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o Playboy bidding war looms from Reuters

o New York Man Claims 84% of Facebook, Gets Order Blocking Assets - BBG

� Top $ Raising

o K.K.R. and Tech Companies to Go Public This Week � NYT link

o A handful of young technology companies are expected to kick off the market for initial public offerings in the third quarter on a hopeful note, The Associated Press reported.

�

� European companies are preparing the most initial public offerings in two years after I.P.O.s weathered the region's debt crisis and outperformed U.S. deals, Bloomberg

� Credit mkts:� C- citi:� Judge Rules Citi Bondholder Suit Can Proceed Over CDOs

� http://online.wsj.com/article/SB10001424052748704288204575363120888375664.html?mod=ITP_moneyandinvesting_2

� Credit mkts:� For Small Business, Slow Gains In Credit � WSJ

o The worst may be over for small businesses struggling to obtain credit, but this important corner of the financial system doesn't show signs of recovering very quickly, according to officials and business leaders who gathered at the Federal Reserve for a one-day conference

o http://online.wsj.com/article/SB10001424052748703283004575363381891292318.html?mod=WSJ_hps_LEFTWhatsNews

� Fed speak:� Duke, Lacker Say Fed Has No Plans for Further Monetary Easing - BBG

o Two Federal Reserve officials said the central bank has no plans to deploy additional tools for stimulating the economy and that the recovery is intact.

o Fed Governor Elizabeth Duke, asked about possible additional steps that could be taken to bolster growth, said in an interview in Washington yesterday that �there are no plans to do that at this point.� Richmond Fed President Jeffrey Lacker said �consideration of additional easing steps is very far away.�

o �Their comments echoed remarks last week by the Dallas Fed�s Richard Fisher and Kansas City�s Thomas Hoenig, who said more stimulus isn�t needed even after reports that private payrolls in June grew less than anticipated and manufacturing cooled.

�

� US states:

� U.S. States Show First Tax Revenue Jump Since 2008, Report Says � BBG

o California and New York helped push U.S. states� tax revenue to the first quarterly gain since 2008, the Nelson A. Rockefeller Institute of Government said.

o Overall tax receipts increased 2.5 percent to $164.5 billion during the January-to-March period, compared with the same three months in 2009, the Albany, New York-based institute said in a report today. It was the first year-over-year jump since the third quarter of 2008. Thirty-three states recorded a decline in collections, down from 40 states in the fourth quarter of 2009.

o �Recent data show an unmistakable improvement in the economy and a slight firming in state tax-revenue collections,�

� California Economic Index Increases to 2010 High, Comerica Says � BBG

o California�s economic growth reached its highest level this year in May, a sign that the most populous U.S. state is rebounding from the recession, Comerica Inc. said.� An index that measures manufacturing, tourism, travel, trade, job growth and consumer spending rose 1 point in May to 103, the Dallas-based lender said today in a report. The gauge, which held at 102 for the first four months of the year, is 7 points higher than in May 2009, Comerica said.

� Elderly Workers Overtake Teens in U.S. Job Search � BBG

o U.S. employees old enough to retire are outnumbering their teenage counterparts for the first time since at least 1948, when Harry Truman was president, a sign of how generations are competing for scarce jobs.

o the number of people aged 65 and older in the labor force -- defined as those who are working or looking for work -- has averaged 6.6 million in the first half of this year, more than the 5.9 million workers between 16 and 19, according to the Labor Department. There are now 1.13 older workers for every teen, compared with 0.5 a decade ago. (For the full Interactive Insight version of this story, click here.)

Benefits run out for more than 2 million unemployed Americans

o More than 2 million Americans have lost unemployment benefits, after legislation to extend payments was bogged down in Congress. Even if lawmakers act on the measure, there would not be additional benefits for the 1.4 million workers who have reached the 99-week limit. The U.S. Labor Department said there are almost five unemployed workers for every available job. The Washington Post (13 Jul.)

� Inflation:� Union workers at several Australian companies are seeking to increase wages by as much as 7%. Some companies potentially facing strikes include Telstra and Airport Fuel Services.� TTN

� Inflation:�� Products made in China often cost more there than in the West from Los Angeles Times

o The premium prices frustrate shoppers as well as those who see getting Chinese consumers to open their wallets as crucial to balancing the global economy.

o The laptop computer Luo Guangli carried out of the Apple flagship store in Beijing was no different from the models sold in the United States. It had the same high-resolution screen, an identical processor and the same printed label on the back: "Assembled in China

� Inflation:�� Chinese Factories Now Compete to Woo Laborers

� BP/ energy� stories:

o BP�� Reuters) - BP , which unveiled plans last month for about $10 billion in asset sales to help pay for costs from the worst offshore oil spill in U.S. history, said talks on the divestments were making progress.

o BP Looks a Deal Too Far For Exxon - WSJ

� http://online.wsj.com/article/SB10001424052748704288204575363133280886548.html?mod=WSJ_hps_LEFTTopStories

� Mitsui & Company not to pay BP (BP.LN) for oil-spill cleanup costs for now - Nikkei

� BP investors look to bypass claims ruling

o court ruling that could bar the bulk of investors from seeking damages in the US

o http://www.ft.com/cms/s/0/5e25bf2e-8de3-11df-9153-00144feab49a.html

� BP tax bill could be reduced by $10B over next four years - FT

� Ban Hits Oil Drillers � WSJ

o The U.S. issued a new order banning most new deepwater-drilling activities until Nov. 30, setting up a fresh round of conflict with the oil industry.

� Due to popular rage at the ban on reporters and photographers from within 65 feet of the oil spill, Coast Guard admiral Thad Allen has rescinded the ban. from zero hedge

� Big� earnings� news overnight..mostly better

� CVX guides in line to better�downstream and� FX help

o Chevron. says a combination of higher profits from its refining operations and a stronger U.S. dollar have put the company�s second-quarter profits on a faster pace of increase.

� Komatsu Raises First-Half Profit Forecast 41% on Asian Demand

o the world�s second- largest maker of construction equipment, raised its first-half profit forecast by 41 percent on rising demand from Asia and Latin America.� BBG

� Autos:� BMW up 4% on good earnings statements � BBG

� Daimler up 5% today as well

� Rails:� CSX trades flattish today� - call this morning on EPS

� AA up 4% today�At Alcoa, after tax operating income (ATOI) was above expectations in all four major segments: alumina, aluminum, and the downstream segments of flat rolled products (aluminum cans, automotive, aerospace) and engineered products (aluminum wheels, etc.).

o Alcoa raised its projection for aluminum consumption to 12 percent from 10 percent this years.

o Digging Behind Alcoa's Optimism: Company Posts Second Lowest Quarterly CapEx Spend In Years - from zero hedge

� Posco missed EPS ests, ups guidance�.South Korean steelmaker Posco said Tuesday its second-quarter net profit nearly tripled as a revival in the global economy helped bolster steel demand from automobile, shipbuilding and electronic industries.

o Posco, the world's fourth-largest steel maker by output

o "Steel demand perked up in the second quarter at home and abroad and exports to emerging markets increased," the company said in a statement

� Japan Fair Trade Commission to investigate BHP Billiton (BHP.AU)-Rio Tinto (RIO.AU) iron-ore-integration plan � Nikkei

� Weekly USDA crop report says 73% of corn in good or excellent condition

� L'oreal beats� reported that Q2 sales grew 12% so beating estimates. Revenue was �4.95Bn from �4.4Bn in Q2 2009.

� Burberry shares slip despite better than expected results

o Burberry PLC said Tuesday it started the new fiscal year strongly, as the U.K. luxury fashion house posted a 27% rise in first-quarter sales.

o the standout result was wholesale, although distorted by the timing of shipments, so first half guidance has not changed � guardian

� Tech sector news busy :

o NVLS �- Orders guided up; EPS guidance better

o ID -4.2% (guidance)

o BRKS +3.3% (guidance)

o Infosys Q1 profit disappoints, Europe woes dampen outlook

� �Infosys Technologies edged up its forecast on a revival in outsourcing demand from its mainstay financial clients, but its shares fell as markets worried a weak European economy could curb orders.

o CVLT CommVault Systems guides a miss�

� call to discuss preliminary results: 08:30 ET, 13-Jul, 866-730-5768 (domestic)

� AMED Amedisys guides

o 9:00 am ET to discuss preliminary Q2 results and update the market on the status of the Senate Finance Committee inquiry and SEC investigation

Hedge Funds and Other Investors Flock to Rio - from DealBook

o A half a century after losing its status as Brazil's capital, Rio de Janeiro is becoming an engine of Latin America's largest economy. The city lured at least two dozen hedge funds in the past decade as well as the nation's leading oil producers, the 2014 World Cup and the 2016 summer Olympics.

