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Morning @ Cantor

Market Commentary

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News

� Euro bank stress test results could still come early: sources from Reuters

� Stress-test rumours and reality from FT Alphaville

� We�re sure things are very � err, stressful right now at the London headquarters of the Committee for European Banking Supervisors, ahead of the Friday publication...

� EU bank stress tests looks at 'sovereign debt shock' scenario from Telegraph

� European banks have had to provide the authorities with information on how they would perform under two "adverse" scenarios as part of the region's stress tests.

� Europe�s largest banks may give breakdowns of their sovereign-debt holdings when they release stress-test results, according to a document from the Committee of European Banking Supervisors - BBG

� Euro Rally Is Prelude to a Fall � WSJ

� Bears See Rise More About Jitters on U.S. Economy Than Continental Optimism

� http://online.wsj.com/article/SB10001424052748703954804575381420061974614.html?mod=WSJ_newsreel_markets

� China visible in euro zone bond buys -EU trade chief

� Greece, Spain bonds good for China -EU trade chief from Reuters

� China's purchases of bonds from Greece and Spain are a good investment and will keep their value, European Trade Commissioner Karel De Gucht said on Thursday.

� I.M.F. Backs Efforts in Europe to Cut Deficits from DealBook

� The International Monetary Fund lent its support Wednesday to Europe's budget deficit reduction efforts, pulling away from previous calls for stimulus even as it warned of a "moderate and uneven" recovery in the region.

� Nomura thinks you should be more bearish on Hungary from FT Alphaville

� Weaker EU members' dependence on the ECB is at a record high

� Data show that weaker members of the EU are more dependent on the European Central Bank than ever before. The revelation comes as European regulators prepare to release results of stress tests on 91 banks, part of efforts to reassure markets about the stability of the financial sector. However, sources said some regulators are urging that results be released before the start of trading in Europe, rather than after, as planned. The Wall Street Journal (22 Jul.)

� Telegraph's Evans-Pritchard commented on safe haven demand for the Swiss Franc and the losses disclosed by the Swiss National Bank, and referencing analysts at HSBC, if there is a US slowdown, then everyone will buy Swiss Francs. He further states that now that Japan's debt is about 200% of GDP, the CHF has displaced the yen as the ultimate safe haven

� Central bank loses $3.8B trying to hold down the Swiss franc's value

� The Swiss National Bank said it expects to report a $3.8 billion loss on purchases of euros, a largely unsuccessful effort to halt the strengthening Swiss franc. The central bank said profit on other foreign-currency transactions and an increase in the price of gold covered most of the loss. If the euro rebounds, the bank will probably recover all of the remaining loss, economists said. SwissInfo/Agencies (21 Jul.) , Bloomberg (22 Jul.) , The Independent (London) (22 Jul.)

o China stories:�

� Yuan forwards dropped to the weakest level in a month after Federal Reserve Chairman Ben S. Bernanke said the economic outlook is �unusually uncertain,� prompting investors to seek safety in the dollar.

� China vs West:�� Baidu Forecast Beats Estimates as China Dispute Hampers Google

� China vs West:� China Never Investigated Tainted Heparin, Says Probe � WSJ

o The Chinese government didn't pursue an investigation into contaminated heparin sent to the U.S. in 2007 and 2008, despite repeated requests from the U.S. for help, according to a congressional probe

o http://online.wsj.com/article/SB10001424052748703954804575381540372921432.html?mod=WSJ_hps_SECONDTopStories

� China vs West:� Motorola Claims Huawei Plot

� Foreign companies in China sound off on business policies from Wash Post

o The heads of some leading U.S. and European multinationals have publicly questioned recently whether new Chinese policies and regulations are making China a more difficult place for foreign firms to do business.

� China should widen yuan's float: c.bank researcher from Reuters

o China should let the yuan float within a wider range in a gradual process over the next five years, an official at a local branch of the central bank said in comments published on Thursday.

o Two weather patterns over the Caribbean and Gulf of Mexico pose a storm risk to Cuba and Mexico, the National Hurricane Center said.

� Overseas Action

o European shares�� higher by 1.5% on Thursday, up for the third straight day,

� European equities are on a positive footing this morning as there were unexpected gains in European manufacturing and UK retail sales.

� The PMI Manufacturing Index in the EU was booked at 56.5 for July when only 55.1 was expected

� In the UK Retail Sales jumped in June by 1.0% when just 0.6% had been expected. Strip out auto sales and the figure was +3.1%.

� The official results of the EU Banks Stress Test may nmot officially be released till tiomorrow at 5pm BST; still plenty of leaks are emerguing suggesting most will pass. Given the tst has not allowed for any sovereign default the test is not as robust as many would have liked

o Asia: Nikkei (0.62%); Hang Seng +0.50%; Shanghai Composite +1.07%

o Japanese Stocks Decline for Fifth Day After Bernanke Comments

o Data:

o Brazil�s central bank raised its policy interest rate by less than expected, adding to a growing consensus that the country� economy is running out of steam and is vulnerable to slower growth in the world�s other big economies� - FT

Economics today: �

o Initial Jobless Claims at 08.30 ET

o Bernanke testifies before House Committee at 09.30 ET

o May FHFA Home Price Index, Leading Indicators at 10.00 ET

o Jun Existing Home Sales, Natural Gas Inventories at 10.30 ET

Earnings:

o Companies due to report before the bell include: AN, APD, BAX, BBT, BMY, CAT, DHR, DO, EXC, FITB, FLIR, HBAN, HOT, HSY, JNS, KEY, LH, LLY, MHS, MMM, NUE, NYT, PCP, PLD, PM, RAI, SHW, SIAL, STI, STJ, SWY, T, TRV, UNP, UPS, VFC, XRX, ZMH, COG

o Companies due to report after the close include: AMZN, AXP, BCR, CB, COF, CPWR, ETFC, FII, FLEX, LEG, MSFT, OLGC, SNDK

o U.S. challenges Arizona immigration law in court from Reuters

� President Barack Obama's administration heads to court on Thursday in a showdown over whether Arizona's crackdown on illegal immigrants encroaches on federal authority over immigration policy and enforcement.

o Congress Set to Approve Extension of U.S. Unemployment Benefits (Bloomberg) -- The U.S. Congress plans to complete work today on restoring unemployment benefits that were cut off to 2.5 million people by an election-year fight over whether the cost should be added to the federal deficit.

TODAY�S BIG STORIES

� Top M&A

o Airgas Rejects �Lowball� Offer From Air Products � BBG

o ELN Activist investor is targeting Elan Corp's management and board -- WSJ

� Top $ Raising

o Freescale Semiconductor's private equity owners considering an IPO - Reuters

o Santander is thought to be considering a flotation of its UK banking operations in London in move that could raise up to �3bn.� Telegraph

o Ferrexpo [FXPO.UK] cancelled $500M bond sale, citing cost of refinancing as too high

o Ten large institutions avoided Ocado IPO over price concerns -- London Times

o GDOT Green Dot Corp 4.6M share IPO priced at $36 through JPMorgan and Morgan Stanley �The size was increased from 4.2M shares and the offering was priced above the anticipated $32-$35 range.

� Ford Scuttles Debt Deal as Overhaul Chills Market

o Ford financing arm pulled plans to issue new debt, the first casualty of a bond market thrown into turmoil by the financial overhaul signed into law Wednesday.

o Market participants said the auto maker pulled a recent deal, backed by packages of auto loans, because it was unable to use credit ratings in its offering documents, a legal requirement for such sales

o http://online.wsj.com/article/SB10001424052748703954804575381644138678302.html?mod=WSJ_newsreel_business

� Munis: �� University of Virginia Build America Is First 30-Year Below 5% - BBG

o Top-rated University of Virginia sold $190 million of 30-year Build America Bonds yesterday to yield 4.9 percent, the lowest on record for that maturity, according to data compiled by Bloomberg.

o �The university, founded by Thomas Jefferson in 1819, became the first borrower to offer a 30-year Build America Bond with a 5 percent coupon since the federal government created the subsidized taxable municipal securities last year, Bloomberg data show. The previous low was 5.14 percent in a Washington state issue sold in May, Bloomberg data show.

o ��Something like Virginia is going to get prime attention,�

� Jobs new:�

o Emergency jobless benefits approved in crucial Senate vote � WP link

� The Senate voted 59 to 39 Wednesday to restore emergency jobless benefits to millions of people who have been out of work for more than six months.

o Bernanke�s �Uncertainty� Drives Temp Hiring - BBG

� A surge in temporary hiring by U.S. companies underscores Federal Reserve Chairman Ben Bernanke�s warning that the course of the economic recovery is �unusually uncertain.�

� the move by companies to hire temporary workers is driving revenue at Manpower Inc., the world�s second-largest provider of temporary workers. The reliance on temporary staff may be impeding the growth of the permanent jobs needed to fuel consumer spending, which accounts for two-thirds of the economy.

o Newly Fired Workers Won�t Get Health-Care Break Under Jobs Bill - BBG

� Collateral Damage in Lending from WSJ.com

o Many small businesses seeking loans are being asked for alternative collateral, often in the form of cash, because property and equipment has fallen in value.

