Morning @ Cantor
Morning
@ Cantor 7/15
Today’s
Stories From Cantor Fitzgerald
Sal
Catrini (908) 517-5067
CONTENTS: All
Headings Are Functioning Links
Sector News: Energy, Industrials, Transports, TMT, Materials, Autos, Fins, Real Estate, Consumer, Gaming/Lodging, HC, Europe
Trading Wrap, Asia Trading
Wrap
Investment Banking Wrap: M&A, Money Raising
·
US
Stock Futures
o
S&P Futures up 4
points ..JPM up 2% after reporting this
am , credit story helps JPM
o
European
markets ..up 0.1%...at session highs 7am et post JPM
o
Chinese 2Q GDP missed…. M&A activity helps in
US, JPM and MAR earnings helps… M&A
in in the Greek banks… another successful Spanish bond auction all have helped
lift sentiment.
o
USD down 0.5 in the session continuing
yesterday’s losses..at lows at 7am et
§ USD's price action
moving away from sovereign risk theme towards US economic growth concerns
o The EUR/USD tested fresh two-month highs at 1.2800
before consolidating
o Goldman
Reverses Euro Call, Sees Gains on Weak U.S.
- BBG
o Is china goldilocks?? slightly slower growth and inflation less than expected - BBG
o
Commodities: Gold up 7.3 to 1214,
Copper is up 0.68%, Crude up 0.50 to 77.55
o
JPM reports better EPS, revs miss street….says Outlook for credit losses much better!! No word on dividends ..more buybacks
o
MAR
reports..mostly better,,,ups guidance…but cost cuts help, bulls may
be disappointed not more revpar growth expected but a beat none the less
o Miners
weigh overnight on China growth story
o Rates are up
thurs…: Ten-year
Treasury yields fell for the first time in six days as the minutes showed some
Fed officials saw “some risk of deflation.” The yield on the benchmark 10-year
note tumbled 8 basis points to 3.05 percent.
o Libor falls…3-month:
Dollar: 0.525% vs prior 0.526%;
o China in
focus:
§ China's
Economic Growth Slows, as Beijing Intended
§ Yuan forwards drop today - BBG
§ China 3-Year Bill Yield Falls First Time in Six Weeks – BBG
·
China’s central bank sold three-year bills at
a lower yield for the first time in six weeks, signaling it favors policies to
support the economy after a report showed slowing growth.
§ Massive
China Bank IPO Disappoints in Shanghai Debut
§ Yuan May
Rise More Than Expected: Strategist
·
"It won’t go up to the 20 percent (Sen.
Chuck) Schumer (D-NY) wants, but it’ll go up a lot more than that,"Rickards
said. "They are really separating themselves from the
Fed’s zero interest rate policy; they have to raise rates." - Jim Rickards, senior managing director for
market intelligence at Omnis, a consulting firm, told CNBC
§ Agricultural Bank of
China's stock gained 2.7% compared with the price of its initial public
offering during early trading on the Shanghai Stock Exchange. The second phase
of the IPO, in Hong Kong, is scheduled for Friday. The bank said the Hong Kong
phase is almost six times oversubscribed. BBC (15 Jul.) , Xinhuanet.com
(China)
(15 Jul.) , Google/Agence
France-Presse
(14 Jul.)
o
Greek
banks soaring today…on stake purchase – ie Alpha bank up 7%
§ Bloomberg)
-- Piraeus Bank SA, Greece’s fourth- biggest bank, proposed buying
“significant” stakes in two state-controlled Greek lenders, signaling the
beginning of a possible round of
consolidation in the industry.
Piraeus submitted a proposal to the Greek government to buy shares of
Agricultural Bank of Greece SA and Hellenic Postbank SA
o Spanish/German Spread
Narrows After Solid Auction
o Big Spanish bond sale today – yield higher
than last, but bid to cover OK …BBG..EUR rallies post auction at 430am
§ Spain
sold 3 billion euros of 15- year bonds at an auction today, the maximum
targeted amount, the Bank of Spain said.
§ Spain
sold 3 billion euros of 15- year bonds at an average yield of 5.116 percent,
compared with 4.434 percent at an auction of the same securities on April 22,
the Bank of Spain said. The bid to
cover ratio was 2.57, the Bank of Spain said.
o Bank of Japan raises
growth forecast – FT
§ The
nine-member board’s growth outlook of 2.6% for the current fiscal year would be
the fastest in a decade, but it warns that Europe’s debt woes could pose a risk
o Fitch:
Warns on China banks increasingly engaged in complex deals hiding size and nature of their lending.
o Realtytrac: US foreclosures -5% in H1 vs H2
'09.
o
Overseas
Action
§ Asian
Markets: Nikkei (1.12%); Hang Seng (1.31%); Shanghai Composite (1.87%)
§
European
markets at session highs 7am et post
JPM..up 0.1%... have drifted in the morning session although Germany and Sweden
are barely changed:
§
Defensive
sectors lead the way ahead with Computer Services +1.04%...Tobacco
+1.02%...Pharma +0.85%
§
The
losing side of the street is packed by cyclicals with Mining
-1.04%...Industrial Products -1.03%...Energy -0.95%
§
European headlines:
§
Novartis
beats expectations on strong sales and Glaxo has to set aside $2.4Bn in Q2 for
leagal charge against Avandia diabetes drug.
§
UK
Chancellor, George Osborne is to demand UK banks, even if they did take
government bailout funds must set targets for corporate lending. This is the
first step on the path to the government dictating who and at what cost they
must lend.
o Data:
o Chinese data:
§ China reported Q2 GDP +10.3% y/y, lower than
the Q1 number of +11.9%. The annualized H1 GDP growth came in at +11.1% y/y.
§ H1 GDP +11.1% y/y, as expected
§ June CPI +2.9% y/y vs survey +3.3%
§ June PPI +6.4% vs survey +6.8%
§ June industrial output +13.7% y/y vs survey
+15.1%
§ June retail sales +18.3% y/y vs survey +18.8%
o Philippines Keeps Key Rate at 4% as Inflation
Slows (
o Philippine
central bank lowers inflation forecast
o Economics:
§
o Earnings:
- Economics:
o Empire State Manf. Index (Jul) SA Consensus
18.46 at 08:30 ET
o Initial Jobless Claims (w/e 10-Jul) SA
Consensus 450K at 08:30 ET
o PPI m/m (Jun) SA Consensus (0.1%) at 08:30 ET
§ ex-food & energy (Jun) SA Consensus 0.1%
at 08:30 ET US
o Continuing Claims (w/e 3-Jul) SA Consensus
4.42M at 08:30 ET
o Capacity Utilization (Jun) SA Consensus 74.1%
at 09:15 ET
o US Industrial Production (Jun) SA Consensus
(0.1%) at 09:15 ET
o Philadelphia Fed (Jul) SA Consensus 10.4 at
10:00 ET
o Natural Gas Inventories released at 10:30 ET
- Earnings:
o Companies due to report before the bell
include: GWW, JPM, PPG, FCS
o Companies due to report after the closing
bell include: GOOG, JBHT, PBCT
- ON
Semiconductor to acquire Sanyo Semiconductor from Sanyo Electric
o ONNN will host a
conference call at 7:30 ET to discuss: 888.846.5003
- US Sen. Charles Grassley, an Iowa
Republican, said he will oppose the financial-regulation bill when it
comes up for a final vote as soon as today
- Vivus' weight-loss drug faces key U.S. test from
Reuters
o The
first potential U.S. prescription weight-loss pill in more than a decade could
move closer to market on Thursday if it can overcome safety hurdles that have
plagued diet drugs for years and led to tepid sales despite the growing number
of obese Americans.
- AAPL
meeting Friday
o Apple,
Under Fire, to Discuss iPhone Friday
o Apple
said Wednesday that it will hold a news conference Friday concerning its iPhone
4, which is facing mounting criticism over reception problems tied to antenna
design
·
Obama Courts Stimulus Doubters – WSJ link
o
Obama travels to Western Michigan on Thursday
to promote his stimulus plan in an area awash in stimulus dollars but where
many residents, like a majority of voters, are skeptical his economic program
is working.
