20100616
· China: Private jet market takes off in – SCMP
· Political Easing: Israeli Cabinet Decides to Allow More Goods Into Gaza
· Tech: AAPL iPhone 4 sets record sale pace despite gaffe
· Tech: Notebook makers see strong 3Q10- Digitimes
o First-tier notebook makers Quanta Computer, Compal Electronics and Wistron expect channel demand during the back-to-school season to be very strong and will push up their shipment performance in the third quarter
· Money Raising:
o About 3 more US IPOs this week upcoming
o Fairfield Energy to start $500M IPO in London 17-Jun – FT
o ONE Higher One Holdings reduced size and prices below range: Higher One’s 9M share IPO prices at $12: price talk $15-17
o OAS Oasis Petroleum 42M share IPO prices in the range at $14: Price Talk $13-15
· M&A:
o KT Corp in talks to buy Woori Bank's 27.65% stake in BC Carrd- Maeil Business Newspaper
o Royal Bank of Scotland understood to be near selling operations in Kazakhstan – FT
o LGF 12.5% of Lions Gate tendered to Carl Icahn - LA Times
o CKXE: Simon Fuller no longer bidding for Inc - NY Post
o T AT&T close to obtaining regulatory approval for purchase of rural wireless licenses from Verizon Wireless – WSJ
o UAUA/CAL United and Continental grilled on merger in House
o Fujitsu, Toshiba say to merge mobile businesses
· BP stories:
o U.S. Investors Led BP Selloff, Britons Followed- BBG
§ The number of American Depositary Receipts changing hands has surged relative to the volume of shares traded in London.
§ Spikes in the spread in the last two weeks show when ADRs fell after the lose of trading in Europe, with London prices catching up the following day.
o Obama May Get Political Boost From Pressing BP to Set Up Fund- BBG
§ “Obama has been behind the curve on the oil spill since its onset,” Lichtman said. “Finally, he may be catching up.”
o BP rebounds in London on $20B fund set up for the spill- BBG
o BP Bonds Escape Distressed List, Trade as Junk- BBG
§ Plc’s agreement to cut three quarters of dividend payments and set up a $20B fund for oil-spill victims removed the energy producer from a four-hour stint among companies the bond market labels distressed
§ Pimco’s Gross said BP bonds were the most active in U.S. trading yesterday
o BP Hires Army of Washington Fixers to Manage Oil-Spill Outrage- BBG
§ Orchestrating the response is the Brunswick Group who has put together a team to help manage the press
· Jobs Bill: Democrats Slim Down Jobs Proposal to Address Deficit Concerns- BBG
o Democrats proposed a scaled-back version of a jobs bill yesterday that includes a revised tax increase on some investment fund managers after action on a previous measure was blocked in the Senate
o The revised plan would extend unemployment benefits through November, extend subsidies for municipal bonds, provide $24 billion in aid to state governments struggling to stay within their budgets and increase taxes on the share of profits paid to managers of buyout funds
· Financial reform: Financial Reform Lacks ‘Cover’ for Risk Managers, Rossi Says- BBG
o Efforts to reform U.S. banking after the worst financial crisis since the Great Depression fall short because they don’t empower risk managers, according to Cliff Rossi who held that job at three of the country’s largest mortgage lenders that helped fuel the housing boom
o “What’s missing in all this is there is no air cover for risk managers who actually have a backbone to stand up and say they disagree” with lenders’ practices
· Iran stories:
o US expects all UN members to levy sanctions on Iran- PTI
§ The United States has slapped fresh sanctions on dozens of Iranian firms and individuals having links with the country's nuclear and missile programme, expanding its list of penalties following the UN Security Council's resolution.
