Cantor Morning News | Morning @ Cantor

· Big story as Banks lead in EU after ECB lending data…..ECB lends €131.9B for 3M at 1%; says 171 banks bid for 3M loans…expectations were €250B per CNBC

· Rates up small today…as Treasuries headed for their best first half in 15 years, with two-year yields near a record low, BBG

o Two-year Treasuries declined for the first time in four days, pushing the yield up from a record low.

· Gold up $3,,,Set for Biggest Quarterly Gain Since 2007 on Europe Woes.. Spot gold was up $2 yesterday

· base metals bouncing a bit …Zinc up 1.5%, copper up less than 1%,

· Yuan Gains on Signs China’s Central Bank Prefers Appreciation – BBG

o The central bank fixed the reference rate at 6.7909 a dollar today, compared with 6.7977 at yesterday’s close. The fixing rate has been set stronger than the previous day’s close for six days in a row

· Alex became the first June hurricane in the Atlantic since 1995 as oil and gas companies in the Gulf of Mexico evacuated offshore workers and prepared for possible storm surges that may affect coastal refineries.

o U.S. Says 25% of Gulf Oil Production, 9% of Gas Idled by Storm

· Asian Markets: Nikkei (1.96%); Hang Seng (0.59%); Shanghai Composite (1.18%) (as of 04:57 ET)

o NKY closed down at a key support level, hitting 7-mth low as investors took to the sidelines ahead of key economic data from Japan, China and US

· European stocks rose, rebounding from the biggest drop in six weeks

o The big event of the European day was data from the ECB re demand for cash that is on offer. l highlights the extent to which Euro Zone banks are leaning ion the central bank for funding.

o Cyclicals are leading the bounce with Auto's +1.80% and Auto Parts + 1.75%, and in the mix on the uopside is Pharma +1.26% lifted by news that AstraZeneca Plc won a US court order that will help prevent generic copies of the drug Crestor (Cholesterol) being sold till 2016.

o Before the ECB data hits…Greek paper is still soft against Germany although UK paper is holding up well a week after the emergency budget. The spread of 10 year Gilts over Bunds widened just 1 bp in the week whereas French 10 year paper widened 8 bps.

o German Chancellor, Angela Merkel faces a test in a secret ballot as the German Parliament votes to elect a new President

o Stephen Pope

· 3 German banks pass stress tests, sources say

o The Tier 1 capital ratios of Deutsche Bank, Bayerische Landesbank and Commerzbank exceeded a 6% threshold in stress tests, sources said. "This is definitely good news, even if I'm not surprised they passed," said Philipp Haessler, an analyst at Equinet. "The idea of publishing the stress tests is good because it can help calm the market." Bloomberg Businessweek (29 Jun.) , Reuters (29 Jun.) , NYTimes.com/DealBook blog (29 Jun.)

· Greek bank stocks trading higher on speculation about bank mergers – Reuters

o National Bank of Greece says its not seeking a strategic investor; says does not plan capital increase

o . Greek banks, NATIONAL BANK OF GREECE (+4.55%) and ALPHA BANK (+4.4%) rally amid takeover speculation

· U.K. Law May Halt Release of Bank Stress Test Data

o The U.K. banking supervisor can’t disclose confidential information “without the consent of the person from whom” the regulator obtained the information, according to the Financial Services and Markets Act, which was enacted 10 years ago. BBG

· ECB says covered bond purchase programme completed

o The purchases of covered bonds started in July 2009. The aim of the programme has been to support a specific financial market segment that is important for the funding banks and that had been particularly affected by the financial crisis.

o More information on the CBPP will be provided in the regular Monthly Report which will be published on 8-July

· Merrill Sees Flaws in ‘Not-So-Leading’ Chinese Index – BBG

o Bank of America-Merrill Lynch said it sees flaws in the leading index for China that was revised yesterday, sending stocks tumbling around the world

o The Conference Board’s index “relies too much on low- quality monthly numbers,” Hong Kong-based economist Lu Ting wrote in a note today, calling it a “not-so-leading” indicator.

· China to strengthen banks' capital requirements - BBG

· China’s government said the world’s third-biggest economy is heading in the right direction and business people and economists expect “relatively fast” growth to continue.

· Bank of England policy maker Adam Posen said that the U.K. economy is “tentatively” recovering and risks falling back into recession because of the government’s budget squeeze and a slower European economy. BBG

· UK GDP release delayed

· Germany Sells €4.94B in Jun 2012 Schatz; avg yield 0.53% v 0.47% prior; Bid-to-cover: 1.6x v 2.4x prior

· Ipsos Poll: approximately 51% of German voters would prefer to return to the deutschemark.

· Unions in Spain entered into the last day of a three-day protest against wage cuts

· Data

o MBA

§ US MBA Refinance Index +12.6% At 3,613.1; Last Week 3,208.5

§ US MBA Purchase Index -3.3% At 172.1; Last Week 177.9

§ US Mortgage Volume Rose 8.8% Last Week On Refinancing

o ABC Consumer Confidence (41) in 27-Jun week vs (43) in prior week

o Bullish sentiment is unchanged at 41.1% in the latest Investor's Intelligence poll

o Japan May housing starts (4.6%) y/y vs survey +5.0%. June small business confidence 47.4 vs prior 46.7.

o Russia’s central bank left its refinancing rate unchanged at 7.75 perce

o The Swiss KOF leading indicator came in at 2.25, better than the 2.16 expected.

o Unemployment data from Germany was fairly benign, down -21k compared with expectations of -25k. The German unemployment rate was steady at 7.7%, in line with forecasts

· Money raising:

o Tesla Posts Second-Biggest Rally for 2010 U.S. IPO

§ rallied 41 percent after raising $226 million in the first initial public offering of a U.S. automaker in a half century

· M&A:

o ABII, CELG: Celgene (CELG) to Acquire Abraxis BioScience – 17% premium

o Chloride board concludes that Emerson (EMR)'s 375p/share cash offer is superior to ABB (ABBN.VX)'s (13:29)

o DBTK Double-Take Software shareholder First Eagle discloses 5.2% stake in 13D filing

· BP

o BP (+9%) outperforms-no fresh news

o Hurricane Alex is hampering BP's (+8.73%) clean up efforts in the Gulf of Mexico, but the stock soars as investors seek a buying opportunity amid speculation the company could be a takeover target – S&P

o BP CDS BETTER IN LONDON TRADING, OPENING 25 BETTER AND LAST

o Transocean (-3.6%), Us Justice Department letter calls stock dividend “troubling”

o APC: Anadarko, the US partner to BP in its ill-fated Macondo well in the Gulf of Mexico, approved several key aspects of the UK company’s designs for the project that have been sharply criticised by Washington lawmakers. FT

§ http://www.ft.com/cms/s/0/75cd4c30-83ae-11df-b6d5-00144feabdc0.html

o U.S. Accepts Equipment, Vessels from Abroad for Gulf Oil Cleanup - BBG

§ The U.S. accepted equipment and vessels offered by 12 nations and international groups after finding a need for boom and skimmers to contain the BP Plc Gulf of Mexico oil spill, the State Department said today.

· EU to cap bankers cash component of bonuses at 30% - Reuters

· JPM: JPMorgan Isn’t Likely to Increase Dividend This Year, Dimon Says - BBG

· AIG vs GS and banks in focus today…. Congressional commission convenes hearings Wednesday

o AIG lost ability to seu banks in baiout raises questions..NYT

o As a Congressional commission convenes hearings Wednesday exploring the A.I.G. bailout and Goldman’s relationship with the insurer, analysts say that the documents suggest that regulators were overly punitive toward A.I.G. and overly forgiving of banks during the bailout

o http://www.nytimes.com/2010/06/30/business/30aig.html?hp=&pagewanted=all

· Homebuilders…LEN: WSJ(6/30) Lennar Cuts Its Prices As Sales Hit A Wall

· GIS dn 4% : General Mills reports.. EPS In-Line, Guidance Below.

· Astrazeneca (AZN.LN) jumped 10% after winning a Crestor patent ruling.