� Peltz Trying to Raise $1.5 Billion for Fund: Report

� Finance Bill Close to Passage in Senate - WSJ

o Two Senate Republicans said they would support the Obama administration's financial overhaul bill, likely giving the White House the 60 votes it needs to push the sweeping rewrite into law soon.

� UK Banking Chief Warns of Regulation Risks

o The head of the British Bankers Association (BBA) has warned David Cameron's government of the risks associated with imposing regulation on the City of London without the rest of the world following suit.

o The Far-East is getting on with driving growth. Europe needs to be careful not to look inwards," BBA chief Angela Knight told CNBC in an interview.

o http://www.cnbc.com/id/38217739

� IEA: Oil Demand to Slow � WSJ link

o The International Energy Agency said it expects oil demand to slow next year in China and most other parts of the world, indicating that crude prices are likely to trade at subdued levels well into next year.

� Slovakia Resists EU in Greece Aid Talks

o The new Slovak government remains opposed to a rescue package for Greece, Prime Minister Iveta Radicova said Monday, after a meeting with European Union Council President Herman van Rompuy.

o http://online.wsj.com/article/SB10001424052748703283004575363542818747372.html?mod=WSJ_business_EconomyNewsBucket

� ECB's Trichet Wants End of Rating Agencies Oligopoly from CNBC

S&P warns the U.K. of a possible credit rating downgrade

o Britain's investment-grade, AAA credit rating remains at risk despite the government's plan to slash spending and narrow its budget deficit, Standard & Poor's said. The credit rating agency left the U.K.'s status unchanged but said there is a risk that the "net general government debt burden may approach a level incompatible with the 'AAA' rating." The Treasury agreed that more needs to be done to strengthen its finances. Telegraph (London) (13 Jul.)

� US Politics stories:

� Confidence in Obama reaches new low, Washington Post-ABC News poll finds

o Public confidence in President Obama has hit a new low, according to the latest Washington Post-ABC News poll

� Cramer: Is Washington�s War Against Business Over? �CNBC link

� �Both parties acknowledge the House is in play in 2010 midterm election - The Hill

o The midterm election moved into a new stage Monday, with both parties acknowledging Republicans could win back the House majority this November.

� More Wins Unlikely for Obama as Midterm Battle Looms - cnbc

o With lawmakers facing an angry electorate, it is tough to find much common ground on such hot-button issues as immigration, energy and deficit reduction

o http://www.cnbc.com/id/38207898

� Pelosi Asserts That Democrats Will Keep Control of House from Roll Call

o Speaker Nancy Pelosi dismissed Monday a White House assertion that Democrats are in jeopardy of losing control of the House in midterm elections this November, according to a report on the San Francisco Chronicle's website.

� �Republican Meg Whitman on Monday took the lead over Democrat Jerry Brown for the first time in a general election poll, four months before voters go to the polls to chose the next California governor.� Reuters

� Gingrich says he's considering presidential run from USATODAY

o Former U.S. House Speaker Newt Gingrich said Monday he's seriously considering seeking the Republican presidential nomination

� Mort Zuckerman Admits He Helped Write One Of Obama's Speeches

o http://www.realclearpolitics.com/video/2010/07/12/mort_zuckerman_admits_he_wrote_one_of_obamas_speeches.html

� Issa wants answers on White House�s Google ties

o Rep. Darrell Issa (R-Calif.), ranking member of the House Oversight Committee, wrote to Google on Friday to reiterate his concerns that White House Deputy Chief Technology Officer Andrew McLaughlin had inappropriate contact with the company, where he was formerly an employee.

o �In April it was revealed that ... McLaughlin used his personal email account to engage in official business, including discussions on policy matters under his review with [Google],� Issa wrote.

o http://thehill.com/blogs/hillicon-valley/technology/108183-issa-wants-answers-connected-to-white-houses-google-ties

� U.S. Detains 12th Person in Spy Probe � WSJ link

o Authorities are detaining a 12th, previously undisclosed person implicated in the probe that busted a Cold War-style Russian spy ring.

� White House corrects NASA chief on Muslim comment from Reuters: Politics

o White House spokesman Robert Gibbs said on Monday that NASA administrator Charles Bolden was wrong to say that reaching out to the Muslim world was a top priority of the U.S. space agency.

� NAACP to vote on controversial resolution condemning 'tea party' supporters � WP link

o Members of the NAACP will vote Tuesday

� Iran scientist seeks refuge in Pakistan embassy in U.S. from Reuters

o Iran's state radio said on Tuesday a missing Iranian nuclear scientist who Tehran says was kidnapped by the CIA, had taken refuge in Pakistan's embassy in Washington.

� North Korea�� Reuters) - North Korea abruptly called off talks set for Tuesday with the U.S.-led United Nations Command that oversees the Korean War truce, failing to show up for the first meeting to discuss the sinking of a South Korean warship.

CANTOR TRADING RECAP

� Equity Recap

o They had them mixed to higher overseas when we came in and we saw the same here over the day. Volume remained light in front of the earnings which seem to be starting on the right foot � AA, CSX and NVLS all reported higher, most of the action we saw had some of the value and growth types participating lightly on the buy side with sellers mostly staying away only coming in to taking advantage of pricing. Had some heavier volume in HEW / AON with their merger as well as in PLA with Penthouse owner saying it plans to make offer for them. The Federal Housing Finance Agency on Monday said it had issued 64 subpoenas to unnamed firms in an effort to uncover misleading statements that Wall Street banks and others may have made when they bought and packaged risky mortgages into securities, you had BP stating that it is not in negotiations to sell the company to XOM, SNDK was up almost 7% on a UBS recommendation, QCOM was up 3.5% after being added to Goldman�s conviction buy list, AA traded a bit lower ahead of its numbers. Buy and sell names here were about even, the breadth of the market had more than 1 � declining issues for every 1 advancing. Technically 1085 is our next resistance, then 1097 (50DMA) followed by 1100.

o Despite modestly higher Asian and European markets, S&P futures were off 5 to 6 points in the early going. Prices firmed as US traders got to their desks. By the 9:30 cash open, S&P�s were almost even; the rise accelerated during the first 15 minutes of cash trading as S&P�s traded up 5 points to what would be the session highs, just above 1077. Prices abruptly reversed and spent the next hour and a half moving down 10 points to revisit the pre dawn lows. Failing to break lower, prices again reversed and spent the balance of the session moving back up across the day�s range (very narrow at only 11 points) to close at the highs.

o There were no domestic economic reports of any substance today. As for specific fundamental news, AA reported a good number after the bell and rose 2% in late trading. In M&A, AON agreed to acquire HEW for approximately $4.9B in cash and stock; AON fell 7.1% and HEW rose 32.2% on the news. Elsewhere in M&A activity, Playboy (PLA) received a going private proposal from Hugh Heffner valued at $5.50/ share; Penthouse reacted to the news by indicating that it too may bid for PLA which rose over 40% to 5.55. No S&P Industry group moved more than 1% today except for Materials, which fell 1.05%. On the plus side, Tech rose the most, up 0.7%, amidst talk of large corporate cash holdings that could be deployed in tech upgrades. In fact, many large Tech companies themselves have large cash hoards, which analysts feel could be used in raising dividends. Analysts also point to extremely attractive valuation metrics in the space as S&P Tech stocks now trade at a 15.6 p/e based on 2010 earnings. This is the lowest p/e in 20 years (if we overlook 6 months� carnage post Lehman). SNDK, San Disk, was the leading tech gainer, rising 6.8% (UBS upgrade).