� Kass: Market Range Bound With Defined Floor & Ceiling� CNBC link

� Traders: Stocks Looking To Challenge S&P 1100?� CNBC link

� Beware of Market Correction in the Fall: Strategist..CNBC link cites Barry Knapp, head of US portfolio strategy at Barclays

� Obama Budget Review May Trim 2010 Deficit Forecast - CNBC link

o The Obama administration may report somewhat better fiscal news when it delivers its mid-session budget review later this week, but the United States still faces a massive deficit and rising debt.

� Lindsey: U.S. entering deflation trap, to ease more from Reuters

o Former Federal Reserve board member Lawrence Lindsey said on Thursday it will be "obvious" by the end of this year that the U.S. economy has entered a "deflationary trap."

� Big Business Takes on Obama from BusinessWeek

� 20% of Americans hit by major economic loss CNNMoney.com

o A new study released Wednesday estimates that 20% of Americans suffered a significant economic loss last year - the highest level in the past 25 years

� Taxes:�� Summers Says Bush Tax Cuts on Wealthy Families �Inefficacious�

o White House economic adviser Larry Summers said a double-dip recession isn�t likely and rejected Republican arguments for extending the Bush administration�s tax cuts for high-income families

o �Tax cuts for high-income families are a relatively inefficacious measure for pushing the economy forward,�

o Summers, director of the White House National Economic Council, said in a Bloomberg Television interview yesterday

o He said Congress should extend the Bush tax cuts for middle-income families. All of the Bush-era tax cuts are scheduled to expire at the end of the year.

� Taxes:�� Bush Tax Cuts Split Democrats � WSJ link

o wo more Senate Democrats called for extending tax cuts for all earners�including those with the highest incomes�in what appears to be a breakdown of the party's consensus.

� Pay Czar to Detail Large Banker Bonuses �� WSJ link

o The pay czar is expected to issue a potentially embarrassing report detailing large sums paid out by financial firms to top executives and employees during the height of the financial crisis.

� Paulson & Co to launch retail fund: report

o Paulson & Co, the hedge fund linked to civil fraud charges against Goldman Sachs , will launch a new fund open to retail investors, the Financial Times said on Thursday.

� BP:�� Scotland First Minister Writes To US Over Megrahi-BP Row - BBC

o Scotland's first minister Alex Salmond has written to U.S. senator John Kerry, chairman of the U.S. Senate Committee on Foreign Relations, after senators called for an inquiry into the release of the Lockerbie bomber

o Salmond said the Scottish government made the decision on "compassionate grounds" because Abdelbaset Ali al-Megrahi is terminally ill with prostate cancer.

o He said there were no representations from oil giant BP� on the freeing of al-Megrahi, who was convicted over the 1988 bombing of Pan Am flight 103 in which 270 people died.

� Airbus trades� up today..ups targets at air show..says recession is definitely over � BBG

� Tech:

� Qualcomm Profit, Sales Top Forecasts; Shares Jump

o Baidu Beats Wall Street Profit, Revenue Targets

o Hynix Posts Record Profit, Sales, Beating Estimates

� Hynix (000660.KS) traded lower after reporting Q2 and warning Dram prices would fall in Q3

o Hon Hai Precision to discusses raising prices to cover wage increases � WSJ

o FFIV +5.9%

o QCOM +5%

o BIDU +3.5%

o Autonomy dn 13% today� (AU.LN) 2Q sales of $221m in line, but "margins slightly light," weighed down by higher marketing spend and hardware, UBS says.

� Danahers (DHR) second-quarter profit rose 26% on better-than-expected sales.

o �President and Chief Executive H. Lawrence Culp Jr. said that as the macro environment continues to improve, the company has seen strong core revenue growth, which typically excludes impacts from foreign exchange and acquisitions. This figure rose 14% in the latest also has been buying a number of slow-growing companies to expand its portfolio, further boosting results.

� NOK a littlie higher� reported mostly in line ..no mgmt changes anncdt

� XRX reports and guided in line to better..

� Consumer sector busy:

o EBAY +2.4% .. EBAY, FX comments weigh

o NFLX -8.2% (earnings)

o SBUX -2.4% (earnings)

� The world�s largest shipbuilder gained 3.9 percent �.Hyundai Heavy Industries Co. rose to the highest in almost two years on better-than-expected profit and speculation about a pick-up in ship orders following a contract for Daewoo Shipbuilding & Marine Engineering

� Volvo beats,�.Shares Open -1.5% At SEK88.50 After 2Q Report

o Swedish truck maker AB Volvo (VOLV-B.SK) Thursday reported its second consecutive quarterly net profit, but stuck to its forecast for 10% growth in Europe and 20% to 30% in North America in the full year.

o Volvo sees gradual recovery in demand � FT link

� Credit Suisse Group (CS) dn today (trading revs weigh)� Thursday posted a 1.3% rise in second-quarter net profit, as the bank benefited from a 922 million Swiss franc ($878.1 million) gain on its own debt and curbed costs to counter investment-banking trading conditions, which soured amid the euro-zone debt crisis.

o CS says to pass stress tests � BBG

� industrial group ABB up after reporting

� Syngenta Shares Open 3.9% Lower

o Syngenta AG the Swiss maker of agricultural chemicals has abandoned its 2010 targets as H1 profits fell by 11% ...the group has been weighed down by too much inventory.

� Stora Enso Shares Open +2.9% At EUR6.28 After 2Q Report

� SSAB Shares Open -5.5% At SEK110.30 After 2Q Report

� Outokumpu Shares Open -2.6% At EUR13.37 After 2Q Report

� Dubai World, the state-owned company seeking to renegotiate the terms on $23.5 billion of debt, began presenting its debt restructuring plan to about 70 banks today � BBG

� British politics, a recent poll conducted by YouGov placed the Liberal Democrats to its lowest approval rating under Deputy Prime Minister Clegg at 13% against the time of the campaign election at 31%.

� Talks might not save climate bill� from POLITICO

o Months of closed-door talks have failed to garner the 60 votes needed to pass the climate bill

� GOP may oust Bachus from financial panel from POLITICO

o Members have been frustated with Bachus's failure to challenge Barney Frank during financial reforms.

� Palin is at the top of her party from POLITICO

o Simon says Sarah Palin has the potential to be the 2012 Republican nominee

� Iran Says Scientist Spied on U.S.� � WSJ link

� North Korea Condemns US Sanctions And Naval Drills � DJ

� Petraeus Sharpens Afghan Strategy � WSJ link

o Gen. Petraeus plans to ramp up the military's troop-intensive strategy in Afghanistan, which has focused too much attention on hunting down Taliban leaders

� Abbas signals will resist U.S. pressure for talks from Reuters

� �Palestinian President Mahmoud Abbas has indicated he will resist U.S. pressure for face-to-face peace talks with Israel for now, saying indirect negotiations must make progress first.

