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News

� White House: Unemployment at 9% until 2012 from Economic news CNN

o The White House said Friday it expects that unemployment will stay at or above 9% until 2012, but at the same time forecast that the economy will grow by at least 4% in 2011 and 2012.

� The White House raised its forecast for the deficit. WSJ

o �The Obama administration predicted the fiscal 2011 budget deficit would be $1.4 trillion, or 9.2% of the economy. The projection for the current year, $1.47 trillion, actually fell $85 billion from a February forecast. The following three years were adjusted upward. Over 10 years, the White House is projecting $8.5 trillion in additional debt

o �The unemployment rate is projected to stay high, falling only to 8.1% in 2012, when Obama is expected to stand for re-election.

� Companies Wringing Huge Profits From Job Cuts from NYT

o After cutting deeply during the recession, employers are aiming to keep profit margins high without rushing into hiring again

� US recovery stall expected, more stimulus � FT

o Data on gross domestic product and the housing market are set to confirm that the upturn in the world�s biggest economy has slowed and that stimulus measures will remain

o http://link.ft.com/r/A1TNOO/S3CP4K/5ZX3X/ZB4R52/A7DXZF/SN/h

� US:� Small Businesses Find Lobby Allies Mute on $30 Billion U.S. Aid - BBG

o Small U.S. businesses pushing for a $30 billion federal lending fund are making their case without the support of some supposed allies: Washington lobbying groups who say they represent small businesses

o Three of the largest groups -- the U.S. Chamber of Commerce, National Federation of Independent Businesses and National Association of Manufacturers -- were largely silent during a debate last week over an amendment authorizing the fund, which cleared a legislative hurdle late July 22.

o A final vote is planned for this week.

� Investors Say No to 'Let's Expand' Companies� - WSJ

o Among the lessons from earnings season so far: Now is not the time for optimistic CEOs to tell skittish investors an expansion push is right around the corner.

o In a sign that the shell shock from the financial crisis, recession and European sovereign-debt mess hasn't worn off, investors last week punished the stocks of companies that are talking openly about plans to expand

o http://online.wsj.com/article/SB10001424052748704719104575389172070900184.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29&utm_content=Google+Reader

� NY Gov Paterson Drops Tax On Nonresident Hedge-Fund Managers � DJ

o New York Gov. David Paterson has backpedalled on a controversial proposal for an extra tax on hedge-fund managers that do business in New York but live elsewhere, his press secretary said Friday

o �In an email, Morgan Hook said: "That provision was removed and will be removed again when the governor submits a proclamation for special session for Wednesday when he calls the legislature back."

� China Stories

o Goldman Sachs said it�s still �fundamentally positive� on China�s yuan-denominated stocks even after a surge in the CSI 300 Index, given their valuations and the emergence of several �catalysts.�

o Chinese banks may struggle to recoup about 23 percent of the 7.7 trillion yuan ($1.1 trillion) they�ve lent to finance local government infrastructure projects� - BBG says�� The estimate implies $261 billion of debt may go sour, almost five times the $53.5 billion the nation�s five largest banks are raising to replenish capital

o China, FX: Hong Kong Should Start Yuan Deliverable Forwards, Calyon Says

� Hong Kong should start a yuan deliverable forwards market to boost its ability to compete with Shanghai in renminbi trade and investment, said Frances Cheung

� Central banks in China and Hong Kong agreed on July 19 there will be no restrictions on companies buying or selling yuan in Hong Kong, subject to banks holding enough renminbi to provide liquidity. Since then, there have �reportedly been only a few isolated� forward trades, and there �are no quotes and prices on the market yet,�

o PBoC Adviser Xia Bin: Warns against implementing property measures too fast as economy already shows signs of slowing in H2 - China Business News

o Report: Chinese regulator conducts stress tests on trust firms

� The China Banking Regulatory Commission subjected trust companies to stress tests to determine possible consequences of a drop in property values, the Economic Observer reported. The tests might lead trust firms to provide less money to property developers, according to the newspaper. MoneyControl.com (India)/Reuters (24 Jul.)

o African Union: Look To China For Development Help � Reuters

� The African Union says Africa must look increasingly to China to help with its development

� �Maxwell Mkwezalamba, the AU's economic chief, says traditional Western partners and groups such as the World Bank are placing restrictive conditions on loans--driving African nations into the arms of China.

