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News

o Today�Business Groups Air Concerns � WSJ link

� Washington's major business groups plan to confront the Obama administration over economic policy, calling on the government to cut taxes and curb its regulatory agenda.

� �The U.S. Chamber of Commerce is urging President Barack Obama to curb regulations and embrace tax cuts to avert a double-dip recession.

Stage Set for Final Votes on US Wall Street Bill

� Senate Democratic Leader Harry Reid scheduled a key vote for Thursday morning after Senator Ben Nelson, one of the chamber's most conservative Democrats, said he would support the bill, which would be the broadest rewrite of the Wall Street rulebook since the Great Depression.

TODAY�S BIG STORIES

� Top M&A

o Talks for Motorola Unit Heat Up � WSJ link

� Nokia Siemens Networks is in talks to buy the telecom-equipment arm of Motorola, according to the Wall Street Journal.

o Lions Gate Said to Approach MGM Studio Creditors on Purchase � BBG

o Benihana Inc. (BNHNA US): The Japanese steakhouse chain said its board of directors will explore strategic alternatives, including a possible sale.

o PLA:� Penthouse Owner Delays Playboy Bid, Says Offer Is �Forthcoming�� BBG

o Northrop Grumman, the biggest maker of vessels for the U.S. Navy, said it�s studying options for its shipbuilding unit that include a possible sale or spinoff � BBG

o Kneale: Rupert Murdoch Should Break Up News Corp - CNBC

� Top $ Raising

o Goldman Sachs� is generating better returns for companies and buyers of initial public offerings than any other Wall Street firm� - BBG

o Coal miner Oxford Resource Partners priced shares of its initial public offering within the expected range on Tuesday, according to an underwriter, Reuters reported.

o NLY� in reit space, filed to sell 60million thru credit Suisse for business purposes

o Nortel Networks Files Bankruptcy Plan Without Payment Details

AIG: American International Group is considering giving the U.S. Treasury Department stakes in mortgage-linked bonds to repay part of the rescue money it received, sources said. The proposal, which the insurer has discussed with the government, is for assets contained in Maiden Lane II and Maiden Lane III, which were created to remove troubled securities from AIG. Bloomberg Businessweek (14 Jul.)

Default Rate Shows Junk Bonds Cheapest in a Year � BBG

� Hedge-Funds stories :

o Hedge-Fund Returns Decline in 2010 Amid Europe Crisis - BBG

� Hedge funds fell in the first half of the year amid concerns that the sovereign debt crisis in Europe may hamper a global economic recovery

� The Eurekahedge Hedge Fund Index, which measures the performance of more than 2,000 funds worldwide, fell 0.5 percent in June and lost 0.02 percent in the first six months, Eurekahedge Pte said in a report on its website. More than 500 funds started globally in the first half, the Singapore-based research firm said.

o Credit Eases for Hedge Funds and Private Equity from DealBook

� Wall Street's largest dealers eased credit terms during the spring to hedge funds and private equity firms that borrow against securities and trade over-the-counter derivatives, the Federal Reserve reports.

� Macro concerns Stories

o Surprise jump in trade deficit worries economists from L.A. Times

� U.S. trade deficit took a surprising jump of nearly 5% from April to May, to the highest level since November 2008. Analysts scale back growth forecasts. Some see a threat to the economic recovery

� In a sign that Americans are persisting in the risky habit of buying more than they sell in the global economy, the U.S. trade deficit jumped unexpectedly in May to the highest level since November 2008.

o Strauss-Kahn: Asia will help prevent global double-dip from The Independent

� Economic growth in Asia and Latin America will help the rest of the world avoid a double dip recession, according to the head of the International Monetary Fund.

o Cramer: Why a Double-Dip Recession Won�t Happen � CNBC link

o Rio Tinto warns of double dip fears and China slowdown �guardian

� stock rally:� Stories �

o Nothing fundamental about this rally from FT Alphaville

� What has really caused this?

� Note the S&P 500 is now 7.1 per cent above the 10-month low reached on Payrolls Friday 12 days ago and just around 1.5 per cent away from its 200-day moving average

� The answer is that the market may have been on the receiving end of another few jolts of liquidity. M2 money supply has expanded $38.5 million in the past two weeks and the M1 money multiple has risen from 0.839 to 0.862.

o Feels Like Market Will Keep Going Up: Art Cashin � CNBC link

� Trading:� Investors Bank on Artificial Intelligence � WSJ link

o A new wave of investment firms are turning to artificial-intelligence programs to make trading decisions. The programs are designed to crunch numbers, learn from decisions, and adapt. Some are having success.

� Trading:�� Chicago Firms Plan New Swaps Exchange � WSJ link

o Five of Chicago's largest trading firms plan to set up a new derivatives exchange targeting the over-the-counter market for interest-rate swaps dominated by the major Wall Street banks.

� Trading:�� ICAP (IAP.LN) says current range of analysts' profit forecasts appears reasonable

� Trading:�� London Stock Exchange (LSE.LN) Trading higher post results

� Financial Overhaul Hits Farmers � WSJ link

o Farmers who use derivatives to hedge their crop risks fear new regulations will raise costs.

� Demand positive:

o Port traffic jumps at L.A., Long Beach from L.A. Times link

� Demand at the twin port complex in June also prompts the hiring of hundreds of part-time workers. But experts warn that the upswing could weaken in the coming months.

� The Port of Los Angeles had its busiest June ever for cargo, surpassing the number of containers moved during the height of the global economic boom in 2006, and the neighboring Port of Long Beach also showed a strong increase in imports, port officials said Tuesday.

� European Ratings Agency Would Be Good: S&P � CNBC link

Credit rating system needs to change, ECB's Trichet says

� European Central Bank President Jean-Claude Trichet said the credit rating system exacerbated the financial crisis and called for Europe to diversify its system. "It is probably advisable to put an end to a global oligopoly of three agencies," Trichet said, referring to Standard & Poor's, Moody's Investors Service and Fitch Ratings. European Voice (Brussels) (13 Jul.)

Toyota Data Suggest Driver Error � WSJ link

o The U.S. Department of Transportation has analyzed dozens of data recorders from Toyota vehicles involved in accidents blamed on sudden acceleration and found that the throttles were wide open and the brakes were not engaged.

� Qantas to Take Boeing Jets Early� � WSJ link

o Qantas: To receive first 8 Boeing 787 aircraft by mid-2012 (delivery brought forward by 2 years); Overall order remains at 50 aircraft (down from initial 65) - The Australian

� BP stories:

o New Cap Test to Stem Gulf Oil Flow Delayed � CNBC link

o British Petroleum [BP.UK]: Delays start of testing on the new well cap's ability to contain leaking oil until at least Wed; Further analysis to take place night of July 13th and 14th; To continue to ramp up containment operations while analysis is going on

o BP oil spill: US politicians accuse BP over Lockerbie terrorist al-Megrahi from Telegraph

� Democratic senators urge investigation into BP's interests in Libya, as they tried to connect the oil group with a deal to free a convicted terrorist.

� GERMAN PROSECUTORS SEARCH 13 CREDIT SUISSE LOCATIONS IN GERMANY� IN TAX PROBE..BBG

� Rio Tinto maintained its 2010 iron ore production guidance at 234 million tons, year-on-year growth of 7.6%.

o Rio Tinto shares are moving higher in line with the rest of the mining sector, despite the company expressing concerns about the prospect of a double dip recession.

o In recent weeks, fears about a possible double dip recession in OECD countries and a slight slowdown in Chinese growth have led to some weakening in sentiment. We believe this pattern of volatility in the global economy is set to continue.

o But it maintained the overall picture for long term demand was positive, and it had a large range of options for future investment. Now the dispute over Australia's 40% supertax proposal - now amended - had been resolved, it was moving ahead with projects in the country.

� Fresnillo has risen 15p to �11.12 after the Mexican miner reported record gold production in the second quarter, a time when prices for the precious metal also hit new highs

� WTNY preannounced higher than expected credit costs due to ongoing Florida real estate market weakness

� Transports positive:� EXPD another in transportation, boosted guidance

o EXPD +7.9% (guidance)

� INTC +7.3% (earnings)

� ASML trades up on good results -� raised forecasts for FY10, guidance for FY11 more mixed

� YUM -3% (earnings) �-beats ests�.upped guidance not good enough�but china biz may not be good enough

o Yum Shares Tumble After Outlook Disappoints

o Call at 9:15 on Wednesday.