· CACI CACI International initiates f11 EPS guidance of $3.70-$3.90 vs Reuters $3.74; reiterates f10 guidance; to hold conf call

o Conf 8:30 ET: Dial-in: 877-303-9143; Passcode: 79818051

· Inflation: Akzo, PPG Profit Squeezed by Paint Materials Shortage - BBG

o The world’s largest paint makers are raising prices as they try to overcome a shortage of raw materials and keep store shelves stocked during the prime house- painting season in North America, Europe and Asia.

o Akzo Nobel NV, which makes Dulux paint, and PPG Industries Inc., which produces the Olympic and Pittsburgh brands, have seen the price of acrylic acid, a resin that binds pigments together, jump 71 percent in the past 12 months

· Tech negative: Foxconn issues profit warning- S&P

o customers include Nokia and Motorola

o Shares in the handset manufacturing unit of the world’s largest electronics contract manufacturer fall sharply and Morgan Stanley downgrades its rating on the stock

o The surprise warning sent its Hong Kong share price down as much as 8.9 per cent to HK$5 on

· Miners: Australian government believed to be ready to back down on resources super profits tax - Sydney Morning Herald

· Miners: Gillard Says Australia Mining Negotiations ‘Good’ - BBG

· S&P may cut Moody's rating on regulatory reform

o Moody’s short-term debt ranking of A-1 was placed on CreditWatch with negative implications by rival credit rating company Standard & Poor’s. “We believe there may be added risk to U.S.-based credit rating agency Moody’s business profile following recent U.S. legislation that may lower margins and increase litigation related costs for credit rating agencies,” S&P, a unit of McGraw-Hill Cos., said in a statement.

· Circuit-Breaker Leaves Analysts Hopeful - NYT

o An experimental circuit breaker for stock markets, put in place after last month's flash crash, kicked in for the second time on Tuesday, after a sudden plunge in the price of Citigroup shares, leaving industry observers feeling optimistic about the new mechanism.

· Financial reform latest…

o The House may move to vote on the overhaul effort as early as Wednesday. Senate Democratic aides said a vote this week is possible, but Senate Banking Committee Chairman Chris Dodd (D-Conn.) said this was doubtful. The Hill

§ Dodd said that the bill might not have been approved with the fees on banks, but that the new arrangement would likely pass muster. He stopped far short of guaranteeing a successful vote, however.

§ http://thehill.com/blogs/on-the-money/banking-financial-institutions/106165-brown-would-vote-no-on-wall-st-bill-with-19-b-in-fees

o Congress has a break next week. The delay means that final passage of the bill and the signature of President Barack Obama will likely take place in the middle of July.

§ “The leaders certainly told me that this would be the first priority on a return from the July 4 break,” Dodd told reporters after the meeting.

o Volcker Said to Be Disappointed With Final Version of His Rule – BBG

§ didn’t expect the proposal to be diluted so much.. re compromise that allows banks to invest up to 3 percent of their capital in such funds.He’s content with language that bans banks from trading with their own capital

· Senator Byrd’s body will lie in state in the Senate chamber on July 1 and a memorial service will be held in Charleston, West Virginia, on July 2.

· Russia Bloomberg) -- President Barack Obama’s spokesman said the arrests of 11 people on charges of spying for Russia won’t harm U.S. relations with the country.

· Iran 'Nuclear Scientist Claims He Has Escaped From US Kidnappers' (Telegraph) -- A man claiming to be an Iranian nuclear scientist whom Tehran alleges the United States kidnapped said he has escaped from US agents, in a video screened on Iranian television.

· Chinese pressure prompts U.S. to delay arms sale to Taiwan

o The U.S. is delaying a long-planned sale of military equipment to Taiwan until at least the spring, Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council, told Defense News. A defense analyst said China is "ramping up the pressure" to stop the sale. China Daily (Beijing) (30 Jun.)

· Economics:

o MBA Mortgage Applications at 07:00 ET

o Jun ADP Employment at 08:15 ET

o Jun Chicago Purchasing Manager's Index at 09:45 ET

o JUN NAPM-Milwaukee at 10:00 ET

o DOE Crude Oil Inventories at 10:30 ET

· Earnings:

o Reporting before the bell: MON

o Reporting after the close: APOL

o Google awaits fate in China as deadline looms

· Today, U.S. House to Try Second Time to Pass Unemployment-Aid Measure – BBG

o The U.S. House plans to try again today to approve legislation extending unemployment benefits after a measure to do so was blocked yesterday because of its cost.

o The vote on the $33 billion measure was 261 in favor and 155 against, with a two-thirds majority needed for passage under the expedited procedure used by Democratic leaders to limit debate

· Today, Salazar May Give Congress More Details on Deep-Water Drill Ban - BBG

o U.S. Interior Secretary Kenneth Salazar, who has promised a new ban on deep-water oil drilling after an initial one was ruled illegal, has hinted what a revised moratorium might look like and may provide more details when questioned by members of Congress today.

· Today, AIG vs GS and banks in focus …. Congressional commission convenes hearings Wednesday

o AIG lost ability to seu banks in baiout raises questions..NYT

o http://www.nytimes.com/2010/06/30/business/30aig.html?hp=&pagewanted=all

TODAY’S BIG STORIES

· Equity Wrap:

o They took us up on no volume and now we are giving back on not much volume. It started with the market down early when we walked in on the lows on some ugly leading indicators out of china and ecb signs of them weaning the baby off the bottle but then when you throw in the horrible consumer confidence number and it was all this tired, full market had to see. So either all these guys who put the estimates together for the consumer confidence should be fired or Obama has to stop saying things are so strong when they are not. (at least we know he is not privy to the data before anyone else), he did the same pre non farms 2 months ago.

o it was a quiet day, we had some guys jump in to try and catch the first gap down that later some were sellers of that gap down and some others were adding to things. The contagious European outlook and austerity measures seem to be outweighing the earnings which have been better. Does that mean if the next batch of earnings that come up, show us that Europe is not an issue, we really? Seems bigger than that. Good comments out of WOR,or MMM to name a few didn’t help. United we stand, divided we fall.

o The last few weeks we have seen in more than a few cases, where we would be watching stocks for guys that have come down to previous buy levels and I would point it out, only to find that they had completed their orders since they were in participation mode but most had size to buy -10% or more but yet due to the pressures and market moving up around them, they’ve had to go along. It lends itself to the current environment where now there are too many stocks vs. buy orders and this has been recent in the last few months where as in the past 9-12 months, it was the other way

o There are so many 200 /150 and 50 day moving averages being broken, Here are some support levels to watch, , spz 1029 (nov 2, 2009 low), 1014 (38.2% Fibonacci level b/t oct '07 high and mar '09 low), 1000 (round number)

o S&P cash ended off 3.1%, after a few attempts to defend important support levels failed. Industrials were the weakest sector, off almost 4%, followed by financials, off 3.88%. Defensive sectors like Consumer Staples (off 1.49%) and Telecom (off 1.58%) did best.

o One bright spot was IPO Tesla Motors (TSLA), priced at $17 (above its proposed offering range of 14-16), which went on to gain $6.89, closing at $23.89, up 40%. On the down side, BA and AA each closed off 6.3%, while AA lost 5.5%.

o (Billy Clark and team)

· Treasury’s Wrap:

o The Treasury market opened up well bid overnight starting with the concern over China as the confidence board revised the outlook on their economy. Global equities quickly retreated on this news which continued throughout Asia and into the European trading session with the continued concerns in Europe also adding pressure and a flight to quality bid. Treasuries attempted to come off their early highs in the early New York session but the bid once again emerged in the midmorning as real money, MBS tied, asset allocation out of equities, quarter end/ month, and the extremely weak consumer confidence coming in at 52.9 versus the expected 62.5 once again gave a firm bid to the US Treasury markets. 10s today firmly traded through the psychological 3.00% level trading to 2.95% intraday.

o Treasuries traded range bound on the higher end of their intraday range throughout much of the remainder of the session closing the day ~2-7 bps lower in yield. Today's bid was led by the long end of the curve.

o The grind to lower yields continues as we approach record yields in the short end and late 2008 early 2009 yields in the intermediate and long end of the curve. As the "deflation" words is spoke about in a greater proportion, quantitative easing once again gets mentioned and the continued poor economic data (confidence today) there is without question US Treasuries can continue to grind to lower yields. In our long term view we look for rates to continue this trend looking to buy dips in the market. The remainder of this weeks data: ISM, pending home sales and the payrolls report on Friday will certainly all be closely watched, alongside the ever changing European sovereign situation and China.