� Billy Clark and Team

� Treasury wrap

o After a mixed overnight session with a small bid attributed to the weakening Euro, the market retreated off its highs into the New York session with Treasuries extremely quiet and range bound early on. In the midmorning hours the market caught a bid on foreign buying and equity weakness but this bid quickly hit a wall with the market grinding lower as the start of this weeks coupon supply approached. Today's $35Bln 3Y auction tailed 1bp coming at 1.055% (the first tail in five months), participation was on the low end of its current range with only 40.6% purchased by indirects (lowest percentage since January) and 14.3% by directs. Whether part of today's tail and lower participation is attributed to the unusual Monday auction, richness of the 3Y or accounts preferring longer dated maturities, the auction was still underwritten at an historically low yield with record low 1% coupon for a 3Y and almost 75bps lower than only three months ago. The slow summer feel once again re-emerged in the afternoon after a small amount of redistribution near the 3Y stop of 100-09+. The longer end of the curve came under some pressure into the close as market participants setup for remainder of this weeks supply all concentrated in the long end.At 3PM Treasuries finished mixed with 3s the worst performer and 7s the best. $21Bln 10 year notes come to the market tomorrow, followed by $13Bln 30 year bonds on Thursday

� Primary Dealer

� Investment Grade Recap

o IG spreads continued grinding tighter today in mixed volume with the GOM better 2 points across the board as BP nears completion of the relief well.� Generically GOM paper is about 10 points better in the past week and a half

o �Just over $4BN in new issues today led by a two-part $3.25BN ORCL deal

o Negative piece on bond funds in Barron�s over the weekend as index accounts continue to come in day and day to put their money to work.

o Running some numbers over the weekend, from here through the end of the year there are $237BN in bond maturities, about $43BN/month and we see that number grow to $55BN/month next year.� The bulk of these maturities (over 75%) are in bank and finance.� New issues have cut both ways with last week�s CITCOR coming tight to existing paper while today�s ORCL 30yr came at a 30bp concession.

o Michael Salemo

o CVX guides in line to better�downstream and� FX help

o IEA: Oil Demand to Slow � WSJ link

� The International Energy Agency said it expects oil demand to slow next year in China and most other parts of the world, indicating that crude prices are likely to trade at subdued levels well into next year.

� no change to the global consumption forecast of 86.5M bpd for 2010

o Hedge fund manager Greenlight Capital buys 5% of beaten down oil drilling stock Ensco.

o Phoenix Solar (PS4.GR) announces capital increase through issue of up to 670,200 bearer shares

o DVN Devon Energy shuts down seven wells due to failure at Jackfish oil sands wellhead - Globe and Mail

o Cramer recommends natural gas storage play PAA Natural Gas (PNG)

o FSLR First Solar completes previously announced acquisition of NextLight Renewable Power

o CVX Chevron provides interim update for Q2; Q2 earnings are expected to be higher than Q1

o CLB Core Labs announces special cash dividend of $0.65

o QTWW Quantum Fuel reports Q4 EPS

o DVN Devon Energy shuts down seven wells due to failure at Jackfish oil sands wellhead - Globe and Mail

o APA NY Times Breakingviews argues in favor of Apache buying assets from BP

o EEE Evergreen Energy Inc, JV partner contribute $500K each to Evergreen China Energy Technology

o XOM WSJ notes the many hurdles to any Exxon Mobil bid for BP

o BP BP says the three ram capping stack was installed on the Deep Water Horizon LMRP at 7pm CDT - SA London

o OPTT Ocean Power Technologies reports full year EPS

o BP BP installs new cap on Gulf of Mexico well - BBC

o BP US Supreme Court decision could limit BP's liabilities in class-action lawsuits - FT

o BP BP tax bill could be reduced by $10B over next four years - FT

INDUSTRIALS

o Komatsu Raises First-Half Profit Forecast 41% on Asian Demand

� the world�s second- largest maker of construction equipment, raised its first-half profit forecast by 41 percent on rising demand from Asia and Latin America.� BBG

o GE General Electric signs deal to cooperate with China's jumbo-jet maker - South China Morning Post

o ID L-1 Identity Solutions guides 1H revenues to be below previously provided expectations

o CSX CSX Corp reports Q2 EPS

o MG Mistras Group names Francis Joyce CFO

o UTX Clipper Windpower to receive warranty, technology and sales support from United Technologies Corp - SA London

TRANSPORTS

o Cathay Pacific (293.HK) rose 1% on a 28% jump in June passengers

o XJT ExpressJet reports June Load factor +1.2 points to 83.3%; traffic +23.0%; capacity +21.0%

o PAC Pacific Airport Group 12.2% shareholder Grupo M�xico exercises right to appoint a director to the company's Board

o EMC, NTAP EMC added, NetApp removed from Tech 10 List at UBS�

o SRX SRA International receives $57M contract with the FAA

TECH/MEDIA/TELECOM

o KLAC KLA-Tencor increases quarterly dividend by 66.7%

o NVLS- up 2% beat and raise Q2. Orders were up 20% in the Q which was a major force behind the beat, but NVLS performed well on all metrics. Q3 guidance looked much better on the strong orders seen in Q2 and expected shipment growth. MGMT called for the possibility of pulling back on NAND spending.

o INFY- flat to up. Slightly worse results after volumes were better, but pricing and margins disappointed. IT servicesd were particularly strong in the Q and FY rev guidance was raised. INFY is usually known for very good cost management so worse margins were a big disappointment. Europe continues to be a concern for Infosys.

o BRKS up 3.3% guides Q3 EPS better

o EXTR- pre-announced Q4 better. This would be the second consecutive Q beat for EXTR.

o CVLT- pre-announced weaker for Q1 2011. The negative pre-announcement comes from disappointing license sales. The company attributed US weakness to changes in sales organization to focus on named accounts, and blamed Europe slowdown on extended procurement cycles.

o Search: ComScore Search Numbers: GOOG Share Down, MSFT And YHOO Up- Silicon Valley Insider

� US Core Search: volume increased 16.9% y/y in June

� GOOG: market share of 62.6% in June down from 63.7% in May

� YHOO: market share of 19.9% in June increased from 18.3% in May

� MSFT: market share of 12.7% increased from 12.1% in May

� IACI: search market flat at 3.6% in June

� AOL: search market of 2.2% down slightly from 2.3% in May

o WMG Warner Music target reduced to $5 from $7.50 at Wedbush Securities

o VOXX Audiovox reports Q1 EPS

o IFNNY Infineon Technologies target increased to �7.00 from �6.60 at Goldman Sachs

o SVR Syniverse Technologies initiated buy at Goldman Sachs

o PC NY Times discusses how long Panasonic can keep up its very diverse product lineup

o LDK signs module supply contract with Enel

o LTE Cards: Prices expected to fall to US$50 at end of 2011, say Taiwan makers- Digitimes

o Digital camera makers in Taiwian optimistic about 2H10- Digitimes

o LCDs: Second-tier LCD TV makers compete for orders from China second-tier vendors- Digitimes

o Solar: Taiwan, China solar wafer and cell makers to maintain or raise prices in 3Q10 in spite of FIT cut in Germany- Digitimes

o Smartphones to drive revenues for flexible PCB and CCL makers- Digitimes

o Wistron 2011 notebook shipments expected to reach 35 million units- Apply Daily

o Foundries: Chip foundries and backend firms to operate under tight schedules in 3Q10- Digitimes

o Foundries: Foundry quotes for mature processes rise 10-15%- Commercial times

o Advertising: US magazine advertising rebounds- FT

� http://www.ft.com/cms/s/0/f7e61f04-8e16-11df-b06f-00144feab49a.html

MATERIALS

o AA up 4% today�At Alcoa, after tax operating income (ATOI) was above expectations in all four major segments: alumina, aluminum, and the downstream segments of flat rolled products (aluminum cans, automotive, aerospace) and engineered products (aluminum wheels, etc.).

� Alcoa raised its projection for aluminum consumption to 12 percent from 10 percent this years.

� Digging Behind Alcoa's Optimism: Company Posts Second Lowest Quarterly CapEx Spend In Years - from zero hedge

o Posco missed EPS ests, ups guidance�.South Korean steelmaker Posco said Tuesday its second-quarter net profit nearly tripled as a revival in the global economy helped bolster steel demand from automobile, shipbuilding and electronic industries.

� Posco, the world's fourth-largest steel maker by output

� "Steel demand perked up in the second quarter at home and abroad and exports to emerging markets increased," the company said in a statement

o Japan Fair Trade Commission to investigate BHP Billiton (BHP.AU)-Rio Tinto (RIO.AU) iron-ore-integration plan � Nikkei

o China to shut steel mills with capacity below 1m tonnes from Business Spectator

� New policy document outlines measures to consolidate sector

o Rio Tinto (RIO.AU) and BHP Billiton (BHP.AU) lost 3% each on a report that Japan would extend its antitrust investigation of their proposed iron-ore-integration plan.� SA

o Rio and Ivanhoe clash over copper mine from Financial Times

� Tensions rise between Rio Tinto and Canada�s Ivanhoe Mines over rights to a rich copper deposit in Mongolia, as the former releases hundreds of millions of dollars to develop the mine

o China Steel to cut Sept prices by average 4% from Business Spectator

� Demand eases as China puts pressure on housing market.

o POSCO agrees on Q3 iron ore price hikes from Business Spectator

� Steelmaker reaches agreement with 3 major miners.