� JTX Jackson Hewitt reports Q4 EPS $1.14 ex-items vs Reuters $1.06

� Homebuilder:� Barate Developments Plc reports FY operating profit ahead of estimates after they cut costs and sold more top end,high value houses.

� Dubai:� Nakheel Said to Offer 4 Percentage-Point Margin on New Loans - BBG

o Nakheel PJSC�s plans to offer lenders interest of 4 percentage points more than benchmark rates as part of the Dubai-owned developer�s $10.5 billion debt restructuring provides a good return to banks

� Bank Results Are on Tap, and the Bar Is Low � WSJ link

o For big banks, even lukewarm results may actually leave investors feeling pretty good

� FCC Policy on TV Expletives Overturned by Court...

� Net neutrality comes back to haunt Google

o Google has become the main advocate in Washington for a set of regulations to prevent internet service providers favouring particular companies� traffic.

o European antitrust regulators are looking at Google's dominance of the search market

o This year, �search neutrality� has become the rallying cry of activists who believe that Google has too much power to decide which internet sites are granted the attention that comes with a high search ranking, and which are consigned to outer darkness.

o http://www.ft.com/cms/s/0/9b6bc780-8ea5-11df-8a67-00144feab49a.html

� GE chief backtracks on criticism of China from FT.com

o Jeffrey Immelt, General Electric�s chief executive, rowed back from criticisms he made this month of China�s hostility to foreign companies and of Barack Obama�s fractious relationship with business

� Chinese banks make more provisions for bad loans from Business Spectator

o Loans increase fuels fears of future bad debts.

� Politics:�

o Americans in 70% Majority See More Jobless as Deficit Widens � BBG

� More than 7 out of 10 Americans say the economy is mired in recession, and the country is conflicted over how to balance concerns over joblessness and the federal budget deficit, according to a Bloomberg National Poll. Just like the experts, Americans are torn about whether the federal government should focus on curbing spending or creating jobs, the poll conducted July 9-12 shows. Seven of 10 Americans say reducing unemployment is the priority. At the same time, the public is skeptical of the Obama administration�s stimulus program and wary of more spending, with more than half saying the deficit is �dangerously out of control.�

o Four out of Five See Wall Street Reform as Ineffectual

� Americans harbor doubts that a financial-regulation bill about to be passed by Congress will do what President Barack Obama says it will: help avoid another crisis and make their finances safer, Bloomberg News reported.

o President Barack Obama will sit down with House Democratic leaders Wednesday to map out legislative priorities in the weeks leading to the August recess, the White House indicated Tuesday.� RC

o Obama faces growing credibility crisis

� Contrary to pretty much every projection until now, Democratic control of the Senate is also starting to coming into question. While Mr Obama�s approval ratings have continued to fall, and now hover at dangerously close to 40 per cent according an ABC-Washington Post poll published on Tuesday, the fate of his former colleagues in the Senate looks even worse.

� http://www.ft.com/cms/s/0/434315b2-8ea6-11df-8a67-00144feab49a.html

o White House hits the panic button on fall elections

� The new posture is one-half reality check, one-half calculated strategy -- aimed at waking the party's base from a state of general apathy.

o Pelosi Slams Gibbs for �Politically Inept� House Forecast from CQ

� Speaker Nancy Pelosi (D-Calif.) slammed White House Press Secretary Robert Gibbs during Tuesday night�s House Democratic Caucus meeting for saying Sunday that Democrats could lose control of the House in November.

o Clampdown rumoured as China "twitter" sites down from Reuters: Technology News

� Chinese social networking websites that provide Twitter-like services have suddenly reverted to testing mode and access has been spotty amid reports of a government clampdown.

o Microsoft Says 12th Alleged Russian Spy Was Employee in Redmond - BBG

CANTOR TRADING RECAP

� Equity Recap

o They started the day higher with the CSX and AA numbers being better than expected and odd that CSX closed lower(good number built into it and head winds in regards to coal sales and china)and AA almost unched, some other underpinnings that helped stocks were Greece�s successful 6month bill auction, BMW boosted guidance in autos, MBI big value investor taking a stake in a beat up industry, ESV the same, TEL paying 40% for a tech company in ADCT, NVLS numbers and LRCX and AMAT during their investor day. So it is not like there isn�t good news, there has been good news and this market has been waiting for a catalyst to hang it�s hat on. From what I�ve seen though is a good amount of short covering, there has been some vanilla institutions adding, quant�s on both sides and value guys who pick levels well taking sales, so a little of everything. I�m sensing a small amount of anxiety on long only�s part and shorts who have been very complacent. But we continue to see not much volume on these up 2% days.

o Technically we have 1.095 as our 50 day moving average and our 200 day is 1111 and from what we have seen, your sellers should become more aggressive there. Breadth to the market had advancing issues outnumbering declining issues by about 9-1 while internally, things have picked up a little more, buyers and sellers were equal

o Overseas, Asian equity markets were mixed to lower with Shanghai lagging, off 1.6% (Hang Seng, Kospi, Nikkei and Sensex all ended about flat). Europe, however, got a boost from a successful auction of 6 month Greek sovereign notes (priced to yield 4.65%, below the EU�s bailout rate of 5%); European equities moved up 2% in response. S&P�s also showed gains of about 10 points in the early going. There was little in the way of major economic data: the trade deficit widened more than expected and two sentiment indexes disappointed (NFIB Small Business Optimism and the IBD/TIPP Econ Optimism index). Stocks ignored this data, moving higher throughout the morning, pausing briefly at the 1090 level (50 day moving average), and then later, towards the end of the day, at the 1095 level. The only real fade came late in the day as S&P�s sold off 5 points into the bell.

o By the close, the cash S&P was up 1.61% to notch its 6^th advance in a row. All 10 Industry Groups were up with Financials strongest (up 2.6%), followed by Consumer Discretionary (up 2.5%) and Materials (up 2.2%). Utilities and Healthcare were weakest up only 0.3% and 0.7% respectively. Standout performers in the financial sector: MBI, up 11.1% and AIG up 6.8% on news that Bruce Berkowitz of Fairholme announced a new position in MBI and an increased position in AIG. After the bell, we got positive news from INTC, which reported better than expected earnings and sales; after hours, INTC rose 7.5% to 22.60.

o Billy Clark and Team

� Investment Grade Recap

o IG spreads continue grinding tighter as we are better nearly every day this month, another 2-3bps today. The treasury backup has helped real money buyers and new issues have performed well.

o �$1BN from Target (+80 for a 10yr) and $750M from Agilent (+150 and +195 in 3yr and 10yr) in issuance.

o �Recent deals (Shell, Teva, DUK,..) all continue to grind tighter with a good mix of buyers � index accounts, money managers, and others. We continue to have better buyers throughout the curve although it is not a case of lifting every offer in sight as buyers are selective and avoiding the higher dollar offers. Benchmark DOW 8.55 19 (Baa3/BBB-) are 20+bps tighter month to date (+250 to +228 bid to bid) while MDT 4.45 20 (A1/AA-) is only 3-5bps better month to date (+70 to +65 bid to bid) as account are once again choosing yield over the higher quality. We are still +85/olb bid 3MM+ MDT 5.55 40.

o Strong earnings out of INTC should provide a nice bid overnight for risk assets along with swap spreads tighter and commodities higher, painting a much better picture of the global economy than recent data points had.

o The markets seemingly took no notice of the Portugal downgrade by Moody�s as we were tighter as soon as we walked in.

o The GOM was unchanged but off nearly a point from intraday highs as bonds started hitting bids around mid-day along with equities in BP and APC off, I guess seeing that continued image of oil pouring out of the well did not help matters any.

o Michael Salemo

� Rates Commentary

o Treasury market has a quick overnight pop after the downgrade of Portugal but the market quickly came off these levels ahead of today's $21Bln 10 year note auction. Greece's strong bill auction yielding under the 5% charged by the ECB (4.65% on 26 week bills), strong world equities and the continued onslaught of pre auction selling weighed heavily on Treasuries throughout the morning and leading right up to 1PM. The 5bp concession built in today and a total 22bps since payrolls July 2nd was still not enough as the auction tailed 1.6bps stopping at 3.119%, indirects purchased 41.7%, directs 9.8%.