·
Fed Chairman Ben S. Bernanke next week will deliver his
semiannual report on the economy to members of Congress who will be facing re-election in November. His
challenge will be to explain why policy makers shouldn’t do more to reduce an
unemployment rate they predicted yesterday would still exceed 7 percent in
2012, more than the 5 percent to 5.3 percent they consider full
employment. BBG on 7/15
·
Top
M&A
o Private-Equity Firms to buy NTY
§ would
be among the largest transactions to take a public company private since
the credit bubble burst.
§ NBTY
agrees to be acquired by Carlyle group- BBG
§
Carlyle will acquire all of the outstanding
common shares of NBTY for $55.00 per share in cash, representing a premium of approximately
57%
§
The board of directors of NBTY has
unanimously approved the merger agreement and recommended that NBTY's
stockholders adopt the agreement with Carlyle
o Generic
drugmaker Mylan Inc said it plans to acquire privately held Bioniche Pharma Holdings
Limited for $550 million in cash, to get an access to the North American
injectables market.
o Sanyo
to sell chip unit to ON Semi for $373 mln
o
MOT FT places value of possible Nokia
Siemens deal for Motorola network infrastructure business at up to $1.5B
o
Greek
banks M&A:
Piraeus (TPEIR.GA) offers to buy stakes in Atebank and Hellenic Postbank
·
Top $
Raising
o SMT
Smart Technologies 38.83M share IPO priced at $17 through Morgan Stanley,
Deutsche, RBC, BofA Merrill and Credit Suisse
§ The size was increased
from the expected 35.3M shares and was priced in the middle of the expected
$16-18 range. Of the 38.3M shares, the company sold 8.8M shares (unchanged),
while shareholders sold 30.03M (up from prior 26.5M
o Fairfield
postpone London IPO – BBG
§ fairfield
Energy has pulled its £330m listing on the London Stock Exchange after failing
to drum up enough interest from investors.
o JSDA Jones Soda
to sell 900K shares to Glengrove Small Cap Value for $1.22 per share pursuant
to previously announced equity financing facility
o SMG
Indium Resources files amended S1; increases IPO size to 9M units from 5M
o KKR, the firm that made its name in the biggest
leveraged buyouts, may find that private equity is its biggest stumbling block
in winning over public investors when it debuts in its hometown of New York
today, Bloomberg News reports.
o KKR, whose shares will start trading on the New
York Stock Exchange today, is seeking to raise $800 million to invest in China,
Asia's biggest private- equity market, Bloomberg
·
Fed
watch..alot of articles post minutes…saying the same thing
o
The Federal Open Market Committee “would need to consider
whether further policy stimulus might become appropriate if the outlook were to
worsen appreciably.”
§ “Fed officials would have to see the economy in a free
fall” before resuming bond purchases
to ease financial conditions, said Michael Feroli, chief U.S. economist at
JPMorgan Chase & Co. in New York. “The economy is not in a free fall. They
also see the benefits of additional asset purchases as not that great.” Per BBG
o
Richmond Fed President
Lacker: "safe bet" the Fed's next move would be toward tighter
policy – FT
·
GE CEO Immelt sees slow U.S. and European
crisis exit from
Reuters
o
The
United States and Europe are slowly pulling out of the economic crisis, General
Electric Co chairman and chief executive Jeffrey Immelt told la Repubblica
daily in an interview on Thursday.
·
Dow May Crash to 7,500 If 10,600 Not Breached – CNBC link
·
Two Sides of Recovery: Shipping Up, Housing Down – CNBC link
·
Market patience with U.S. and UK could
change: OECD chief from Reuters
o
Markets are relatively patient about the
budget-cutting efforts of Britain, the United States, Germany and Japan, but
that could change if governments are slow to act, OECD chief Angel Gurria said
on Thursday.
·
Roubini associate:
World at
Risk of Folding in on Itself - CNBC
o
The global economy is at risk of folding in
on itself unless policy makers face up to the threat of inflation and exchange
rate inflexibility, according to Arun Motianey, director of fixed income
strategy at Roubini Global Economics.
o
A Japan-like outcome is a big risk for the
developed world with deflation a big danger, he said.
o
http://www.cnbc.com/id/38255206
·
China Bull Market to Resume This Year: Anthony Bolton,
Fidelity International’s president for investment, said conditions are in place
for the resumption of a bull market in Chinese A shares. BBG
o
U.S.
and European governments are expected to sell about $4 trillion in bonds this
year, creating a "wall of debt" that could course through the global
financial system for years. One concern is whether the market and the fragile
economy could absorb the debt or whether the situation would result in a
Greek-style crisis for less creditworthy governments. Analysts differ on their
assessment of the issue. The Washington Post (15 Jul.)
- Demand:
The Baltic Dry was down another 4.5% yesterday, 34th
straight down day
- Demand:
Nufarm Shares Tumble After Earnings Forecast Slashed
o
Nufarm Ltd., Australia’s largest supplier of
farm chemicals, slumped the most in 16 years in Sydney after the company cut
its full-year profit forecast and said it won’t achieve one of its loan
conditions.
·
Demand: Back-to-school spending to jump nearly 11% -
study CNNMoney
o
Back-to-school spending is set to jump by
10.5% this year, according to a new study, as Americans loosen their purse
strings following a cash-strapped 2009
·
Demand: EU car sales losing streak reaches three from MarketWatch.com
o
Car sales in the European Union, led by a big
drop in Germany, fell for the third straight month as buyers lost interest in
making the big purchase without the lure of government scrappage incentive
programs.
·
Tech Demand: Gadget Appetite Strains Suppliers – WSJ link
o
Manufacturers across Asia are scrambling to
ramp up production of key components for electronics, as shortages have frustrated
consumers and disrupted business for companies from Apple to Nissan.
·
Tech Demand: World-wide personal computer shipments
jumped 22.4% in the second quarter as businesses began replacing aging machines,
a dynamic that helped Dell recapture second place in the industry, research
firm IDC said Wednesday.
o
The industry tracker said businesses have
begun replacing older PCs, pushing shipments of desktop computers higher around
the world. However, laptop and netbook sales slumped because of weak economies
in the U.S. and other countries.
o
The figures were released a day after Intel
posted a 34% jump in second-quarter sales
·
Taxes: As Tax Cuts' Expiration Date Nears, Little
Consensus
o
President
Barack Obama wants to extend the Bush-era tax cuts for the middle class only.
Many House Democrats want to extend them for that group, too, but perhaps only
for a year or two. Republicans, and a handful of centrist Democrats, are
talking about extending all the tax cuts.
o
Such
is the confused state of play heading into one of the biggest tax debates in a
decade.
o
The
crunch time will come later this year when Congress tackles the roster of tax
cuts that expire Jan. 1. On the list are taxes on income, dividends and capital
gains. Lawmakers also have to deal with the estate tax, which went to zero this
year and is set to leap to 55% next year unless Congress acts.
·
Taxes: New York Fed Suggests Taxing the Rich to
Counter State Deficits - BBG
o
Federal Reserve Bank of New York researchers
said states facing budget deficits should consider temporarily raising income
taxes on their wealthiest residents and relying more on sales taxes to make up
the shortfalls
o
In a report issued today focusing on the
recession’s impact on the budgets of New York and New Jersey, the Fed branch
also recommended the states create “rainy day” funds to protect against future
revenue gaps, plan in advance for spending cuts and reduce reliance on personal
income taxes, which are affected by changes in the economy.
·
Hedge Funds: Paulson & Co. sees small investor
withdrawalsfrom
MarketWatch.com
o
Paulson & Co., one of the world's largest
hedge fund firms, got a little smaller in June. That was likely driven by
investment losses rather than big redemptions by investors.
·
Gartmore's
top trader Guillaume Rambourg resigns during on going FSA investigation
·
BP stories:
o BP Plc paused preparations for a pressure test of its gushing
Macondo well after a leak erupted while it was shutting off oil flow with a new
containment cap. BBG
o T. Boone Pickens Says BP a ‘Good Buy’ After Five-Week
High - BBG
o
US Congress initiates
measure to prevent BP from getting new offshore oil leases - FT
o
BP lobbied UK over Libyan prisoner transfer case from Reuters
§
BP confirmed on Thursday it had lobbied the
British government in late 2007 over a Prisoner Transfer Agreement with Libya
because it was concerned a slow resolution would impact an offshore drilling
deal with Libya.
o
Americans in 73% Majority Oppose Ban on
Deepwater Oil Drilling - BBG
o
·
Marriott reports… Marriott
Profit Climbs 42% on Rising Business Demand
o
Per BBG:
“We are starting to see a return of the business traveler,” and . “Rates
are also starting to come back.”