� Mexican cartels rely more on explosives in drug war from USATODAY.com

o Mexican cartels have steadily increased their use of explosives in the past two years in the nation's drug war

� Man Who Threatened "South Park" Arrested - thesmokinggun

o The Virginia man who this year threatened the creators of "South Park" over an episode featuring the Prophet Muhammad dressed in a bear suit, was arrested today on federal charges after speaking openly to the FBI about his connection to a terror organization and his plans to travel overseas to fight with the group. Zachary Chesser, 20, was charged with providing material support to Al-Shabaab, a terror group affiliated with al-Qaeda

o http://www.thesmokinggun.com/archive/years/2010/0721101southpark1.html

CANTOR TRADING RECAP

� Equity Recap

� They were higher earlier only to head lower after Bernanke started to speak in his Humphrey Hawkins testimony , which didn�t really offer anything new from last week�s fomc minutes but had a phrase in there that led people to think that if the top guy doesn�t see clarity, why should we? � the economic outlook remains unusually uncertain,)? So between that and the fact that the fed has thrown the gun at you because they have no bullets left, and investors have no money left and it shows, not to mention the fact that people are selling good earnings out there. We swung with AAPL all day, started up 10 to end the day +2 and change. Breadth to the market had declining issues outnumbering advancing ones by 3-1 while internally here, buy and sell names were equal. Technically you have Sp 500, 1,046 support, while your 50 day moving average is 1,086 and doesn�t feel like we can get thru 1,907-1,100 either

o Billy Clark and Team

� Investment Grade Recap

o IG spreads were mixed with the grind tighter for most of the day until the Fed testimony formerly known as the Humphrey Hawkins in the afternoon.� Spreads softened along with equities as Bernanke did not have the silver bullet the markets were apparently looking for with the best out of him that the Fed will �remain prepared� and will �take further policy actions as needed.�� The last few weeks have seen the market turn softer with Thursday unemployment numbers pervasively soft so tomorrow should remain interesting.� That said, there remains a large appetite for bonds with a large mix of buyers at even these tighter levels � UTX 20s are now wrapped around +50 and quality 5yr paper (PEP, MDT, ABT) is now wrapped around +30.� Bonds continue to trade very well off bwic�s as well, I did not cover at +63.9 on some MDT 20s that were in for the bid and this is a bond that had been +67-62 the past few days�New issuance dominated most of the day with just shy of $10BN headlined by Noble Corp (NE Baa1/A) coming 70bps tight to original talk and tightening a subsequent 20bps.� We were active in the ten and thirty year tranches, going out +189-185 (px�d +205) in the 20s and +212-208 (px�d +230) in the 40s.� It was only a matter of weeks ago that DO (Baa1/A) was trading back near +300 with few buyers around.Michael Salemo

Rates Commentary

o An extremely quiet and range bound trade throughout much of the session with most participants awaiting Fed Chairman Bernanke's testimony in the afternoon. Treasuries were mixed to slightly higher throughout the morning and early afternoon with long end leading the market after it had been lagging since the 30 year auction last Thursday, 10/30s came well off their recent wides reached yesterday of 105bps trading 100.5bps intraday. Chairman Bernanke's testimony highlighted that the economic outlook remains unusually uncertain, Fed prepared to take more policy actions as needed and need to get the deficit lower. Treasuries were extremely firm once his statement was released and bid throughout the remainder of the session with the long end continuing to lead the rally. At 3PM Treasuries were higher in price across the curve with yields ~2.5-6.5bps lower in the yield. The 2 year traded once again to a record low yield of .552%, while the 10 year broke through its recent highs earlier this month trading to 2.853% intraday.

o With the continued downturn in the economy, growth fears and potential tools the Fed may use we remain bullish on Treasuries in the long term look to buying dips in the long end. Ahead of next weeks 2 year, 5 year and 7 year auctions with the auction announcement tomorrow, we look for a small backup in the short and intermediate sectors. Bernanke continues his testimony tomorrow at 9:30 in front of the House, with claims and existing home sales and the continued corporate earnings all on the calendar.

o Primary Dealer

CMBS Recap

o Though still light, happy to see an increase in activity the past couple days.� Saw $300mm in BWICs today with the focus again on '05 lcfs ($120mm).� '05s have had a nice run this week but we still like them.� Again saw over 50% of the selling from buy and hold accounts.

o The CMBS mkt has lacked vol recently but has decoupled a bit from corps and equities.� GG10s finished the day 3bps tighter (+377/$99-2) despite stocks off 1.25%, IG out 2bps and HY CDS off 1/3 pt.

o Did see a decent amount of activity in the AM/AJ space today with $80mm in for the bid.� The AMs covered pick 350 to 400 to the dupers.� Home team traded $10mm COMM 06-C7 AMs.

o �Interesting trade of the day were CMLT 08-LS1 ASMs- dont know where they traded except in the $80s.� Lets assume $81 which is +760.� The detachment points are 30/33% credit support.� The back end remremic off the deal would probably trade +700 area with detachment points of 33/50%.�

o . The big news in the CMBS mkt centers around the potential effects of the Dobb-Frank reform.� See yesterdays WSJ article regarding the Rating Agencies.

o Geordie Walker

o Gulf Drilling Should Resume on Case-by-Case Basis, Expert Says � BBG

� U.S. regulators could end a blanket ban on deep-water oil drilling by increasing oversight of troubled wells and improving safety industrywide, a California professor who studies catastrophes said in an interim report on the sinking of the Deepwater Horizon rig in the Gulf of Mexico

� Robert Bea, the University of California Berkeley engineering professor who studied the Columbia Space Shuttle explosion and the failure of New Orleans levees after Hurricane Katrina, said regulators should determine which drilling operations should be suspended �on a case-by-case basis� as the industry works to improve blowout prevention equipment, inspection procedures and worker training programs.

o BP:�� Scotland First Minister Writes To US Over Megrahi-BP Row - BBC

� Scotland's first minister Alex Salmond has written to U.S. senator John Kerry, chairman of the U.S. Senate Committee on Foreign Relations, after senators called for an inquiry into the release of the Lockerbie bomber

� Salmond said the Scottish government made the decision on "compassionate grounds" because Abdelbaset Ali al-Megrahi is terminally ill with prostate cancer.

� He said there were no representations from oil giant BP� on the freeing of al-Megrahi, who was convicted over the 1988 bombing of Pan Am flight 103 in which 270 people died.

o More doctored BP photos come to light from Wash Post

� The search for doctored BP photos is on. And it's a bit like finding Waldo in the famous game.

o US Court Halts Arctic Oil Drilling For Review � Plaintiffs - AFP

� A U.S. judge has ordered a halt to offshore oil and gas drilling off the north coast of Alaska for further environmental review, the plaintiffs in the case said

� �An environmental coalition represented by the group Earthjustice said the court in the Alaskan capital of Anchorage ruled Wednesday that the government "failed to meet its obligation under the law to analyze the importance of missing basic scientific information about the Chukchi Sea" prior to offering leases in the sea.

o Oil Firms Plan Rapid-Response Force (hit yest) � WSJ

� Four of the world's largest oil companies are creating a strike force to stanch oil spills in the deep waters of the Gulf of Mexico in a billion-dollar bid to regain the confidence of the White House after BP PLC's disaster.

� Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell PLC and ConocoPhillips said Wednesday that they are forming a joint venture to design

� http://online.wsj.com/article/SB10001424052748704684604575381422950478384.html?mod=WSJ_newsreel_business

o China to launch carbon trading: report from Business Spectator

� China officials agree to start trading scheme within five years.

o ESV Ensco PLC reports Q2 EPS

o GPRE Green Plains to implement corn oil extraction technology

o DPM, UGI DCP Midstream Partners to acquire subsidiary of UGI Corp, Atlantic Energy, for $49M cash

o KMP Kinder Morgan Energy Partners reports Q2 EPS

o CPNO Copano Energy LLC issues $300M convertible preferred equity to TPG Capital affiliate

o NGLS Targa Resources Partners increases quarterly distribution by 1.9% to $0.5275 from $0.5175

o CLB Core Labs reports Q2 EPS

o HK Petrohawk Energy initiated perform at Oppenheimer

o KMP Kinder Morgan Energy Partners increases quarterly dividend by 1.9% to $1.09 from $1.07

o NFX Newfield provides Mid-year operational update

o XOM 4 oil majors expected to announce rapid response system for GoM spills -- NY Times

o NVEC NVE Corp reports Q1 EPS

o CHKM Chesapeake Midstream Partners commences 21.25M unit IPO through UBS, Citi and Morgan Stanley

INDUSTRIALS

o Airbus up today..ups targets at air show..says recession is definitely over � BBG

o APD reports mixed�

� Air Products reports Q3 EPS $1.28 ex-items vs Reuters $1.26

� Company reports revenues of $2.25B vs Reuters $2.29B.

� Guides Q4 EPS to $1.27-1.33 vs Reuters $1.33.

� Guides full year EPS to $4.94-5.00 vs Reuters $4.95.

o GRA W.R. Grace reports and guides mixed vs street

� �Q2 EPS $0.69 vs Reuters $0.68

� �revenues of $685.0M vs year-ago $711.0M.

� Guides full year revenues to $2.60-2.65B vs prior guidance of $2.65-2.75B and Reuters $2.72B; guides adjusted EBIT to $300-315M vs prior guidance of $284-314M.

o ARG Airgas goes on offense against APD Air Products' bid- Reuters

� Industrial gas company Airgas Inc (ARG.N) rejected the latest hostile takeover offer from rival Air Products & Chemicals (APD.N) on Wednesday

� Airgas said Air Products' recently increased offer of $63.50 per share is "extremely opportunistic" and does not take the company's growth potential into account

� http://www.reuters.com/article/idUSN2113224620100721

o TNB Thomas & Betts reports and guides better

� �Q2 EPS $0.69 ex-items vs Reuters $0.64

� Company reports revenues of $514.6M vs Reuters $495.4M.