AUTOS

o Nissan says Hitachi delay may hit US, Mexico from Business Spectator

� Production to return to normal next week; shares slip.

o Ssangyong Motor (003620.KS) dropped 4% on extending its due diligence period by three weeks because bidders have asked for more time; offers had been due 20-Jul.� SA

o DTG, HTZ Avis Budget Group still expected to make offer for Dollar Thrifty that would top $1.2B bid from Hertz � WSJ

o Mexican production of cars�� Bloomberg) -- Mexican production of cars and light trucks more than doubled in June from the same month a year earlier as the country exported a record number of vehicles, the nation�s Automobile Industry Association said.�� Output increased 102 percent to 206,195 units last month, the group said today in a statement distributed in Mexico City.

FINANCIALS

o Financial bill appears to have enough support for Senate passage

� Republican Sens. Olympia Snowe, Scott Brown and Susan Collins said they will vote in favor of legislation to overhaul financial regulation in the U.S., giving the bill support it needs for final congressional approval. "Wall Street reform is a step away from heading to the president's desk to be signed into law," said Sen. Christopher Dodd, D-Conn. Senate Majority Leader Harry Reid, D-Nev., said he plans to bring the legislation up for a vote this week. "We will finish our work on this bill this week to ensure that these critical protections and accountability for Wall Street are in place as soon as possible," Reid said. Reuters (13 Jul.) , The Wall Street Journal (13 Jul.) , Bloomberg (13 Jul.)

o Paulson is optimistic about the bill on regulatory reform

� Henry Paulson, former secretary of the U.S. Treasury Department, discussed legislation making its way through Congress that would overhaul financial regulation. Paulson is reluctant to speculate on whether the initiative would have prevented the financial crisis, but he said a systemic-risk council and a resolution authority would be great tools for battling future crises. The New York Times (free registration) (12 Jul.)

o Regulators give the FDIC unlimited authority to investigate banks

� Officials at the U.S. Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. agreed to give the FDIC authority to investigate banks. The agency's power was in question when the financial crisis unfolded. "The FDIC needs to have a more active on-site presence and greater direct access to information and bank personnel in order to fully evaluate the risks to the deposit-insurance fund on an ongoing basis and to be prepared for all contingencies," said Sheila Bair, chairwoman of the FDIC. The New York Times (free registration)/The Associated Press (12 Jul

o GS:�� Goldman eyes new deadline from NY Post

� Goldman Sachs is expected to ask for more time to respond to a lawsuit filed by the Securities and Exchange Commission accusing the Wall Street powerhouse of fraud

o GS:�� Dropping a dime on Treasury-Goldman chats � NYP link

� On Sept. 17, 2008, with the markets in disarray, Paulson called his pal Blankfein at 9:10 a.m., 12:15 p.m., 4:15 p.m., 7:20 p.m. and 8:45 p.m.

� If Angelides doesn't call upon Paulson to testify, then he should at the very least bring up these conversations in the report he's due to write by year's end

o C- citi:� Judge Rules Citi Bondholder Suit Can Proceed Over CDOs

� http://online.wsj.com/article/SB10001424052748704288204575363120888375664.html?mod=ITP_moneyandinvesting_2

o AIG:� Four Chinese consortiums chasing AIA - SCMP

� At least four consortiums consisting of Chinese private investors have approached American International Group to acquire its Asia insurance division AIA Group

� http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/?vgnextoid=a0e649766f6c9210VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Companies&s=Business

o Strapped Florida Banks Ask for Help � WSJ link

� Florida banks, weakened by the real-estate bust and hit again by fallout from the oil spill, want a reprieve from government

o Barclays Capped by Regulatory Risk

� Barclays shares enjoyed a much-needed boost last week from speculation the U.K. bank was mulling a spinoff for Barclays Capital�something that would create significant value, according to a Mediobanca research report.

� Barclays was quick to dismiss the idea, reaffirming its commitment to the universal bank model. But the idea of a Barclays breakup being pain-free reassured those investors spooked by fears the U.K. may force such a split.

� In reality, while the regulatory risks are real, the costs of any such breakup would likely be very high.

� http://online.wsj.com/article/SB10001424052748704288204575363352922204186.html?mod=WSJ_newsreel_markets

o FDIC wins broad authority to probe banks

� Federal bank regulators have agreed to give the Federal Deposit Insurance Corp. unlimited authority to investigate banks, clarifying the agency's power after questions about it during the financial crisis

o Toronto-Dominion Bank , is pushing for a bigger commodities banking presence, announcing a new precious metals trading team this week just days after beefing up its oil and gas advisory business with the purchase Ross Smith Sousa Advisors - Reuters

o ECB's Trichet Wants End of Rating Agencies Oligopoly from CNBC

o French banks to pass stress test, says Exane BNP Paribas

o Mizuho Financial Group to sell up to �748B of new shares for �130 each

o Banks:� UK:� We'll tax the banks

� Treasury Minister Mark Hoban reveals that the government is "actively looking at the introduction of a financial activities tax," as well as taxes on profits and salaries.

� http://www.guardian.co.uk/commentisfree/2010/jul/12/tax-the-banks-mark-hoban

o OZRK Bank of the Ozarks reports Q2 EPS

o BCS Barclays breakup costs would be likely be very high - WSJ

o DGICA Donegal Group holder Gregory Shepard files 13D reporting 15.8% stake in class A shares

o AIG American International Group holder Fairholme Capital reports stake of 24.3% in amended 13G filing

o GNV GSC Investment names Eric Snyder as CFO effective 15-Jul

o FLIC First of Long Island files for offering of undisclosed amount through Keefe, Bruyette & Woods

o IVZ Invesco reports AUM as of 30-Jun of $557.7B, +24.1% m/m

o BEN Franklin Resources reports 30-Jun AUM of $570.5B vs month ago $572.7B; June 31, 2009 AUM was $451.2B.

o FLIC First of Long Island reports Q2 EPS

o AON WSJ says the dip in Aon Corp has created a buying opportunity

o Federal Housing Finance Agency sends out subpoenas over mortgage-backed securities -- WSJ�

REAL ESTATE

� PEB Pebblebrook Hotel Trust files $350M secondary offering through Raymond James and BofA Merrill Lynch

� AKR Acadia Realty Trust adjusts guidance solely to account for a Q2 gain

� SPPR Supertel Hospitality closes on sale of three properties; net proceeds totaled $3.02M

� MPG MPG Office Trust facilitates disposition of Park Place II

� Subpoenas Over MBS Could Be Prelude to Major Lawsuits Against Banks from American Banker

o The FHFA said that, as the conservator of Freddie Mac and Fannie Mae, it is subpoenaing loan-level underwriting and performance data from 64 security issuers and other entities.Flashback: Meet the MBS Industry's New Nemesis

� BNY Mellon eyeing 1 WTC from NY Post: Business

o Bank of New York Mellon is considering a complex, three-way real estate maneuver that would include moving part of its operations to 1 World Trade Center and selling its historic Art Deco headquarters tower at 1 Wall St., sources said

� Troubled Relations in Housing � WSJ link

o Buyers of troubled mortgages are doing brisk business as the housing slump continues to shake out. But some borrowers are complaining of mistreatment and strong-arm tactics.