§ "To be truly effective in ending Iran's proliferation activities and Iran's support for terrorism, we need to have in place a concerted international approach," Treasury Secretary Timothy Geithner said
§ http://www.ptinews.com/news/721631_US-expects-all-UN-members-to-levy-sanctions-on-Iran-
· Economics:
o 0830 Jobless Claims
o 0830 Current Account
o 0830 Consumer Price Index
o 1000 Philadelphia Fed Mfg Index
o 1000 Conference Board Leading Indicators
o 1000 DJ-BTMU Econ Barometer
o 1030 EIA Natl Gas Inventories
o 1630 Foreign Central Bank Holdings
o 1630 Fed Discount Window Borrowings
o 1630 Money Supply
TODAY’S BIG STORIES
· Portugal’s Finance Ministry to Postpone Debt Issue- Diario
o The postponement is explained by the present situation in markets, the Finance Ministry official said
o Instead of new syndicated debt issues, the Finance Ministry has preferred alternatives that involve increasing issues of existing lines of bonds and bills
· Spain Auction Garners Strong Demand, easing concerns- WSJ
o Spain paid a high price at a closely watched auction of long-dated government bonds Thursday to secure strong demand and bolster investor confidence towards its debt
o http://online.wsj.com/article/SB10001424052748704289504575312264069354420.html?mod=rss_markets_main
· WTO against US poultry ban- Peoples Daily
o The majority of the WTO panel of experts handling the dispute ruled in favor of China, according to a report by the China News Service.
o The US can appeal against the decision, according to WTO rules, but the report will be considered the panel's final verdict if the US loses the appeal.
o http://english.people.com.cn/90001/90778/90861/7027837.html
· Moody's sees stable outlook for steel industry- Marketwatch
o The European steel industry has benefited from higher prices and continued strong demand in China, but the recovery remains fragile
o Moody's analyst Matthias Hellstern concluded that the overall outlook for steelmakers is stable with most European plants running at full capacity amid restocking and a seasonal increase in business.
· 2 New York Lawmakers Back Wall St. on Derivatives- Dealbook
o Two Democratic representatives from New York City, Gary L. Ackerman and Michael E. McMahon, are coming to the defense of Wall Street, urging members of the House-Senate conference committee on the financial regulatory bill to reject provisions that would force banks to spin off their lucrative derivatives trading units.
o http://dealbook.blogs.nytimes.com/2010/06/16/2-new-york-lawmakers-back-wall-st-on-derivatives/
· Lawmakers Bet on Firms They Oversaw- WSJ
o In 09, amid the federal government's most aggressive intervention in the U.S. economy in decades, some members of key congressional committees placed bets with their own money on the stocks of companies they helped oversee
· Swiss parliament approves UBS-U.S. tax deal- Reuters
o Switzerland's parliament backed a Swiss-U.S. tax treaty crucial to the future of UBS AG, ending months of uncertainty over the deal and paving the way for renewed recovery at the Swiss bank.
o http://www.reuters.com/article/idUSTRE65D1LJ20100617
· Fed probing big bank interconnectedness, Bernanke says- marketWatch
o The Federal Reserve has started a program to measure the ties among the largest U.S. banks "to better identify potential channels of financial contagion,"
o He also said "[Fed] supervisors are working to improve their understanding of banks' largest exposures to other banks, nonbank financial institutions, and corporate borrowers,"
o http://www.marketwatch.com/story/fed-probing-bank-ties-to-each-other-bernanke-says-2010-06-16
· IMF’s Ishii Says China’s Yuan Undervalued Even as Euro Tumbles- BBG
o Chinese policy makers should pursue a more flexible currency regime even as Europe’s sovereign-debt crisis bolsters the value of the yuan
o “China’s yuan is still undervalued” from what the fund considers equilibrium value. As for its appreciation, “the sooner it happens, the less of a distortion it will be on the global economy,”
o http://www.bloomberg.com/apps/news?pid=20601068&sid=a1R_k.ajd_s4
· Israeli Cabinet Decides to Allow More Goods Into Gaza- BBG
o The decision will change the system in which goods enter Gaza and expand the import of “materials for civilian projects under international supervision,”
· Spain may use 30 billion euros for bank restructuring- Reuters
o Spain may use as much as 30 billion euros of its Fund for Orderly Bank Restructuring (FROB) to cover the financing needs of its banks, the Economy Minister Elena Salgado said on Thursday. The FROB, created to help the banking sector, can issue up to 99 billion euros to aid credit institutions
o http://www.reuters.com/article/idUSTRE65G11A20100617
· EU eyes quick move on stress tests as leaders meet- Reuters
o France joined Spain in calling for rapid publication of "stress tests" on European banks as EU leaders began a summit on Thursday to agree new budget rules and tried to allay concern about euro member Spain
o http://www.reuters.com/article/idUSTRE65F4BR20100617
· Mexico to hire PR firms to scrub drug war image- Reuters
o http://www.reuters.com/article/idUSTRE65F74A20100616
· Obama's call on energy bill fails to sway Congress- Reuters
o U.S. President Barack Obama's muted call for comprehensive energy legislation failed to sway a hesitant Congress on Wednesday, with hopes for approval before November elections fading fast
o he offered no specifics, and the lack of guidance frustrated some supporters and lent little urgency to an issue that has fallen down a crowded list of congressional priorities less than 5 months before the congressional election.