o During the afternoon session Treasuries were relatively quiet trading a tight range into the close. At 3PM the market was lower across the curve with yields ~2-7bps higher, 10s were the worst performer on the day. Tomorrow the market will look towards the remainder of this weeks supply with $13Bln 30s, as always the bond is wild card in the cycle. The eco calendar also picks up tomorrow with retail sales, import prices and the FOMC minutes from their last meeting.

o Primary Dealer

� British Petroleum [BP.UK]: Delays start of testing on the new well cap's ability to contain leaking oil until at least Wed; Further analysis to take place night of July 13th and 14th; To continue to ramp up containment operations while analysis is going on

o BP Plc is moving away from storage ownership at a key U.S. oil delivery point as it cedes control of its tanks in Cushing, Oklahoma, as part of a $289 million sale of assets to Magellan Midstream Partners LP.�� BP will sell 7.8 million barrels of storage at Cushing, where benchmark West Texas Intermediate crude is delivered. BP�s oil-trading business, which now has the advantage of physical oil storage, will rely on contracts with Magellan and others after the sale.� BBG

o Coal miner Oxford Resource Partners priced shares of its initial public offering within the expected range on Tuesday, according to an underwriter, Reuters reported.

o Bechtel Backs Small Nuclear-Plant Design � WSJ link

o Construction giant Bechtel is expected to disclose Wednesday that it will partner with Babcock & Wilcox to bring a small, commercial nuclear reactor design to market.

o Indian energy major Reliance Industries is close to acquiring a stake in a shale gas asset in North America, which will be its third such buy this year, local newspapers reported on Wednesday. The acquisition of a 50 percent stake in the asset would be the biggest shale gas deal so far for Reliance, India's largest listed company, the Hindustan Times said

o EROC Eagle Rock Energy Partners announces final results of rights offering

o CWEI Clayton Williams provided an update on its Eagle Ford Shale drilling activities

o API reports crude inventories +1.74M vs. Reuters (2M); Gasoline inventories +1.73M vs. Reuters 300K; Distillate inventories +3.19M vs. Reuters +700K

o MMP Magellan Midstream Partners announces 5M common unit offering through Morgan Stanley, BofA Merrill, JPMorgan and Wells Fargo

o CLD Cloud Peak Energy reports Q2 coal production of 24.3M short tons vs. 22.36M y/y

o NBL Noble Energy initiated buy at Hapoalim Securities; target is $75.

o RRC Range Resources to disclose chemicals used in natural gas fracturing -- WSJ

o Kazakhstan to reimpose duty on most crude oil exports - FT�

o Fairfield Energy IPO order book not yet fully covered - FT�

o OGE, ALU OG&E selects Alcatel-Lucent, ABB amongst others to build a private wide area network to support smart grid implementation� - SA

o As Reid Prepares Energy Bill, Emissions Cap Appears Unlikely

o from The Washington Independent

INDUSTRIALS

o Northrop Grumman to Close Louisiana Shipyard � CNBC

o GE chief backtracks on criticism of China from FT.com

� Jeffrey Immelt, General Electric�s chief executive, rowed back from criticisms he made this month of China�s hostility to foreign companies and of Barack Obama�s fractious relationship with business

o SI Siemens to announce Russian wind turbine joint venture - FT

o NOC Northrop Grumman to explore strategic alternatives for shipbuilding business

o GVA Granite Construction awarded $78M rail project in CA

o GPK Graphic Packaging recently announced a price increase of $40/ton for its PaceSetter coated recycled board

o AIR AAR Corp reports Q4 EPS

o BMS Bemis completes sale of discontinued operations

o SMIT Schmitt Industries reports Q4 EPS

o FLIR FLIR Systems announces $5.4M order from US Customs and Border Protection

o SATC Enfinity chooses SatCon Technology photovoltaic inverters for two power stations in France

o GWR Genesee & Wyoming June traffic +15.4% to 73,347

TRANSPORTS

o Demand positive:

� Port traffic jumps at L.A., Long Beach from L.A. Times

1. Demand at the twin port complex in June also prompts the hiring of hundreds of part-time workers. But experts warn that the upswing could weaken in the coming months.

2. The Port of Los Angeles had its busiest June ever for cargo, surpassing the number of containers moved during the height of the global economic boom in 2006, and the neighboring Port of Long Beach also showed a strong increase in imports, port officials said Tuesday.

o Qantas to Take Boeing Jets Early� � WSJ link

o FedEx Looks to 777s to Deliver Edge �� WSJ link

o Fedex is counting on long-range Boeing 777 cargo jets to recover from the recession, betting that the fuel-efficient planes can win business in the lucrative market for international package delivery.

o Delta Air Lines Inc. and UAL Corp.�s United Airlines may lead U.S. carriers to the first quarterly profit in two and a half years as the industry benefits from cutting seats during the recession.� BBG

o Iberia (IBLA SM)/ British Airways (BAY LN) The European Commission may give antitrust clearance today for the proposed alliance between British Airways, Iberia and American Airlines on transatlantic routes, Europa Press reports.

o EXPD Expeditors International reports

o RA RailAmerica reports June carloads +11.8% to 72,684

o Airline Challenge to Congestion Pricing Is Rejected� - BBG

o A U.S. appeals court rejected an airline industry challenge to a regulation letting airport operators charge more at busy times of the day to reduce delays.

TECH/MEDIA/TELECOM

o INTC- Best Q ever with a beat on almost all metrics, and strong guidance on the back of server strength. Better margins, muted CPU price declines, and increased factory efficiencies also helped to drive the beat. Management suggested that global Pc demand remains robust, the �death of the laptop� has been exaggerated greatly, and that PC shipments are ramping. Some bears may look to rising inventories as a negative, but there really is not much else to look for after this strong Q.

o ASML- Very Strong Q2 beat and raise. Orders were better and order guidance remains strong and is expected to remain strong into Q4, which could extend even further into 2011. INTC orders in the Q were much better and along with New Tool shipments helped to drive the beat.

o BBBB Blackboard reaffirms Q2 guidance

o AAPL Apple may be silently recalling the iPhone 4 - ubergizmo

o AAPL: Apple iPhone Recall Unlikely, But Could Run $1.5B, Bernstein Says- Barron�s

o AAPL: Apple Retail tells employees something big is on the way- AppleInsider

o EBAY: Sued For $3.8 Billion In PayPal Patent Case- Dealbook

� http://dealbook.blogs.nytimes.com/2010/07/14/ebay-sued-for-3-8-billion-in-paypal-patent-case/

o Censorship: FCC decency policy is too vague and violates the first amendment- BBG

� The judges said the FCC hasn't given clear guidelines on its two main tests for indecency: whether material describes or depicts sexual or excretory organs or activities, and whether a broadcast is "patently offensive as measured by contemporary community standards.

� http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/07/fcc-needs-to-decide-how-to-respond-to-court-tossing-indecency-rules.html

o Pay TV: Time Warner Cable, Verizon Push to End TV Blackout Threats- BBG

� http://www.bloomberg.com/news/2010-07-14/time-warner-cable-verizon-push-to-end-tv-blackout-threats.html

o VZ: Smartphones can replace PCs- EETimes

� http://www.pheedcontent.com/click.phdo?i=5aa18b19d4d4968b7f130ae4e1da4cd9

o CRM Salesforce.com upgraded to buy from neutral at UBS; target increased to $111 from $90.

o TXI Texas Industries reschedules Q4 earnings announcement, conference call

o CCMP Cabot Micro to report significantly higher Q3 operating expenses due to litigation costs

o ADCT ADC Telecom downgraded to market perform from market outperform at Avondale

o PRTS U.S. Auto Parts initiated buy at Janney Capital; Fair value is $8.

o XSEL Xinhua Sports & Entertainment restructures its secured convertible loan facility with Patriarch Partners

o T AT&T to announce multi-million dollar deal with Henkel today - FT

o VMED Virgin Media "days away" from formally complaining to Ofcom about Project Canvas - London Times

o SNDK Toshiba, Sandisk announce JV to operate in new Fab 5 facility in Mie Prefecture

o TWX In unusual deal, Piers Morgan free to talk with CNN about replacing Larry King - LA Times

o AMZN Amazon.com's MP3 store may undertake major relaunch in Q1 - TechCrunch

o NOK, MOT: Nokia Siemens in Talks to Buy Motorola Network Unit- WSJ

o Hynix: LG Group Says It Won�t Buy Hynix Semiconductor- BBG

o LGF: makes merger presentation to MGM creditors- LATimes

o NRTLQ: Nortel Networks Files Bankruptcy Plan Without Payment Details- BBG

o AMAT: Boosts Outlook For Chip Equipment Segment- Barron�s (Yesterday)

o Solar: Taiwan solar cell makers raise quotes- Digitimes

o LEDs: L TV sales to reach 20 million in China in 2011- Digitimes

o STMicroelectronics responsible for Nissan Motor (7201.JP) production shortages - Nikkei

MATERIALS

� Rio Tinto maintained its 2010 iron ore production guidance at 234 million tons, year-on-year growth of 7.6%.

o Rio Tinto shares are moving higher in line with the rest of the mining sector, despite the company expressing concerns about the prospect of a double dip recession.