� �http://www.reuters.com/article/idUSTRE66N1RK20100724

� BP stories:�

o BP trades up 1.5% Monday

o Bob Dudley, is expected to be confirmed as the company�s new chief executive.

o Tony Hayward was in talks over the weekend about leaving his position as chief executive..His departure is due to be finalised at a board meeting today. A public announcement is likely by Tuesday morning.

o Hayward �Set to Quit With a �10m Pension � Telegraph

� BP Chief Executive Tony Hayward will collect a pay and pension package worth at least 11.8 million pounds ($18.03 million) when he steps down from his role at the company, the Times newspaper reported on Sunday.

o BP� May sell Russian assts- Times, BBG

� BP Plc may sell all or part of its 50% share of TNK-BP Holding, a joint venture that operates in Russia and Ukraine, the Times reported. If the company decides to go ahead with a sale, the likeliest buyers are Russia�s OAO Gazprom and Rosneft Oil. TNK-BP has been highly profitable for BP since its creation seven years ago, though the British company�s relationship with the group of oligarchs who own the other 50% have been troubled.

o BP 2 Indian state-owned oil groups interested in BP's Vietnam gas field -- Nikkei

o BP� returned to work on permanently plugging the source of the largest oil spill in U.S. history after a storm threat eliminated the chances of dealing with the Gulf of Mexico gusher by the end of July. The so-called static kill will pump mud from the top of the Macondo well during the week of Aug. 1, National Incident Commander Thad Allen said yesterday

o �BP will start drilling off the Libyan coast within a few weeks, the Financial Times reported Saturday, amid a row over the oil giant's connections to the north African state.

o BP PLC (BP, BP.LN) has been slow in making its payments to the small businesses that have been victimized by the Deepwater Horizon oil spill in the Gulf of Mexico, Kenneth Feinberg, administrator of the $20 billion compensation fund, said Saturday, Reuters reported. "I have a concern that BP is stalling claims. Yes, BP is stalling. I doubt they are stalling for money. It's not that. I just don't think they know the answers to the questions [by claimants]," Feinberg said, according to Reuters.

� Demand positive:� Shipping Bottoming as China Steel Rebound Lifts Ore � BBG

o The smallest profits in the commodity shipping market in 18 months may be ending as a rebound in steel and iron-ore prices signal improving Chinese demand that will ease the transport glut

o Chinese steel prices rose 4.7 percent last week, the most in 11 months. Derivatives for fourth-quarter iron-ore prices jumped 23 percent between July 9 and 21

� Toyota Expected To Report Sharp Earnings Recovery�Nikkei

� Banks:�� Reuters) - Private equity firm Apollo Global Management [APOLO.UL] plans to create a new bank under a provision in the U.S. financial reforms passed last week

� Banks:�� 103 failures for the year in US�after weekend� failures

o Regulators shut seven banks late Friday, pushing the failure total this year to 103. Though the pace of failures briefly slowed earlier this month, it appears to be picking up

� Goldman threatened with audit by US panel � FT

o Goldman Sachs is facing a threat by the Financial Crisis Inquiry Commission to hire outside accountants to comb through the bank�s systems for data on its derivatives business, the panel�s chairman has said

o http://link.ft.com/r/A1TNOO/S3CP4K/5ZX3X/ZB4R52/OJ1PS8/SN/h

� A.I.G. Failure Would Have Cost Goldman � NYT link

� Goldman's Share Of AIG Money Went Far And Wide

o �Goldman Sachs Group Inc. (GS) sent $4.3 billion in U.S. bailout money to 32 banks, hedge funds and pension funds, including some overseas banks, the Des Moines Register reported, citing a statement from Sen. Chuck Grassley (R., Iowa).