o Primary Dealer

· Investment grade Wrap:

o IG spreads were unchanged to marginally softer despite the DOW and S&P down near 2010 lows, IG14 out 6 to 123, swap spreads wider, and the VIX back into the mid-30s. The continued treasury rally and a not so pretty consumer confidence number have been negatives but with quarter end coming and real money accounts with cash to put to work higher quality paper continues to hold in relatively firm. We traded PG 37s inside +80 after trading MMM 37s at +80 last week as few accounts are selling the high quality paper and buyers need to pay up to source it. A number of index buyers has helped push recent deals tighter with DUK 20s as an example now +65-60, 10+bps tighter in a week while spreads elsewhere are softer.

o Buyers continue to be selective and trying their best to stay away from higher dollar paper except where the spreads are enough of a concession to the on the run paper as we traded over $135 UPS 8.375 30s today 25-30bps back of the UPS 6.20 38 . That was the second highest dollar bond traded today away from just 1MM of some T 8.75 31 according to TRACE.

o Michael Salemo

· Credit Markets:

o Companies are selling the fewest bonds since 2004 as rising cash levels let borrowers weather concern that the global economy is slowing

o Offerings fell 39 percent to $1.17 trillion in the first half from the same period in 2009, according to data compiled by Bloomberg. The decline was led by financial companies, which issued 35 percent less debt

o U.S. investment-grade companies have sold $130.1 billion of corporate bonds this quarter, down 48 percent from the first three months of 2010, bringing the year’s total to $381.8 billion, Bloomberg

o High-yield issuance fell to $47.8 billion in the quarter from $70.7 billion in the first three months, Bloomberg

o Borrowers, with 15 percent more cash than a year earlier, are relying less on capital markets amid concern that Europe’s sovereign-debt crisis may slow the economic recovery.

o Cash at investment-grade companies rose to $668 billion at the end of the first quarter from $580 billion a year earlier - BBG

o Corporate bonds are beating stocks by the most in nine years, returning 4.9 percent in the first six months, compared with the MSCI World Index, which is down 9 percent.

· Treasuries headed for their best first half in 15 years, with two-year yields near a record low, BBG

o Treasuries returned 5.8 percent in the first six months of 2010, Bank of America Merrill Lynch indexes show, while the MSCI World Index of shares plunged 10.4 percent.

o Over the past three months, Treasuries gained 4.7 percent, the best quarter since the height of the financial crisis at the end of 2008

· German bunds have gained 7 percent this year, U.K. gilts have rallied 5.5 percent, and Japanese bonds have advanced 2 percent

· Inflation, TIPS: The difference between yields on 10-year notes and Treasury Inflation Protected Securities, a gauge of trader expectations for consumer prices, fell to 1.90 percentage points from this year’s high of 2.49 percentage points in January.

· Day Traders Unfazed by S&P 500’s 6.8% Decline on Past Seven Days. Leveraged Short U.S. Equity ETFs Redeem 2.1% of Assets in Past Week.

o Day traders were unfazed by the S&P 500’s 6.8% dive on the past seven trading days, which is extremely bearish from a contrarian perspective. In the past week, leveraged short U.S. equity ETFs redeemed 2.1% of assets, while leveraged long U.S. equity ETFs issued 1.9% of assets. TrimTabs

· Munis: States Face Record $260 Billion Budget Gap in Next Two Fiscal Years. We Estimate 1 Million to 2 Million State Employees Could Lose Their Jobs Unless Federal Government Provides More Aid or States Approve Big Tax Increases. TrimTabs

· Munis: 1H10: Underperform Treasuries as Default Speculation Mounts - BBG

o “The Treasury market rallied its brains out,” . “Munis haven’t followed as much.”

o Municipal bonds underperformed U.S. Treasuries in the first half as default speculation drove state and local government yields to the highest level relative to government bonds in 13 months

o Ten-year municipal bond yields rose to 100 percent of Treasuries for the first time since May 2009, from 80 percent six months ago

· Munis: California Schools Facing ‘Financial Disaster’ Rises to Record – BBG

o A record number of California schools are in financial distress and may not meet their commitments over the next two years due to the recession and state budget cuts, according to the California Department of Education

o The number of school districts on a semi-annual “fiscal early warning” list issued by the department has jumped 38 percent to 174 districts since January, or 16 percent of the state’s 1,077 local education agencies

· Munis: Schwarzenegger wants $11-billion water bond off the November ballot Los Angeles Times

o California's governor says he needs to focus on the budget crisis. Polls show voters may not have the appetite for such borrowing when the state is in such dire financial straits.

· COMMERCIAL REAL ESTATE, hedge funds: Hedge-fund giant Farallon Capital Management LLC is restructuring more than $1.5 billion in debt stemming from a big bet on trailer parks, one of the largest attempted workouts involving commercial-property loans sliced and sold to investors in the boom years

o The $1.5 billion securitized loan backing Farallon's 2007 purchase of a business operating about 270 mobile-home communities on Friday was placed with a debt-servicing company that deals with troubled loans

o http://online.wsj.com/article/SB10001424052748703374104575337312907700330.html?mod=WSJ_RealEstate_sections_Commercial

· Survey: Recession puts 50% of Americans in worse financial shape

o More than 60% of Americans said they've cut spending and borrowing since the economic downturn, according to a Pew Research Center survey. Almost half of respondents said they were financially worse off after the recession. The situation could have profound consequences for the U.S. economy, which depends largely on consumer spending to grow. The Washington Post (30 Jun.)

· Democrats Prepared to Scale Back Climate Proposal, Kerry Says – BBG

o Democrats would be willing to “scale back” a climate proposal that would cap greenhouse gases across the economy, Senator John Kerry said after a meeting with President Barack Obama

o Obama told a bipartisan group of 23 senators at the White House yesterday he wants energy legislation to make companies pay a price for releasing carbon dioxide and other greenhouse gases into the atmosphere, said Kerry, the lead author of a plan to curb the pollution that scientists have linked to climate change

o Still, the bill is likely to be significantly more limited than an earlier proposal, which imposed an economy-wide cap on greenhouse-gas emissions, according to some Senate Democrats

o “All of us have to compromise,” said Kerry, a Massachusetts Democrat. “We are prepared to scale back the reach of our legislation.”

· Afghanistan Petraeus Says Military May Ease Rules of Engagement

o Bloomberg) -- General David Petraeus today said he’s concerned the U.S. military’s rules of engagement in Afghanistan are too restrictive and putting American forces at risk.

· Obama renews immigration push – LAT link

o The president meets with lawmakers to discuss a strategy for passing a bill this year; gaining Republican support will be a challenge. He will make his case to the public in a speech Thursday

o It would be a revival worthy of Lazarus, but President Obama is making a renewed push for an immigration overhaul, possibly during a lame-duck session of Congress after the November election — when members would no longer face an imminent political risk for supporting it.

· The Fix: Could Mike Huckabee be the 2012 GOP nominee?

o from Wash Post Politics

o Former Arkansas Gov. Mike Huckabee (R) leaned heavily toward the 2012 presidential race over the weekend, telling Fox News Channel's Chris Wallace that he "does better against [President] Obama than any other Republican."

SECTOR NEWS WITH MACRO IMPLICATIONS

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

+ Don't be put off by the market, ACN, C, HAS, DIS, and NVDA.

- WAG

ENERGY

o BP (+9%) outperforms-no fresh news

o BP CDS BETTER IN LONDON TRADING, OPENING 25 BETTER AND LAST

o Transocean (-3.6%), Us Justice Department letter calls stock dividend “troubling”

§ http://www.ft.com/cms/s/0/75cd4c30-83ae-11df-b6d5-00144feabdc0.html

o U.S. Accepts Equipment, Vessels from Abroad for Gulf Oil Cleanup - BBG

· Today, Salazar May Give Congress More Details on Deep-Water Drill Ban - BBG

· BP and others Told to Alert U.S. to Acts That Deplete Assets

§ The U.S. Justice Department told BP Plc, Transocean Ltd. and three other companies associated with the Gulf of Mexico oil spill to provide the government with advance notice before depleting assets that could cover judgments against them.The letters, dated June 23 and provided today to Bloomberg News in response to a Freedom of Information Act request, also went to Anadarko Petroleum Corp., Halliburton Co. and Moex USA Corp., and described “significant” potential liability.