� Fresnillo flattish�� Mexican miner reported record gold production in the second quarter, a time when prices for the precious metal also hit new highs

� CX CEMEX signs cement supply agreement for the Panama Canal expansion project

� APD Air Products enters into $2B revolving credit agreement

� AKS AK Steel upgraded to buy from neutral at Goldman Sachs

� RTP Rio Tinto Q2 production report: Iron Ore Production 43.61M tonnes, (2%) y/y

� Indophil Resources (IRN.AU) plummeted 42% after Zijin Mining dropped its takeover bid; the shares had been suspended since 10-Jun � SA

AUTOS

o Toyota Data Suggest Driver Error � WSJ link

o The U.S. Department of Transportation has analyzed dozens of data recorders from Toyota vehicles involved in accidents blamed on sudden acceleration and found that the throttles were wide open and the brakes were not engaged.

o BMW Group upgraded to outperform from underperform at Cheuvreux

o NSANY Nissan Motor will not halt production in US - Nikkei

� GM�s Whitacre Pushes Banks to Sell Cars, Not Just Shares in IPO - BBG

o General Motors Co. Chief Executive Officer Ed Whitacre never misses the chance for a sales pitch

o �When GM sought proposals in May to manage its initial public offering, it didn�t want advice only on selling shares.

o The automaker wanted help selling Cadillacs and Corvettes. Banks were asked to consider using some of the underwriting fees to subsidize the purchase of GM cars by their employees, according to a two-page document obtained by Bloomberg.

� STMicroelectronics responsible for Nissan Motor (7201.JP) production shortages - Nikkei

�

FINANCIALS

o U.S. Senate is poised to vote on the reform bill this week

o U.S. Senate Majority Leader Harry Reid, D-Nev., said he plans to move toward a final vote on legislation to overhaul financial regulation by the end of the week, after Democrats secured the 60 votes needed. Approval by the Senate would mean the legislation would be sent to President Barack Obama for his signature. Obama said the bill would help prevent a repeat of the financial crisis. "I urge the Senate to act quickly so I can sign it into law next week," Obama said. Bloomberg (13 Jul.) , The Wall Street Journal (13 Jul.) , Reuters (14 Jul.) , The New York Times (free registration) (13 Jul.)

o Four out of Five See Wall Street Reform as Ineffectual

o Americans harbor doubts that a financial-regulation bill about to be passed by Congress will do what President Barack Obama says it will: help avoid another crisis and make their finances safer, Bloomberg News reported.

o European Ratings Agency Would Be Good: S&P � CNBC link

o Credit rating system needs to change, ECB's Trichet says

1. European Central Bank President Jean-Claude Trichet said the credit rating system exacerbated the financial crisis and called for Europe to diversify its system. "It is probably advisable to put an end to a global oligopoly of three agencies," Trichet said, referring to Standard & Poor's, Moody's Investors Service and Fitch Ratings. European Voice (Brussels) (13 Jul.)

o Trading:� Investors Bank on Artificial Intelligence � WSJ link

o A new wave of investment firms are turning to artificial-intelligence programs to make trading decisions. The programs are designed to crunch numbers, learn from decisions, and adapt. Some are having success.

o Trading:�� Chicago Firms Plan New Swaps Exchange � WSJ link

o Five of Chicago's largest trading firms plan to set up a new derivatives exchange targeting the over-the-counter market for interest-rate swaps dominated by the major Wall Street banks.

o Trading:�� ICAP (IAP.LN) says current range of analysts' profit forecasts appears reasonable

o Trading:�� London Stock Exchange (LSE.LN) Trading higher post results

o Financial Overhaul Hits Farmers � WSJ link

o Farmers who use derivatives to hedge their crop risks fear new regulations will raise costs.

o Bank Results Are on Tap, and the Bar Is Low � WSJ link

o For big banks, even lukewarm results may actually leave investors feeling pretty good

o Panel Fears Small Banks Could Get Trapped in TARP � WSJ link

o Bailed-Out Small Banks Said to Face Takeover Risk

o Smaller banks that got U.S. government bailout money are likely to run into trouble repaying it and may become vulnerable to takeovers as a result, a congressional watchdog agency warned on Wednesday, Reuters reported

o E.U.'s Test Results Expected Soon, but Details May Lag from DealBook

o Top European finance officials said Tuesday that results of banking stress tests would be released on July 23 but that some national regulators could take longer to release more detailed information on certain lenders

o Ally Expands Phaseout of GMAC Name from American Banker

o Ally Financial said it will rebrand its GMAC consumer- and dealer-related auto finance operations in North America as Ally, continuing to phase out its old name.

o Barclays Capital equities chief Dixit Joshi quits to join rival Deutsche Bankfrom Telegraph Finance

o Dixit Joshi, a rising star at investment bank Barclays Capital, has left in a surprise move to join Deutsche Bank.

o Man Group (EMG LN) Shares in Man Group rose yesterday amid talk of a potential GBP 5.5bn takeover offer from Bank of New York Mellon. Man's distribution network is its most valuable asset to potential buyers. A Daily Mail market report said chatter suggested a cash bid at GBP 3.20 per share is on the cards before September, at which time Man acquisition of GLG Partners will be finalised. Bank of New York Mellon has the firepower to bid for Man, although it may find Man's 10% shareholder BlackRock resistant. BlackRock may itself be a potential buyer of the business. A story circulating late yesterday suggested BlackRock was hoping to up its stake to 15% and had been attempting to purchase shares.

o AIG is considering a plan to repay rescue funds, sources say

o American International Group is considering giving the U.S. Treasury Department stakes in mortgage-linked bonds to repay part of the rescue money it received, sources said. The proposal, which the insurer has discussed with the government, is for assets contained in Maiden Lane II and Maiden Lane III, which were created to remove troubled securities from AIG. Bloomberg Businessweek (14 Jul.)

o AIG A Chinese offer for AIA almost came last year - South China Morning Post

o MBI MBIA initiated buy at Soleil Securities; target is $10.

o BANF BancFirst to acquire Union National Bancshares

o STFC State Auto Financial reports Q2 storm losses

o WTNY Whitney Holding expects to record a provision for credit losses in Q2 of $57-62M

o ART Artio Global Investors reports June AUM of $49.0B vs month ago $50.3B

o THG The Hanover Insurance Group estimates $85M impact from 2Q catastrophes

o Canadian Securities Administrators expected to propose new measures governing ratings agencies 16-Jul - Globe and Mail�

o ICAP issues Q1 interim management statement; says current range of analysts' profit forecasts appears reasonable - SA London

o NYX NYSE Euronext sets up UK-based platform to attract primary listings � FT

o London Stock Exchange [LSE.UK]: Provides interim management statement: Q1 total income �166M v �163Me, Rev �158.2M, +1% y/y; Market conditions remained variable in the first quarter, with new issue activity down on higher levels last year; Looking ahead, planning on the basis of market conditions remaining mixed

o JTX Jackson Hewitt reports Q4 EPS $1.14 ex-items vs Reuters $1.06

REAL ESTATE

o WTNY preannounced higher than expected credit costs due to ongoing Florida real estate market weakness

o NLY Annaly Capital intends to make 60M share public offering through Credit Suisse

o Fannie, Freddie fixer from NY Post: Business

o The federal government is giving serious thought to charging money for the backstops it will provide for future Fannie Mae- and Freddie Mac-purchased loans, a move that could send mortgage rates higher, sources said. "The thought has become to put in a subsidiary charge," said a source with direct knowledge...

o Subprime Lending Starting to Attract Interest Again from American Banker

o Subprime residential lending is making a comeback of sorts, except that none of the firms funding the loans call the product "subprime." There's another catch: loan volumes are ...

o Housing to Recover 'Long-Term': Weyerhaeuser CEO

o The housing market has to overcome short-term hurdles, but the fundamentals point to a long-term recovery, Dan Fulton, president and chief executive officer� told CNBC Tuesday morning

o We�re really encouraged that longer term, based on fundamental demographics, we�ll recover the long-term trend levels," Fulton said.

o http://www.cnbc.com/id/38222725

o According to PricewaterhouseCooper's Economic Outlook report, UK property prices may take 10 years to recover - London Telegraph

o Barratt Developments (BDEV.LN) says expected FY operating profit of at least �85M is ahead of expectations.