� Fannie, Freddie regulator issues subpoenas � FT link

o The part lenders played in issuing mortgage-backed securities to the finance houses, and whether these hurt them when the housing market collapsed, is to be investigated

� UK's FSA outlines proposals to ensure all mortgages are carefully assessed to make sure borrowers can afford them

� Property demand falls as supply rises, says Rics report | guardian.co.uk

� No real house price recovery likely in next five years� guardian.co.uk

o �70% chance that real cost of a property will be less in 2015 than in 2007
� Second half of 2010 likely to see falling house prices

CONSUMER

o MGI MoneyGram International appoints James E. Shields EVP and CFO

o PLA WSJ suggests investors take the deal at Playboy

o FAST Fastenal declares dividend of $0.42/share

o UA Under Armour president David McCreight resigns, effective 20-Aug

o Burberry PLC said Tuesday it started the new fiscal year strongly, as the U.K. luxury fashion house posted a 27% rise in first-quarter sales.

o Peltz tries again from NY Post: Business

� New York hedge fund honcho Nelson Peltz is having a tough time finding good takeout. Peltz, who is the largest investor in fast-food chain Wendy's/Arby's Group, has roughly $1 billion that he's ready to invest in restaurants but cannot find good targets at the right price...

o KFC, YUM! MUST FACE CONSUMERS' CHICKEN COUPON FRAUD CLAIMS - BBG

GAMING, LODGING, & LEISURE

o LACO Lakes Entertainment says UBS has purchased its remaining auction rate securities at par value

HEALTHCARE

o VVUS� FDA publishes briefing documents for panel meeting discussing Vivus' Qnexa

o Glaxo Withheld Avandia Risk Data � WSJ link

� A former FDA official said GlaxoSmithKline withheld from regulators information suggesting Avandia posed an increased risk for serious health problems, according to a letter from the Senate Finance Committee.

� �A heated three-year safety debate about a GlaxoSmithKline Plc diabetes pill reaches a climax this week as opponents and backers face off at a U.S. meeting that will help decide the drug's fate.

o Pharma:� California Supreme Court reinstates price-fixing suit against Pfizer, others - San Francisco Chronicle

� A group of pharmacies alleges that drug companies conspired to overcharge them by up to 400% from 2000-4. Lower courts had dismissed the suit. Defendants are Abbott Laboratories (ABT); AstraZeneca (AZN.LN); Novartis (NOVN.VX); Allergan (AGN).; Boehringer Ingelheim Pharmaceuticals, Inc.; Eli Lilly (LLY); Johnson & Johnson (JNJ); Janssen Pharmaceutical; Ortho McNeil Pharmaceutical; Ortho Biotech; GlaxoSmithKline (GSK.LN); Pfizer; Hoffman-LaRoche; Aventis (SAN.FP).; Amgen (AMGN); Purdue Pharma; Merck (MRK); Bristol-Myers-Squibb (BMY); Wyeth; Johnson & Johnson Health Care Systems; and Pharmaceutical Research and Manufacturers of America, a US-based nonprofit trade association.

o VVUS Preview of upcoming FDA advisory committee on Vivus' Qnexa; 15 July

o AMED Amedisys guides Q2 EPS

o RPC Radient Pharmaceuticals announces intent to acquire Provista Diagnostics following successful completion of respective due diligence searches

o BLTI Biolase Technology announces resignation of CFO Brett Scott

o MSII Media Sciences names Marc Applebaum CFO

o MNOV MediciNova to make initial payment to former Avigen shareholders

o SDIX SDIX announces commercial launch of RapidChek SELECT Salmonella Enteritidis testing system

o AET, CI, CVH, GTS, HNT, WLP, UNH Citi initiates Triple-S Management initiated buy with $25 target; Health Net initiated buy with $30 target; WellPoint Health initiated buy with $58 target; Aetna initiated hold with $29 target; Cigna initiated hold with $33 target; Coventry Health Care initiated hold with $19 target; UnitedHealth initiated hold with $29 target

o TEVA, NVS Teva Pharmaceutical, Roxane and NVS' Sandoz receive FDA approval for generic of GSK/AGN's Amerge

o BMTI BioMimetic Therapeutics to sell 5M shares through J.P. Morgan

o MOH Molina to acquire Abri Health Plan

o WPI Watson confirms challenge of Renleva patent; sued by Genzyme

o THLD Threshold Pharmaceuticals says two preclinical presentations on TH-302 describe new findings of efficacy

o QGEN Roche gets worldwide co-exclusive license for the biomarker PI3K from Qiagen to develop real-time and endpoint PCR diagnostic assays - SA London

o HGSI Human Genome and Lonza enter commercial manufacturing agreement for Benlysta; financial details weren't disclosed - SA London

o PFE California Supreme Court reinstates price-fixing suit against Pfizer, others - San Francisco Chronicle

OTHER

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

+ PNG, VZ, EMC, M, RFMD, UPS and GOOG

� RYI Ryerson Holding completes buyout of China joint venture

� Weekly USDA crop report says 73% of corn in good or excellent condition; compares to 71% last week and compares to 71% in prior year.

EUROPE TRADING WRAP

� Energy

� BP (+2%) successful installation of new containment cap.

� AMEC (+1.2%), wins contract from BP worth $340mln.

� Total (+1.3%) fresh oil discovery Angola.

� Mining

� Vedanta (+1.5%) Fitch raises to stable v negative.

ASIA TRADING WRAP

Japan

� NKY -0.11%, TPX -0.39%

� NKY edged lower, weighed down by a strong yen as Shanghai shares fell after China said it had no plans to relax tougher property measures. Turnover on the TPX fell to 1.02 trillion yen from 1.28 trillion yen yesterday

� Stocks fell across most sectors led by materials, oil & gas, industrials, exporters and utilities. Telecom and tech rose

� Exporters fell after the yen strengthened: autos -0.63%, CE -0.02%, precision. Nissan (7201) -1.53% said it would halt part of its production in Japan for 3 days, affecting 15,000 units, due to a delay in the supplies from Hitachi (6501) -1.43%. The automaker may also halt production at its US plants because of the delays

� Banks -0.35% ahead of the pricing of Mizuho�s (8411) offering: Mizuho (8411) -2.17%, Mitsubishi UFJ (8306) +0.72%, SMFG (8316) -0.16%

� Traders -1.00% after commodities prices fell: Marubeni (8002) -0.43% said it has entered strategic partnership agreement with Sinopec (600028 CH) to win ~100B yen in orders to build oil-related facilities in emerging markets over 5 years; Mitsui & Co. (8031) -1.13% said it won�t pay BP for cleanup costs associated with the Gulf of Mexico leak until the cause of the disaster and other details are known

� Best performing sectors on the TPX: insurers +0.72%, mining +0.69%, airline +0.69%; worst performing sectors: iron & steel 2.10%, oil & coal -1.48%, land transport -1.26%

Nikkei today

� Japan consumer confidence rose 0.7 MoM to 43.5 in June, the 6th straight mth of increase. The government upgraded its overall assessment that consumer sentiment is improving

� Domestic shipments of cell phones and PHS handsets rose 17.1% YoY to 3.147M units in May, up for the 2nd consecutive mth, the Japan Electronics and Information Technology Industries Association reported

Hong Kong

� HSI -0.18%; HSCEI -0.44%

� Stocks fell led by mainland developers after China said it will �strictly� enforce housing policies. Turnover on the HSI rose to HK$19.39B from HK$19.24B yesterday

� Mainland properties were mixed after the China Banking Regulatory Commission said it has made no changes to policies on home loans and called on the nation�s commercial banks to strictly enforce home-loan rules: China Overseas (688 HK) +0.62%, China Resources Land (1109 HK) +0.50%, Guangzhou R&F (2777 HK) -1.26%, Agile (3383 HK) -1.21%, Shimao (813 HK) -1.46%

� IPO debutant: Convoy Financial Services (1019 HK) +26.67%

� China Shipping Development (1138 HK) +2.50% expects to report more than 50% rise in its 1H profit

Headlines:

� Smelters in China may idle as much as 1.5M metric tons of capacity in 3Q as prices have dropped below some producers� costs, Alcoa said � Bloomberg

� China may impose fines for price manipulation of goods and services to control inflation expectations, according to the NDRC. Violators of price rules may be fined up to 5 times their incomes derived from the illegal behavior, or between 200,000 and 2M yuan � Bloomberg

� Agricultural Bank of China may post a 40% gain in 1H net profit to more than 46B yuan. 1H loans may have increased by 11.2%and deposits may have risen by nearly 440B yuan - Yicai.com

China

� SHCOMP -1.62%; SZCOMP -1.39%

� Stocks fell after the government squashed speculation it will abandon real-estate curbs. Turnover on the SHCOMP was flat at 81.09B yuan from yesterday

� Stocks fell across most sectors led by materials, health care, financials, oil & gas and industrials

� Real estate -3.53%, banks -1.30% after the government said it will �strictly� enforce housing policies to prevent speculative real estate investment

� Insurers extended fall -1.59%

� Metals and mining -2.58%, oil & gas -1.65% after metal and oil prices fell

� Iron & steel -2.57%. Mainland plans to step up consolidation of its steel sector this year by closing small mills and improving production standards, the Ministry of Industry and Information Technology said

INVESTMENT BANKING

M&A

o Four Chinese consortiums chasing AIA- SCMP

� Of the four consortiums, one is led by Shan Weijian, chairman of the Pacific Alliance Group. Another consortium is led by Chongqing native Zhang Songqiao, chairman of Hong Kong-based C C Land Holdings. The third consortium is led by Guo Guangchang, chairman of Shanghai-based Fosun Group, a large non-state-owned investment conglomerate, and The fourth consortium consists of a group of Hong Kong and Taiwanese investors.