o �Goldman received $5.5 billion in bailout money as payment for the then-worthless securities it held in American International Group (AIG), the Register reported. And although Goldman had already hedged its risk on these securities, it entered into agreements to further spread that risk with the 32 entities named in the report. "It's a little bit like a farmer, if you got crop insurance, you shouldn't be getting disaster aid," Grassley said.

o Complete report:

o http://www.desmoinesregister.com/article/20100724/BUSINESS/7240337/Goldman-Sachs-reveals-where-bailout-cash-went

� Pearson Plc, the owner of the Financial Times newspaper, raised its outlook for 2010 after first-half profit more than tripled on growth in its education business and at book publisher Penguin.

� Politics stories:

� Bush-Era Tax Cuts Likely Election Theme � WSJ link

o As the fall mid-term elections near, a battle is brewing in Washington D.C. over whether the Bush-era tax cuts should be extended only for middle middle-class earners, or for higher earners also

o Geithner says the government should retain a mortgage guarantee

o Treasury Secretary Timothy Geithner said Sunday that he believes there are "absolutely" the votes to pass tax cuts focuing on those in middle- and lower-income brackets

� Gingrich� Reuters) - Republican former House of Representatives Speaker Newt Gingrich said on Sunday he will decide after November's congressional elections whether he will make a run for the White House in 2012

� Obama hits road to restore ratings � FT

o Barack Obama takes to the road again this week on a �summer of recovery� drive amid concern that the White House has lost the political narrative over its handling of the economy

o http://link.ft.com/r/A1TNOO/S3CP4K/5ZX3X/ZB4R52/PRLUJY/SN/h

� US and South Korea began their 4-day joint war games in the Sea of Japan (east of Korean peninsula) despite opposition from the North as well as from China - Washington Post

� North Korea said Saturday it would give a strong physical response to U.S. sanctions

� US vs China:� China Minister: US Shouldn't Internationalize South China Sea Issue

o -Chinese Foreign Minister Yang Jiechi rebutted remarks by U.S. Secretary of State Hillary Clinton at a recent forum on the competing claims for territory in the South China Sea, saying the U.S. shouldn't internationalize the disputes, according to a statement posted Sunday on the website of China's Ministry of Foreign Affairs.

o �The South China Sea issue should be solved through bilateral negotiations between China and its neighboring countries, rather than between China and the Association of Southeast Asian Nations, Yang said in a speech at a forum of the 10 members of Asean, the U.S. and more than a dozen other countries.

� Wiki- leaks strike again:� U.S. Condemns Release of Classified Afghan War Papers - BBG

o The U.S. condemned as �irresponsible� the disclosure of about 92,000 classified documents on the war in Afghanistan covering the years 2004 through 2009.

o �National Security Adviser James Jones said the release� of the documents by the website Wikileaks could put lives at risk and threaten national security.

o Pakistan Spy Unit Aiding Insurgents, WikiLeaks Reports Suggest

o The Taliban has offered to negotiate the release of two US servicemen that it claims to have captured in eastern Afghanistan this weekend� � in exchange for senior insurgent prisoners � FT

o Turkey throws lifeline to Iran from Financial Times

� Turkey could emerge as a new safety net for Iranian business as the government insists that it will abide by UN sanctions, but not the more sweeping restrictions imposed on Tehran by the US and the European Union

� Iran�� Former CIA Director Gen. Michael Hayden said that Iran�s pursuit of nuclear materials has worsened to the extent that he can see how a future attack on the country by the U.S. military could be justifiable. The Hill

� Iran�� AFP)--Iranian President Mahmoud Ahmadinejad warned the European
Union on Sunday against imposing unilateral sanctions, saying Tehran would
react swiftly and cause "remorse.

� Iran�� Reuters) - Iran will be ready to hold negotiations with world powers on its nuclear program after the month of Ramadan ends in early September, Foreign Minister Manouchehr Mottaki said on Sunday.