o http://www.reuters.com/article/idUSTRE65F56220100616
· China warns finger-pointing could derail G20- Reuters
o The comments appeared to be an attempt to draw a line in the sand about what should be discussed at the summit
o Underlining the extent to which China wants to shield its currency policy from censure, a second official said that the Group of 20 summit in Canada on June 26-27 was not the right place for discussing "the yuan issue."
o http://www.reuters.com/article/idUSTRE65G0S320100617
· No Free Lunch: U.S. banks may end free checking accounts- Reuters
o The move is expected to hurt retail clients who could be asked to pay new monthly maintenance fees on the most basic accounts that do not generate a lot of activity
o http://www.reuters.com/article/idUSTRE65G0I920100617
· Mortgage Fraud: U.S. government accuses former mortgage executive of multibillion-dollar scam- Washington Post
o The Justice Department accused Lee Bentley Farkas of Taylor, Bean & Whitaker of committing a $1.9 billion fraud against investors and the federal government that led to the demise of his firm and one of the nation's largest regional banks, Colonial Bank in Alabama.
· Most Americans back new Arizona law- Washington Post Poll
o Most Americans support the new, controversial Arizona law that gives police there the power to check the residency status of suspected illegal immigrants
o But most also still back a program giving those here illegally the right to earn legal documentation
· ECB Noyer: Strong Public Action Needed In Sovereign Debt Crisis- DJ
o Noyer stated that the time was the key to fix the economic and financial system and that strong public action was necessary in dealing with sovereign debt crisis
o http://www.nasdaq.com/aspx/stock-market-news-story.aspx
COMPANY NEWS WITH MACRO IMPLICATIONS
· Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
o Brief mention/Positive: DOX, PBCT, VZ and VOD
o Brief mention/Negative: GS and FSLR
ENERGY
· Maersk sees unprecedented container shortage- reuters
o Maersk Line, part of Danish oil and shipping group A.P. Moller-Maersk, is sometimes seen as a barometer of world trade. Last week it announced unusually high peak season surcharges on freight rates from Asia to Europe
· CIE Cobalt International Energy CFO Rodney Gray resigns for personal reasons effective 18-Jun
· ZBB ZBB Energy enters $10M securities purchase agreement with Socius Energy Capital
· KMP Kinder Morgan Energy Partners files mixed shelf of indeterminate amount
· SCEI Sino Clean Energy files $35M secondary offering through Canaccord and Axiom
· SWN, XCO Southwestern Energy reports asset sale of certain east Texas properties to EXCO for ~$
· XCO, SWN EXCO Resources, inc. announces agreement to acquire Haynesville/Bossier Shale properties from Southwestern Energy
· BP BP upgraded to buy from hold at Collins Stewart
· BP BP downgraded to hold from buy at Seymour Pierce
· BP BP downgraded to neutral from buy at Bank of America Merrill Lynch
· BP WSJ questions the reasoning behind the BP escrow fund and dividend suspension
· Fairfield Energy to start $500M IPO in London 17-Jun - FT
Tech/media/ telecom sectors
· LBTYA Liberty Global to increase its stock repurchase program by an additional $250M
· DTV DIRECTV completes previously announced Malone Exchange transaction; names CEO Michael White Chairman
· ROIAK Radio One Cl D announces financing transactions
· AMZN Amazon.com initiated market weight at Thomas Weisel; target is $135.