· STO StatoilHydro agrees frame agreements for maintenance and modification work with five companies

· STO Aker Solutions signs NOK 4.4B frame agreement contract with Statoil

· CFW Cano Petroleum announces merger developments

· APA UK approves plans for Endeavour International development of Baachus oil field in Block 22/6a in Central North Sea

· APC Anadarko Petroleum was not caught unawares in Macondo well disaster - FT

· FE Barron's Weekday Trader is positive on FirstEnergy

· BP reports ~8,475 barrels of oil were collected during the first 12 hours of 29-Jun

· PEIX Pacific Ethanol announced the emergence from bankruptcy of Pacific Ethanol Holding and subsidiaries

· API reports crude inventories (3.40M) barrels vs. prior +3.69M; Gasoline inventories (908K) barrels vs. prior +810K; distillate inventories +3.98M barrels vs. prior +1.08M

· PVX Provident Energy Trust completes arrangement of merger of Provident's oil and natural gas production business with Midnight Oil Exploration

· KOG Kodiak Oil & Gas Corp. provides interim operations update

· PXD Pioneer Natural announces closing of previously announced $1.15B Eagle Ford shale joint venture with Reliance Industries

· DPM DCP Midstream, LLC completes purchase of Liberty gathering system and south Raywood processing plant from Ceritas Energy

· BTU Peabody Energy upgraded to buy from hold at Deutsche Bank

· EGAS Energy Inc. files 2.5M share secondary offering through Janney Montgomery Scott

· ENB Enbridge to invest $500M in 250-megawatt Colorado wind energy project

INDUSTRIALS/ HOMEBUILDERS

o EADS WSJ is cautiously positive on EADS

· http://online.wsj.com/article/SB10001424052748704103904575336353262595806.html?mod=ITP_moneyandinvesting_12

· PDS Precision Drilling announces successful amendment to credit agreement

· OMN +5.9% (earnings)

· WSII Canadian Competition Bureau will not challenge Waste Services- IESI-BFC

· EMR Chloride board concludes that Emerson's 375p/share cash offer is superior to ABB

· WMCO Williams Controls declared $1 per share cash dividend

· SLI SL Industries names William Fejes president and CEO, effective immediately

· TGH Textainer Group Holdings announces extension and increase to securitization facility

· ECL, DD Ecolab and DuPont to collaborate on new antimicrobial technologies for the food and beverage processing industry

· ADES, ACI ADA-ES and Arch Coal finalize previously announced license agreement

· LZ Lubrizol expands share repurchase program

· ETN Eaton and Linde Hydraulics forge global strategic alliance to advance hydraulic technologies for mobile and industrial equipment markets

· Takeover Panel rebukes URS over Scott Wilson bid

o from Reuters: Mergers News

o Panel says URS must announce raised offer terms by July 2

TRANSPORTS

· CP Canadian Pacific reports weekly carloads (week ended 26-Jun); Total carloads for the week were +1.6% to 45,571; last week's increase was +18.0%.

· Iberia (IBLA SM)/ British Airways (BAY LN) British Airways announced the merger plan document has been signed. The merger timetable remains unchanged. Both airlines will hold shareholder meetings to approve the transaction in November 2010 with completion expected to occur one month later. Completion of the merger remains subject to regulatory approval from the European Commission. It is also conditional on the U.K. Pensions Regulator not challenging the pension recovery plan agreed between British Airways and its pension trustees and approval of that plan by Iberia before September 30. S&P

TECH/MEDIA/TELECOM

· GOOG: to Extend Android to Cheaper Phones in China, India- BBG

· GOOG: Without a China license Google would be forced to shut down its operations in China, which could eventually jeopardize its position as the world's leading online advertising company- FT

· GOOG Google-ITA deal talks unnerves travel bosses- Reuters

· http://www.reuters.com/article/idUSN2917556520100630

· Browsers: South Korea Relaxes Curbs on Web Browsers- All Things Digital

· AMZN: seems to be back to normal after a Tuesday outage which left customers unable to place orders or otherwise use the site for hours- Barron’s

· Solar: Global PV market size to reach 15GW in 2010- Solarbuzz

· IC-Design: Second-tier IC design houses to enjoy record revenues in June- Digitimes

· PALM retroactively refunding $50 webOS app submission fee -- each and every one- Engadget

· CSCO: to launch tablet-style computer- FT

· Facebook: Elevation Partners, the private equity firm, has acquired an additional 5m shares of Facebook for $120m, bringing its stake in the social network to about 1.5 per cent- FT

· Foxconn issues profit warning- FT

· http://www.ft.com/cms/s/2/bbe4bdb8-8401-11df-ba07-00144feabdc0.html

· Vivo: Telefonica ups Vivo bid ahead of PT vote- Reuters

· http://www.reuters.com/article/idUSLDE65T0MI20100630

· Vivo: Portugal Telecom Shares to Be Suspended From Start of Meeting- BBG

· AAPL, RIMM: Tech Shopping Spree Isn't Over, expect more deals soon- Silicon Valley Insider

· SVI believes AAPL’s next big move could be TV and RIMM wants to be an infrastructure player

· Taiwan Mobile said it will not extend a deadline with private equity firm Carlyle on their stalled $1 billion deal for Carlyle's Taiwan cable TV unit stake- Reuters

· Advertising: Online Firms Find User Fees, Not Ads, A Path To Profit- Nikkei

· Ericsson completes LG-Nortel majority acquisition- S&P

· Foursquare Raises $20 Million from venture capitalists- Dealbook

· Hulu: Offers a $9.99 Subscription to Full Seasons of Current TV Shows- NYT (Yesterday)

· http://www.nytimes.com/2010/06/30/business/media/30hulu.html?src=busln

· Major IT Firms: TCS, Infosys, Wipro struggle to keep project managers- Economic Times

· http://economictimes.indiatimes.com/infotech/ites/TCS-Infosys-Wipro-struggle-to-keep-project-managers/articleshow/6108497.cms

MINERS/STEEL Etc

· Inflation: Akzo, PPG Profit Squeezed by Paint Materials Shortage - BBG

· Rio Tinto To Raise Stake In Ivanhoe Mines To 29.6% -

o Mining giant Rio Tinto Plc (RTP, RIO.L, RTPPF.PK) Wednesday confirmed that it has given notice to Ivanhoe Mines Ltd. (IVN.TO, IVN), the development partner for the Oyu Tolgoi copper-gold complex in Mongolia, that the company is exercising all of its Series A warrants to acquire 46.03 million Ivanhoe shares at a subscription price of US$8.54 per share, for a total consideration of about US$393 million. The acquisition will increase Rio Tinto's ownership of Ivanhoe shares by 7.3% to 29.6%.

· Newcastle Coal Port Ship Queue Longest in Three Years - BBG

o Coal shipments from Australia's Newcastle, the world's biggest export port for the power station fuel, rose 3.6 percent last week while the number of vessels waiting to load reached the longest in almost three years. The volume exported in the week ended 7 a.m. local time June 23 climbed to 2.11 million metric tons from 2.04 million tons in the preceding period, Newcastle Port Corp. said on its website today.

o Rio Tinto Group, Xstrata Plc and BHP Billiton Ltd. are among mining companies that ship the fuel from the harbor.

· EU Commission fines 17 steel companies total of €518M for 18-year long collusion on price

o EU Commission has fined EU steelmakers 17 companies which took part in the cartel €518M for 18-years of collusion. Among those Arcelor-Mittal (MT.NA) was fined €276M while Voestalpine (VOE.AV)was fined €22M

· Australian government believed to be ready to back down on resources super profits tax - Sydney Morning Herald

o In what insiders are describing as a make or break day in the mining tax saga, a meeting has been underway involving Marius Kloppers of BHP, David Peever of Rio Tinto, Peter Freyberg, from Xstrata, Ms Gillard, the Treasurer, Wayne Swan, and the Resources Minister, Martin Ferguson.

o The miners are refusing to back away from their key demands that the tax does not apply to existing projects and that the 40 per cent headline rate not apply to all commodities

o http://www.smh.com.au/national/make-or-break-pm-set-to--back-down-on-miners-tax-20100630-zkgd.html?autostart=1

· IVN Ivanhoe Mines says Altynalmas' Kyzyl gold project estimated average annual gold production of 368K oz confirmed by independent pre-feasibility study

· RTP Rio Tinto agrees to 50:50 joint venture with Tau-Ken Samruk to mine in Kazakhstan -- wires

· Australian government believed to be ready to back down on resources super profits tax - Sydney Morning Herald

· OMN Omnova Solutions reports Q2 EPS

· IVN, RTP Ivanhoe Mines announces that Rio Tinto has exercised warrants providing $393.1M in proceeds

AUTOS

· LAD Lithia Motors amended revolving credit facility with US Bank

· Carmaker Tesla's stock zooms 40 percent on first day- Reuters

o Tesla's shining debut came despite weakness in the broad market and as other auto stocks were hit by concerns of a global slowdown. Tesla was the top gainer on the Nasdaq on Tuesday, offering hope to other companies mulling initial public offerings but which may have shied away given recent volatility

o Analysts say that the cars may be sleek, but the shares will be volatile in the near term. The Palo Alto, California-based company is losing money and does not expect to be profitable for at least two years

o http://www.reuters.com/article/idUSTRE65R2B620100630

FINANCIALS

· U.K. Law May Halt Release of Bank Stress Test Data

· S&P may cut Moody's rating on regulatory reform

· Circuit-Breaker Leaves Analysts Hopeful - NYT

· Financial reform latest…

§ Dodd said that the bill might not have been approved with the fees on banks, but that the new arrangement would likely pass muster. He stopped far short of guaranteeing a successful vote, however.