� http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=a0e649766f6c9210VgnVCM100000360a0a0aRCRD&ss=Companies&s=Business

o Peltz trying again- NYPOST

� Peltz, who is the largest investor in fast-food chain Wendy's/Arby's Group, has roughly $1 billion that he's ready to invest in restaurants but cannot find good targets at the right price, a banker with direct knowledge of the situation said.

� http://www.nypost.com/p/news/business/peltz_tries_again_spaT0WP2arpQw5JpyxtMAK?CMP=OTC-rss&FEEDNAME=#ixzz0tYVzeQP

o PLA Playboy Investors: Take the Bunny and Run- WSJ

� Hugh Hefner's $5.50-a-share offer for the shares outstanding in Playboy Enterprises looks generous, pitched 40% above Friday's closing price and well above analysts' valuations of around $4.

� There is always the possibility Mr. Hefner is trying to smoke out another bidder

� Penthouse's owner has said it may make its own offer. The dream of a bidding war gives investors an incentive to hold out for more, but giving last year�s dealtalk amounted to nothing WSJ suggests selling after the most recent bounce

� http://online.wsj.com/article/SB10001424052748704288204575363233151747778.html?mod=googlenews_wsj

o CAR Avis Aims to Outbid Rival HTZ Hertz for DTG Dollar Thrifty- WSJ

� Avis Budget Group is proceeding with plans to make an offer for Dollar Thrifty Automotive Group that would top rival Hertz Global Holding�s $1.2b bid, and is looking to take on more debt to finance the deal

� These people declined to give a specific timeline but said Avis would present an offer�perhaps in late July or early August

� http://online.wsj.com/article/SB10001424052748703283004575363383099945448.html

o Big Profits Revive Buy-Out Interest in China- CNBC

� China is attracting renewed interest from private equity groups after a series of highly profitable deals that have marked a sharp turnaround from the previous poor record for buy-out firms in the country.

� �For years there has been growth in China but it has been profitless growth,� Jonathan Zhu, co-head of Asia for Bain Capital in Hong Kong said. �But in recent years, we have seen growth with real profits.�

� http://www.cnbc.com/id/38216965

o S Sprint�s 4G move opens way to merger- FT

� Sprint Nextel is examining a technology shift that could pave the way to a merger with T-Mobile USA, Deutsche Telekom�s struggling US unit.

� The article discusses how if Sprint moves to adopt LTE technology to make web browsing faster it could be more suitable for a deal with T-Mobile who is expected to adopt the same technology

� http://www.ft.com/cms/s/0/c4d6eb6a-8de0-11df-9153-00144feab49a.html

o MOH Molina to acquire Abri Health Plan for $16M

o More BP deal talk

� Reuters discusses the BP assets that may be on the block

� http://www.reuters.com/article/idUSN1214810920100712

� WSJ looks further into how a BP/XOM Exxon deal would work��

� even assuming Exxon were now comfortable with the risk of catching a falling knife of epic proportions, huge obstacles to launching a successful unsolicited offer remain

� XOM would have to consider overseas reaction to a takeover of such a magnitude even though the US already gae the go ahead, the move would likely result in a high number of job losses, and XOM is still suffering from a $30b market value hit from its last takeover of XTO.

� http://online.wsj.com/article/SB10001424052748704288204575363133280886548.html?mod=googlenews_wsj

� APA Apache�s Talks With BP Raise Leverage Concerns- NYT

� It is potentially hazardous to swallow a meal a third your size. But it could make sense for Apache Corporation to grab $10 billion of BP�s Alaskan assets. The company�s flair for squeezing oil from older wells makes it an ideal buyer.

� But investors are concerned if Apache spent $10 billion and financed the purchase entirely with debt, it would raise the company�s ratio of debt to total capital sharply: toward 50 percent, from about 25 percent currently.

� http://www.nytimes.com/2010/07/13/business/13views.html?_r=1&ref=todayspaper

o Atlantic Investors Proposes to Buy NAVI Navisite Shrs for $3.05-Shr- BBG

� Atlantic Investors proposes to buy all Navisite shrs that it doesn�t already own for $3.05-shr, 15% premium to today�s closing price.

� Atlantic owns 36.7% stake; may engage in talks with management, board, holders

o BKS Barnes & Noble Testimony Centers on Aletheia Fund- BBG

� Barnes & Noble�s fight with billionaire Ron Burkle�s Yucaipa Cos. for seats on the bookseller�s board of directors may hinge on an alliance of Yucaipa with the investment fund Aletheia Research & Management

� If Aletheia, the third largest shareholder of Barnes & Noble, teams with No. 2 stakeholder Yucaipa, the two would be a �much more formidable� opponent for the company�s chairman and controlling stockholder, Leonard Riggio, Yucaipa�s proxy expert testified.

o BRCM Broadcom declares offer for Innovision Research & Technology wholly unconditional- BBG

o Greenlight Capital Buys 5% ESV Ensco Stake- TheStreet.com

� The stakes disclosed by hedge fund managers are often used as way of measuring undervalued plays in the market

� http://www.thestreet.com/story/10804370/1/greenlight-capital-buys-5-ensco-stake.html

o DTZ Agrees to Buy Remaining 20% of DTZ Asset Management Europe- BBG

� DTZ Holdings Plc said today it plans to buy the 20 percent of DTZ Asset Management Europe SAS that it� does not already own.

o HEW- Big Deal Puts AON in Flux- WSJ

� That seemed the reaction of Aon's shareholders on Monday, when the insurance broker and consulting firm said it would buy consultancy Hewitt Associates for $5 billion

� Some investors seemed startled by the change in Aon's business mix. Recent deals have focused on insurance, which accounts for 83% of revenue, Barclays Capital says. That would sink to about 60% after the deal, with the balance from consulting

� HEW Hewitt Associates downgraded to hold from buy at Deutsche Bank

� http://online.wsj.com/article/SB10001424052748704288204575363453811033546.html?mod=googlenews_wsj

o JNJ to buy MEND Micrus Endovascular for $480 mln- Reuters

� Johnson & Johnson (JNJ.N) will buy Micrus Endovascular Corp (MEND.O) for about $480 million to expand its portfolio of medical devices that treat and prevent stroke

� &J will pay $23.40 a share, a 5.5 percent premium over Micrus' closing price on Friday. Micrus shares have climbed nearly 50 percent this year

� http://www.reuters.com/article/idUSN1220031720100712

o Tesco Urged to Pursue Carrefour Asian Assets With Lowball Bid- BBG

� The combined operations may fetch $800 million to $1 billion. A valuation that according to RBS analyst Justin Scarborough would be too high for any bidder

� �It seems like a very rich price,� said Caroline Gulliver, an analyst at Execution Noble in London. �The market typically values food retailers at around 50 percent of sales, not 80 percent.�

� http://www.businessweek.com/news/2010-07-12/tesco-urged-to-pursue-carrefour-asian-assets-with-lowball-bid.html

o TD Bank eyes big private deals in oil and gas M&A- Reuters

� Toronto-Dominion Bank will use the new expertise it acquired with Calgary's Ross Smith Sousa to access large private deals in Canada's oil and gas sector, aiming for transactions of C$100 million ($96 million) or more

� "We've got two mandates out of the gate, one for Shell and one for Encana, and those are the kind of people we want to be working for," said Drew MacIntyre, vice-chairman of the TD's investment banking arm, TD Securities.

� http://www.reuters.com/article/idUSN1219424620100712

o Telefonica eyes arbitration over PT impasse- Reuters

� Spanish telecoms leader Telefonica will seek international arbitration if it does not reach a deal this week with Portugal Telecom in a tug-of-war over ownership of Brazil's biggest mobile phone company

� the Spanish company's plan is to break up Brasilcel then buy up shares of Vivo on the market until it has control.