· CPSI Computer Programs & Systems places CFO Darrell West on administrative leave
· VECO Veeco Instruments initiated buy at Noble Financial; target is $57.
· GTEC Global Defense Technology awarded USMC contract for mobile water packaging system- (PR)
· IHS IHS Inc reports Q2 EPS
· NOK Nokia upgraded to buy from sell at Swedbank
· DIS LA Times says the latest Pixar movie shows its increasing reliance on sequels
· NOK WSJ says the problem at Nokia is weakness in product development
· BSY, NWS News Corp spoke to British Sky Broadcasting investors before approach - Telegraph
· T AT&T close to obtaining regulatory approval for purchase of rural wireless licenses from Verizon Wireless -- WSJ
· NOK Nokia downgraded to neutral from buy at UBS
· CTSH Cognizant Technology buys Paris-based Galileo Performance- the hindu
· CKXE Simon Fuller no longer bidding for CKX Inc - NY Post, citing sources
· BSY British Sky Broadcasting upgraded to neutral from underperform at Credit Suisse
· STEC STEC initiated neutral at Goldman Sachs
MINERS/STEEL SECTOR etc
· Miners unhappy with Australian government's negotiating approach on resource super-profit tax - Australian
· STLD Steel Dynamics guides Q2 EPS
· APD, ARG Air Products files preliminary proxy materials in connection with Airgas annual meeting
INDUSTRIALS/ HOMEBUILDERS
· BRK Berkshire Hathaway's Burlington Northern reports weekly carloads (week ended 12-Jun)- SA
o Total carloads and intermodal +13.6% to 180,908; last week +2.4%.
o Carloads +13.8% to 97,302; last week +8.2%
o Coal +0.5% vs +3.6%
o Grain +46.0% vs +7.4%
o Chemicals +17.7% vs +3.8%
o Autos +7.4% vs (8.0%)
o Food (1.5%) vs +1.2%
o Petroleum +4.9% vs (2.9%)
o Intermodal +13.4% to 83,606; last week (4.2%)
· GD Private jets becoming the rage in China - South China Morning Post
· STST Argon ST awarded $44.4M US Navy contract
· TXT Textron subsidiary Bell Helicopter awarded $546M US Navy contract
· AOS A. O. Smith enters into a tankless water heater joint venture with Takagi- (pr)
· KBR KBR unit awarded construction management contract for 1st phase of DuPont suburban campus
· BA Boeing's ZA005 completes first flight
· TOL Toll Brothers says in 3 weeks following 26-May earnings call, its per-community deposits are running (20%) y/y
AUTOS
· TM Toyota Motor to build second assembly plant in Brazil - Nikkei
· TM Work resumes at Toyota Motor-affiliated factory in Tianjin, China - wires
FINANCIALS
· JPM JPMorgan Chase wants to double Asian revenues in next three years - South China Morning Post
· AIG SEC closes investigation of AIG and some of its executives - Reuters
· VPFG ViewPoint Financial Group commences previously announced syndicated community offering
· FT discusses impact of UK bonus levy on Q2 results of big banks and brokers in the US
· Germany in talks with EU partners regarding publication of bank stress tests - FT
· BPFH Boston Private repays full amount of CPP-TARP funds
· BRKB Berkshire Hathaway's Burlington Northern reports weekly carloads; total carloads and intermodal +13.6% to 180,908; last week +2.4%.
· SIVB SVB Financial repurchased warrant related to CPP from US Treasury
· UBS UBS welcomes Swiss Parliamentary approval of the US-Swiss Government Agreement.
· UBS Swiss Lower House of Parliament approves UBS tax treaty with US without referendum -- wires
· RBS, JPM European Commission approves JP Morgan's buy of RBS Sempra Commodities LLP
· WPC W.P. Carey buys two warehouse logistics facilities in Spain from Eroski Sociedad Cooperativa for €43M
· UBS Swiss parliamentary panel recommends no referendum in UBS's tax treaty case; treaty moves to parliament for final vote today -- wires
· UBS UBS upgraded to outperform from underperform at Macquarie Research
· RBS Royal Bank of Scotland understood to be near selling operations in Kazakhstan - FT
· RBS Royal Bank of Scotland sells retail banking business in UAE to Abu Dhabi Commercial Bank - dj
REAL ESTATE
· FCH FelCor Lodging 27.5M share secondary priced at $5.50 a share through JPMorgan, Goldman, BofA, and Deutsche Bank
· JOE Barron's Weekday Trader is positive on St. Joe Company
· CLNY Colony Financial declares $0.21 per share quaterly dividend; payable 15-Jul; record 30-Jun; the prior dividend was $0.16 per share.