§ http://thehill.com/blogs/on-the-money/banking-financial-institutions/106165-brown-would-vote-no-on-wall-st-bill-with-19-b-in-fees

o Congress has a break next week. The delay means that final passage of the bill and the signature of President Barack Obama will likely take place in the middle of July.

§ “The leaders certainly told me that this would be the first priority on a return from the July 4 break,” Dodd told reporters after the meeting.

o Volcker Said to Be Disappointed With Final Version of His Rule – BBG

o EU to cap bankers cash component of bonuses at 30% - Reuters

o JPM: JPMorgan Isn’t Likely to Increase Dividend This Year, Dimon Says - BBG

o AIG vs GS and banks in focus today…. Congressional commission convenes hearings Wednesday

§ AIG lost ability to seu banks in baiout raises questions..NYT

§ As a Congressional commission convenes hearings Wednesday exploring the A.I.G. bailout and Goldman’s relationship with the insurer, analysts say that the documents suggest that regulators were overly punitive toward A.I.G. and overly forgiving of banks during the bailout

§ http://www.nytimes.com/2010/06/30/business/30aig.html?hp=&pagewanted=all

o MAIN Main Street Capital announces partial exit of two portfolio investments

o EU to cap bankers cash component of bonuses at 30% - Reuters

o European Commission clears extension of bank support measures in The Netherlands, Slovenia, Greece and Poland – BBG

o Citi (C): Cramer reiterates a $12 price target for Citi, saying it is past the worst of its problems

o EU to cap bankers cash component of bonuses at 30% - Reuters

o WBS, ONE Webster Financial reports sales of shares in Higher One IPO

o GAIN Gladstone Investment announces $21.7M sale of equity investment and $30.6M debt repayment in A. Stucki

o TIBB North American Financial Holdings to invest $175M in TIB Financial

o Greek bank stocks trading higher on speculation about bank mergers – Reuters

o AIG American International Group can't sue banks - NYT

o AIG vs GS and banks in focus today…. Congressional commission convenes hearings Wednesday

§ AIG lost ability to seu banks in baiout raises questions..NYT

§ http://www.nytimes.com/2010/06/30/business/30aig.html?hp=&pagewanted=all

o Standard Chartered to invest $500M in Agricultural Bank of China (601288.CH) IPO

o Gartmore Group (GRT LN)/ Jupiter Fund Management (JUP LN) Jupiter Fund Management was rumoured yesterday to be considering making an offer for Gartmore, the Times

REAL ESTATE

o MBA

§ US MBA Refinance Index +12.6% At 3,613.1; Last Week 3,208.5

§ US MBA Purchase Index -3.3% At 172.1; Last Week 177.9

§ US Mortgage Volume Rose 8.8% Last Week On Refinancing

· Homebuilders…LEN: WSJ(6/30) Lennar Cuts Its Prices As Sales Hit A Wall

· Commercial Mortgage-Backed Bonds Make a Comeback - NYT

o Investors have returned to the mortgage-backed market, as commercial property prices are perceived to have hit bottom.

o http://online.wsj.com/article/SB10001424052748703374104575337312907700330.html?mod=WSJ_RealEstate_sections_Commercial

· Foreclosed Homes in U.S. Sell at 27% Discount as Supply Grows - RealtyTrac

o Homes in the foreclosure process sold at an average 27 percent discount in the first quarter as almost a third of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac

o A total of 232,959 homes sold in the period had received a default or auction notice or were seized by banks

o That’s down 14 percent from the fourth quarter and 33 percent from the peak a year earlier, the company said. The average price of a distressed property was $171,971

o “The discount will probably stay between 25 percent and 30 percent as lenders carefully manage the number of new foreclosure actions in order to avoid flooding the market,”

· The New York metropolitan area ranked 15th in the nation for residential foreclosure sales last quarter with 4,300 distressed properties changing hands at an average price of nearly 39 percent less than that of non-distressed homes, according to a report released today by RealtyTrac. For a region that typically fares better than the national average in the grimmest of foreclosure statistics, the ranking is a rare wake-up call, particularly because the numbers are lower than they might be if not for the state's stall tactics, said Rick Sharga, senior vice president for RealtyTrac. "The state has put in some of the longest delaying procedures in foreclosure prevention programs anywhere in the country," Sharga said, referring to New York's extended pre-foreclosure period, which postpones the initiation of foreclosure proceedings by banks, and to its delays in foreclosure processing after an action has been filed. The deferrals have "probably stalled a lot of foreclosures that might have otherwise taken place," he added. [more]

· Accor’s Voucher Unit May Get More Generous Rating Than Hotels - BBG

o Accor SA’s services unit will probably be rated higher than peers when it separates from the company’s hotels this week, as investors seek to tap growth potential in meal and childcare vouchers

o Shares in the service unit, Edenred, will trade at a price- to-earnings ratio of about 20, according to the average of five analyst estimates, putting them near the top of the peer group

o The hotels business will be valued at about 9 times estimated earnings before interest taxes, depreciation and amortization for this year, according to the survey, lower than the average.

· PDM Piedmont Office Realty Trust signs two new leases for over 70,000 sf in Dallas market

· DEI Douglas Emmett acquires Bishop Square, an office project containing approximately 960K square feet located in Honolulu, Hawaii for $232M

· AIZ Assurant unit to reduce workforce; company expects to incur after-tax charge of $4.5M to NOI in Q2

· CSE,OHI Omega Health closes on purchase of 40 CapitalSource facilities

· ROIC Retail Opportunity Investments closes on the acquisition of two mortgage loans for $15.1M

CONSUMER

· SBUX Starbucks turning on free WiFi at company-owned doors in US, Canada 1-Jul

· PARL Parlux Fragrances reports Q4 EPS

· GIS General Mills reports Q4 EPS .. EPS In-Line, Guidance Below.

· ZZ Sealy reports Q2 EPS

· LABL Multi-Color Corp to acquire European wine, spirit & olive label specialist for € 50.5M

GAMING, LODGING, & LEISURE

· Credit Suisse downgrades European hotels, US Capital Goods sectors; European Hotels sector downgraded to benchmark from overweight; US Capital Goods sector downgraded to benchmark from overweight. - SA

· MHGC Morgans Hotel Group files $500M mixed shelf

· SNSTA Sonesta announces purchase of Sonesta Bayfront Hotel Coconut Grove

HEALTHCARE

· CCM Concord Medical Services announces share repurchase program

· AZN AstraZeneca upgraded to hold from underperform at Jefferies

· CVD Sanofi-Aventis sells Porcheville, Alnwick sites to Covance

· AZN AstraZeneca upgraded to neutral from underweight at JPMorgan

· RHB RehabCare Group expects $17-18M impact on operating earnings from proposed Medicare Physician Fee Schedule rule

· GHDX Genomic Health files 10M share equity shelf

· MDT Medtronic receives FDA warning letter for Surgical Technologies facility in Louisville, Colorado plant in May 2010 -- 10K

· CBST Cubist says all objectives met in phase 2 CXA-101 complicated urinary tract infections study

· ETRM EnteroMedics announces 1-for-6 reverse split

· MELA MELA Sciences announces proposed public offering of common stock through Needham and Leerink

· TOMO TomoTherapy enters supply agreement with Premier Healthcare Alliance

FROM OUR EU/LONDON DESK

· Healthcare;

· AZN LN wins Crestor patent verdict - very very good news +8.5%

· Energy

· BP (+5.6%) outperforms-no fresh news.