� Iran� EU To Hammer Iran With Oil Sanctions On Monday

o �(AFP) -- The European Union will hit Iran with tough sanctions against its vital oil and gas industry on Monday in a bid to lure Tehran back to the negotiating table over its disputed nuclear programme.

� Iran�� WSJ: Turkey, Brazil Mins: To Press For Iran, Major Powers To Meet 'As Soon As Possible'

o The foreign ministers of Turkey and Brazil said Sunday they would press for Iran and majors powers to meet "as soon as possible" to negotiate an agreement on Tehran's nuclear fuel program, perhaps in Istanbul. Speaking to reporters ahead of a lunch with his Iranian and Brazilian counterparts, Turkish foreign minister Ahmet Davutoglu offered to host a meeting of the so-called P5+1 - which includes the United States, Russia, China, France, the United Kingdom and Germany - and Iran

� Britain Plans To Decentralize National Healthcare... NYT

o http://www.nytimes.com/2010/07/25/world/europe/25britain.html?_r=2&hp

� Bush's unpopularity among voters starts to fade from Los Angeles Times

� Rangel� Reuters) - Democratic Representative Charles Rangel deserves to expelled from Congress if the ethics charges against him are true, former Democratic Party Chairman Howard Dean said on Sunday.

CANTOR TRADING RECAP

� Equity Recap

� They ended the week on a positive note, having the dow sp and nasdaq all +1% and Russell +3% Friday and for the week, you had the DOW +3% Sp 500 +3.5%, Nasdaq +4% and Russell +6%, with the last 2 positive days on the back of some positive manufacturing data and sentiment out of the uk, Germany and a deluge of earnings that are still coming in much better than expected for the most part of which in a decent % of them, the reaction has been anticlimactic. How about that stress test? Amazing, going into this week had the feeling it wouldn�t be so stringent so what happened, everything looks great and no one has issues after a test that was created because of fears to the financial system. We are halfway finished with the earnings season and now we will have to continue to monitor the macro picture of which seems to be getting better of late, according to the latest data this week. So much that Mr. Trichet sounded as if he the next move was up on rates Thursday with his commentary out of the UK.

� Technically, they finally took out 1100, although it will take more oomph. The next levels on the spz will be 1,113 (200 day) and 1122 (150 day), yet there wasn�t the institutional participation or volume to accompany the move and I don�t think anxiety is an issue yet with the indexes barely flat for the year. Still a lot of short covering and the more seasoned guys taking sales into this. To be a day trader right now is brutal and that�s probably why some of the pros recently have laid off about 75 of their work force because most haven�t been able to gauge this and have suffered accordingly. Quant�s continue to be quiet and not many with staying power short them from what I�ve seen

o Breadth to the market had 4 advancing issues for every 1 declining issue, while internally here, sell names led buy names by 1 �-1

o Billy Clark and Team

CMBS Recap

o FRIDAY:� Slow day with $170mm in for the bid- focus on '06/'07 dupers.� Basis continues to grindng tighter with GG10s closing +365, in 5bps.� For those that have not noticed- GG10s are 1/2pt away from par

o WEEK: Though still light there has been a huge pickup in activity over last week's anemic $700mm in BWICs.� Saw ~$1.6bn in for the bid.� The highlights were a couple large '05 lcf lists and a CDO liquidation.

o We have been positive on the basis ('06 AMs and above) this month for a couple reasons� 1.Too much yield given a 5yr swap rate of 1.9% and attractive vs corps.�� 2. Cash continues to flow into the taxable bond mkt�� 3. Strong CMBS technicals.� Selling has been anemic and tough to pull higher quality paper out. Tough to even get paper from accounts that dont like the fundamentals since its so hard to replace the yield.� Basis on the week was 10-15bps tighter with GG10s in from +380 to +365.� Despite some large lists, '05 lcfs put in a nice week (10-15bps tighter) with Tier 1s now trading +140s and Tier 2 +160s.