· DRE Duke Realty announces intent for 23M share secondary offering through Morgan Stanley and UBS
· DRE Duke Realty agreed in principle to purchase JV partner's 50% interest in Dugan Realty for $298.2M, including the assumption of debt - Reuters
CONSUMER
· OSK Oshkosh awarded $24.4M US Army contract
· ODP Office Depot affirms H1 operating profit for its International Division should be higher than H1 2009 operating profit for that division
· CFI Culp Inc reports Q4 EPS
· AM American Greetings reports refinancing of revolving credit facility and repayment of term loan
· BBI Blockbuster admits it is seeking short-term financing needed for bankruptcy -- WSJ
· LGF 12.5% of Lions Gate tendered to Carl Icahn - LA Times
· LTD Limited Brands to sell remaining 25% of The Limited to Sun Capital for about $32M - NYT
HEALTHCARE
· LIFE Life Technologies, UC San Diego, Salk Institute conduct cell transplant research for ALS- (PR)
· KVA K-V Pharmaceutical discloses the resignation of CFO Stephen Stamp
· DRRX DURECT reports data from European phase IIb hysterectomy study of Posidur (saber-bupivacaine)
· DSCO Discovery Laboratories announces intent to offer common stock and warrants through Lazard
· MEND Micrus Endovascular receives Shonin approval to market DeltaPaq and DeltaPlush microcoils in Japan – (PR)
· AZN AstraZeneca says Canadian court dismisses its request to prohibit regulatory applications for generic esomeprazole magnesium submitted by Apotex
· MRK Merck resumes Stimuvax clinical program in lung cancer
From our EU/London desk
· Energy
o Brent 78.80 +0.65
o European oils rally mid morning to be + 1%
o BP +(7.8%) following yesterday’s meeting with US president.
o Drax (-1%) Nomura raise to Neutral from Reduce.
o Petrofac (-2%) Nomura cut to Neutral from Buy
o Renewable Energy (+5%) Cresdit Suisse upgrade.
· Metals & Mining
o Eramet (+4.5%) French Govt to take stake.
o Rio ( +0.5%) Soc Gen upgrade to BUY v Hold
TODAY’S EVENTS
CONFERENCES:
Thursday June 10:
o Adam Smith Conferences Kazakhstan Growth Forum - Jun 15, 2010 - Jun 17, 2010
o Bank of America Merrill Lynch India Investor Forum - London - Jun 17, 2010 - Jun 18, 2010
o Borsa Italiana Italian Investor Conference - Stockholm - Jun 17, 2010
· BMPS.MI
o C5 Wind Farm O&M Conference - Jun 16, 2010 - Jun 17, 2010
o Citi Hong Kong and China Mini Conference - Jun 17, 2010 - Jun 19, 2010
· CPBY
o Credit Suisse Business Service Conference - Jun 16, 2010 - Jun 17, 2010
o Deutsche Bank Securities Global Consumer, Food Retail and Luxury Goods Conference - Jun 15, 2010 - Jun 17, 2010
· BTVCF.PK , BUL.MI
o EnerCom's London Oil & Gas Conference - Jun 17, 2010
· 3:30AM: WLL
· 3:55AM: SWN
· 4:20AM: PVA
· 6:15AM: HNR
· 8:30AM: GOK
· 8:55AM: EXXI
· 9:20AM: UNT
· 11:50AM: TRGL
· BEXP
o Euroconvention The Moldova Business and Investment Summit - Jun 10, 2010 - Jul 10, 2010
o Goldman Sachs Global Healthcare Conference
· 11AM: ABT , BMRN , COV
· 11:40AM: CBST , UAM
· 12:20PM: AMGN , HSP