·
Novartis reported Q2 $1.20 (core) v $1.13e, R$11.7B v $11.4Be;
Raises FY10 revenue guidance to the mid to high single digits (ex Alcon) v mid
single digit percentage range guided in April)
·
IBKR +4.1% (to be added to S&P SmallCap 600)
- Interactive
Brokers Group Inc. (IBKR) will replace CyberSource Corp. (CYBS)
in the S&P SmallCap 600 after the close of trading on Tuesday, July
20. CyberSource is being acquired by Visa Inc. (V) in a deal expected to
close on or about that date pending final approvals.
- S&P
SmallCap 600 constituent Skyworks Solutions Inc. (SWKS) will
replace Sybase Inc. (SY) in the S&P MidCap 400, and The Ensign
Group Inc. (ENSG) will replace Skyworks Solutions in the S&P
SmallCap 600 index after the close of trading on a date to be announced.
Sybase is being acquired by SAP AG (SAP) in a deal expected to
close soon, pending final approvals.
- OPNT
-13.9% (guidance)
- PPHM
-14.2% (earnings)
- LSTR
-1.8% (earnings) .. : Landstar System reports…note that the overall freight
environment continues to be strong.
- Consumer:
H&M Revenue Growth Weakens; Same-Store Sales Miss Estimates
- AIG
to file IPO of overseas life unit
– WSJ
o Harvey Golub Resigns as AIG Chairman
o Harvey
Golub resigned Wednesday as chairman
citing tensions with the giant insurer's chief executive, Robert
Benmosche. The company said Steve
Miller, another board member, would replace him.
o On Wednesday, the AIG board decided to move ahead with an
initial public offering of AIA in Hong Kong before year-end. The company hopes
a sale of roughly half of AIA in a public offering could fetch $15 billion to
$20 billion in cash to repay the Federal Reserve Bank of New York
·
distressed residential loans : Oaktree Capital wins $1.7 bln asset sale by
FDIC-FT
o Oaktree Capital Management [OAKCP.UL] has won a $1.7 billion
portfolio of distressed residential
loans auctioned by the Federal Deposit Insurance Corp, the Financial
Times reported
·
Europe Struggles to Match Success of U.S.
Bank Tests from DealBook
o
Europe's struggle to thrash out a thin
outline of its bank stress test and agree on consistency bodes ill for hopes
that the exercise will provide the transparency and resolve needed to revive investor
confidence, The New York Times reported.
·
Goldman, SEC Hold Settlement Talks – WSJ link
o Goldman has denied any wrongdoing in the Abacus deal.
o The firm
faces a Monday deadline to file a response to the lawsuit, which accuses the firm of selling the CDO without
disclosing to other participants in the deal that hedge-fund firm Paulson &
Co. helped select some of the underlying mortgage securities and was betting on
the financial instrument's decline.
o It is expected that the firm will seek more time to file
its response
·
Banks Gain in Rules Debate – WSJ link
o
The world's banks appear to be winning a
reprieve from tough new capital requirements and curbs on risk-taking, as
regulators and central bankers are moving toward less stringent rules than
initially proposed.
·
Signs of Risky Lending Emerge – WSJ link
o
The hunger for new business as the crisis
ebbs is causing some financial institutions to weaken lending standards and woo
borrowers who might not be able to pay.
·
FDA Panel Backs Avandia – WSJ link
o
A Food and Drug Administration advisory panel
voted to recommend keeping the diabetes drug Avandia on the market, but said
the drug poses a "significant safety" concern because it raises the
risk of heart attacks.
- Argentina
scrambles to take advantage of declining borrowing costs
- Argentina
is moving closer to returning to the international bond market, said
experts in emerging-market debt. The country is stepping up preparation
of its first offering since defaulting on sovereign debt in 2001, after
seeing the average yield on its U.S. dollar bonds fall 85 basis points
since July 1. Fitch Ratings recently upgraded Argentina's credit rating
after the country completed a restructuring of its defaulted debt. Bloomberg
(14 Jul.) , Latin American Herald
Tribune (Venezuela) (15 Jul.)
·
China Has Been Covertly Funding A Housing
Bubble Five Times Larger Than That Of The US: 65 Million Vacant Homes Uncovered
from zero
hedge - on a long enough timeline, the survival rate for everyone drops to zero
o article in South China Morning Post, in which an
economist at the Chinese Academy of Social Sciences noted estimates from electricity
meter readings that
there are about 64.5 million empty apartments and houses in urban areas of the
country! This number is five times larger than the roughly 12
million in total US public (3.89 million) and shadow (8 million as estimated by Morgan Stanley) home inventory available currently. Forget Stephen
Roach - China is
covertly funding and creating a housing bubble that is at least 5 times as big
as that of the United States
·
Politics:
·
TIME Poll: Voters Like Obama More Than His Domestic
Policies
o Top Nation and US stories Respondents disapproved of the
President's handling of the economy, but they still express more confidence in
Democrats than Republicans to foster a recovery
o http://feedproxy.google.com/~r/time/nation/~3/SHkqVhKqnb0/0,8599,2003953,00.html
·
House Democrats hit boiling
point WP
link
o House Democrats are lashing
out at the White House, venting long-suppressed anger over what they see as
President Obama's lukewarm efforts to help them win reelection -- and accusing
administration officials of undermining the party's chances of retaining the
majority in November's midterm election
·
EU
warns US - relationship is not working thetimes
o Europe’s disappointment with Barack Obama’s presidency is
laid bare today as the EU’s most senior figure calls for a dramatic effort to
revive transatlantic relations. The President of the European Commission told
The Times that the new era at the White House was in danger of becoming a
“missed opportunity” for Europe
o http://www.thetimes.co.uk/tto/news/
·
Small biz owners uneasy with Obama POLITICO
o White House efforts at a
business-friendly narrative aren't resonating
with a key audience
·
.Obama enlists Bill Clinton's aid on economy from Reuters
o
U.S. President Barack Obama sought on
Wednesday to lift sagging confidence in his economic stewardship by enlisting
the help of predecessor Bill Clinton, as a leading business group issued a
scathing critique of the administration's policies.
·
States, GOP senators float amendment to stop Arizona
lawsuit- The Hill, BBG
o
Two Republican senators announced Wednesday
they will attempt to amend legislation to prevent the Obama administration from
suing Arizona over its controversial immigration law.
o
Florida, Texas and seven other states filed a brief
supporting Arizona’s immigration law aimed at
cracking down on illegal migrants after the U.S. government sued to block
enforcement of the law
·
An Attack on Iran: Back on the Table from TIME.com
o
You thought the military option against
Iran's nuclear program had been abandoned? Well, it hasn't
·
Israeli attack on Iran would start long war:
report from Reuters
o LONDON
(Reuters) - An Israeli attack on Iranian nuclear facilities would start a long
war and probably not prevent Iran from eventually acquiring nuclear weapons, a
think-tank said on Thursday.
·
Pentagon warns Congress: accounts running dry
from Reuters
o WASHINGTON
(Reuters) - The Pentagon said on Wednesday it may be forced to take extreme measures
-- like not paying salaries -- if the Democratic-led Congress fails to pass a
$37 billion defense spending bill before lawmakers begin an August recess.
·
Amiable mood for N.Korea-U.N. military talks:
officials from Reuters
o
North Korean and U.N. Command officers held
talks on Thursday on the sinking of a South Korean warship in an amiable mood,
agreeing to continue dialogue, after Pyongyang had issued threats of war,
officials said.
·
U.S. Paid $5 Million to Iranian Scientist - WP
o
The Iranian nuclear scientist who claimed to
have been abducted by the CIA before departing for his homeland Wednesday was
paid more than $5 million by the agency to provide intelligence on Iran's
nuclear program, U.S.officials said.
o
Shahram Amiri is not obligated to return the
money but might be unable to access it after breaking off what U.S. officials
described as significant cooperation with the CIA and abruptly returning to
Iran. Officials said he might have left out of concern that the Tehran
government would harm his family.