� http://www.reuters.com/article/idUSLDE66C05720100713

o Philips Electronics agrees to buy Amplex's street lighting controls business- BBG

� No financial details were disclosed

o TPV to take over Philips LCD TV business- Digitimes

� Hong Kong-listed TPV Technology is reportedly to take over the LCD TV business of Royal Philips Electronics in order to expand its share in global LCD TV market

� The Chinese-language report, citing unnamed sources from TPV, claimed that TPV and Philips have already drafted an agreement, under which TPV will have the rights to use the Philips brand in its TV products, plus the Dutch company's related patent rights, employees, clients and inventories

� http://www.digitimes.com/news/a20100713PB200.html

o Infineon Technologies selling Wireless unit could generate excess cash and add 10% potential upside, says Deutsche Bank- SA

o Fairholme Reports Passive MBIA Stake Equal to 11.1% at June 30- BBG

o African Minerals in $1.5 billion deal with Shandong- Reuters

� African Minerals has sealed a second investment deal with a Chinese group for its flagship iron ore project in Sierra Leone, selling a 25 percent stake to Shandong Iron & Steel for $1.5 billion.

� News of the latest deal, which involves a three-stage investment and an agreement for Shandong to buy 10 million tonnes of iron ore per year at discounted prices, sent shares soaring 19.5 percent by 0714 GMT

� http://www.reuters.com/article/idUSTRE66C12D20100713

o DGICA Donegal Group holder Gregory Shepard files 13D reporting 15.8% stake in class A shares- BBG

o Comstar Gets Voluntary Offer From MBT for Up to 9% of Shares- BBG

� OAO Comstar United TeleSystems received an offer from OAO Mobile TeleSystems to buy as many as 37.6m Comstar ordinary shares representing 9% of Comstar�s issued share capital that MTS doesn�t already own for 220 rubles per Comstar share.

o Despite the refusal of Zodiac, Safran maintains its offer- La Tribune

� Safran's offer remains on the table. This is the main message delivered Monday by the aerospace supplier after the refusal from Zodiac

� Asked whether the group could engage in a hostile transaction after the decision of the supervisory board of Zodiac Saffron said it has "taken note of this refusal," and "is not there." He added: "We remain on our proposal to discuss the merits of a business combination."

$ RAISING

IPOs

o AIG board to meet to consider AIA's future (IPO Most likely)- Reuters

� The board of American International Group Inc(AIG.N) is expected to meet this week to consider the future of the insurer's Asian life business, AIA

� An initial public offering for American International Assurance (AIA) was the most likely way forward, the sources said, although other options were also under consideration

� http://in.reuters.com/article/idINIndia-50075920100713

o K.K.R. and Tech Companies to Go Public This Week- Dealbook

� KKR, Qlik Technologies, SMART trchnologies, and RealD are all looking to go public this week as two recent IPOs (Tesla and CBOE) have had blowout first trading days

� But it�s an I.P.O. market ��still in recovery,� said PwC�s Scott Gehsmann. With broad uncertainty about the strength of the economic rebound, it�s hard for companies with less name recognition than Tesla to take off in first-day trading.

� http://dealbook.blogs.nytimes.com/2010/07/13/kkr-and-tech-companies-to-go-public-this-week/

o Enel Chairman Gnudi Expects Green Power IPO Banks by July- BBG

o Europe Filings Rise as IPOs Beat U.S. in Debt Crisis- BBG

� European companies are preparing the most initial public offerings in two years after IPOs weathered the region�s debt crisis and outperformed U.S. deals.

� Fairfield Energy Plc, Stroer Out-of-Home Media AG and 57 other companies filed with regulators in the past three months to raise $14.2 billion through initial sales

� http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aGhVuFdoEHKY

o PGE plans to sell shares in its renewable energy unit on the Warsaw Stock Exchange next year- S&P

o Agricultural Bank of China�

� Offer Price: HKD 3.2

� Expected listing: 16 July

� Amount: HKD 81bln

� Lead Managers: ABC International, China International Capital, Deutsche Bank, Goldman Sachs (Asia), JP Morgan Chase, Macquarie Asia, Morgan Stanley Asia

o MCP Molycorp to offer 28.125M shares in range of $15-17 through Morgan Stanley and JPMorgan

PRICINGS

o Initial Offerings

o OXF Oxford Resource Partners 8.8 million shares expected to price Tuesday via Barclays Capital and Citigroup. Price talk: $18 to $20.

o SMT SMART Technologies- 35.3 million shares expected to price Wednesday via MS, DB, RBC, BoA Merrill Lynch and Credit Suisse Securities. Price talk: $16 to $18.

o QLIK Qlik Technologies -11.2 million shares expected to price Thursday via MS, Citi, JPM. Price talk: $8.50 to $9.50.

o RLD RealD--11 million shares expected to price Thursday via JPM, Piper, William Blair

o Secondary Offerings

o Phoenix Solar AG set the volume of the capital increase at 670,200 shares, at a placement price of 32 euros.

NEWS

o Peltz trying to raise $1.5 bln for fund �Bloomberg

� Peltz, 68, who oversees New York-based hedge-fund firm Trian Fund Management LP, is marketing the investment pool as a private equity fund because client money will be locked up for longer than with most hedge funds

� The fund has already secured $433 million in commitments, one of the sources said. It is targeting sovereign wealth and pension funds, family offices and funds of funds

� http://www.reuters.com/article/idUSN1221316120100712

o Phoenix Solar Sets Volume of Capital Increase, Placement Price- BBG

� Phoenix Solar AG set the volume of the capital increase at 670,200 shares, at a placement price of 32 euros.

o Healthcare: BMTI BioMimetic Therapeutics to sell 5M shares through J.P. Morgan

o Financials: FLIC First of Long Island files for offering of undisclosed amount through Keefe, Bruyette & Woods

o Financials: Mizuho Financial Group to sell up to �748B of new shares for �130 each

o Real Estate: PEB Pebblebrook Hotel Trust files $350M secondary offering through Raymond James and BofA Merrill Lynch

TODAY�S EVENTS

Conferences

Tuesday July 13:

o City & Financial's Creating an Efficient Financing Market for Infrastructure: New Structures, New Frameworks and New Investors - Jul 13, 2010

o Displaybank Korea Display Conference - Jul 12, 2010 - Jul 13, 2010

o Global Hunter Securities China Conference - Jul 11, 2010 - Jul 13, 2010

o 7:30: BEST, DHRM, CRUI

o 8:00: CCME, LPIH

o 8:30: CAST, VALV, CNYD

o 9:00: CAHS, BSPM, ZSTN

o 9:30: CHGS, CECX, CCGY

o 10:00: KONE, WKBT

o 10:30: MSAH, ZOOM, AWRCF

o 11:00: HRBN, WEMU

o 11:30: CELM, JNGW

o 1:00pm: SEED, CGPI, ArtChina/CAE Media

o 1:30: ONP, CADC

o 2:00: CGA, SUWN, PBEP

o 2:30: NEWN, NKBP, CMDI

o 3:00: SGAS, HFGB, FEWP

o 3:30: CJJD, CCLTF

o 4:00: KYNP, CSGL

o 4:30: CBPO

o Greentech Media Growth Opportunities in Utility Scale Solar: Projects, Finance and Policy Conference - Jul 13, 2010

o Infocast Carbon Capture & Sequestration: The Business Summit - Jul 13, 2010 - Jul 15, 2010

o Infocast Storage Week - Jul 12, 2010 - Jul 15, 2010

o JPMorgan Corporate Access Day

� CSR

o K&L GATES LLP American Gas Association's 33rd Annual Legal Forum - Jul 11, 2010 - Jul 13, 2010

o RBC Capital Markets Stampede Energy Roundtable - Jul 12, 2010 - Jul 14, 2010

o SEMICON West - Jul 13, 2010 - Jul 15, 2010

� http://www.semiconwest.org/index.htm

o The Center for Business Intelligence al Rare Disease Leadership Summit - Jul 13, 2010 - Jul 14, 2010

Company Meetings/Other Daily Events

� Tuesday July 13:

o Shareholder Meetings

� ENZN, EEE, ANV, RIMM

o DLM Analyst Day

o LRCX Analyst Day

o KLAC Analyst Day

o AMAT Analyst Meeting

o Greece holds its first international debt auction since its May bailout.

o Senate Judiciary panel votes on Elena Kagan's Supreme Court nomination.