· 1PM: AET , CELG
o Institute for International Research Telecoms Cloud Services Summit - Jun 17, 2010 - Jun 18, 2010
o IPAA’s Midyear Meeting - Jun 16, 2010 - Jun 18, 2010
o K&L GATES LLP Business Development Conference - Jun 16, 2010 - Jun 17, 2010
o Longbow Research Annual Construction Materials Investor Conference - Jun 17, 2010
· 8:45AM: MLM
· 9:30AM: EXP
· 12:30PM: VMC
· 1:15PM: USG
o Opal Financial Group Investment Trends Summit - Jun 16, 2010 - Jun 18, 2010
o Oppenheimer & Co. Utilities 1-on-1 Conference - Jun 17, 2010
o P. E. Schall GmbH & Co. KG OPTATEC Forum - Jun 15, 2010 - Jun 18, 2010
o Platts Annual Texas Power Markets Forum - Jun 16, 2010 - Jun 17, 2010
o Richmond Events, Inc. PIMS Forum - Jun 16, 2010 - Jun 19, 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
o SMi Group Ltd, Realisation of the Future Grid Conference - Jun 16, 2010 - Jun 17, 2010
o The Center for Business Intelligence Aseptic Processing, Cleaning Validation, Environmental Monitoring Conference - Jun 16, 2010 - Jun 18, 2010
o Unicredit Group Conference
· PLFRY.PK
o WBR ETAIL Europe Conference - Jun 16, 2010 - Jun 17, 2010
o William Blair & Company 30th Annual Growth Stock Conference - Jun 15, 2010 - Jun 17, 2010
· 9AM: N , PSSI
· 9:40AM: ABVT , BAX , VRSK , VS
· 10:20AM: CPHD
· 11AM: CNVO , ISRG , QCOM
· 11:40AM: ESRX , HURN
· 12:20PM: DV , ECL , SRCL
· APD , ROG.S
COMPANY MEETINGS/OTHER DAILY EVENTS
· Thursday June 17:
o Shareholders meetings:
§ PGR, ACMR, DLTR, LMAT, MKTY, NVAX, BSTC, ENG, PERY, SPRO , LBTYA, MVIS, TTGT, PDO, LWAY, AIRM, MGN, PLCC, TRID, INSW, CPBY
o VRX Investor Day
o MCK Analyst Day
o HGSI Analyst & Investor day
ECONOMICS
· Thursday June 17:
o 0830 Jobless Claims
o 0830 Current Account
o 0830 Consumer Price Index
o 1000 Philadelphia Fed Mfg Index
o 1000 Conference Board Leading Indicators
o 1000 DJ-BTMU Econ Barometer
o 1030 EIA Natl Gas Inventories
o 1630 Foreign Central Bank Holdings
o 1630 Fed Discount Window Borrowings
o 1630 Money Supply
EARNINGS
o Industrials/Homebuilders
· Thursday June 17: ATU
o Consumer/Retail/Education
· Thursday June 17: PIR, KR, CGL, SFD, SJM
o Healthcare
· Thursday June 17: TCM, SMOD
o Media
· Thursday June 17: JW/A
o Autos
· Thursday June 17: WGO
INVESTMENT BANKING WRAP
M&A
· NWSA Rupert Murdoch's News Corp talks with Sky investors- Telegraph
o In preliminary conversations, News Corp's advisers told investors to put discussions about price on hold until after regulatory clearance.
o Insiders said that News Corp was "in listening mode" as it took soundings from BSkyB's investors, which include Blackrock, US value investor Brandes, and Odey Asset Management
· Fuller is empty on 'Idol' (CKX)- NYPOST
o The bidding process for CKX Inc. is starting to look like an "American Idol" audition -- as one strong contestant is now out while another dark horse is suddenly back in the action
o According to two sources, Simon Fuller's bid is no longer in play for the "American Idol" franchise owner.