CONSUMER

o Philip Morris Said to Benefit from Child Labor from NYT > Business

o Faced with a Human Rights Watch report that found child labor on farms that supply its cigarette factory in Kazakhstan, the company vowed change

o Sapporo Holdings Ltd., part owned by U.S. hedge fund Steel Partners, is in talks with at least two companies to buy a beer brand in the U.S. to boost overseas sales amid falling domestic demand� �We want a brand with recognition,� Yoshiyuki Mochida, managing director for Sapporo�s international operations, said yesterday. �We want another brand in North America� besides Sapporo and Canada�s Sleeman Breweries Ltd., he said, declining to name the �two or three companies� the brewer is in negotiations with or how much it may be willing to pay.� Bloomberg

o ZUMZ Zumiez says it is no longer interested in West 49

o LYV Barron's Weekday Trader is positive on Live Nation Entertainment

o HIL Hill International to provide project oversight services for $5.25B expansion of Panama Canal

o YUM -3% (earnings)� -beats ests�.upped guidance not good enough�but china biz may not be good enough

o Yum Shares Tumble After Outlook Disappoints

o Call at 9:15 on Wednesday.

o BNHNA Benihana to explore strategic alternatives

o PSMT PriceSmart names Jose Luis Laparte CEO

o LGF Lions Gate makes formal merger presentation to Metro-Goldwyn-Mayer creditors - LA Times

o JD Wetherspoon [JDW.UK]: Provides trading update: 11-week LFL sales +1.0%; Total sales +5.8%; confident of a resilient performance for the next financial year.

GAMING, LODGING, & LEISURE

HEALTHCARE

o Grassley Sees Conflicts in FDA Approval of New Drugs: BBG

o U.S. Senator Charles Grassley, a Republican from Iowa, talks with Bloomberg's Peter Cook about the Food and Drug Administration's process for reviewing and approving new medications

o EBS JPMorgan comments on Emergent BioSolutions contract win

o GTIV� dn 10% Gentiva Health says SEC investigating GTIV's participation in the Medicare Home Health Prospective Payment System

o KAD Arcadia Resources files $25M mixed securities shelf registration

o HCSG Healthcare Services reports Q2 EPS

o BSX, ILMN, MDT, STJ, LIFE Oppenheimer initiates; Life Technologies initiated outperform with $60 target; Medtronic initiated outperform with $48 target; Boston Scientific initiated perform; Illumina initiated perform; St. Jude Medical initiated perform.

o CBST Cubist announces objectives met in phase 2 safety study of Cubicin in prosthetic joint infections

o AZN Silence Therapeutics and AstraZeneca extend siRNA development collaboration for one year��

o CTIC Cell Therapeutics signs five-year manufacturing agreement for pixantrone with NerPharMa

o EBS Emergent BioSolutions awarded HHS contract valued at up to $110M to develop large-scale manufacturing for BioThrax

o PIP Pharmathene initiated buy at Noble Financial; target is $7.

OTHER

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

� + NVDA, JBL, WHR, NUE, CRM, EXC and AMT

� -AGNC and EBIX

EUROPE TRADING WRAP

� Energy

� BP (-1.55%), Test of new cap delayed.

� Dana Pete (-0.5%), successful appraisal of North Sea Blackbird field.

� Petrofac (-2%), cut to reduce at Nomura.

� Mining

� Rio (u/c) Iron Ore production -2%

� Fresnillo (+0.3%), silver output reaches record level.

� Chemicals

� �Syngenta (-0.86%) signs global cotton tech accord with Bayer (+0.5%)

� Wacker Chemie (+0.2%) cut to sell at Goldman.

ASIA TRADING WRAP

Japan

� NKY +2.71%, TPX +1.91%

� NKY surged with chip-related shares rallying after Intel reported better-than-expected 2Q earnings. Turnover on the TPX fell to 1.09 trillion yen from 1.02 trillion yen yesterday

� Stocks rose across most sectors led by tech, industrials, consumer, materials and health care

� Tech +2.79% after Intel�s 2Q results beat estimates: Advantest (6857 HK) +5.67%, Tokyo Electron (8035) +4.07%, Elpida (6665) +3.55%

� Exporters rose on a weaker yen: autos +3.68%, CE +1.82%, precision +2.56%. Toyota�s (7203) +4.00% investigation of accidents involving unintended acceleration where motorists said they pressed on the brake pedal shows that �virtually all� involved drivers had pushed the accelerator instead

� Banks +0.73%. Mizuho (8411) +2.96% priced its offering at 130 yen yesterday after the close. Trading in the stock accounted for ~40% of first half trading volume

� Traders +2.13% on higher commodities prices

� Best performing sectors on the TPX: shippers +3.93%, transport equipment +3.49%, airline +3.47%; worst performing sectors: mining +0.06%, electric power & gas +0.24%, banks +0.73%

Hong Kong

� HSI +0.64%; HSCEI +0.29%

� Stocks rose after Intel earnings beat estimates. Turnover on the HSI fell to HK$14.81B from HK$19.39B yesterday

� Commodities producers rose after metal prices gained: Jiangxi Copper (358 HK) +2.25%

China

� SHCOMP +0.82%; SZCOMP +0.46%

� Stocks rose amid firmer sentiments after strong US 2Q earnings. Trading was thin however as investors remained wary ahead of June economic data and debut of Agricultural Bank of China tomorrow. Turnover on the SHCOMP fell to 63.04B yuan from 81.09B yuan yesterday

� Stocks rose across most sectors led by industrials, materials, utilities, consumer and health care. Telecom and insurance fell

� Metals and mining +1.58% after metal prices rose

� Autos +1.40% after Jiangling Motors (000550 CH) said 1H profit more than doubled YoY to 1.04B yuan on a 66% increase in car sales

� Airlines +1.01% after Xinhua reported passenger numbers in 1H climbed more than 17% YoY

INVESTMENT BANKING

o Bailed-out small US banks face takeover risk- Reuters

� Smaller banks that got U.S. government bailout money are likely to run into trouble repaying it and may become vulnerable to takeovers as a result, a congressional watchdog agency warned on Wednesday

� Many smaller banks already are having difficulty raising capital necessary for repayment of their bailout funds, and by 2013 they face the prospect of having to pay higher charges for the bailout money that they received

� http://www.reuters.com/article/idUSN1324131120100714

o CMCSA Comcast, NBC Transaction Wins European Union Antitrust Approval- BBG

� The deal won't harm competition in the 27-nation EU, the European Commission said in an e-mailed statement today

� The Federal Communications Commission and the Justice Department are still reviewing the transaction in the U.S.

� http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/07/14/bloomberg1376-L5JDMT1A1I4H01-6CGBNCCBGS6K2OUFSKOVV8K78G.DTL#ixzz0teA61IN0

o EU executive clears BA, AMR American, Iberia deal- Reuters

� British Airways (BAY.L), American Airlines (AMR.N) and Iberia (IBLA.MC) won EU antitrust clearance on Wednesday to deepen their Oneworld alliance on trans-Atlantic routes and better compete with rival groups

� http://www.reuters.com/article/idUSBRQ00991420100714

o AIG A Chinese offer for AIA almost came last year- SCMP

� In light of yesterday's report that at least four Chinese consortiums have approached AIG with an eye toward making a bid for AIA, the SCMP reports that China Investment Corp and Bank of China were very close to making an offer for AIA last year

� After initially backing the idea, the central government put a stop to it when it grew more worried about the deepening financial crisis

o FFN Penthouse Owner Delays PLA Playboy Bid, Says Offer Is �Forthcoming�- BBG

� An �offer is forthcoming,� FriendFinder CEO Marc Bell said yesterday in an interview. He declined to say when his closely held company will bid for Playboy, after originally saying an offer might come July 12 and later pushing that back to yesterday

� FriendFinder�s bid is taking longer than Bell expected because his �lawyers are taking their time,� he said

o Rumors lift RSH RadioShack- NYPOST

� RadioShack Corp. shares surged the most in more than a month on speculation the consumer electronics chain is the target of a takeover bid.