·
Equity Recap
o It
is safe to say that the good news was baked into INTC’S numbers and it
must have been Obama who placed an order that padded their numbers so he could
stuff the BP hole since the junk shot or top kill hasn’t worked so far. No in
all seriousness, this market is tired and there is no anxiety to have to own
stocks and on any good news there are sellers. The only ones that seem to have
money are the guys who are looking for s&p 800. The retail sales number
highlighted how the consumer continues to pull his horns in and technically we
are still challenged at that 1100 level with 1112 the 200 day moving average on
the sp 500. We continue to see a little bit of everything albeit very quiet,
the shorts are done covering for now and starting to lay them out again lightly.
o Overnight
S&P futures were up 8 or 9 points, driven higher by INTC’s “best quarter
ever”. We got close to, but not above, resistance (1100). Asian markets were
strong, particularly Japan (up 2.71%); Europe was mixed, with most indices up
or down about ¼%. As US traders arrived at their desks, futures were grinding
steadily lower, and by 9:00 had given up their overnight gains. One factor
adding to early pressure on equities was the Retail Sales number which
disappointed (off 0.5% vs. an expected decline of 0.3%). The Import Price Index
also came in light (actually down 1.3% month over month), adding to deflation
concerns. Futures declined through the cash open and by 10:20 were off 4 points
at 1084.50. At this point bargain hunters emerged and drove futures 11 points
higher over the next 90 minutes. Prices backed and filled until the 2:00
release of the Fed minutes, which made note of new weakness in the recovery
(expected), as well as a reluctance on the part of Fed officials to provide
further stimulus (less expected). Futures dropped a quick 12 points, breaking
the morning’s lows. At this point the bears tired, prices turned, and the
balance of the session was spent in a tepid rally back to even on the day. Cash
S&P’s ended slightly in the red, breaking a six day winning streak.
o The
strongest S&P Industry Group was Tech (up 0.8%); Financials were weakest
(off 1.8%). Given INTC’s strong results, bulls were disappointed by its meager
gains (up only 1.7%, after being up as much as 7.5% last night). In financials,
the standout loser was Whitney Holding, WTNY, off 18% on balance sheet issues.
Regional banks ZION and RF were each off about 3%, having gained about that
much yesterday. In the retail arena, RSH was the big loser, down 5.5%, as CNBC
reported that takeover interest in the name may be flagging.
o Billy Clark and Team
·
Investment Grade Recap
o Spreads
in my sectors were mixed to a little softer today with just over $7BN in new
issues, mostly in yankee issuance. While bank and finance spreads were out
5bps +/- my spreads did not see that type of widening and recent deals held
firm with little softness in Shell, Covidien, and others. We continue to
see more buyers than sellers on the desk and bwic’s continue to trade very well
in a variety of names and maturities.
o The
gulf names were softer about a half point, more in spots as we continue to wait
for the relief well and rumblings out of DC about banning BP from new offshore
leases in the US.
o Equities
fought back to finish eek out another positive day despite far from positive
economic numbers. Should be interesting to see what the initial jobless
claims come in at tomorrow and possibly temper the recent bid for risk assets,
it feels like a long time since the less than stellar employment report two weeks
ago. The VIX remains in the mid 20s, near the lows of the range it has
been in since the flash crash of early May as worries of a double dip have
faded on seemingly positive earnings.
o Michael
Salemo
- Rates
Commentary
o A volatile early morning session as the
initial pre-auction selling was met with a vicious bid on real money buying and
the worse than expected retail sales data. As equities retraced their
losses the UST market faded and remained relatively calm ahead of the
$13Bln 30 year bond auction. The 30 year came at 4.08% 1bp through the 1PM
level, stats were mixed with the largest indirect participation since January
at 37.4% and strong 2.89 bid to cover, but directs fell below their recent
average purchasing 16.1%.
o Post auction the UST market is well bid with
the 30 year trading a few ticks higher than its auction stop price (105-02).The
FOMC minutes released in the afternoon aided in the rally. Highlights of the
minutes included: officials saw economic outlook as softened somewhat, lower
forecasts for 2011-2012 inflation, higher projection for 2010-12 unemployment
and they didn't see the need for additional policy accommodation. At 3PM
Treasuries were higher across the curve with yields lower by ~5.5-7.5bps, the belly
as had been the case all day led the market higher.
o With the long end supply of $12Bln 10Y TIPs,
$21Bln 10Y notes and $13Bln 30Y bonds all now complete, the UST market should
be in good shape with a bias towards the long end outperforming on the curve.
FOMC minutes and June inflation data tomorrow and Friday should be bond
friendly.
o Primary Dealer
o Heat Wave in U.S. Driving
Coal to 18-Month High - BBG
o Fairfield
postpone London IPO – BBG
§ fairfield
Energy has pulled its £330m listing on the London Stock Exchange after failing
to drum up enough interest from investors.
o Total
announces the signature of an agreement to acquire Chevron's (CVX) 45.9%
interest in Block 1 in the Joint Development zone
o
SII Smith
International sets annual meeting for 24-Aug
o
BP BP
begins cap test to gauge well pressure - Reuters
o
STR
Questar and LNG Technologies to jointly explore new market opportunities for
Rockies liquefied natural gas
o
EPM
Evolution Petroleum files $50M mixed securities shelf registration
o
WLL
Whiting Petroleum initiated outperform at Oppenheimer; target is $95.
o
OKS
ONEOK Partners LP increases quarterly dividend by 0.9% to $1.12 from $1.11
o
KEG Key
Energy Services reports June operating metrics
o
Fairfield Energy cancels IPO - FT
o
BP US
Congress initiates measure to prevent BP from getting new offshore oil leases -
FT
o
BP BP
denies it was involved in discussions related to Megrahi release; confirms
lobbied UK govt over prisoner transfer agreement with Lybia -- Reuters
o
Conergy AG (CGY GR)U.S. firm York Capital
might take a position in the debt of Conergy that it would later convert into
equity, Handelsblatt said. If a deal is made, York would become a substantial
shareholder in Conergy, Conergy has sought a refinancing solution for EUR500
million in debt.
o
o
Demand: Nufarm
Shares Tumble After Earnings Forecast Slashed
§ Nufarm Ltd., Australia’s largest supplier of farm
chemicals, slumped the most in 16 years in Sydney after the company cut its
full-year profit forecast and said it won’t achieve one of its loan conditions.
o
Northrop’s Proposed Ship-Unit Sale May Be
Concern for Pentagon – BBG
§ A sale by Northrop Grumman Corp. of its shipbuilding unit
to General Dynamics Corp. would trigger competition concerns, the U.S. Defense
Department said.
o
WAB
Wabtec agrees to acquire G&B Specialties and Bach-Simpson for ~$45M
o
ACM
AECOM Technology acquires Tishman Construction Corp
o
BLD
Baldwin Technology enters into advisory agreement with OBX Partners LLC
o
ASTC
Astrotech completes review of strategic alternatives
o
PRGN
Paragon Shipping appoints CEO Michael Bodouroglou interim CFO
o
SI
Siemens signs €2.2B contract with Russian Railways to supply 240 regional
trains - SA London
o
HON
Honeywell's fly-by-wire flight control system picked by COMAC for C919
commercial airliner
o Cramer
says that the aerospace cycle is just now taking off, adding that the natural
way to play is with Boeing (BA), whose new 787 is finally ramping to
full production. He adds that the stock trades at just 13.4x earnings, while
historically, the company should fetch up to 25x as the cycle gains momentum.