· Transocean (-3.6%), Us Justice Department letter calls stock dividend “troubling”

· Royal Dutch (-1.7%), finds more oil in Brazil

· GDF Suez (-1.2%), in talks on long term gas contracts.

· Vestas (+2.5%) contract in Colorado.

· Verbund (-6%) to pursue EUR 1bln capital increase.

· Mining

· Kazakhmys (-0.7%), expects copper prices to decline. Sees 5500$ as just price.

· Voestalpine (+0.2%), fined 22mln Euro by EC on price fixing.

· ArcelorMittal (u/c) EU fines EU 276 mln for price fixing.

· Financials

o Generali -0.14% May Cut Stakes in Commerzbank -0.19%, Intesa +0.23%, Il Sole Reports

o Standard Chartered -0.24%: Pre-close trading statement for 1H 2010, TO INVEST $500M IN AG. BANK OF CHINA IPO

o German Lenders Don’t Want Stress Tests Disclosed, FTD Reports…Commerzbank -0.19%, DBK +1%

o Qatar in talks over Bank of Greece stake

o Barclays +1.22% on US dropping bank levy

· AKZO feels raw materials squeeze- S&P

· Ericsson completes LG-Nortel majority acquisition- S&P

· Foxconn issues profit warning- S&P

· BARRY CALLEBAUT 9M sales top expectations - S&P

· COSTAIN: trading remains in line- S&P

· HMV: FY profit up 17.7%, maintains dividend - S&P

· HUNTING PLC: Positive trading- S&P

· NORTHGATE: FY PTP climbs 32.7% - S&P

FROM OUR ASIA DESKS

· Japan

· • NKY -1.96%, TPX -1.26%

· • NKY closed down at a key support level, hitting 7-mth low as investors took to the sidelines ahead of key economic data from Japan, China and US. Turnover on the TPX rose to 1.10 trillion yen from 957.17B yen yesterday

· • Stocks fell across most sectors led by materials, industrials, tech, consumer and financials. Oil & gas rose

· • Exporters fell on a strong yen and after US consumer confidence fell: autos -0.07%, CE -1.42%

· • Traders -1.66% after metal and oil prices fell. Mitsui & Co. (8031) -1.95% after S&P cut its credit outlook to “negative” from “stable”

· • Tech -1.50% tracking their US peers

· • Best performing sectors on the TPX: mining +0.33%, oil & coal +0.22%, airline -0.37%; worst performing sectors: pulp & paper -2.85%, glass & ceramics -2.60%, rubber products -2.26%

· • J Front Retailing (3086) -5.47% after the clothing retailer cut its full- year sales forecast by 1.1% to 959B yen

· • Shin-Etsu Chemical (4063) -4.02% on Mizuho downgrade

· • Shionogi (4507) +7.21% after its partner AstraZeneca (AZN LN) won a US court ruling that will help prevent generic-drug makers from selling lower cost copies of their Crestor cholesterol pill until 2016

· Nikkei today

· • Japan wages including overtime and bonuses slid 0.2% YoY in May, the first decline in 3 mths. The report adds to evidence that consumers are unlikely to drive Japan’s expansion after figures show unemployment rate unexpectedly rose in May and household spending fell for a 2nd mth – Bloomberg

· • Housing starts slipped 4.6% YoY in May, the first decline in 2 mths. Of these, starts for owner-occupied homes rose 4.8%, the 7th mth of increase, while those for rental fell 13.5%, the 18th consecutive mth of decline. Developer-built home starts edged up 0.8%, the 3rd straight mth in a row

· • The fiscal overhaul plan adopted by the Japanese government last Tuesday will help the nation maintain its solid Aa2 credit rating on its sovereign debt, said Moody’s Investors Servie

· Hong Kong

· • HSI -0.59%; HSCEI -0.61%

· • Stocks fell dragging the HSI to a 2-weke low, after a slump in US consumer confidence and a slump in the mainland stock indices raised concerns over global economic growth/ recovery. Turnover on the HSI rose to HK$22.34B from HK $15.30B yesterday

· • Exporters: Li & Fung (494 HK) -3.70% after US consumer confidence fell; Foxconn (2038 HK) -6.92% after predicting a wider 1H loss and MS cut it target price

· • Mainland banks fell: CCB (939 HK) -3.94%, ICBC (1398 HK) -0.69%, BoComm (3328 HK) -1.43%. Some investors concerned the IPO of Agricultural Bank of China will divert funds away from the other lenders

· • Commodities producers fell: Chalco (2600 HK) -1.79%, Jiangxi Copper (358 HK) -0.54%

· • Lifestyle International (1212 HK) +0.26% said it is in talks to build a multi-billion yuan department store in Shanghai

· • China Mobile’s (941 HK) +0.71% HK unit has won the bid to operate a radio spectrum delivering broadcast-type mobile TV in the city

· • China Gas (384 HK) +5.53% expects a significant increase in net profit for the year ended 2010

· • Ping An (2318 HK) was suspended from trading after it said it planned to merge its banking unit with Shenzhen Development Bank

· Headlines:

· • Beijing has approved cards made by BYD (1211 HK) and 15 other mainland automakers and joint ventures to receive fuel efficiency subsidies of 30,000 yuan per vehicle – SCMP

· China

· • SHCOMP -1.18%; SZCOMP -1.31%

· • Stocks fell sending the benchmark to 14-mth low, as investors pared risks on concerns of economic outlook. Turnover on the SHCOMP rose to 71.08B yuan from 44.92B yuan yesterday

· • Stocks fell across most sectors led by materials, industrials, consumer and tech. Telecom and health care rose

· • Mining -2.05%, metals -2.55% after commodities prices fell

· • Shippers -1.56% as the Baltic Dry Index continued to fall

· • Real estate -2.54%

INVESTMENT BANKING WRAP

M&A

· M&A Slowdown May Persist After Dealmaking Fizzles in First Half- BBG

o A recovery in mergers and acquisitions may fail to emerge in 2010 after dealmaking fizzled in the first half, with the biggest takeover collapsing and stock markets erasing gains for the year

o “The momentum has currently stalled as volatility in the capital markets is making for a challenging deal environment,” said Jeff Kaplan, global head of M&A at Bank of America “Strategic buyers will likely remain cautious until there’s greater stability in the equity and credit markets.”

o http://www.businessweek.com/news/2010-06-29/m-a-slowdown-may-persist-after-dealmaking-fizzles-in-first-half.html

· Rio Tinto To Raise Stake In Ivanhoe Mines To 29.6% -

· Debt crisis damps dealmakers’ appetite for M&A- FT

o Europe’s sovereign debt crisis and turbulent financing markets rattled the confidence of corporate dealmakers across the globe in the first half of the year to damp already lacklustre mergers and acquisition activity

o European buyers were most active in emerging markets, making up 61.2 per cent of inbound M&A activity. In spite of this, the second quarter was the worst for European dealmaking since 1998, when Mergermarket records began

o US chief executives were also wary of launching bids. Activity in the region fell 18.8 per cent in the first half to reach $313.3bn. That represents the lowest half-year period since 2003

o http://www.ft.com/cms/s/0/32af7a5a-83ad-11df-b6d5-00144feabdc0.html?dbk

· Risks abound for M&A in Australian healthcare firms- Reuters

o Healthcare is hot in Australian takeovers as beaten-down shares of hospitals, pathology and radiology groups offer rich pickings, especially to cashed-up buyout firms.

o http://www.reuters.com/article/idUSSGE65S07M20100630

· CELG Celgene to Acquire Abraxis Bioscience in $2.9 Bln cash and stock Deal- BBG

o The deal is a premioum of about 17.3% and CELG is to pay $71.93/shr on June 29 close

o The deal could modestly dilute earnings in 2011.

· Chloride Says EMR Emerson Offer is Superior Proposal- BBG

o Chloride Group said it has concluded that Emerson Electric Co.’s cash offer of 375 pence per share constitutes a Superior Proposal and it has notified ABB Ltd. of this decision.