� http://www.nypost.com/p/news/business/rumors_lift_radioshack_JcITBO6cek6tJt93zd3J6H?CMP=OTC-rss&FEEDNAME=#ixzz0tePGnM9i

o FFN Penthouse is open to working with PLA Hefner- FT

� Marc Bell, owner of Penthouse, is open to working with Hugh Hefner, the founder of Playboy, as he races to put together an offer for the rival adult entertainment company.

� In an interview on Tuesday, Mr Bell said: �We are not trying to throw him out of the house,� in a reference to Mr Hefner, whose trademark smoking jacket, pipe and bunny logos, remain indelibly linked with the company�s image.

� http://www.ft.com/cms/s/0/a525a4c0-8eba-11df-8a67-00144feab49a.html

o 'Arrow Energy: NDRC Approves RDS Shell/PTR PetroChina Bid- WSJ

� Arrow Energy said the National Development and Reform Commission of China has approved Royal Dutch Shell and PetroChina bid for the company while another approval has been waived, meaning the conditions of the bid have been satisfied

� http://online.wsj.com/article/BT-CO-20100713-713995.html

o BNHNA Benihana to Explore Options, Including Possible Sale- BBG

� Several large shareholders have expressed disagreement with the board and have indicated a desire to seek board membership to pursue a change in the company�s strategic direction,�

� While the Miami-based chain is making progress on its own, it needs more capital to expand, Stockinger said. The current stock price level is a deterrent to new offerings

� http://www.bloomberg.com/news/2010-07-13/benihana-to-explore-options-including-sale-of-japanese-themed-steakhouses.html

o NOK Nokia Siemens in Talks to Buy MOT Motorola Network Unit- WSJ

� The deal, which may come in the next few weeks, may be worth $1.1b to $1.3b

� The business, which mostly makes older equipment, would give Nokia Siemens access to Motorola�s customers in the U.S. such as VZ Verizon Wireless and S Sprint Nextel

� http://www.marketwatch.com/story/nokia-siemens-in-talks-to-buy-motorola-unit-wsj-2010-07-13

o Australian buyout firms tempted by secondary deals- Reuters

� Australia's private equity firms are more likely to offload their companies in the months ahead to other deal-hungry buyout firms than brave fragile equity markets with a float

� So-called secondary deals between private equity firms are relatively rare in Australia, partly because of the smaller scale of the industry, compared with the U.S. and UK markets.

� http://www.reuters.com/article/idUSSGE66C02520100714

o BANF BancFirst to acquire UNNL Union National Bancshares- BBG

o ZUMZ Zumiez Drops Pursuit Of West 49, Freeing Up Billabong Deal- WSJ

� Last week, Zumiez approached West 49, saying it was prepared to make an offer exceeding the C$1.30 per share Billabong offered when the two companies entered a definitive agreement to merge last month

� Zumiez said it was ending its takeover pursuit of West 49, leaving the path open for Billabong International to continue its C$82 million deal to buy the Canadian action-sports retailer

� http://online.wsj.com/article/BT-CO-20100713-714399.html

o AXA Asia Pacific, National Australia Bank Deal Likely To Be Extended- WSJ

� AXA Asia Pacific Holdings and French parent AXA are likely to give National Australia Bank extra time to negotiate with Australia's competition regulator over the bank's proposed A$13.29 billion takeover of the local wealth manager

� After midnight Thursday Australian time, any of the parties can terminate their agreement to back NAB's proposed takeover of AXA APH, unless there is an extension to a new deadline. The agreement prevents AXA Asia Pacific from soliciting rival bids.

� http://online.wsj.com/article/BT-CO-20100714-702220.html

o LG Group Says It Won�t Buy Hynix Semiconductor- BBG

� LG Group said it won�t acquire Hynix Semiconductor Inc. after MoneyToday reported creditors offered the industrial group a controlling stake in the chipmaker.

� LG Group will focus on existing businesses, according an e-mail today.

o LGF Lions Gate makes merger presentation to MGM creditors- LATimes

� When Lions Gate made a $1.4-billion bid to buy MGM earlier this year, Icahn publicly criticized the idea of such a deal and Lions Gate subsequently withdrew its offer.

� MGM debt is expected to be transformed into equity as part of a prepackaged bankruptcy proceeding. But it remains to be seen whether that will lead to a merger with MGM or other scenarios under consideration

� http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/07/lions-gate-makes-merger-presentation-to-mgm-creditors.html

o BKS Barnes & Noble�s Defensive Move Proper- BBG

� Barnes & Noble officials were forced to adopt an anti-takeover measure quickly after billionaire investor Ron Burkle sought to acquire more of the largest U.S. bookseller�s shares, a company director testified

� �We saw a sudden surge in acquisition activity,� Del Giudice, who also serves as chairman of Rockland Capital, told Delaware Chancery Court Judge Leo Strine. �We had to act promptly. If someone wanted control, we wanted them to pay a control premium.�

o DS Smith Agrees to Buy Entire Carlyle Stake in Otor- BBG

o Sapporo Seeking US Premium Beer Brand To Up N America Presence- DJ

� The Japanese brewer is looking to buy a premium brand or form an alliance to sell such a brand, and has narrowed down its list of potential targets to three or so, although no names were given

� http://www.foxbusiness.com/story/markets/industries/retail/sapporo-seeking-premium-beer-brand-n-america-presence/

o Scottish & Southern: "No Change" On EDF UK Power Grids Sale- WSJ

� On June 1, SSE said it had decided not to seek to acquire an ownership interest in the networks on a scale that would need to be funded by a share issue, but it would continue to work with Canada's Borealis Infrastructure on the sale process, which could result in SSE having a small ownership interest in the networks.

� On Tuesday S&S said there was there was "no change" to its previous statement regarding Electricite de France SA's sale of its U.K. electricity distribution networks

� http://online.wsj.com/article/BT-CO-20100713-708620.html

o ABN Amro to Take 25% Stake in the Order Machine Trading System- BBG

� The Order Machine, an alternative trading system owned by brokers BinckBank NV and Optiver, said ABN Amro Holding NV will take a 25 percent stake in the business

o Two rivals PKO BP withdrew from the contest for BZ WBK- Puls Biznesu��

� http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fpb.pl%2F2%2Fa%2F2010%2F07%2F14%2FPod_mlotek_idzie_nie_tylko_BZ_WBK&sl=auto&tl=en

o Orascom Construction Buys Rotterdam Ammonia Terminal- BBG

� Orascom Construction Industries, the biggest publicly traded builder in the Middle East, acquired MICRO Chemie BV, which owns and operates ammonia storage tanks in Rotterdam, as it expands its fertilizer distribution network

o Groupe Delhaize negotiating partial takeover of Delta Maxi supermarkets- De Tijd

o Leslie's Poolmart being marketed for sale- Reuters

� Swimming-pool supplies company Leslie's Poolmart being marketed for sale and a number of private equity firms are considering buying it

� One of the sources said the swimming pool firm could be worth less than $1 billion. Private equity firms have been increasingly buying assets from each other -- known in the industry as 'secondary sales'. That trend has been driven by a number of factors

� http://www.reuters.com/article/idUSN138499720100714

o Reliance eyes third shale gas deal in U.S.- Reuters

� Indian energy major Reliance Industries is close to acquiring a stake in a shale gas asset in North America, which will be its third such buy this year

� The acquisition of a 50 percent stake in the asset would be the biggest shale gas deal so far for Reliance, India's largest listed company

� http://www.reuters.com/article/idUSSGE66D02Y20100714

o Northrop to Study Selling Ship Unit, Combine Yards- BBG

� �We foresee little synergy between shipbuilding and our other businesses,� Chief Executive Officer Wes Bush said today in a statement. �It is now appropriate to explore separating shipbuilding from Northrop Grumman.�

� http://www.businessweek.com/news/2010-07-13/northrop-to-study-selling-ship-unit-combine-yards.html

IPOs

o Fairfield scrambles to finalise IPO- FT

� Fairfield Energy, the oil and gas company, was on Tuesday night scrambling to secure enough orders for its London listing ahead of Wednesday�s deadline

� The level of investor demand for Fairfield�s shares will be closely monitored by City institutions as a barometer for the delicate UK IPO market ahead of the final stages of online retailer Ocado�s high-profile float.