He goes on to highlight other plays on the cycle such as Goodrich (GR),
Rockwell Collins (COL) and Precision Castparts (PCP).
o
DTG
Dollar Thrifty holder PAR Capital discloses 7.65% stake in 13D filing
o
Berkshire Hathaway's Burlington Northern
reports weekly carloads (week ended 10-Jul); Total carloads and intermodal
+5.7% to 163,406; last week +17.0%.
o
UFPI
Universal Forest Products reports Q2 EPS
o
LSTR
Landstar System reports Q2 EPS
o
EADSF EADS
gets €2B contract from Aeroflot -- Reuters
TECH/MEDIA/TELECOM
·
PCs: Worldwide PC Unit
Shipments Rose 20.7% in Q2, Gartner Says- Barron’s
o
Gartner noted that sales of mini-notebooks -
netbooks - slowed to the3 low 20% range compared with more than 70% growth in
the last two quarters
o
Gartner noted that Apple had “strong Mac
shipments” in the quarter, with no signs of iPad cannibalization. On the other
hand, Gartner found that “surging popularity of Apple’s iPad temporarily
cannibalized mini-noteboks, as well as consumer notebooks to some degree.”
·
PCs: PC Shipments Grew
22% in Second Quarter, IDC Says- BBG
o
http://sfgate.bloomberg.com/SFChronicle/Story?docId=1376-L5KD0D6N9EDI01-7SPUTNRT7NLHHCG8JMJJRMRG0D
·
TXN Texas Instruments buys wafer fabs, manufacturing
equipment in Japan- RTT
·
NTT to Buy Dimension for 2.1 Billion Pounds in
Overseas Push- BBG
·
INTC: WSJ suggests investors
show a little caution towards Intel
·
GOOG, OMC: OMC Google to announce
partnership with Omnicom – WSJ
·
LGF: Lions Gate enters battle to buy MGM- FT
·
CVC Cablevision, Bresnan deal wins U.S. antitrust
OK- Reuters
·
AAPL Buys Poly9 for Google Earth Rival- eWeek
·
TRB: Tribune Seeks to Limit Buyout Debate During
Hearing- BBG
·
AAPL, VZ: NY Times says Verizon
WIreless is gaining on AT&T even without the iPhone
o
http://www.nytimes.com/2010/07/15/technology/15verizon.html?ref=business&pagewanted=all
·
AAPL, VZ, GOOG: With
Google as Partner, Verizon May Not Need iPhone- NYT
o
http://feeds.nytimes.com/click.phdo?i=81a43668d54f6e0a198091ee03d5e403
·
AAPL: to hold iPhone4 press conference 16-Jul -
TechCrunch
·
AAPL, RIMM, GOOG: iPhone
killing interest in RIM, satisfying more users than Android- Apple Insider
·
WPP: China to Be WPP’s Third-Biggest Market- BBG
o
WPP Plc, the world’s biggest advertising
company, expects the China region will become its third-largest market in the
“next few years,” Chief Executive Officer Martin Sorrell said
·
SWKS, SY: Skyworks Added To
S&P MidCap 400 Index, Replacing Sybase- Barron’s
·
LCDs: LCD TV and monitor prices expected to
increase 7-10% in 3Q10- Digitimes
·
LCDs: Demand for large-size panels may turn weak
in 3Q10- Digitimes
·
LCDs: Sony reduces LCD TV prices in Taiwan
·
SHOR- pre-annonuced rev upside
for Q4 and higher GM guidance. Also announces departure of CEO.
·
BBBB, BKS: Blackboard and Barnes
& Noble partner to streamline access to digital content
·
CLWR WSJ is cautious on Clearwire suggesting
investors stay away
·
SNE looking for new chief for its Sony Music
Entertainment division -- NY Post
·
Sanyo, ONNN:
Sanyo says to sell chip unit to ONNN ON Semi for 33 bln yen- Reuters
·
EMMS Emmis Communications reports Q1 EPS
($0.10) vs year-ago $0.32 …Company reports revenues of $59.8M vs year-ago
$60.3M.
o
Japanese steel orders showing signs of
slowing down-CRU News
o
Ivanhoe escalates Rio Tinto dispute – FT
§ The Candian group has suggested it was opening the door
to “third-party strategic investors” over a Mongolian copper and gold mine
o
Magnitogorsk
sees 2011 steel output rising to 12M ton from 10M y/y . Guided FY10 Rev RUB20B;
2011 revenues at 250B.
- Novolipetsk Steel guides Q2 R$2.2B; reaffirms Q2 EBITDA margin 25%-30%;
estimated 10%-15% q/q decline in pricing in Q3 due to weaker market environment
o
RRC Range Resources reports Q2 production
o
GSOL Global Sources promotes Connie Lai to
CFO
·
EU car sales losing streak reaches three from MarketWatch.com
o
Car sales in the European Union, led by a big
drop in Germany, fell for the third straight month as buyers lost interest in
making the big purchase without the lure of government scrappage incentive
programs.
o
New strike hits Honda parts supplier in China
from
Business Spectator
§ Workers strike after 100 fired from manufacturing
company. 15 Jul 2010 6:10 PM
o
Volvo initiated neutral at RW Baird; target
is kr99.
o
HMC
Honda Motor to focus on hybrids - Nikkei
·
Yamaha’s Motorcycle Sales Plummet on Debt
Crisis, Yen - BBG
·
Yamaha Motor Co., the world’s second-largest
motorcycle maker, said sales in North America and Europe may fall twice as much
as forecast, as a spreading debt crisis damps demand. The shares fell 4.2
percent.
o The
broadest overhaul of U.S. financial rules since the Great Depression is likely
to clear a crucial hurdle in Congress on Thursday morning, paving the way for
President Barack Obama to sign the measure into law. Reuters
o
Sen. Grassley changes his
mind, says he'll vote against the reform bill
·
U.S.
Sen. Charles Grassley, R-Iowa, voted for legislation to overhaul financial
regulation two months ago, but he said he will not vote for the final version.
According to a statement from Grassley's office, the senator is concerned about
compromises reached by congressional negotiators. Specifically, he opposes a
scaled-back proposal that would require some banks to spin off their
derivatives desks. "I wanted to make the derivatives market
transparent," Grassley said. Without Grassley, Democrats likely will have
exactly 60 votes, the minimum needed to end debate and move forward with the
legislation. The Wall Street Journal (15 Jul.) , NYTimes.com/The Caucus blog (14 Jul.)
o Finance Bill Includes New Fees for Banking – WSJ
o
The
fees, to be assessed by the Treasury Department and the Federal Reserve, would
pay for government financial research and bank supervision. The size and nature
of the fees have yet to be determined, and they could ultimately be small. They
are expected to be levied against large financial institutions, which could
include banks, hedge funds and other firms deemed "systemic."
o
But
unlike an earlier $19 billion "bank tax" in the bill that triggered
widespread protest and was ultimately jettisoned to gain Republican support,
many lawmakers back the new fees, according to congressional aides.
o Basel Committee moves
toward easing proposed rules for banks
§ The Basel Committee on Banking Supervision is
meeting in Switzerland to strike a compromise on proposed rules for banks'
capital and liquidity. The discussion includes 44 agencies from 27 nations and
a range of priorities and concerns. Although it is widely agreed that banks
should hold more capital, regulators and central bankers are discussing what
exactly counts as capital, how much cash banks should hold, the rules' flexibility
and other issues. The Basel accord would have a more global effect compared
with an overhaul being discussed in the U.S. Senate. The Wall Street Journal (15 Jul.) , Risk.net/Risk magazine (14 Jul.)
o AIG to file IPO of overseas life unit –
WSJ
§ Harvey Golub Resigns as AIG Chairman
§ Harvey Golub resigned Wednesday as chairman citing tensions with the giant insurer's
chief executive, Robert Benmosche. The
company said Steve Miller, another board member, would replace him.