· Telefonica ups Vivo bid ahead of PT vote- Reuters

o Portugal Telecom shareholders are meeting to decide whether to take 7.15 billion euros for their stake in Brazilian mobile venture Vivo, after Spain's Telefonica put another 10 percent on the table

o http://www.reuters.com/article/idUSLDE65T0MI20100630

· Portugal Telecom Shares to Be Suspended From Start of Meeting- BBG

o Portugal Telecom SGPS SA shares will be suspended from trading in Lisbon when today’s shareholder meeting of Portugal’s biggest telecommunications company begins, Portuguese securities regulator CMVM said in an e-mailed statement.

· GOOG Google-ITA deal talks unnerves travel bosses- Reuters

o Google’s talks to buy ITA Software, an airline IT and services provider, has travel executives worried that the search engine giant could wield too much power in their industry

o The concerns are so real that Kayak offered to buy ITA to keep the company out of Google's hands, a travel industry source close to the situation said.

o http://www.reuters.com/article/idUSN2917556520100630

· AAPL/RIMM Tech Shopping Spree Isn't Over, expect more deals soon- Silicon Valley Insider

o Apple's next big move is going to be TV. Besides the leaks of a supposed new Apple TV device, the company also renamed its iPhone OS "iOS," foreshadowing a future beyond mobile devices

o If it can't built a decent product through existing partnerships. The gossip is that RIM wants to be an infrastructure player and take a cut from all ads that go through its system, NOT an ad sales/network/creative shop the way Apple is leading its iAds effort

· SNY Sanofi to Buy TargeGen to Add Cancer Treatments- BBG

o Sanofi will pay $75 million at the closing of the purchase, which is expected in the third quarter, the Paris-based company said in an e-mailed statement today

o Additional payments tied to reaching development goals on TargeGen’s lead product may bring the total purchase price to $560 million

· Taiwan Mobile will not extend Carlyle deal deadline- Reuters

o Taiwan Mobile said on Wednesday it will not extend a deadline with private equity firm Carlyle on their stalled $1 billion deal for Carlyle's Taiwan cable TV unit stake

o http://www.reuters.com/article/idUSTPV00170220100630

· WSII Waste Services to sell assets under deal with regulator to complete merger- BBG

o Waste Services must sell commercial waste collection assets in five Canadian cities under an agreement the Competition Bureau in connection with the company's merger with IESI-BFC

o Under the agreement Tuesday, the companies will sell waste collection assets, including customer contracts, vehicles, bins and other equipment in each of Calgary, Edmonton, Hamilton, Ottawa and Simcoe County.

· No talks on Alaska pipeline deal- Reuters

o TransCanada would offer equity stakes in its $41 billion Alaska gas pipeline to companies proposing a rival project, but there have been no talks to date, a TransCanada executive said on Tuesday

o http://www.reuters.com/article/idUSN2916885920100629

· North American Financial Holdings to Invest $175m in TIBB TIB Financial- PR

· Spurned by suitors / Gilat may get up to $25 million in compensation- Haaretz

o Gilat Satellite Networks is edging toward a compromise with the consortium that backed out of a deal to buy the company two years ago for $475 million

o It appears Gilat will receive between $20 million and $25 million compensation, though the original agreement stipulated compensation of $47.3 million, around 10% of the purchase price, if the agreement was not consummated

o http://www.haaretz.com/print-edition/business/spurned-by-suitors-gilat-may-get-up-to-25-million-in-compensation-1.299089?localLinksEnabled=false

· UK Takeover Panel rebukes URS over Scott Wilson bid- Reuters

o The UK Takeover Panel gave URS (URS.N) a slap over the wrist, saying the U.S. engineering firm's statement that it might raise its bid for British consultancy Scott Wilson Group (SWG.L) breached the takeover code.

o The panel said URS must now come out with any raised offer terms by 7.30 am (0630 GMT) on Friday

o http://www.reuters.com/article/idUSSGE65T08R20100630

· Deloitte CEO Seeks Acquisitions- WSJ

o Deloitte LLP Chief Executive Barry Salzberg is looking to make acquisitions to beef up as the business climate improves

o "I would be very willing to make another and very willing to position ourselves properly for the right kind of acquisition or a combination in the market," said Salzberg

o http://online.wsj.com/article/SB10001424052748703374104575337083015188478.html

· EDF CEO Says No Decision on U.K. Grid- WSJ

o Électricité de France SA's chairman and chief executive, Henri Proglio, is still undecided on whether to sell the company's U.K.-based power distribution unit EDF Energy, even though the sale process is well underway and the proceeds would help the French power giant substantially cut its debt

o http://online.wsj.com/article/SB10001424052748704103904575337071416530884.html

· Brasil Foods merger OK with- Reuters

o Brazil's finance ministry said on Tuesday it has recommended that the anti-trust regulator Cade approve the merger of food companies Sadia and Perdigao, which now make up Brasil Foods, but some spin-offs may be required

o http://www.reuters.com/article/idUSN2914969120100629

· GSOL Global Sources commences cash tender offer for up to 11.1M of its shares at $9/share- BBG

· LABL Multi-Color to buy Italian label maker for $61.6 mln- Reuters

o Consumer products label company Multi-Color Corp (LABL.O) said it would acquire Italy's Guidotti CentroStampa for 50.5 million euros ($61.60 million) in cash and stock, to enter the olive oil label market.

o http://www.reuters.com/article/idUSSGE65S0KR20100629

· Enbridge to spend $500 mln on Colorado wind farm- Reuters

o Enbridge said has agreed to buy the Cedar Point Wind Energy Project, located about 80 miles east of Denver, Colorado, from Renewable Energy Systems Americas

o The company is building a solar-power facility near Sarnia, Ontario. It has four Canadian wind farms and is building two more wind-power facilities in Ontario. Including the Colorado project, Enbridge will have 800 megawatts of green power output either operating or under construction

o http://www.reuters.com/article/idUSN2916952620100629

· Munters to Sell MCS to Triton, Makes Net Gain of $84 Million- BBG

o Munters AB said it has signed an agreement to sell its MCS division to private equity company Triton.

o The deal will generate an estimated net profit of 650 million kronor ($84 million), Munters said.

· Vedanta Says It’s Free to Acquire 74% Stake in Black Mountain- BBG

o Vedanta Resources Plc said it’s free to acquire a 74 percent stake in Black Mountain Mining (Pty) Ltd. after Anglo American Plc’s partner in Black Mountain, Exxaro Resources, didn’t exercise a pre-emption right to purchase the shares.

· India's Mukesh Ambani, D E Shaw close to JV- Economic Times

o Indian billionaire Mukesh Ambani is close to signing an equal joint venture with U.S. private equity and hedge fund giant D.E. Shaw to enter the financial services sector

o http://www.reuters.com/article/idUSSGE65T02Q20100630

· National Bank of Greece Denies Talks With Qatar Fund- BBG

o National Bank of Greece SA, the country’s biggest lender, denied it’s in talks to sell a 250 million-euro ($304 million) stake to the Qatar Investment Authority.

o “Reports that National Bank of Greece is seeking a strategic investor aren’t accurate,” the lender said in an e- mailed statement today. The bank “doesn’t intend to raise equity capital, including in particular through a share capital increase on a non-preemptive basis.”

· Greek interest in RTL’s Five TV auction- FT

o Antenna Group of Greece is working with Cyrte Investments and Talpa Media

o Antenna and its partners join others who have expressed an interest in Five, the loss-making UK arm of RTL, a pan-European broadcaster 90 per cent owned by Bertelsmann of Germany.

o Dawn Airey, Five’s chief executive, and advisers to RTL have met more than a dozen different potential buyers, but the list of those who have taken their interest beyond an initial stage is down to four or five

o http://www.ft.com/cms/s/0/3492fa36-839e-11df-b6d5-00144feabdc0.html

· Ping An to combine bank unit with Shenzhen Dev Bank- Reuters

o China's Ping An plans to combine its banking unit with mid-sized lender Shenzhen Development Bank as part of an aggressive plan to grow its banking business

o Ping An recently obtained regulatory approval to buy up to 30% of Shenzhen Bank, including a nearly 17% stake from the lender's biggest shareholder, Newbridge Capital

o http://www.reuters.com/article/idUSTOE65S08U20100630

· SMFG to invest in India's Kotak Mahindra in Asia push- Reuters

o SMFG and other major Japanese banks are seeking partnerships with local banks in Asian countries as growth prospects at home are weak, hoping this will expand their overseas customer base beyond Japanese clients working abroad.

o It said it would acquire the stake in Kotak Mahindra through a private placement of new shares to be issued in August or September for about 13.7 billion rupees ($296 million), pending approval by the Indian bank's shareholders and authorities.

o http://www.reuters.com/article/idUSTRE65T0NH20100630

· JX to invest in Vietnam refinery projects- Nikkei

o JX Holdings Japan's biggest oil refiner, will take part in the construction and operation of two Vietnamese refinery projects estimated to be worth around $9 billion

o JX will participate in the $1.1 billion project to expand Vietnam's first refinery, the 140,000 barrels per day (bpd) Dung Quat plant, and the construction of the nation's third refinery, the $8 billion Long Son plant

o http://www.reuters.com/article/idUSTRE65T0N620100630

$ RAISING

IPOs

· Univar files $862.5M IPO through Goldman Sachs and BofA Merrill Lynch

o The company is a global distributor of commodity and specialty chemicals. For the year ended December 31, 2009, Univar generated $7.2B in net sales from the distribution of approximately 5.4M metric tons of chemicals. Univar lists Brenntag as its principal competitor. The company did not list a prospective symbol nor an exchange on which it plans to list.