� Guides full year EPS to $2.50-2.65 ex-items vs prior guidance of $2.25-2.65 and Reuters $2.63

o industrial group ABB up after reporting

o Syngenta Shares Open 3.9% Lower

� Syngenta AG the Swiss maker of agricultural chemicals has abandoned its 2010 targets as H1 profits fell by 11% ...the group has been weighed down by too much inventory.

o DXPE DXP Enterprises files to withdraw $75M mixed shelf which it filed earlier in the day

o TEX Terex reports Q2 EPS

o IRDM Iridium enters two long term agreements with Boeing for satellite network operations and support

o GGG Graco reports Q2 EPS

o CVTI Covenant Transportation Group reports Q2 EPS

o OFLX Omega Flex reports Q2 EPS

o MFLX Multi-Fineline Electronix guides Q3 revenue to $181 vs Reuters $182.8M

o IEX IDEX Corporation acquires OBL S.r.l.

o EXPO Exponent reports Q2 EPS

o BMI Badger Meter reports Q2 EPS

o A Agilent Technologies names Didier Hirsch SVP and CFO

o PLXS Plexus Corp reports Q3 EPS

o HUBG Hub Group reports Q2 EPS

o AEIS Advanced Energy reports Q2 EPS

o Defense industry PACs hike giving � The hill

� The country�s largest defense-industry interests are on track in 2010 to make record-level campaign contributions as lawmakers enter the home stretch of an intense midterm election season.

o Airbus, Boeing May Force Supplier Merger Spree to Reduce Costs - BBG

� Airbus SAS and Boeing Co. may force mergers among component suppliers in the next 12 months as they seek to slash production and research expenses, according to aerospace executives and analysts at the Farnborough Air Show

� Consolidation will focus on producers of fuselage, tail and engine parts that are too small to bear the development costs Airbus and Boeing want to pass on, according to Paul Edwards, an analyst at Jefferies International. GKN Plc, Senior Plc and Fokker Aerospace say they�re on the lookout for opportunities.

TRANSPORTS

o CAL reports mixed .. guides Q3 consolidated and mainline load factors to be flat to up slightly y/y

o AMR�Lower Airline Costs: An American Dream� WSJ looks at the consequences of AMR Corp's avoidance of bankruptcy

� 'Heard on the Street' column notes that while AMR's avoidance of bankruptcy was virtuous, the result is higher labor costs than its peers. The company had the lowest unit revenue and growth and highest unit costs of its peers that have reported so far. It is estimated that available seat miles per employee has been 25% lower than its peers since 2006. Plus, there is an unfunded pension liability of $7.6B. Unless it can close the competitive gap, investors should be wary of the shares.

� http://online.wsj.com/article/SB10001424052748704684604575381400188696596.html?mod=ITP_moneyandinvesting_10

o RJET Republic Airways announces plan to acquire 24 Embraer 190 jets

o AMR AMR Corp names CFO Thomas Horton as President effective 22-Jul

o BRKA Berkshire Hathaway's Burlington Northern reports weekly carloads (week ended 17-Jul); Total carloads and intermodal +12.5% to 180,262; last week +5.7%.

o The world�s largest shipbuilder gained 3.9 percent �.Hyundai Heavy Industries Co. rose to the highest in almost two years on better-than-expected profit and speculation about a pick-up in ship orders following a contract for Daewoo Shipbuilding & Marine Engineering Co.

o WERN Werner Enterprises reports Q2 EPS

o ��

TECH/MEDIA/TELECOM

o NOK up 3%�� reported mostly in line ..no mgmt changes anncdt

o MLNX -17.8% (earnings)

o SWI -10.4% (earnings)

o ADS- slightly better Q2, but cuts 2010 EPS guidance due to some timing issues and the decision not to implement a processing fee. ADS also issued 2011 guidance which looked very strong. Upside to the Q was driven by better loyalty segment margins and credit trends look to be improving,

o BIDU- better Q driven by better than expected customer adds and a TAC rate decreasing to an all time low. Q3 guidance is also better and customer adds are expected to continue into the coming Q. ARPU also climbed 39% in the Q helping to boost numbers. The successful launch of Phoeenix Nest could be a major driver to future earnings

o CA- slightly better Q1 despite weak booking in the Q (dwn 37% y/y). Subscription and maintenance revs rose slightly helping to drive the small upside, but a big license fee beat was the major reason. CA reported no weakness in Europe and international revs grew slightly. CA reiterated FY11 guidance, but slightly lowered reported guidance due to Euro concerns

o FFIV- Strong Q3 and very strong guidance. The Q3 beat was driven by a record revenue from new customers and an increase in the number of large deals both internationally and at home. FFIV is showing a stronger product pipeline, improved competitive win rates, and solid closure rates that explain the strong guidance. FFIV is also in a strong position to capitalize on Smartphone growth.

o ISIL- in line Q2 and guidance. The computer segment was drag on number in the Q due to inventory build in the previous Q. Industrials performed well in the Q and mgmt is making the move to lean the product mix toward industrials. The Q3 guidance looks strong across all metrics, except the computer segment which looks like it will continue to drag

o *MLNX- Better Q2 on the back of strong infiniband and Ethernet performance. Q3 guidance is a disappointment due to a product mix shift towards silicon and away from adapter cards. Silicon is a lower ASP business, but MLNX views it as a better long term option.

o NTGR- Strong Q2 and in line Q3 guidance. On the call mgmt emphasized 5 areas of growth the company believes could become billion dollar businesses; TV-internet connections, Docsis3.0 gateways, 3G/4G wireless products, storage, and security. Inventories still remain very high amd will be the focus for the bears.

o QCOM- bet on top and bottom line, but GM disappoints. Mgmt said the Q strength was driven by strong demand for higher end chipsets due to smartphone demand. Mgmt continues to say declining ASPs are not a worry and profit will remain stable. Management also said they are considering alternatives for the MediaFlow business, which has been the largest contributor for the QSI segment

o TSS- slight Q2 beat. The outlook remains unchanged as mgmt expects the upside to be lost in bonus payments and promotional spending. MGMT was encouraged by the new acquisition, First National Merchant Solutions. It also looks as though TSS will hold on to at least part of its Bank of America merchant services contract which is a major positive for future earnings.

o WDC- weaker June Q on soft demand and pricing pressures. Very weak guidance issued (42% lower than prior consensus estimate). Mgmt was cautious on back to school demand just as STX was. Mgmt believes it will continue to see 10-15% annual growth in unit shipments for the hardware market.

o XLNX- better Q1 driven by top line growth from strength across all segments, and issued much stronger Q3 guidance. Bears will look to inventory levels which appear to be high. Xilinx noted that due to tight capacity they were unable to fulfill some customer orders. The 65nm and 40/45nm product cycles performed very well for XLNX just as they did for ALTR.

o PLXS- better Q3 and Q4 guidance shows some concers. The guidance implies PLXS may be hit byweakness in Europe. The Q3 beat was driven by slightly better Aerospace/defense segment and wirleine/networking segments.

o MKSI- solid june Q and positive trends look to be continuing,

o LG Display- stronger top line growth, but OP was slightly weakr. Forex headwinds cause the OP weakness. Q2 shipments frew 5%, but that is less than what the street expected, but ASPs provided some upside in the Q. Mgmt guided Q3 shipments to increase in the low teens and inventory levels to normalize.

o Hynix- mostly in line with DRAM shipments ahead of expectations. mgmt warned on PC DRAM for Q3 and ASPs may suffer because of the expected decline in demand.

o Autonomy- in line Q2, but OP looks like a miss. The company did say it saw �the continuation in the improvement of the macro environment�.

o AEIS- better Q2 with a book to bill of 1.34 and bookings looked better

o ORB- Q2 looks weak and guidance misses expectations. Total backlog in the totaled $4.5B

o MOT: Motorola Accuses Huawei of Conspiring to Steal Trade Secrets- BBG

o Facebook Didn�t Sign Contract Ceding Ownership, Zuckerberg Says- BBG

o Elpida, Spansion Agree to Broaden Semiconductor Partnership- BBG

o GOOG: Google Quizzed by Blumenthal on Street View Testing- BBG

o INTC: FTC Says It Will Continue Intel Talks for Two Weeks- BBG

o AEIS Advanced Energy to sell Aera mass flow control and related product lines to Hitachi Metals for $44M in cash

o QBAK Qualstar announces ~$700K order for configurations of its XLS Enterprise Tape Library Systems

o MTSN Mattson files $75M mixed securities shelf

o AMKR Amkor receives final determination from ITC confirming prior opinion of no violation in patent case against Carsem

o GLW Corning to expand clean-air auto product manufacturing in China

o DT,AAPL: iPhone could go to T-Mobile in Q3- engadget

MATERIALS

o Opposition to Australia's proposed mining tax resurfaces

� Australia's midsize mining companies are close to restarting an advertising campaign against a proposed mining tax. Prime Minister Julia Gillard negotiated a compromise with the three biggest miners, BHP Billiton, Rio Tinto and Xstrata, but smaller companies that are not part of the deal are worried about how it would affect them. The Sydney Morning Herald (Australia) (22 Jul.) , International Business Times (22 Jul.)