§ On
Wednesday, the AIG board decided to move ahead with an initial public offering
of AIA in Hong Kong before year-end. The company hopes a sale of roughly half
of AIA in a public offering could fetch $15 billion to $20 billion in cash to
repay the Federal Reserve Bank of New York
o Goldman, SEC Hold Settlement Talks – WSJ link
o Shares in U.K. fund
manager Gartmore Group dropped over 8% Thursday after the
company announced the resignation of former star manager Guillaume Rambourg,
who has been embroiled in misconduct investigations since March. MW
o KKR, the firm that made its
name in the biggest leveraged buyouts, may find that private equity is its
biggest stumbling block in winning over public investors when it debuts in its
hometown of New York today, Bloomberg News reports.
o
AIG
American International Group says Chairman Harvey Golub has resigned from the
Board of Directors
o
AIG
American International Group plans to pursue IPO of its AIA Group Ltd unit,
according to sources familiar with the matter -- CNBC, citing WSJ
o
BEN,
BLK, IVZ, JNS,TROW, LM Susquehanna initiates; Franklin Resources
initiated positive; Invesco initiated
positive; Janus Capital initiated positive; T. Rowe Price initiated positive;
BlackRock initiated neutral; Legg Mason initiated neutral
o
MKL
Markel to acquire FirstComp
o
FULT
Fulton Financial repays TARP funds to US Treasury
o
CUZ
Cousins announces property sales
o
ICAP WSJ
suggests investors show a little restraint with ICAP and wait for some
clarity
o
GS
Goldman Sachs, SEC discuss wide-ranging settlement - WSJ
o
C
Religare Enterprises to buy part of Citi's Indian home-loan porfolio for INR5B
($107M) - Economic Times
o
FLIC
First of Long Island prices 1.25M-share secondary at $24/share through Keefe,
Bruyette & Woods
o
Bank mortgage securities desks in hiring
spree from
Financial Times
§ Investment banks are once again hiring bankers to sell
and trade mortgage-backed securities, the packages of loans that were at the
heart of the financial crisis, reflecting a belief that the worst is over in
the US housing market
o distressed
residential loans : Oaktree Capital wins $1.7 bln asset sale by
FDIC-FT
§ Oaktree Capital Management [OAKCP.UL] has won a $1.7
billion portfolio of distressed
residential loans auctioned by the Federal Deposit Insurance Corp, the
Financial Times reported
o Foreclosures
Decline in June But Still at Record Levels – CNBC link
o
Banks repossess US homes at record pace:
RealtyTracfrom Business Spectator
o
Home Sellers Slash Prices, While Banks Mow the Lawn – CNBC link
o
Mortgage Applications Tumble – WSJ link
§ The number of mortgage applications in the U.S. for home
purchases fell to a 13 1/2-year low last week, in a further sign of the slump in homebuying since a federal tax
credit concluded at the end of April.
o
Foreclosure activity in New York City
continued its pattern of ups and downs during the first six months of 2010,
climbing 3 percent on a year-over-year basis but registering a 24 percent drop
from the six months prior, according to the latest foreclosure market report
from RealtyTrac. "It's been a little bit of a roller coaster ride,"
said Daren Blomquist, a spokesperson for RealtyTrac. "Even though you see
a big decrease from the previous six months, in most of the boroughs there's
either a slight increase or maybe a big increase from a year ago, so that tells
me we're not truly trending downward…basically, things are staying
steady." It was a similar story statewide, where 24,506 properties were
hit with foreclosure notices during the first half of the year, up 1.22 percent
from the same time last year but down 19.84 percent from the previous six
months, RealtyTrac data shows. [more]
o
MSW
Mission West reports Q2 FFO
o
Fannie
Mae, Freddie Mac Sued Over California Claims -
BBG
§ California Attorney General Jerry Brown sued Fannie Mae
and Freddie Mac over claims the companies thwarted a program that allows
property owners to pay for energy upgrades over time through special tax
assessments
§ The complaint, filed today in federal court in Oakland,
California, is based on the Property Assessed Clean Energy program. Under the
program, local governments pay to make properties more energy
o
Demand: Back-to-school spending to jump nearly 11% -
study CNNMoney
§ Back-to-school spending is set to jump by 10.5% this
year, according to a new study, as Americans loosen their purse strings
following a cash-strapped 2009
o Hennes & Mauritz misses reported Jun SSS +9.0%
o
SMG
Indium Resources files amended S1; increases IPO size to 9M units from 5M
o
IBKR,
CYBS, V, SWKS, SY, ENSG, SAP S&P announces changes to MidCap 400 and
SmallCap 600 indices
o
MSN
Emerson Radio reports Q4 EPS
o
CAW CCA
Industries reports Q2 EPS
o
NTY
Private equity in talks to buy NBTY - WSJ
o
JSDA
Jones Soda to sell 900K shares to Glengrove Small Cap Value for $1.22 per share
pursuant to previously announced equity financing facility
o
BSI Blue Square - Israel announces name
change to Alon Holdings Blue Square-Israel Ltd
o
o
MAR
Marriott reports Q2 EPS ….
o
MAR reports..mostly better,,,ups guidance…but
cost cuts help, bulls may be disappointed not more revpar growth expected but a
beat none the less
o
AMC
Entertainment files $450M IPO through JPMorgan and Goldman Sachs
o
Vivus' weight-loss drug faces key U.S. test from Reuters
§ The
first potential U.S. prescription weight-loss pill in more than a decade could
move closer to market on Thursday if it can overcome safety hurdles that have
plagued diet drugs for years and led to tepid sales despite the growing number
of obese Americans.
o
OCR
Barron's Weekday Trader is positive on Omnicare
o
GILD
Gilead Sciences files patent infringement suit against Lupin Limited related to
Ranexa
o
ARNA New
England Journal of medicine publishes results of two-year BLOOM trial of
Lorcaserin
o
ANGO
Consensus product sales for AngioDynamics
o
BIIB
Amorfix Life Sciences announces global licensing agreement with Biogen Idec -
Reuters
o
MYL
Mylan to acquire Bioniche Pharma for $550M
o
GENZ
Genzyme sells all its holdings in Exact Science - 13D filing
o
BLUD
Immucor receives CE Mark approval for HEA BeadChip product
o
GENZ
Genzyme sells all its holdings in Exact Science - 13D filing
o
BLUD
Immucor receives CE Mark approval for HEA BeadChip product
o
PPHM
Peregrine Pharmaceuticals reports Q4 EPS
o
MRK
Merck KGaA completes acquisition of Millipore - SA London
o
GSK
GlaxoSmithKline will record a £1.57B legal charge for Q2
o
GSK
GlaxoSmithKline statement in response to FDA advisory committees' vote on
safety of Avandia - SA London
o
ACL
Alcon's independent directors say Novartis offer faces legal hurdles -- WSJ
o
NVS
Novartis reports Q2 EPS
o
NVS
Novartis to settle discrimination lawsuit for $152.5M -- Pharmalot
o
BMTI
Biomimetic Therapeutics 5M-share secondary priced at $8.50/share through
JPMorgan
·
Stocks mentioned on CNBC's Mad Money with Jim
Cramer - TheStreet.com
+ BA,
GR, COL, PCP, KSU, C, AAPL, IBM, WIN and VOD
- BP,
RIMM, FTR and XOM
o
Energy
o
BP (-0.2%), fears US may stop future leases.
o
Bowleven (+15%), Camaroon well update.
o
Total (+0.53%), 2H refining margins + 5.8%.
o
Tullow (+0.5%), Encounters oil at Nsogo 5 in Uganda.
o
Premier Oil (-0.9%) 1H production +17%.
Mining
o Anglo American (-1.2%), Merrill Lynch says Co should split off Sth.
African division (BBG
o Japan
§
o Hong
Kong
§
o China
§
INVESTMENT
BANKING
o
Northrop’s Proposed Ship-Unit Sale May Be Concern for
Pentagon – BBG
§ A sale by Northrop Grumman Corp. of its shipbuilding unit
to General Dynamics Corp. would trigger competition concerns, the U.S. Defense
Department said.
o Carlyle may pull out of Healthscope bid- Reuters
§ Carlyle was expected to
make a final decision on whether to proceed before final bids were due on
Friday
§ Buyout firm Kohlberg
Kravis Roberts and a rival private equity consortium of TPG, Carlyle and BX
Blackstone Group have both made approaches to Healthscope. The source said the
TPG consortium was still expected to proceed even without Carlyle.
§ http://www.reuters.com/article/idUSSGE66D0LH20100714
o Crunch time for Australia health M&A deals-
Reuters
§ Two health care bids in
Australia were reaching a turning point on Thursday with questions about
financing clouding a $1.6 billion bid for Healthscope and a profit warning
weighing on a $573 million bid for Sigma Pharmaceuticals
§ The
sector is hotly sought after for growth in Australia, which has an expanding
and aging population, with the government pushing patients to use private
health care.