· JPM gets EU nod for $1.7 bln RBS SRE Sempra unit buy- Reuters
o JPMorgan Chase & Co (JPM.N) gained EU regulatory clearance on Thursday for its $1.7 billion purchase of the non-U.S. assets of commodities joint venture RBS Sempra from Royal Bank of Scotland and Sempra Energy
o http://www.reuters.com/article/idUSBRQ00988620100617
· RBS sells Asia and Mid-East units for £200m- FT
o Royal Bank of Scotland is accelerating its withdrawal from Asia and the Middle East with the sale of a number of small businesses set to be agreed in the next two weeks.
o http://www.ft.com/cms/s/0/a8b639de-79a6-11df-85be-00144feabdc0.html
· LTD Limited Brands to Cut Ties to The Limited- NYT
o Limited Brands will finally shed its remaining ties to the store franchise it arose from, agreeing to sell its 25 percent stake in The Limited to the retailer’s majority owner.
o http://www.nytimes.com/2010/06/17/business/17limited.html?src=busln
· TPG returns to RBS Worldpay fray- Reuters
o TPG [TPG.UL] is reuniting with another buyout firm to bid for Royal Bank of Scotland's (RBS.L) payment processing business, people familiar with the matter said
o TPG will team up with Clayton, Dubilier & Rice (CD&R) again, after being encouraged to return by RBS
o http://www.reuters.com/article/idUSLDE65F2BF20100616
· T AT&T nears regulatory approval for VZ Verizon license buy – WSJ
o Verizon Wireless was required to sell off those properties as a condition for getting regulatory approval for its purchase of Alltel in January 2009 -- a merger that created the biggest wireless provider in the United States, surpassing AT&T in terms of subscribers
o http://www.reuters.com/article/idUSSGE65G04X20100617
· APD Air Products files proxy in ARG Airgas bid- Reuters
o Air Products and Chemicals (APD.N) said on Wednesday it filed proxy materials to elect three nominees to the board of Airgas Inc (ARG.N) as it bids to take control of Airgas.
o http://www.reuters.com/article/idUSN1619080320100616
· Fujitsu, Toshiba say to merge mobile businesses- Reuters
o Japan's Fujitsu and Toshiba Corp said on Thursday they plan to merge their mobile phone businesses in October, creating Japan's No. 2 cellphone maker
o http://www.reuters.com/article/idUSTRE65G0G320100617?type=innovationNews
· UAUA/CAL United, Continental grilled on merger in U.S. House- Reuters
o Top executives of United Airlines and Continental Airlines sparred with irritated U.S. lawmakers on Wednesday over their planned merger, drawing a threat for closer industry regulation if the deal goes through.
o http://www.reuters.com/article/idUSN1616282120100616
· XCO EXCO to buy some SWN Southwestern assets for $355 mln- Reuters
§ Oil and natural gas explorer EXCO Resources Inc (XCO.N) said it would buy some Haynesville and Bossier shale property from Southwestern Energy Co (SWN.N) for about $355 million.
§ http://www.reuters.com/article/idUSSGE65F0JB20100616
· RDS Shell not hunting buyers for Montreal refinery- Reuters
o Radio-Canada and other media in Quebec reported on Wednesday that Delek U.S. Holdings, an arm of Israeli energy, automotive and real estate conglomerate Delek Group (DELKG.TA), had doubled a previous offer for the 130,000 barrel per day plant to C$150 million ($147 million) but no source for the information was given
o http://www.reuters.com/article/idUSN1618042220100616
· DRE Duke Realty to buy JV partner's stake; offer shares- Reuters
o Real estate investment trust Duke Realty Corp (DRE.N) said it agreed to buy its joint venture partner's 50 percent interest in Dugan Realty LLC for $298.2 million, including debt, and offer 23 million shares to help fund the acquisition
o http://www.reuters.com/article/idUSSGE65F0JF20100616
· Rhodia plans to buy China's Feixiang Chemicals- Reuters
o Rhodia (RHA.PA) plans to buy China's leading maker of amines and surfactants, Feixiang Chemicals, for an enterprise value of $489 million, boosting its presence in Asia which represents a growing part of its sales.