o KRO Kronos Worldwide announces a price increase for all titanium dioxide products sold in Europe

o NEU NewMarket announces approval for $200M buyback program

o Bloomberg) -- Apex Mining Co., the Philippine gold producer, rose by the daily 50 percent limit in Manila after saying it may have found �high-grade� bullion in a mine in the south.

o Kumba Iron Ore Ltd., a unit of Anglo American Plc, said it reached an interim agreement for deliveries of the steelmaking ingredient to ArcelorMittal South Africa Ltd. while arbitration over a supply dispute continues.� BBG

o Ferrexpo [FXPO.UK] cancelled $500M bond sale, citing cost of refinancing as too high

AUTOS

o Ford Scuttles Debt Deal as Overhaul Chills Market� � WSJ link

� Ford financing arm pulled plans to issue new debt, the first casualty of a bond market thrown into turmoil by the financial overhaul signed into law Wednesday.

� Market participants said the auto maker pulled a recent deal, backed by packages of auto loans, because it was unable to use credit ratings in its offering documents, a legal requirement for such sales

� http://online.wsj.com/article/SB10001424052748703954804575381644138678302.html?mod=WSJ_newsreel_business

o G.M., Eclipsed at Home, Soars to Top in China

� (New York Times) -- SHANGHAI � A decade ago, this city had five car dealerships selling Buicks, the top-selling General Motors brand in China. Today it has 27

� �And the crowds of shoppers that fill many of them are young, ready to pay cash and not inclined to haggle over the sticker price

� �As G.M. prepares a public stock offering later this year, China is emerging as a crucial piece of its appeal to potential investors � and a surprising down payment of sorts for American taxpayers, who would begin shrinking their 61 percent equity stake in the company.

o China Car Dealers Cut Prices as Vehicle Demand Cools

� (Bloomberg) -- China�s appetite for cars has slowed and Zhu Dongwei, an auto salesman in the central Chinese city of Zhengzhou, is doing all he can to whet it

� Customers at Zhu�s General Motors Co. dealership get a 14 percent discount, a refund of sales tax and a chance to win a free iPod if they buy a 41,800 yuan ($6,170) Matiz compact car.

� ��This is our biggest promotion this year,� Zhu said.

� �Without discounts, many people would wait, not buy.�

o Strike at Honda's Chinese Supplier Ends� CNBC link

o Strikes end at two Chinese automotive suppliers from Reuters

� Chinese factory workers at two suppliers for foreign automakers returned to work on Thursday after winning hefty pay rises, ending strikes that again highlighted the carmakers' vulnerability to their China suppliers.

o Workers strike at another auto parts plant in China from Automotive News

� The burst of labor disputes that started in May has since affected more than a dozen mostly foreign-owned factories, raising questions about the region's future as a low-cost manufacturing base

o Hyundai Motor Co., South Korea�s largest automaker, and its workers union reached a tentative agreement on a wage increase for this year, averting a strike.� BBG

o Half of U.S. vehicles would be electrified by 2030 under proposed House bill from Automotive News

� The bill would pump $3.9 billion over 10 years into select communities to build infrastructure to charge electric cars, conduct research and provide incentives for consumers to buy plug-in vehicles.

FINANCIALS

o EU Stress tests tomorrow .. �

� EU banks are rising today in front of it ..but CS reports and trades dn 3%

o Swedbank Profit Beats Estimates as Baltic Loan Losses Decline - BBG

o Basel Committee Nears Agreement on Capital Definition, Leverage � BBG

� Basel Committee on Banking Supervision, nearing agreement on how to redefine capital and when to impose borrowing caps on banks worldwide, has left a final decision to its governing board, which meets next week

� The committee, a body of regulators and central bankers from 27 countries that sets capital standards, narrowed differences about how to count minority stakes in other financial institutions, deferred tax assets and mortgage- servicing rights, according to people with knowledge of the discussions that took place in Basel, Switzerland, last week.

o Loan Demand Is Disappointing at Midtier Banks from American Banker

� Banks that do business from coast to coast said Wednesday that static business borrowing last quarter has dampened hopes that loan demand could pick up by as soon

o F.D.I.C. Sends Insurance Payouts to Thousands from DealBook

� Thanks to the overhaul of financial rules becoming law Wednesday, the Federal Deposit Insurance Corp. can truthfully say "the check is in the mail" to about 9,500 customers of banks that failed in 2008.

o Santander considers �3bn UK listing, report from Telegraph

� Santander is thought to be considering a flotation of its UK banking operations in London in move that could raise up to �3bn.

o Japan's second-largest brokerage ..Daiwa Securities Group. expects to generate 160 billion yen ($1.85 billion) in revenue from its Asia-related businesses for fiscal-year 2011, President and Chief Executive Shigeharu Suzuki said on Thursday. � WSJ link

� "We expect Asia-related revenue for fiscal year 2011 to account for about 30% of the group revenue, a significant increase from the current level of 10%," Mr. Suzuki said

� http://online.wsj.com/article/SB10001424052748703467304575382463968759960.html?mod=WSJ_newsreel_business

o CVBF CVB Financial reports Q2 EPS

o PJC Piper Jaffray downgraded to neutral from buy at Goldman Sachs; target cut to $35 from $46

o WL Wilmington Trust elects CEO Donald Foley as Chairman effective immediately

o GRNB Green Bancshares reports Q2 EPS

o CSFL Centerstate Banks files $30M secondary offering through Keefe, Bruyette & Woods

o AF Astoria Financial reports Q2 EPS

o BRKL Brookline Bancorp reports Q2 EPS

o CSFL Centerstate Banks reports Q2 EPS

o CNS Cohen & Steers reports Q2 EPS

o PCBK Pacific Continental reports Q2 EPS

o NRIM Northrim Bank reports Q2 EPS

o RJF Raymond James reports Q3 EPS

o WASH Washington Trust reports Q2 EPS

o BANR Banner reports Q2 EPS

o GHL Greenhill reports Q2 EPS

o BHLB Berkshire Hills Bancorp reports Q2 EPS

o FNF Fidelity National Financial reports Q2 EPS

o SFG StanCorp Financial reports Q2 EPS

o CASB Cascade Financial reports Q2 EPS

o TCBI Texas Capital reports Q2 EPS

o TRV The Travelers Co reports mixed to worse

� Q2 EPS $1.35 vs Reuters $1.50

� �Guides full year EPS to $5.20-$5.45 vs prior $5.20-$5.55 and Reuters $5.72

o PNC� PNC Bank reports beter first blush

o CASB -11.7% (earnings)

o CSH Cash America reports

o HBAN Huntington Bancshares reports Q2

o BBT BB&T Corp reports

REAL ESTATE

o Zandi on Housing: 'Stop Subsidizing Housing Industry with Tax Deductions' � WSJ link

o Trade Group Wants U.S. Involved in Fannie, Freddie � WSJ link

o HUD to Investigate Mortgage Denials� � NYT� link

� The agency will look into refusals by some lenders to make home loans to people who were pregnant or on short-term disability

o Was Commercial Real Estate's Death Knell Premature?� CNBC link

� with signs of thawing in the securitization markets and indications that investors are ready to come to auction when properties are on the block, the idea that the industry represents a major looming danger for the economy is losing traction.