§ http://www.reuters.com/article/idUSSGE66E01120100715
o NTT to Buy Dimension for 2.1 Billion Pounds in
Overseas Push- BBG
§ Nippon Telegraph &
Telephone, Japan’s largest phone company, agreed to buy South Africa’s
Dimension Data Plc for 2.1 billion pounds ($3.2 billion) to expand in the
faster-growing computer-services market
§ The purchase would give
NTT, flush with almost $10 billion in cash, a computer-services company with
more than 6,000 customers across 49 countries as it seeks to reverse three
years of declining sales
o MS Morgan Stanley Wins $3.2 Billion NTT Buyout
Mandate- BBG
§ Japanese investment
banking joint venture, Mitsubishi UFJ Morgan Stanley Securities Co., will
advise Japan’s largest phone company in its cash acquisition of South
Africa-based Dimension
o LGF Lions Gate enters battle to buy MGM- FT
§ The battle for control of
Metro-Goldwyn-Mayer has become a three-way fight after Lions Gate submitted a
merger proposal to lenders of the debt-laden studio
§ MGM is considering three
separate proposals: one from Lions Gate, a competing offer from Summit
Entertainment, and one from Spyglass Entertainment
§ http://www.ft.com/cms/s/0/fc4b7268-8f71-11df-ac5d-00144feab49a.html?ftcamp=rss
o NOK Nokia Siemens in talks to buy MOT Motorola
unit- FT
§ Motorola, the US mobile
phone maker, is in talks to sell its network infrastructure unit to Nokia
Siemens Networks in a deal that could be worth about $1.5bn
§ Motorola has also held
discussions about a sale of the unit to Huawei Technologies, but Nokia Siemens
Networks is the frontrunner
§ http://www.ft.com/cms/s/0/e30bd7e0-8f8d-11df-8df0-00144feab49a.html
o CKXE- A win for Sillerman- NYPOST
§ The CKX board has amended
its poison pill -- allowing Bob Sillerman, former CEO and its biggest
shareholder, a better chance of making a play for the company, which owns the
rights to "American Idol" and Elvis Presley.
o CVC Cablevision, Bresnan deal wins U.S. antitrust
OK- Reuters
§ Cablevision Systems
(CVC.N) has won U.S. antitrust approval to buy Bresnan Communications, the
Federal Trade Commission said on Wednesday.
§ The deal, which was
valued at $1.37 billion when announced in mid-June, was on a list of approved
deals that the FTC puts out several times a week.
§ http://www.reuters.com/article/idUSN1421038420100714
o AAPL Apple Buys Poly9 for Google Earth Rival- eWeek
§ Apple has purchased Web
mapping software startup Poly9, an alternative to Google Earth. It is unclear
whether Apple will continue to endorse Google's applications when it can offer
its own brand of the same apps
§ http://www.eweek.com/c/a/Web-Services-Web-20-and-SOA/Apple-Buys-Poly9-for-Google-Earth-Rival-107227/
o GIP, MS Morgan Stanley among Brisbane port bidders-
Reuters
§ Bids for the port, which
is being sold as part of a A$15 billion ($13.25 billion) sale of infrastructure
assets by the Queensland state government, were received on July 5
§ Newspaper reports said
the asset was unlikely to sell for its book value of A$2.5 billion, with bids
more likely to come in around A$1.5 billion to A$2 billion.
§ http://www.reuters.com/article/idUSSGE66D0B220100715
o MYL Mylan to buy Irish pharma co for $550
mln- Reuters
§ Generic drugmaker Mylan
Inc (MYL.O) said it plans to acquire privately held Bioniche Pharma Holdings
Limited for $550 million in cash, to get an access to the North American
injectables market
§ http://www.reuters.com/article/idUSSGE66D0KW20100714
o
ACL Alcon Says
Novartis Takeover Faces Legal Hurdle- WSJ
§ Alcon Inc.'s independent
directors' committee emphasized to minority shareholders that Swiss law is on
their side in its fight against the complete takeover of the company by Swiss
pharmaceutical giant Novartis AG.
§ http://online.wsj.com/article/SB10001424052748704220704575367160288413590.html?mod=ITP_marketplace_1
o
WAB Wabtec to buy
2 units of Global Railway for $45 mln- Reuters
§ The company expects the
acquisition of G&B Specialties Inc and Bach-Simpson Corp, which have a combined
revenue of $30 million, to add to its earnings in the first year.
§ Wabtec said the G&B
Specialties transaction is expected to close by July 31 while the Bach-Simpson
deal is expected to close by Oct. 31.
§ http://www.reuters.com/article/idUSSGE66D0L020100714
o
York Capital seeks
stake in Conergy- Handelsblatt
§ U.S. investor York
Capital is seeking a stake in Germany's Conergy by taking over loans to the
solar company which at a later stage will be converted into Conergy shares
o
Private
equity firms consider bidding for NTY NBTY- Reuters
§ would be among the
largest transactions to take a public company private since the credit bubble
burst.
§ The private equity firms
BX Blakstone and Carlyle are working separately from each other, not as a
consortium
§ http://www.reuters.com/article/idUSWEN699620100715
o
Sanyo says to sell
chip unit to ONNN ON Semi for 33 bln yen- Reuters
§ Japan's Sanyo Electric
(6764.T) said on Thursday it would sell its loss-making chip unit to ON
Semiconductor (ONNN.O) for 33 billion yen ($373 million) as it focuses on
strengths such as environmentally friendly technology.
o
IVN Ivanhoe
escalates Rio Tinto dispute- FT
§ A dispute between Rio
Tinto and Canada’s Ivanhoe Mines over a Mongolian copper and gold mine
escalated on Wednesday when the Vancouver-based company suggested it was
opening the door to “third-party strategic investors”.
§ http://www.ft.com/cms/s/0/4faf31ba-8f72-11df-ac5d-00144feab49a.html?ftcamp=rss
o
Greek bank stocks
jump after Piraeus bids for ATE, TT- Reuters
§ Greek bank stocks jumped
as much as 3.9 percent in early trade on Thursday after the Athens bourse said
Piraeus Bank had placed a bid for ATEbank and Hellenic Postbank
§ "After the news on
the possible triple merger of Piraeus, ATE and Postbank, the expectations for
mergers and acquisitions in the Greek banking sector are increasing, as well as
expectations of resilience of the sector to the crisis,"
§ http://www.reuters.com/article/idUSATH00557720100715
o
Greek govt to
examine Piraeus bid for ATE, TT- Reuters
§ "It's a proposal
that the Greek government will examine seriously," the official told
Reuters after the Athens bourse said Piraeus placed a bid for the two other
banks
o
ATEbank says has
not been briefed on Piraeus bid- Reuters
o
AECOM buys
construction management co for $245 mln- Reuters
§ AECOM, which competes
with Jacobs Engineering Group (JEC.N) and KBR Inc (KBR.N), said the cash
payment would include proceeds from the recently announced $250 million debt
issuance
§ http://www.reuters.com/article/idUSSGE66D0L420100714
o
Canada Pension
bids $3.4 bln for Australia's Intoll- Reuters
§ Canada's second-biggest
pension manager has revived efforts to buy an Australian toll-road operator
with a C$3.5 billion ($3.4 billion) bid for Sydney-based Intoll Group (ITO.AX),
whose shares jumped 30 percent on the friendly offer
§ http://www.reuters.com/article/idUSSGE66E00R20100715
o
Agfa Gevaert buys
U.S.-based Pitman for $80 million- Reuters
§ Belgian industrial
printer and film maker Agfa Gevaert said on Thursday it had bought U.S.-based
Harold M. Pitman Co for about $80 million, giving it distribution capability in
the country.
§ http://www.reuters.com/article/idUSLDE66E0BX20100715
o
KKR-Bertelsmann
venture buys Stage Three Music- reuters
§ A private equity based
music joint venture formed by Kohlberg Kravis Roberts & CoKKR.N and Bertelsmann
is to buy music publisher Stage Three Music, adding the rights to songs such as
Aerosmith's "Walk this Way", the companies said on Thursday.