o INTC gets tech earnings going

Economics

� Tuesday July 13:

o 0730 NFIB Index of Small Business Optimism

o 0745 ICSC-Goldman Sachs Chain Store Sales Index

o 0830 U.S. International Trade in Goods & Services

o 0855 Johnson Redbook Retail Sales Index

o 1000 IBD/TIPP Economic Optimism Index

o 1400 Monthly Treasury Statement of Receipts & Outlays of the U.S. Govt

o 1630 API Weekly Statistical Bulletin

o 1700 ABC News Consumer Comfort Index

Earnings

o Industrials/Homebuilders

� Tuesday July 13: AIR, TIK, IGC, FEIM, BUKS, AXR, SEB, FAST

o Consumer/Retail/Education

� Tuesday July 13: GAI, MSN, YUM, RMCF, CAW

o Financials

� Tuesday July 13: GNV, CARV

o Tech/Telecom

� Tuesday July 13: GSIGQ, INTC, WPCS

o Healthcare

� Tuesday July 13: OXBT, ADMO, HITK

o Media

� Tuesday July 13: VALU

o Energy

� Tuesday July 13: MMEX, QTWW, OPTT, TOTY, MILL, SNRY,

***All eco data from Bloomberg and DJ

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

o Playboy bidding war looms from Reuters

o New York Man Claims 84% of Facebook, Gets Order Blocking Assets - BBG

o K.K.R. and Tech Companies to Go Public This Week � NYT link

o A handful of young technology companies are expected to kick off the market for initial public offerings in the third quarter on a hopeful note, The Associated Press reported.

o The worst may be over for small businesses struggling to obtain credit, but this important corner of the financial system doesn't show signs of recovering very quickly, according to officials and business leaders who gathered at the Federal Reserve for a one-day conference

o http://online.wsj.com/article/SB10001424052748703283004575363381891292318.html?mod=WSJ_hps_LEFTWhatsNews

�

� US states:

� U.S. States Show First Tax Revenue Jump Since 2008, Report Says � BBG

� California Economic Index Increases to 2010 High, Comerica Says � BBG

� Inflation:� Union workers at several Australian companies are seeking to increase wages by as much as 7%. Some companies potentially facing strikes include Telstra and Airport Fuel Services.� TTN

� Ban Hits Oil Drillers � WSJ

o The U.S. issued a new order banning most new deepwater-drilling activities until Nov. 30, setting up a fresh round of conflict with the oil industry.

� Due to popular rage at the ban on reporters and photographers from within 65 feet of the oil spill, Coast Guard admiral Thad Allen has rescinded the ban. from zero hedge

� Big� earnings� news overnight..mostly better

� CVX guides in line to better�downstream and� FX help

o Chevron. says a combination of higher profits from its refining operations and a stronger U.S. dollar have put the company�s second-quarter profits on a faster pace of increase.

o Infosys Q1 profit disappoints, Europe woes dampen outlook

o A half a century after losing its status as Brazil's capital, Rio de Janeiro is becoming an engine of Latin America's largest economy. The city lured at least two dozen hedge funds in the past decade as well as the nation's leading oil producers, the 2014 World Cup and the 2016 summer Olympics.

� Finance Bill Close to Passage in Senate - WSJ

o Two Senate Republicans said they would support the Obama administration's financial overhaul bill, likely giving the White House the 60 votes it needs to push the sweeping rewrite into law soon.

� IEA: Oil Demand to Slow � WSJ link

o The International Energy Agency said it expects oil demand to slow next year in China and most other parts of the world, indicating that crude prices are likely to trade at subdued levels well into next year.

� ECB's Trichet Wants End of Rating Agencies Oligopoly from CNBC

� Confidence in Obama reaches new low, Washington Post-ABC News poll finds

o Public confidence in President Obama has hit a new low, according to the latest Washington Post-ABC News poll

� Cramer: Is Washington�s War Against Business Over? �CNBC link

� Pelosi Asserts That Democrats Will Keep Control of House from Roll Call

o Speaker Nancy Pelosi dismissed Monday a White House assertion that Democrats are in jeopardy of losing control of the House in midterm elections this November, according to a report on the San Francisco Chronicle's website.

� �Republican Meg Whitman on Monday took the lead over Democrat Jerry Brown for the first time in a general election poll, four months before voters go to the polls to chose the next California governor.� Reuters

� Gingrich says he's considering presidential run from USATODAY

o Former U.S. House Speaker Newt Gingrich said Monday he's seriously considering seeking the Republican presidential nomination

� U.S. Detains 12th Person in Spy Probe � WSJ link

o Authorities are detaining a 12th, previously undisclosed person implicated in the probe that busted a Cold War-style Russian spy ring.

� White House corrects NASA chief on Muslim comment from Reuters: Politics

o White House spokesman Robert Gibbs said on Monday that NASA administrator Charles Bolden was wrong to say that reaching out to the Muslim world was a top priority of the U.S. space agency.

� NAACP to vote on controversial resolution condemning 'tea party' supporters � WP link

o Members of the NAACP will vote Tuesday

� Iran scientist seeks refuge in Pakistan embassy in U.S. from Reuters

o Iran's state radio said on Tuesday a missing Iranian nuclear scientist who Tehran says was kidnapped by the CIA, had taken refuge in Pakistan's embassy in Washington.

� North Korea�� Reuters) - North Korea abruptly called off talks set for Tuesday with the U.S.-led United Nations Command that oversees the Korean War truce, failing to show up for the first meeting to discuss the sinking of a South Korean warship.

o IG spreads continued grinding tighter today in mixed volume with the GOM better 2 points across the board as BP nears completion of the relief well.� Generically GOM paper is about 10 points better in the past week and a half

o �Just over $4BN in new issues today led by a two-part $3.25BN ORCL deal

o Negative piece on bond funds in Barron�s over the weekend as index accounts continue to come in day and day to put their money to work.

o Michael Salemo

o CVX guides in line to better�downstream and� FX help

o IEA: Oil Demand to Slow � WSJ link

� The International Energy Agency said it expects oil demand to slow next year in China and most other parts of the world, indicating that crude prices are likely to trade at subdued levels well into next year.

� no change to the global consumption forecast of 86.5M bpd for 2010

� Demand eases as China puts pressure on housing market.

o POSCO agrees on Q3 iron ore price hikes from Business Spectator

� Steelmaker reaches agreement with 3 major miners.

� Florida banks, weakened by the real-estate bust and hit again by fallout from the oil spill, want a reprieve from government

o ECB's Trichet Wants End of Rating Agencies Oligopoly from CNBC

o French banks to pass stress test, says Exane BNP Paribas

o Mizuho Financial Group to sell up to �748B of new shares for �130 each

o Banks:� UK:� We'll tax the banks

� Treasury Minister Mark Hoban reveals that the government is "actively looking at the introduction of a financial activities tax," as well as taxes on profits and salaries.

� http://www.guardian.co.uk/commentisfree/2010/jul/12/tax-the-banks-mark-hoban

� Subpoenas Over MBS Could Be Prelude to Major Lawsuits Against Banks from American Banker

� BNY Mellon eyeing 1 WTC from NY Post: Business

o Bank of New York Mellon is considering a complex, three-way real estate maneuver that would include moving part of its operations to 1 World Trade Center and selling its historic Art Deco headquarters tower at 1 Wall St., sources said

� Troubled Relations in Housing � WSJ link

o Buyers of troubled mortgages are doing brisk business as the housing slump continues to shake out. But some borrowers are complaining of mistreatment and strong-arm tactics.

� Fannie, Freddie regulator issues subpoenas � FT link

o The part lenders played in issuing mortgage-backed securities to the finance houses, and whether these hurt them when the housing market collapsed, is to be investigated

� UK's FSA outlines proposals to ensure all mortgages are carefully assessed to make sure borrowers can afford them

� Property demand falls as supply rises, says Rics report | guardian.co.uk

� No real house price recovery likely in next five years� guardian.co.uk

o �70% chance that real cost of a property will be less in 2015 than in 2007 � Second half of 2010 likely to see falling house prices

o VVUS� FDA publishes briefing documents for panel meeting discussing Vivus' Qnexa

o Glaxo Withheld Avandia Risk Data � WSJ link

� A former FDA official said GlaxoSmithKline withheld from regulators information suggesting Avandia posed an increased risk for serious health problems, according to a letter from the Senate Finance Committee.

� �A heated three-year safety debate about a GlaxoSmithKline Plc diabetes pill reaches a climax this week as opponents and backers face off at a U.S. meeting that will help decide the drug's fate.

o Pharma:� California Supreme Court reinstates price-fixing suit against Pfizer, others - San Francisco Chronicle

o �70% chance that real cost of a property will be less in 2015 than in 2007
� Second half of 2010 likely to see falling house prices