· Carmaker Tesla's stock zooms 40 percent on first day- Reuters

o http://www.reuters.com/article/idUSTRE65R2B620100630

· Standard Chartered to invest $500M in Agricultural Bank of China IPO- BBG

· Solar Start-Up Rakes In Capital- Dealbook

o SunRun, a San Francisco start-up that leases rooftop solar arrays to homeowners, said Tuesday it had raised $55 million from investors.

o The equity investment led by Sequoia Capital, a prominent Silicon Valley venture firm, is one of the largest made in a solar leasing firm and a sign that companies are poised for a major expansion beyond the industry’s core market in California

o http://dealbook.blogs.nytimes.com/2010/06/30/solar-start-up-rakes-in-capital/

· Porter finalizing new funding after IPO delayed- Reuters

o Porter Aviation Holdings, an upstart regional challenger to Canada's major airlines, is close to finalizing another form of financing after it shelved an initial public stock offering earlier this month due to market volatility

o Robert Deluce, chief executive of Porter, said the 3-1/2 year-old carrier may go back to the IPO market in the fall, or perhaps next spring, depending on when conditions are right

o http://www.reuters.com/article/idUSTRE65T07K20100630

· Retail crowd shows muted interest in AgBank IPO- Reuters

o While foot traffic at HSBC's Kwun Tong branch indicated decent interest on the street in China's third-largest bank, it was hardly the frenzy that has greeted other large Chinese bank offerings

o http://www.reuters.com/article/idUSTRE65T0RH20100630

· PTRT Portrait Innovations files for $75M IPO through J.P. Morgan and Wells Fargo

· GM trumpets its turnaround to investors- Reuters

o General Motors has revamped the way it operates, with sharply lower costs, stronger brands and gains in key emerging markets like China, Chief Executive Ed Whitacre said in a pitch for the company's planned IPO

o http://www.reuters.com/article/idUSTRE65S51Q20100629

PRICINGS

· Initial Offerings

o HSFT HiSoft Technology International 7.4m share IPO prices below the range at $10: Price Talk $11-13

o AMAP AutoNavi holdings 34.5m share IPO expected to price 6/30 via GS: Price talk $10.50-12.50

o ECT ECA Marcellus Trust 8.8m share IPO expected to price 6/30 via Raymond James and Citi: Price Talk $19-21gs,

o MX MagnaChip Semiconductor Corp 7.5m share IPO expected to price 6/30 via Barclays, GS, and DB: Price Talk $15.50-17.50

· Secondary Offerings

o BOFL Bank of Florida Corp 38.8m share secondary expected to price 6/28 via Kaufman

o RSOX Resaca Exploitation Inc 20m share secodnaary expected to price 6/28 via RBC

o SPU SkyPeople Fruit Juice Inc 5.3m share secondary expected to price 6/30 via Rodman & Renshaw

NEWS

· IVN Ivanhoe Mines announces that Rio Tinto has exercised warrants providing $393.1M in proceeds- BBG

o Rio exercised its Series-A warrants four months ahead of schedule providing IVN of $393.1M to help fund the development and construction of the Oyu Tolgoi copper-gold mining complex in Mongolia

· Verbund Declines in Vienna on 1 Billion-Euro Share Sale Plan- BBG

o Verbund AG, Austria’s biggest utility, fell in Vienna trading after announcing that it was planning to hold a share sale of as much as 1 billion euros ($1.22 billion).

o The share sale is supported by Austria’s government, the majority shareholder, the company said today in a statement. Austria may buy about 500 million euros of the stock, it said.

· BX Blackstone nears finish line for latest fund- reuters

o Private equity firm Blackstone Group is close to finishing fund-raising for its sixth global buyout fund, raised during one of the toughest periods to ask investors for cash

o http://www.reuters.com/article/idUSN2913333920100630

· Healthcare: MELA MELA Sciences announces proposed public offering of common stock through Needham and Leerink

· Healthcare: GHDX Genomic Health files 10M share equity shelf

· Energy: EGAS Energy files 2.5M share secondary offering through Janney Montgomery Scott

· Lodging: MHGC Morgans Hotel Group files $500M mixed shelf

DAILY VIEW

Conferences

· Wednesday June 30:

o Argyle Executive Forum 2010 Capital IQ Investor Leadership Half Day Conference - 06/30/10 London, GB

o DealFlow Media, Inc.: The Reverse Merger Conference- 06/29/10 - 06/30/10 Toronto, CA (Details)

o Institute for International Research Managed Services & Network Sharing- 06/28/10 - 06/30/10 London, GB

o JPMorgan Asia Pacific Conference- 06/28/10 - 06/30/10 New York, NY

o JPMorgan Media CEO Conference- 06/29/10 - 06/30/10 London, GB

o OneMedForum Emerging Company Finance Conference- 06/29/10 - 06/30/10 New York, NY

1. 9:40AM: CGCP

2. 10:40AM: VYTR

3. 11:20AM: DATA.PK

o Oppenheimer & Co. Consumer, Gaming, Lodging & Leisure Conference- 06/29/10 - 06/30/10 Boston, MA

§ 9:30AM: BAGL , RDEN

§ 10:05AM: GYMB , SBUX

§ 10:40AM: ATX , BBY , POOL , RUTH

§ 11:15AM: DPZ , SPLS , WDFC

§ 11:50AM: CBOU , PVH

§ 1PM: DEST , KMX , TUP , WEN

o Platts Annual European Nuclear Power Conference- 06/29/10 - 06/30/10 London, GB

o SEMI PVJapan Conference- 06/29/10 - 07/01/10 Yokohama, JP

o Windhover Information Inc Euro-Biotech Forum- 06/28/10 - 06/30/10 Paris, FR

Company Meetings/Other Daily Events

· Wednesday June 30:

o Shareholder Meetings

§ DAL, ADG, AHOM, EBF, EGAS, CKR, ICAD, MPG, NOG, ANX, MOSY, PAY, ACCL, ELC, OXGN, SMMX, TMOI

o TDG analyst meeting

o The SEC votes on a rule that would prohibit "pay to play" practices.

o The second quarter ends.

o Executives from Goldman Sachsand AIG testify on their relationship before the Financial Crisis Commission.

o Obama discusses the economy.

o Germany holds a presidential election

o A Senate panel focuses on holding the oil industry accountable in a hearing on the Deepwater Horizon spill- Barron’s

o CKR CKE Restaurants Special shareholder meeting to be held in California on June 30 at 11 am.

Economics

· Wednesday June 30:

o 0700 MBA Weekly Mortgage Applications Survey

o 0815 ADP National Employment Report

o 0830 ISM-NY Report on Business

o 0930 Dow Jones Economic Sentiment Indicator

o 0945 ISM-Chicago Business Survey - Chicago PMI

o 1000 Online Help Wanted Index

o 1030 EIA Weekly Petroleum Status Report

Earnings

· Materials

o Wednesday June 30: MON, SCHN, WOR

· Industrials/Homebuilders

o Wednesday June 30: BNSSA, LNN, AYI, CSIQ, SWHC

· Consumer/Retail/Education

o Wednesday June 30: CNK, UNF, APP, APOL, GIS, AM

· Tech/Telecom

o Wednesday June 30: CSVI, XRTX

· Real Estate

o Wednesday June 30: IRET

· Energy

o Wednesday June 30: AENY

***All eco data from Bloomberg and DJ

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