§ http://www.reuters.com/article/idUSN1417045220100715
o
Oaktree Capital
wins $1.7 bln asset sale by FDIC-FT
§ The portfolio, from
Ohio-based Am Trust, consists of about 280 loans with an average face value of
about $6 million each
§ The Financial Times said
Los Angeles-based private equity and distressed-debt investor Oaktree teamed up
with luxury U.S. homebuilder Toll Brothers (TOL.N) to bid for the assets, for
which the FDIC offered zero interest rate debt and took an equity stake along
with the buyer.
§ http://www.reuters.com/article/idUSSGE66E09120100715
o
Abertis bidders
plan stake sales- Reuters
§ A consortium looking to
buy motorway operator Abertis in a mammoth 25 billion euro leveraged buyout
plans to partly fund the deal by selling stakes in the group's rivals
§ http://www.reuters.com/article/idUSLDE66E0J620100715
o
SDL to acquire
Language Weaver for US$42.5M in cash- BBG
§ SDL is paying $42.5m
(£28.2m) in cash for the US firm, subject to adjustments for closing working
capital and cash positions, with target cash in the business of $4m.
$ RAISING
o AMC Entertainment files $450M IPO through JPMorgan
and Goldman Sachs- SA
o KKR lines up against Blackstone on NYSE- Reuters
§ Buyout firm Kohlberg
Kravis Roberts & Co (KKR.AS) shares finally come to New York on Thursday
and investors will be weighing them against those of arch-rival Blackstone
Group (BX.N), which listed in 2007.
§ http://www.reuters.com/article/idUSN1413622920100714
o SMG Indium Resources increases IPO size to 9M units
from 5M
o AIG to file IPO of overseas life unit, AIG Chairman
Quits, Citing CEO Tension- WSJ
§ Harvey Golub said he
would resign from AIG's board following views Mr. Benmosche expressed to the
board that their working relationship was "ineffective and
unsustainable."
§ On Wednesday, the AIG
board decided to move ahead with an initial public offering of AIA in Hong Kong
before year-end. The company hopes a sale of roughly half of AIA in a public
offering could fetch $15 billion to $20 billion in cash to repay the Federal
Reserve Bank of New York
§ http://www.reuters.com/article/idUSTRE66D5FM20100715
o AgriBank Gain in Shanghai Debut Smaller Than
Rivals- BBG
§ Agricultural Bank of
China Rose 0.8 percent on its debut in Shanghai, the smallest first-day gain
among the nine lenders that have sold shares in the city in the past four years
§ China’s largest bank by
customers rose to 2.70 yuan (40 cents) from the IPO price of 2.68 yuan, giving
it a market capitalization of $127 billion. First-day volume of 4.04 billion
shares was the second-highest in China in the past decade
o Fairfield Energy postpones London IPO- MarketWatch
§ Private-equity owned
North Sea oil group, Fairfield Energy, on Thursday said it was postponing its
planned initial public offering for London
§ The group cited
"market conditions," as a reason not to proceed with its IPO for the
moment. The company was planning a $500 million offering
PRICINGS
o Initial
Offerings
o
SMT SMART Technologies upsises
its IPO slightly and prices 38.8m shares at $17/shr. ( in range)
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 FLIC
First of Long Island prices 1.25M-share secondary at $24/share
through Keefe, Bruyette & Woods
o BMTI
Biomimetic Therapeutics 5M-share secondary priced at $8.50/share
through JPMorgan
NEWS
o
PINN Pinnacle Gas
says Scotia deal on despite debt default- Reuters
§ Energy company Pinnacle
Gas Resources Inc (PINN.O) said it defaulting certain terms under a credit
agreement with its lender will not affect its sale to Scotia Waterous
§ Pinnacle said in a
regulatory filing it was notified by its lender on July 8 that it failed to
make principal and interest payments due on July 1 under its credit facility of
$5.1m
§ http://www.reuters.com/article/idUSSGE66D0L520100714
o TRB Tribune Seeks to Limit Buyout Debate During
Hearing- BBG
§ Tribune Co. is seeking to
limit debate over the legality of its 2007 buyout when it goes to court next
month to try to win approval to exit bankruptcy
§ Lawyers for Tribune and
its lenders today asked the judge overseeing the bankruptcy to keep discussion
about the buyout to a minimum. Lower-ranking creditors claim the buyout
violated bankruptcy law and are preparing to present evidence in support of
their allegations during the confirmation hearing
o KKR Said to Raise $800 Million for China Fund,
Joins Blackstone- BBG
§ New York-based KKR joins
Blackstone Group LP and Carlyle Group, the world’s biggest private-equity
firms, in targeting investments in China as the country’s economic growth has
outpaced the rest of the world
o Foursquare Founders Take Home $4.6 Million From
Series B Round- Silicon Valley Insider
§ Foursquare's founders --
Dennis Crowley and Naveen Selvadurai -- took home $4.64 million in this round,
the company confirms to us.
§ That leaves $15.4 million
for the company to spend on growth.
§ http://www.businessinsider.com/foursquare-series-b-sec-filing-2010-7
o MGM delay on debt OK- NYPOST
§ Struggling movie studio
Metro-Goldwyn-Mayer Inc. says it has gotten another agreement from its
creditors to delay, until Sept. 15, taking action for its failure to make
payments on its debt as it seeks a financial savior
o
Energy: EPM Evolution Petroleum
files $50M mixed securities shelf registration
Thursday July 15:
o
China Entrepreneurs:CE Premier: M&A Forum
- Jul 15, 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
Microsoft Worldwide Partner Conference
·
1:30PM: PVSW
o
Nagoya Stock Exchange IR Expo 2010 - Jul 15,
2010 - Jul 16, 2010
·
10PM: 861400.T
·
721300.T , 726600.T , 930600.T , 990000.T
o
OilBarrel Conference - Jul 15, 2010
o
SEMICON West - Jul 13, 2010 - Jul 15,
2010
o
http://www.semiconwest.org/index.htm
o
TD Newcrest Unconventional Oil & Gas
Conference
·
1:05PM: ENB.TO
·
3:20PM: BTE
·
FES.TO
o
Think Equity Games-as-a-Service Symposium -
Jul 15, 2010
Company Meetings/Other Daily Events
·
Thursday July 15:
o
Shareholder Meetings
§
CKSW, ALIF, EZCH, AIM, KID, NXXI, CVM, WPRT,
GAMR
o
REGN investor Day
o
PETD Analyst day
o
LYV Analyst Day
§
Call # 877.312.6427 Pin: 78515627
o
KKR begins trading on the New York
Stock Exchange under KKR, three years after its initial filing in the U.S
o
China reports second-quarter GDP, and June
numbers on retail sales, producer and consumer prices, and industrial
production. GDP is seen moderating from a torrid 11.9% growth rate in the first
quarter; a 10.5% annualized rate is seen, says Brown Brothers Harriman.
o
Senate Banking Committee considers
nominations to the Fed Board.
o
GOOG reports
·
Thursday July 15:
o
0830 Empire State Manufacturing Survey
o
0830 PPI
o
0830 Unemployment Insurance Weekly Claims
Report
o
0915 Industrial Production & Capacity
Utilization
o
1000 FRBP Business Outlook Survey
o
1000 DJ-BTMU U.S. Business Barometer
o
1030 EIA Weekly Natural Gas Storage Report
o
1630 Money Stock Measures
o
1630 Federal Discount Window Borrowings
o
1630 Foreign Central Bank Holdings
·
Materials
o
Thursday July 15: PPG
·
Industrials/Homebuilders
o
Thursday July 15: BNSSA, AUSI, CSIQ, VMI,
JBHT, CTAS, GWW
·
Consumer/Retail/Education
o
Thursday July 15: APP, EDUC, WWW, STLY, WINA,
JOEZ,
·
Financials
o
Thursday July 15: JPM, ALNC, BKSC,
CBSH, CCBP, CTBI, CVBF, PBIB, EWBC, NKSH, OVBC, SUBK, UNB, VSBN, WAIN, PBCT,
UCFC, MBCN, TCB, ESBK, CWBC, UBCP, HARL
·
Tech/Telecom
o
Thursday July 15: PLCM, SLP, VIDE, AMD,
FCS, GOOG
·
Healthcare
o
Thursday July 15: CBST, ANGO, MTOX, ABT
·
Real Estate
o
Thursday July 15: MSW
·
Transportation
o
Thursday July 15: AMR
***All eco data from Bloomberg and DJ
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