� http://www.ft.com/cms/s/0/f1412506-8eaf-11df-8a67-00144feab49a.html

o AgBank's giant IPO debut seen lacking fizz of rivals- Reuters

� Agricultural Bank of China's historic IPO is likely to lag the first-day jump in share price enjoyed by its rivals

� "AgBank's IPO has such far-reaching implications for China in that a successful listing is seen as politically crucial, so a drop is unlikely," said Fang Jiang, strategist at Founder Securities.

� http://www.reuters.com/article/idUSTRE66D15V20100714

o AgriBank May Rise on Shanghai Debut After $19.2 Billion IPO- BBG

� Agricultural Bank of China May overtake local rival Bank of China on its trading debut tomorrow to become the world�s seventh-largest lender by market value

� Shares in China�s largest bank by customers will likely gain 6 percent on their first day in Shanghai, the average estimate of eight analysts and fund managers surveyed by Bloomberg shows

o Australia's Investa eyes relaunching IPO or M&A- Reuters

� Australia's Investa Property Group, which shelved a planned IPO last year, is still looking at a possible IPO or alternatively could take control of a listed company

� "We intend to go public when the timing is right," MacDonald said in an interview. "There will come a point in the distant future where some of the investors want to get their money out. And being in the public space, it's easier to do that."

� http://www.reuters.com/article/idUSTRE66D11120100714

o Will RealD�s I.P.O. Be a Blockbuster or a Flop?- Dealbook

� RealD, which licenses the 3-D technology used by a majority of movie theater chains in the U.S., plans to go public this week, selling shares in a $13 to $15 range. And the initial public offering � the first by a company selling modern 3-D technology � could be a harbinger for the 3-D market as a whole

� http://www.nytimes.com/external/gigaom/2010/07/13/13gigaom-will-realds-ipo-be-a-blockbuster-or-a-flop-81587.html?dbk

o Goldman Clients Get Best Returns on Its I.P.O.s- Dealbook

� Goldman Sachs, accused by the U.S. government of defrauding investors, is generating better returns for companies and buyers of initial public offerings than any other Wall Street firm

� American companies that used New York-based Goldman Sachs as the lead underwriter for initial sales got the highest prices for their shares in the first half of 2010, selling at an average 1.4 percent discount to their offering range

� http://dealbook.blogs.nytimes.com/2010/07/14/goldman-clients-get-best-returns-on-its-i-p-o-s/

PRICINGS

o Initial Offerings

o OXF Oxford Resource Partners prices its 8.75m share IPO in the range at $18.50/shr

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

NEWS

o Mizuho to Raise About $8.5 Billion in Share Sale- Dealbook

� Mizuho Financial Group, one of the largest banks in Japan, said Tuesday that it had set a price for a share offering that could raise up to 748 billion yen, or $8.46 billion

� Mizuho said in May that it planned to raise up to 800 billion yen, or $9 billion, in a common share issue to prepare for stricter bank capital requirements, but it held off starting the offering because of weak market conditions

� http://dealbook.blogs.nytimes.com/2010/07/14/mizuho-to-raise-about-8-5-billion-in-share-sale/

o Tata Steel to raise $2b in new equity- MydigitalFc

� Tata Steel plans to raise around $2 billion by issuing fresh equity over the next quarter to finance its expansion projects in India and abroad

� Bankers familiar with the development told Financial Chronicle that the company had sounded out investment banks to finalise a lead arranger for the offering

� http://www.mydigitalfc.com/companies/tata-steel-raise-2b-new-equity-548

o Tata Steel denies $2 bln fund raising report- Reuters

� India's Tata Steel denied a media report the company was planning to raise about $2 billion through fresh equity over the next quarter to help fund expansion

� http://af.reuters.com/article/metalsNews/idAFBMA00798820100714

o SHW Sherwin-Williams in 200 mln euro acquisition loan- Reuters

� Paint and coating company Sherwin-Williams is raising a 200 million euro loan to back its acquisition of Swedish wood coating firm Becker Acroma Industrial Wood Coatings

� Bank of America Merrill Lynch is arranging the loan in London and it has been launched to a handful of other banks in a wider syndication to spread the risk.

� http://www.reuters.com/article/idUSLDE66C24920100713

o NRTLQ Nortel Networks Files Bankruptcy Plan Without Payment Details- BBG

� Nortel Networks, once part of North America�s biggest maker of telecommunications equipment, filed its plan to repay creditors without disclosing how much they will get

� Nortel, based in Toronto, filed for bankruptcy last year along with its parent, Nortel Networks The company has since raised about $2.8 billion from selling assets

� http://www.businessweek.com/news/2010-07-13/nortel-networks-files-bankruptcy-plan-without-payment-details.html

o AIG Said to Weigh Giving Stake in Mortgage Bonds to Repay U.S.- BBG

� American International Group is considering repaying part of its U.S. bailout by handing over stakes in the mortgage-linked bonds that pushed the firm to the brink of collapse

� The assets are contained in Maiden Lane II and Maiden Lane III, entities created in 08 as part of the U.S. effort to remove toxic securities from the New York-based insurer

� http://www.bloomberg.com/news/2010-07-14/aig-said-to-weigh-handing-over-stake-in-rescue-vehicles-to-repay-u-s-debt.html

o Healthcare:� KAD Arcadia Resources files $25M mixed securities shelf registration

o Energy: MMP Magellan Midstream Partners announces 5M common unit offering through Morgan Stanley, BofA Merrill, JPMorgan and Wells Fargo

o Real Estate: NLY Annaly Capital intends to make 60M share public offering through Credit Suisse

TODAY�S EVENTS

Conferences

Wednesday July 14:

o Bank of America Merrill Lynch Asia Agriculture Corporate Day - Jul 14, 2010

o Bank of America Merrill Lynch Washington D.C. Health Care Conference - Jul 14, 2010

o CEO Investor Summit - Jul 14, 2010

o Displaybank Korea Photovoltaic Conference - Jul 14, 2010 - Jul 15, 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 Piper Jaffray Cancer Summit

� 11:20AM: VAR

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

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

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

o TD Newcrest Unconventional Oil & Gas Conference

� 11:45AM: CHK

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

o Think Equity Grid Modernization Symposium - Jul 14, 2010

o Zero2IPO Group: The China Venture Capital & Private Equity Semi-annual Forum - Jul 14, 2010

Company Meetings/Other Daily Events

� Wednesday July 14:

o Shareholder Meetings

� STON, XFN, RGN, AMIN, IMA, SVA

o VRGY analyst meeting

o ARO analyst meeting

o Fed minutes are released.

o The SEC votes on a proposal to study transparency in proxy voting

o An FDA panel ends its two-day review of the cardiovascular safety of GlaxoSmithKline's Avandia diabetes drug

Economics

� Wednesday July 14:

o 0700 MBA Weekly Mortgage Applications Survey

o 0830 Import & Export Price Indexes

o 0830 Advance Monthly Sales for Retail & Food Services

o 1000 Manufacturing & Trade: Inventories & Sales

o 1030 EIA Weekly Petroleum Status Report

o 1400 Federal Open Market Committee meeting minutes and economic forecast

Earnings

o Industrials/Homebuilders

� Wednesday July 14: PHHM, UFPI, TXI, LBAS, HTLD, LSTR

o Consumer/Retail/Education

� Wednesday July 14:HCSG, JTX

o Financials

� Wednesday July 14: IBCA, ASRV, CNBKA, CVCY, WABC, RVSB, JXSB

o Tech/Telecom

� Wednesday July 14: SGMS, IGTE, ADTN

o Healthcare

� Wednesday July 14: PPHM, DYII, KV/A

o Energy

� Wednesday July 14: AENY

o Gaming, Lodging, & Leisure

� Wednesday July 14: MAR

***All eco data from Bloomberg and DJ

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o Today�Business Groups Air Concerns � WSJ link

� Washington's major business groups plan to confront the Obama administration over economic policy, calling on the government to cut taxes and curb its regulatory agenda.

� �The U.S. Chamber of Commerce is urging President Barack Obama to curb regulations and embrace tax cuts to avert a double-dip recession.