o http://www.reuters.com/article/idUSLDE65F2D820100616
· Canada private equity players eye emerging markets- Reuters
o Canadian investors are increasingly looking for deals in emerging markets as the global economy recovers, following deep-pocketed pension funds into Asia in particular, even as valuation concerns linger
o http://www.reuters.com/article/idUSN1616936320100616
· Icahn says reaches 31 pct LGF Lions Gate stake- Reuters
o Billionaire Carl Icahn said on Wednesday that 12.5 percent of Lions Gate Entertainment's shares were tendered after his $7 a share offer, effectively giving him a 31 percent stake in the studio he has criticized for being poorly managed
o http://www.reuters.com/article/idUSN1616950420100616
· AOL close to selling social network site Bebo-WSJ
o AOL Inc (AOL.N) is close to selling social network site Bebo to private investment firm Criterion Capital Partners
o http://www.reuters.com/article/idUSN1626196120100616
· Old Mutual funds unit seeks Middle East presence- Reuters
o the Boston-based unit needs to expand overseas and capture more of the funds seeking international equities and debt, Turpin said. Roughly 50 percent of the world's wealthy are outside the United States, while Old Mutual has just 25% of its assets in foreign markets
o http://www.reuters.com/article/idUSN1622022420100616
· ArcelorMittal eyes stake in Kolkata-based company- Business Standard
·
$ RAISING
IPOs
· China's AgBank to launch Shanghai IPO this week- Reuters
o Agricultural Bank of China (AgBank), seeking to raise more than $23 billion in the world's biggest initial public offering, will launch the Shanghai portion of its IPO this week, potentially stretching market liquidity and diverting funds away from rivals
o http://www.reuters.com/article/idUSTRE65F26I20100616?type=innovationNews
· China Life Plans To Be Cornerstone Investor In AgBank IPO- WSJ
o China Life Insurance Co. (LFC) plans to be a cornerstone investor in Agricultural Bank of China Ltd.'s initial public offering, though the two sides have yet to sign a deal
o http://online.wsj.com/article/BT-CO-20100617-702739.html?mod=wsjcrmain
· IPHI Inphi Corp files $115M IPO through Morgan Stanley, Deutsche Bank, Jefferies, Thomas Weisel and Needham- SA
· CSN's plans to list ore unit are thwarted- Reuters
o Growing risk aversion and the worsening of the sovereign debt crisis in the euro region probably led Brazilian steelmaker CSN (CSNA3.SA)(SID.N) to put off the long-awaited listing of its iron ore unit, which the company had planned for the first half of this year
o http://www.reuters.com/article/idUSTRE65F4MZ20100616?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 MOTR Motricity 6.8M share IPO expected to price 6/16 via GS and JPM: price talk $14-16
o TSLA Tesla Motors 11.1M share IPO is ecpected to price in the range of $14-16 via JPM, GS, MS, DB
o ZOO Zoo Entertainment 2.625M share IPO is expected to price at $8 per share through Roth and ThinkEquity
o ONE Higher One Holdings reduced size and prices below range: Higher One’s 9M share IPO prices at $12: price talk $15-17
o OAS Oasis Petroleum 42M share IPO prices in the range at $14: Price Talk $13-15
o Secondary Offerings
o RBCN Rubicon Technology $49.1M secondary expected to price 6/15 via UBS
o GMR General Maritime 25.5 million shares expected to price Thursday via Goldman Sachs, Dahlman Rose & Co., Jefferies & Co. Inc. and JP Morgan.
o FCH FelCor Lodging 27.5M share secondary priced at $5.50 a share through JPMorgan, Goldman, BofA, and Deutsche Bank
o BKCC BlackRock Kelso confirms 7.5M share secondary offering priced at $10.25 through Citi, BofA, Credit Suisse, and UBS
NEWS
· GM to restructure Opel without European aid- Reuters
o General Motors said on Wednesday it was dropping its request for European aid to restructure its Opel unit, opting to fund the sweeping turnaround plan on its own after government talks bogged down.
o http://www.reuters.com/article/idUSTRE6592K120100616?type=innovationNews
· Energy: KMP Kinder Morgan Energy Partners files mixed shelf of indeterminate amount
· Energy: SCEI Sino Clean Energy files $35M secondary offering through Canaccord and Axiom
· Real Estate: DRE Duke Realty announces intent for 23M share secondary offering through Morgan Stanley and UBS
***All eco data from Bloomberg and DJ
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