� Prudential Financial executives, speaking at a market outlook discussion Tuesday in New York, said they are "reluctant optimists" on the space. Marc Halle, the firm's managing director of real estate investments, compared the industry to a "fly wheel" that likely will accelerate in the years ahead.

o Spirit Finance on block, owners seek $3.5 bln from Reuters

� Spirit Finance Corp is up for sale, with its owners, including Macquarie Group , seeking about $3.5 billion for the U.S. real estate investment trust

o Hamptons :� East End home sales activity surges from The Real Deal New York

� The real estate market on the Eastern End of Long Island -- led by the Hamptons -- is demonstrating a remarkable turnaround, with sales up 90 percent from this time last year, according to a market report released today by Prudential Douglas Elliman. �I don�t think anybody expected the improvement in the market to be as rapid as it has been,� said appraiser Jonathan Miller, president of Miller Samuel and the author of the Elliman report. �That says a lot about the product. The Hamptons is a sought-after location -- it wasn�t just a bubble." The number of sales on the East End, which includes the North and South forks and Shelter Island, leaped to 582 in the second quarter of 2010, the report says, up from only 307 in the same period last year. [more]

o $30B mortgage mess from NY Post: Business

� Fannie Mae and Freddie Mac's regulator may identify as much as $30 billion of debt included in mortgage bonds that the companies can force sellers to repurchase, according to Joshua Rosner, an analyst who in 2007 predicted the collapse in the market for the bonds.

o Blackstone Reportedly Buying Japan Assets from TheStreet.com

� Blackstone Group may buy Morgan Stanley's real estate assets in Japan, a report says.

o UHT Universal Health Realty Income Trust reports Q2 FFO

o CYS Cypress Sharpridge reports Q2 core EPS

o LHO LaSalle Hotel reports Q2 FFO

� GRT Glimcher Realty reports Q2 FFO

� FHFA's subpoenas will reveal billions in bad mortgages, an analyst says

o The U.S. Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, might be able to find as much as $30 billion in debt that the mortgage giants can require sellers to repurchase, analyst Joshua Rosner said. The debt is included in mortgage bonds. The agency issued dozens of subpoenas to obtain documents related to nonagency mortgage securities that Fannie and Freddie bought. Bloomberg (21 Jul.)

CONSUMER

o Green Dot Corp. sold 4.56 million shares at $36 each in its initial public offering, according to Bloomberg

o HOT: Starwood Hotels 2Q Profit Falls 15%; Year View Raised >HOT

o JAKK JAKKS Pacific reports Q2 EPS $0.11 vs Reuters $0.05

� �revenues of $123.3M vs Reuters $108.0M

� �Reaffirms full year EPS guidance of $1.10-$1.20 vs Reuters $1.17; reaffirms revenue guidance of $660M-$670M vs Reuters $673.2M.

o Amazon Signs Wylie for E-Books � WSJ link

o 99 Cents Only Stores sued over price increase �L.A. Times

� The chain has been hit with two class-action lawsuits alleging unfair and deceptive business practices and misleading advertising after it raised the top price of goods to 99.99 cents from 99 cents

� A fraction of a penny is amounting to one big headache for 99 Cents Only Stores.

o RL Barron's Weekday Trader is positive on Polo Ralph Lauren

o CSGP CoStar Group reports Q2 revenue of $55.8M

o HNI HNI Corp reports Q2 EPS

o RHI Robert Half guides Q3 EPS

o VFC Consensus metrics for VF Corp

o PPD Pre-Paid Legal reports Q2 EPS

o AXR AMREP Corporation reports Q4 EPS

o RUSHA Rush Enterprises reports Q2 EPS

o HBI Hanesbrands reports Q2 EPS

o MELA FDA informs MELA Sciences that it will move its General and Plastic Surgery Devices Panel for MelaFind to Nov-10

o ADS Alliance Data reports Q2 core EPS

o TBI TrueBlue reports Q2 EPS

o SBUX Starbucks reports Q3 EPS

o RHI Robert Half reports Q2 EPS

o TSCO Tractor Supply reports Q2 EPS

o TSS Total System reports Q2 EPS

o SCSS Select Comfort reports Q2 EPS

o SABMiller interim management statement for 3 months ended 30-Jun: lager volumes, soft drinks volumes were down (1%) y/y on an organic basis

o NAFC Nash Finch reports

GAMING, LODGING, & LEISURE

o Casinos Welcome Christie Plan � WSJ link

o EPAX Ambassadors Group reports Q2 EPS

o GMTC Gametech International board votes to remove Floyd Glisson from his position as President and CEO

o HOT Consensus RevPAR for Starwood Hotels

o MCRI Monarch Casino reports Q2 EPS

HEALTHCARE

o LLY beats EPS, revs

o ALXN Alexion Pharmaceuticals reports.. Reaffirms full year EPS guidance

o Roche Holding (ROG.VX) trades up ..reports H1 core EPS CHF 6.91 vs Reuters CHF7.11, reaffirms FY guidance.

o Nicox Shares Open -20.7% To After FDA Rejects Naproxcinod

o Kingfisher's (KGF.LN) dn 3%� -� second-quarter sales in the UK are "disappointing,"

o BSX Boston Scientific to issue advisory regarding problems with some ICDs - Reuters, citing source

o ISRG Intuitive Surgical raises F10 revenue guidance to 30-33% y/y growth vs prior 27-30% - conf. call

o GTCB GTC Biotherapeutics terminated the Acquisition, Licensing, Development and Supply agreement with ATII and Lundbeck (formerly Ovation Pharmaceuticals)

o OXGN OXiGENE entered into an equity offering sales agreement with McNicoll, Lewis & Vlak

o MRNA MDRNA to effect previously approved one-for-four reverse stock split, effective 16:30 ET today

o ISRG Intuitive Surgical reports Q2 EPS

o EW Edwards Lifesciences reports Q2 EPS

o ANDS Anadys Pharmaceuticals names Steven Holtzman Chairman

o VTIV inVentiv Health shareholders approve previously announced merger with Thomas H. Lee Partners

o UPI Uroplasty announces offering through Oppenheimer

o AMLN Amylin Pharmaceuticals reports Q2 EPS

o AFFX Affymetrix reports Q2 EPS

o BHRT Bioheart discloses $1M private placement

o BIOMERIEUX SHARES FALL 8%

OTHER

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

o + WFT, CLB, SNDK, CRUS, SWKS, ARMH, IP, CYT, SFY and CRM

o MSFT ��

EUROPE TRADING WRAP

� industrial group ABB up after reporting

� Oils

� BP (+0.3%). Indian state oil company ONGC is in talks with a view to buying BPs Vietnam Gas Block stake.

� Technip (+4.5%). 2Q Net profit ahead of estimates and full year guidance confirmed.

� Fugro (+1.8%). Company wins a 5-yr $100m Diving Contract in Brazil.

� Dragon Oil (-1.5%). 1H production is below expectations, but expect decent annual growth through 2010-2012.

� Chemicals

� Syngenta (-5.5%). 2Q Net Profit and sales miss estimates. Company expects 2010 profit to be flat.

� Metals and Mining

� Outokumpu (-4.5%). 2Q results swing to a profit, beating expectations. But 3Q outlook was lighter than forecast.

� SSAB (-7%). 2Q sales and operating profit inline, but Net figure misses expectations.

� Petropavlovsk (-0.7%). Expect 2010 gold output to be at the lower end of company expectations.

� Utilities

� Scottish and Southern (-0.2%). Trading statement claims company is on track for 2010/2011 dividend growth targets.

� �Imperial Tobacco�� Bloomberg) -- Imperial Tobacco Group Plc said cigarette volumes in the nine months to June fell 4.3 percent, hurt by market declines in Spain, the U.S., Russia and Ukraine.The company�s performance in the financial year that ends in September is in line with expectations, the company said in a statement today.

� BIOMERIEUX SHARES FALL 8%

� Kingfisher [KGF.UK] provided Q2 preclose update: Like-for-like sales -0.8%; Total sales +0.3%; Consumer spending remains under pressure, notably in the UK

� Autonomy [AU.UK] dn 13%�� reported Q2 Net $54.2M v $50.9M y/y, Rev $221M v $195M y/y

ASIA TRADING WRAP

Japan

� NKY -0.62%, TPX -0.47%

� NKY fell hurt by a strong yen after Fed chairman Bernanke expressed concern about the US economy. Turnover on the TPX rose to 1.08 trillion yen from 863.52B yen yesterday

� Stocks fell across most sectors led by tech, industrials, materials, oil & gas and consumer. Utilities rose

� Exporters lost ground on yen�s strength: autos -0.17%, CE +0.35%, precision -2.17%

� Best performing sectors on the TPX: retail +0.68%, other financing +0.63%, electric power & gas +0.42%; worst performing sectors: airlines -2.31%, precision -2.17%, mining -2.06%

Hong Kong

� HSI +0.50%; HSCEI +0.55%

� Stocks rose erasing losses tracking SHCOMP strength. Turnover on the HIS was flat at HK$14.39B from yesterday

� Steel names rose after the price for domestic hot-rolled steel sheet yesterday rose 2.10% to the highest since Jun 30 and Standard Chartered upgraded the sector