� Senate Democratic Leader Harry Reid scheduled a key vote for Thursday morning after Senator Ben Nelson, one of the chamber's most conservative Democrats, said he would support the bill, which would be the broadest rewrite of the Wall Street rulebook since the Great Depression.

o Credit Eases for Hedge Funds and Private Equity from DealBook

� Wall Street's largest dealers eased credit terms during the spring to hedge funds and private equity firms that borrow against securities and trade over-the-counter derivatives, the Federal Reserve reports.

� Macro concerns Stories

o Surprise jump in trade deficit worries economists from L.A. Times

� U.S. trade deficit took a surprising jump of nearly 5% from April to May, to the highest level since November 2008. Analysts scale back growth forecasts. Some see a threat to the economic recovery

� In a sign that Americans are persisting in the risky habit of buying more than they sell in the global economy, the U.S. trade deficit jumped unexpectedly in May to the highest level since November 2008.

o Strauss-Kahn: Asia will help prevent global double-dip from The Independent

� Economic growth in Asia and Latin America will help the rest of the world avoid a double dip recession, according to the head of the International Monetary Fund.

o Rio Tinto warns of double dip fears and China slowdown �guardian

o Nothing fundamental about this rally from FT Alphaville

� What has really caused this?

� Note the S&P 500 is now 7.1 per cent above the 10-month low reached on Payrolls Friday 12 days ago and just around 1.5 per cent away from its 200-day moving average

� The answer is that the market may have been on the receiving end of another few jolts of liquidity. M2 money supply has expanded $38.5 million in the past two weeks and the M1 money multiple has risen from 0.839 to 0.862.

� Trading:� Investors Bank on Artificial Intelligence � WSJ link

o A new wave of investment firms are turning to artificial-intelligence programs to make trading decisions. The programs are designed to crunch numbers, learn from decisions, and adapt. Some are having success.

� Trading:�� Chicago Firms Plan New Swaps Exchange � WSJ link

o Five of Chicago's largest trading firms plan to set up a new derivatives exchange targeting the over-the-counter market for interest-rate swaps dominated by the major Wall Street banks.

� Trading:��� ICAP (IAP.LN) says current range of analysts' profit forecasts appears reasonable

� Trading:���� London Stock Exchange (LSE.LN) Trading higher post results

� Financial Overhaul Hits Farmers � WSJ link

o Farmers who use derivatives to hedge their crop risks fear new regulations will raise costs.

� Demand positive:

o Port traffic jumps at L.A., Long Beach from L.A. Times link

� Demand at the twin port complex in June also prompts the hiring of hundreds of part-time workers. But experts warn that the upswing could weaken in the coming months.

� The Port of Los Angeles had its busiest June ever for cargo, surpassing the number of containers moved during the height of the global economic boom in 2006, and the neighboring Port of Long Beach also showed a strong increase in imports, port officials said Tuesday.

� European Ratings Agency Would Be Good: S&P � CNBC link

o The U.S. Department of Transportation has analyzed dozens of data recorders from Toyota vehicles involved in accidents blamed on sudden acceleration and found that the throttles were wide open and the brakes were not engaged.

� Qantas to Take Boeing Jets Early� � WSJ link

o Qantas: To receive first 8 Boeing 787 aircraft by mid-2012 (delivery brought forward by 2 years); Overall order remains at 50 aircraft (down from initial 65) - The Australian

� BP stories:

o New Cap Test to Stem Gulf Oil Flow Delayed � CNBC link

o British Petroleum [BP.UK]: Delays start of testing on the new well cap's ability to contain leaking oil until at least Wed; Further analysis to take place night of July 13th and 14th; To continue to ramp up containment operations while analysis is going on

o BP oil spill: US politicians accuse BP over Lockerbie terrorist al-Megrahi from Telegraph

� Democratic senators urge investigation into BP's interests in Libya, as they tried to connect the oil group with a deal to free a convicted terrorist.

� GERMAN PROSECUTORS SEARCH 13 CREDIT SUISSE LOCATIONS IN GERMANY� IN TAX PROBE..BBG

o For big banks, even lukewarm results may actually leave investors feeling pretty good

� GE chief backtracks on criticism of China from FT.com

� Chinese banks make more provisions for bad loans from Business Spectator

o Loans increase fuels fears of future bad debts.

o Four out of Five See Wall Street Reform as Ineffectual

o Pelosi Slams Gibbs for �Politically Inept� House Forecast from CQ

� Speaker Nancy Pelosi (D-Calif.) slammed White House Press Secretary Robert Gibbs during Tuesday night�s House Democratic Caucus meeting for saying Sunday that Democrats could lose control of the House in November.

o Clampdown rumoured as China "twitter" sites down from Reuters: Technology News

o Bechtel Backs Small Nuclear-Plant Design � WSJ link

o Construction giant Bechtel is expected to disclose Wednesday that it will partner with Babcock & Wilcox to bring a small, commercial nuclear reactor design to market.

o As Reid Prepares Energy Bill, Emissions Cap Appears Unlikely

o from The Washington Independent

o GE chief backtracks on criticism of China from FT.com

o Demand positive:

� Port traffic jumps at L.A., Long Beach from L.A. Times

1. Demand at the twin port complex in June also prompts the hiring of hundreds of part-time workers. But experts warn that the upswing could weaken in the coming months.

2. The Port of Los Angeles had its busiest June ever for cargo, surpassing the number of containers moved during the height of the global economic boom in 2006, and the neighboring Port of Long Beach also showed a strong increase in imports, port officials said Tuesday.

o Qantas to Take Boeing Jets Early� � WSJ link

o FedEx Looks to 777s to Deliver Edge �� WSJ link

o Fedex is counting on long-range Boeing 777 cargo jets to recover from the recession, betting that the fuel-efficient planes can win business in the lucrative market for international package delivery.

o Delta Air Lines Inc. and UAL Corp.�s United Airlines may lead U.S. carriers to the first quarterly profit in two and a half years as the industry benefits from cutting seats during the recession.� BBG

o Iberia (IBLA SM)/ British Airways (BAY LN) The European Commission may give antitrust clearance today for the proposed alliance between British Airways, Iberia and American Airlines on transatlantic routes, Europa Press reports.

o Toyota Data Suggest Driver Error � WSJ link

o The U.S. Department of Transportation has analyzed dozens of data recorders from Toyota vehicles involved in accidents blamed on sudden acceleration and found that the throttles were wide open and the brakes were not engaged.

o Four out of Five See Wall Street Reform as Ineffectual

o Americans harbor doubts that a financial-regulation bill about to be passed by Congress will do what President Barack Obama says it will: help avoid another crisis and make their finances safer, Bloomberg News reported.

o European Ratings Agency Would Be Good: S&P � CNBC link

o Credit rating system needs to change, ECB's Trichet says

o A new wave of investment firms are turning to artificial-intelligence programs to make trading decisions. The programs are designed to crunch numbers, learn from decisions, and adapt. Some are having success.

o Trading:�� Chicago Firms Plan New Swaps Exchange � WSJ link

o Five of Chicago's largest trading firms plan to set up a new derivatives exchange targeting the over-the-counter market for interest-rate swaps dominated by the major Wall Street banks.

o Trading:��� ICAP (IAP.LN) says current range of analysts' profit forecasts appears reasonable

o Trading:���� London Stock Exchange (LSE.LN) Trading higher post results

o Financial Overhaul Hits Farmers � WSJ link

o Farmers who use derivatives to hedge their crop risks fear new regulations will raise costs.

o Bank Results Are on Tap, and the Bar Is Low � WSJ link

o For big banks, even lukewarm results may actually leave investors feeling pretty good

o Ally Expands Phaseout of GMAC Name from American Banker

o Ally Financial said it will rebrand its GMAC consumer- and dealer-related auto finance operations in North America as Ally, continuing to phase out its old name.

o Barclays Capital equities chief Dixit Joshi quits to join rival Deutsche Bankfrom Telegraph Finance

o Dixit Joshi, a rising star at investment bank Barclays Capital, has left in a surprise move to join Deutsche Bank.

� Trading:�� ICAP (IAP.LN) says current range of analysts' profit forecasts appears reasonable

� Trading:�� London Stock Exchange (LSE.LN) Trading higher post results

o Trading:�� ICAP (IAP.LN) says current range of analysts' profit forecasts appears reasonable

o Trading:�� London Stock Exchange (LSE.LN) Trading higher post results