� Mainland property names rose after report China plans to start implementing a property tax in 2012 on trial basis

China

� SHCOMP +1.07%; SZCOMP +1.45%

� Stocks rose as steel names rose after mainland steel prices rebound after a 3-mth slump and property developers climbed on reports a property tax will be levied later than expected. Turnover on the SHCOMP fell to 104.09B yuan from 109.36B yuan yesterday

� Stocks rose across most sectors led by tech, consumer, health care and financials. Telecom fell after outperforming yesterday

� Iron & steel +0.72% after the price for domestic hot-rolled steel sheet yesterday rose 2.10% to the highest since Jun 30. Standard Chartered upgraded the sector

� Real estate +2.67%. China plans to start implementing a property tax in 2012 on trial basis

INVESTMENT BANKING

M&A

� APA Apache Lines Up $5B Bridge Loan For BP Deal, Doesn't Use It- DJ

o Apache said that it would employ an array of financing tools in its $7 billion acquisition of oil and gas fields from BP, including cash, revolving loans, term loans, stock sales and convertible bonds

o What it won't use is the $5 billion bridge loan it arranged for late Tuesday

o http://www.lse.co.uk/sharecast-news-article.asp?ArticleCode=3588148&ArticleHeadline=Apache_Lines_Up_5B_Bridge_Loan_For_BP_Deal_Doesnt_Use_It

� ONGC: Expressed Interest to Buy BP Stake in Vietnam Gas Block- WSJ

o He said BP has informed PetroVietnam about its plan to exit the Nam Con Son gas project in the Southeast Asian country

o Currently, BP holds a 35% stake in the block and is also the operator. ONGC owns 45% while PetroVietnam has the remainder.

o ONGC's Sharma declined to disclose the valuation of BP's stake in the gas block, but said ONGC has the resources to buy BP's stake

o http://online.wsj.com/article/SB10001424052748704684604575382203834110966.html?mod=googlenews_wsj

� Taiwan Formosa Plastics interested in BP assets- Marketwatch

o �There's an interest, but it depends on conditions and the price," the official said, declining to be named. BP hasn't approached the company so far, he said. He didn't specify which assets Formosa would be interested in purchasing or their location

o http://www.marketwatch.com/story/taiwan-formosa-plastics-interested-in-bp-assets-2010-07-22

� India May Bid for BP Stake in Vietnam to Secure Gas- BBG

o India�s government may offer to buy BP Plc�s stake in a natural gas field in Vietnam, as the U.K. energy company sells $10 billion of assets to pay for the Gulf of Mexico oil spill.

o ��We have read that BP may offer its stake in the field andwe will be very happy to consider it,� Indian Oil Minister Murli Deora said by telephone yesterday from Vietnam

� CMCSA Comcast�s NBC Purchase May Mean Selling Stations or Arbitration- BBG

o Comcast Corp. may have to sell some NBC television stations or agree to have independent arbitration settle pricing disputes to get U.S. government approval for buying GE General Electric�s NBC Universal

o Philadelphia-based Comcast�s power in key markets is �absolutely going to be a major concern� for officials, said Craig Moffett, an analyst at New York-based Sanford C. Bernstein

o http://www.businessweek.com/news/2010-07-22/comcast-s-nbc-purchase-may-mean-selling-stations-or-arbitration.html

� CPB Campbell not keen on SLE Sara Lee's bread unit- Reuters

o Sara Lee is quietly seeking buyers for its bread unit, which had $2.2 billion in annual sales last year, but has not launched a formal auction

o Campbell Soup is not interested in buying on Sara Lee Corp's bread business

o http://www.reuters.com/article/idUSN2117264220100721

� Airbus, BA Boeing May Force Supplier Merger Spree to Reduce Costs- BBG

o Airbus SAS and Boeing Co. may force mergers among component suppliers in the next 12 months as they seek to slash production and research expenses

o Consolidation will focus on producers of fuselage, tail and engine parts that are too small to bear the development costs Airbus and Boeing want to pass on

� EADS eyeing U.S. acquisitions- Reuters

o Europe's EADS is looking at several acquisition targets in the United States, particularly companies in the military services sector

o http://www.reuters.com/article/idUSN2112673620100721

� ARG Airgas goes on offense against APD Air Products' bid- Reuters

o Industrial gas company Airgas Inc (ARG.N) rejected the latest hostile takeover offer from rival Air Products & Chemicals (APD.N) on Wednesday

o Airgas said Air Products' recently increased offer of $63.50 per share is "extremely opportunistic" and does not take the company's growth potential into account

o http://www.reuters.com/article/idUSN2113224620100721

� BX Blackstone Said to Seek Real Estate Assets in Japan- BBG

o Blackstone Group LP may buy Morgan Stanley Japan�s real estate assets, making its first property investment in the country

o The world�s biggest private-equity firm expects to complete a deal for assets with a face value of 100 billion yen ($1.16 billion) next week

o http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=amfRvrqIHXig

� ETN Eaton CEO sees improving M&A environment- Reuters

o Diversified manufacturer Eaton is seeing an improved deal environment and is more willing to deploy cash toward mergers and acquisitions than toward a stock buyback

o He said acquisitions were more likely to be used to grow Eaton's electrical, hydraulic and aerospace businesses. He did not mention the company's truck and automotive divisions

o http://www.reuters.com/article/idUSTRE66K4R420100721

� Snack Food Firm United Biscuits To Be Sold- SkyNews

o Sky's City editor Mark Kleinman exclusively revealed the two private equity firms that own the British business were looking to attract offers of �2bn and above.

o Sky understands that owners Blackstone and PAI Partners would be prepared to sell the firm's snacks division and its biscuits unit to different buyers

o http://news.sky.com/skynews/Home/Business/United-Biscuits-To-Be-Put-Up-For-Sale-Owners-Of-Snack-Firm-Value-Business-At-2bn/Article/201007315668567

� Chinatrust: Still interested in AIG Taiwan unit talks- Reuters

o Chinatrust Financial would be happy to talk to AIG about its Taiwan life insurance unit if the U.S. firm is unable to seal an existing deal to sell the unit.

o We are still interested in Nan Shan. If AIG is willing to talk to us before the bid deadline, we would be happy to take them up,"

o http://www.reuters.com/article/idUSTPV00176520100722

� VTIV Inventiv Health shareholders approve merger with Thomas H Lee Partners

� Pearson makes $499 mln leap into Brazil schools- Reuters

o Pearson Plc is investing 888 million Brazilian reais ($499 million) to partner with Sistema Educacional Brasileiro

o Learning systems include curriculum design, teacher support and training, print and digital materials, technology and assessment services. Pearson estimates Brazil's educational materials market to be worth $2 billion.

o http://www.reuters.com/article/idUSLDE66L08H20100722

� Power Grid, India to Sell 20 Percent Stake Worth $1.8 Billion- BBG

o Power Grid Corp. of India the nation�s biggest electricity transmission company, and the� government secured cabinet approval to sell a 20 percent stake, worth $1.8 billion, as part of a record sell-off of state assets.

o Power Grid shares rose as much as 3.1 percent, valuing the stake at 87 billion rupees ($1.8 billion). The sale may take place in three months

� PKX Posco To Take 20% Stake In Dongkuk Steel's Brazil Steel Mill Project- DJ

o The announcement comes after Posco Chief Financial & Planning Officer Choi Jong-tae told an investor relations session Tuesday that Posco was "seriously" considering joining its smaller South Korean rival for the project, but hadn't reached a decision yet

o http://www.tradesignalonline.com/Markets/Story.aspx?id=655332&cat=5

� S.Korea to unveil $6 bln Woori sale plan next week- Reuters

o South Korea will announce plans next week to sell a 57 percent stake in Woori Financial Holdings Group that may fetch more than $6 billion

o Bankers in Seoul said KB Financial Group, the country's second-biggest financial group, or fourth-ranked Hana Financial Group may seek to buy Woori.

o http://www.reuters.com/article/idUSTOE66K03R20100722

� Pernod Ricard sells Marques de Arienzo for �28M- SA

� CRMC buys 12.8 pct of AgBank H shares- Reuters

o Capital Research and Management Co (CRMC) has bought up 12.79 percent Agricultural Bank of China's H shares for HK$12.66 billion ($1.63 billion), making it the second-largest holder of the Hong Kong-listed shares.

o As turnover for AgBank's trading debut totalled HK$10.47 billion, CRMC's acquisition included shares it picked up in the international placing of the IPO

o http://www.reuters.com/article/idUSTOE66L02K20100722

$ RAISING

o Facebook IPO "when makes sense", Zuckerberg tells ABC- Reuters

� Zuckerberg -- who with friends dreamed up the world's largest social network in a Harvard dorm room -- told ABC he was "quite sure" he had signed no contract handing over ownership rights to the company, disputing a claim to an 84-percent interest.

� "And at some point along the path, I think it'll make sense to have an IPO. But we're not running the company to do that."

� http://www.reuters.com/article/idUSTRE66K6SF20100721

o AIA IPO May be Valued at $12 Billion to $15 Billion- FT

o AIA IPO adds GS Goldman to list of top handlers- Reuters

� American International Group Inc (AIG.N) is set to elevate Goldman Sachs Group (GS.N) to the top role for handling the initial public offering of its Asian life insurance unit, a deal that could raise around $15 billion

� Goldman will share the role with Deutsche Bank AG (DBKGn.DE) and Morgan Stanley (MS.N), the two banks AIG named as joint global coordinators last June when the IPO process for American International Assurance (AIA) initially began

o CHKM Chesapeake Midstream Partners commences 21.25M unit IPO through UBS, Citi and Morgan Stanley

o PE-backed Freescale mulls IPO- Reuters

� The private equity owners of Freescale Semiconductor are considering taking the diversified chipmaker public and preliminary talks have started with banks

� if Freescale were to go public, the money raised in an IPO would not be from selling investors' shares, but rather from creating new shares. The funds would be used to help pay down the company's more than $7 billion in debt

� http://www.reuters.com/article/idUSTRE66K6RE20100721

o CIS Camelot Shares Fall in Debut- Dealbook

� Shares of Camelot Information Systems fell 3 percent their market debut Wednesday, after pricing its initial public offering at the bottom of its expected range

� Camelot raised about $147 million in its initial public offering, selling 13.3 American depositary shares, each representing four ordinary shares

PRICINGS

o Initial Offerings

o GDOT Gren Dot 4.6m share IPO priced at $36. Upsized and priced above the range

o SRGV Surgivision 2.5m share IPO expected to price wk of 7/19 via Rodman & Renshaw: Price Talk $13-14

o Secondary Offerings

o GNK Genco Shipping will sell 3.1 million shares of common stock at a public offering price of $16 per share

NEWS

o Dubai World ready to use tribunal for debt deal- Reuters

� "It's unlikely all 73 banks will accept terms which means it will likely go to a tribunal," the source said, adding that if the majority support the plan, the tribunal can compel holdouts to get in line so the restructuring can proceed.

� Dubai set up the special tribunal to be the arbiter of disputes between lenders and the stricken state company

� http://www.reuters.com/article/idUSTRE66L0PW20100722

o Dubai World restructuring could trigger Gulf gains- reuters

� Pivotal talks this week on restructuring the debts of Dubai World could be a trigger for investors to return to the Gulf region, under a cloud since the state firm suspended bond payments last year

� analysts expect the deal to go through and Dubai assets may look cheap as a result

� http://www.reuters.com/article/idUSTRE66K2T520100721

o Ford Scuttles Debt Deal as Overhaul Chills Market � WSJ

� Ford financing arm pulled plans to issue new debt, the first casualty of a bond market thrown into turmoil by the financial overhaul signed into law Wednesday.

� http://online.wsj.com/article/SB10001424052748703954804575381644138678302.html?mod=WSJ_newsreel_business

o Tech: MTSN Mattson files $75M mixed securities shelf

o Financials: CSFL Centerstate Banks files $30M secondary offering through Keefe, Bruyette & Woods

o Industrials: DXPE DXP Enterprises files to withdraw $75M mixed shelf which it filed earlier in the day

o Healthcare: OXGN OXiGENE entered into an equity offering sales agreement with McNicoll, Lewis & Vlak- SA

� The company may issue and sell shares of common stock having an aggregate offering price of up to $10.0M from time to time through McNicoll, Lewis & Vlak acting as sales agent and underwriter

o Energy: CPNO Copano Energy Raises $300 Million Through Direct Equity Investment by Funds Managed by TPG Capital

TODAY�S EVENTS

CONFERENCES

o AGORA FINANCIAL LLC Investment Symposium - Jul 19, 2010 - Jul 23, 2010

o Geothermal Energy Association Geothermal Energy and Utilities Workshop - Jul 22, 2010

o Macquarie Securities Emerging Leaders Corporate Day - Hong Kong - Jul 22, 2010 - Jul 23, 2010

� CPBY , CSR

o Opal Financial Group Family Office & Private Wealth Management Forum - Jul 21, 2010 - Jul 23, 2010

o Opal Financial Group Public Funds Summit East - Jul 21, 2010 - Jul 23, 2010

o PennWell Corporation Oil Sands and Heavy Oil Technologies Conference - Jul 20, 2010 - Jul 22, 2010

o Terrapinn Banking Outlook Conference - Jul 19, 2010 - Jul 23, 2010

o United Nations Environment Programme International Water Forum - Financing Water Systems and Governance - Jul 22, 2010 - Jul 23, 2010

� AWK

COMPANY MEETINGS/OTHER DAILY EVENTS

o Shareholder Meeetings

o BRLI, ENS, TTPA, PAC, CLU, DBTK, WAYN, FINL, KCAP, MAM, PTX, MOD, FRFC, STZ, TDW

o NI Analyst Meeting

o Bernanke reprises report before the House Financial Services Committee.

ECONOMICS

� 0700 MBA Mortgage Applications

EARNINGS

� Materials

o Thursday July 22: OLN, MOS, SHW, APD, GRA, SIAL, NUE, RS

� Industrials/Homebuilders

o Thursday July 22: NVR, BNSSA, USG, BMI, CSIQ, TNB, KNX, BLDR, IIIN, PCP, BUCY, CBE , HUB/B, VICR, WIRE, CAT, DHR, EML, EXP, GDI, OFLX, SON, UNP, MATW, GMT, WCC, WSO, ITI, MMM, MYE, FLIR, SGC

� Consumer/Retail/Education

o Thursday July 22: VFC, SKX, DPZ, LNY, RT, CMG, VSI, COLM, CSH, EZPW, BOOT, BJRI, CAKE, LTM, POOL, DECK, JAKK, IRBT, NAFC, SWY, YYIN, LEG, DLX, ESI, HSY, JJSF, PM , RAI, RRR, LNCE

� Financials

o Thursday July 22: AMRB, HOMB, SNV, PNSN, BPSG, AMNB, WHG, BARI, ETFC, RJF, CBNJ, CBU, BPOP, CYN, HBAN, KEY, PPBI, EMCF, STI, HMNF, INDB, MBFI, PFBX, SFNC, TBBK , TMP, UBOH, FNFG, GSLA, BX, FII, JNS, AXP, COF, UPFC, TRAD, CB, ORI, ASBC, BBT, BXS, WAYN, WFD, CFNL, CFR COBZ, CRBC, FITB, FNLC, GBCI, MCBI, NRIM, PNC, SASR, SBIB, SCMF, SIVB, SYBT, VLY, WAL, WSBC, IBKR, MFI, OCFC, ROME, LPS, TRV, FCVA, FSGI, HBNC, SBCF, SGB, BBX, HBOS

� Tech/Telecom

o Thursday July 22: INFN, SNDK, T, INFA, AVID, NCR, ISLN, MTSC, AEIS, ATRM, CCMP, CYMI, UTEK, CY, HITT, IKAN, LSCC, MCRL, MSCC, PMCS, MSFT, DGII, RVBD, PGI, AMZN , OSTK, ACTG, AFOP, CPWR, NTCT, EFII, QLGC, DAIO, FLEX, TEL, GGOX, SWKS, FTNT, TZOO, XXIA, XRX, RMBS

� Utilities

o Thursday July 22: EXC, NST

� Healthcare

o Thursday July 22: LLY, VASC, THRX, STJ, LH, HGSI, MHS, BLUD, ALXN, CPHD, DYAX, ATHN, OMCL, BAX, MTD, BCR, IVC, BMY, ZMH, AMSG, WOOF, HWAY, ALGN, ELGX

� Real Estate

o Thursday July 22: PLD, EDR, CLP, UHT

� Media

o Thursday July 22: TVL, NYT, ISIG, SCHL

� Energy

o Thursday July 22: AKNS, COG, RRC, CVA, DO, ESV, CKH

� Gaming, Lodging, & Leisure

o Thursday July 22: EPAX, HOT, MCS, RCL, MCRI, PENN

� Autos

o Thursday July 22: MNRO, GNTX, AN

� Transportation

o Thursday July 22: FWRD, ALK, CAL, LUV, UPS, JBLU, XJT

***All eco data from Bloomberg and DJ

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