o n the AM/AJ space saw light selling away from the CDO liquidation and an Insur co list.� $260mm in BWICs.� Better credits continue to have a strong bid with more of the focus on Tier 2+ '06/'07 AMs.� .� Call clean AM/AJ paper up a point.� One of the more interesting trades in the space were the CMLT 08-LS1 ASMs- don't 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%- seems like a lot more value in the reremic.

o �PPIF Q2 '10 stats are out.� $16bn purchaed to date so another $13.4bn to go. �To date 15% CMBS/85% RMBS.� CMBS is split: 38% AMs, 26% AJs, 18% Dupers and 18% other.� If these ratios hold that means another $2bn in CMBS to buy including $760mm AMs, $520mm JAs, $360mm dupers and $360mm other.

o Geordie Walker

o Oil trades of at 7am et�, traded above $79 a barrel for a third day in New York overnight

� Oil vacillated overnight�declined as much as 0.4 percent earlier today after Bonnie dissipated as a tropical storm near the U.S. Gulf Coast at the weekend

o Hedge-fund managers and other large speculators increased their net-long position in New York crude futures to a three- week high, according to U.S. Commodity Futures Trading Commission data

o Senate Democrats to introduce energy bill from Reuters

� �U.S. Senate Majority Leader Harry Reid will unveil as early as Monday a slimmed-down energy bill seeking to make offshore drilling safer and convert trucks to run on domestic natural gas.

o China gas growth to hit western groups � FT

� International energy groups are set to miss out on billions of dollars of future sales during the next decade as China, their most voracious customer, aggressively develops its own large gas reserves

� http://link.ft.com/r/A1TNOO/S3CP4K/5ZX3X/ZB4R52/V16GUW/SN/h

o China is aggressively developing its own LNG reserves which will drastically reduce the need to import by 2020 � FT

o China NDRC: CNOOC H1 gas output rose over 30%; Sees output as stable

o Dana Petroleum�s largest shareholder, Schroders Plc, is pushing for the U.K. explorer to negotiate with South Korea�s national oil company on its takeover offer, the Financial Times reported. Schroders has �urged the board to engage at this level,� Richard Buxton, head of U.K. equities at the asset manager, was cited as saying in the report.

o International Power�s largest shareholder, Invesco, which has an 11% stake in the group, supports GDF Suez�s bid to gain control of the group, the Financial Times

o FSLR Barron's considers the safety questions surrounding First Solar, pricing is a bigger issue Editorial considers California's anti-business environment and looks at the winners and losers from Goldman's SEC deal, mostly there were losers.� - Barron�s

o RIG WSJ looks at equipment failures on the Deepwater Horizon that were Transocean's responsibility

o NY Times discusses the EPA's investigation of the risks of natural gas hydraulic fracturing�

o EEP Enbridge Energy Partners reports Q2 EPS

o LRTR LL&E Royalty Trust holder Robert Robotti sends letter to company

o BWP� Boardwalk Pipeline Partners reports

o APC Anadarko Petroleum makes discovery offshore Ghana

o DEP Duncan Energy Partners reports

o EPD Enterprise Products reports

INDUSTRIALS

o RSG Barron's says Republic Services is set to rally Positive on Silver.

o ADG Allied Defense EVP and COO Monte Pickens resigns effective 23-Jul

o OESX Orion Energy Systems names Michael J. Potts as President and COO

o HRLY Herley Industries holder Gamco recommends candidate for the company's board

o AIRBUS DENIES THAT A350 FACES DELAY, LA TRIBUNE SAYS�� :EAD FP

o Sanyo Chemical raises FY10/11 guidance to Net �5.1B, Op Profit �8.6B, Rev �133B (prior Net �3.8B, Op Profit �6.6B, Rev �127B)

TRANSPORTS

o Continental Air CEO: No Management, Staff Cuts Before End-March 2011

� The head of Continental Airlines Inc. (CAL) said all but a handful of job cuts from its planned merger with the parent of United Airlines would happen after March 31, 2011.

o EPD Enterprise Products reports

o Lufthansa [LHA.GE] expects 3-5% passenger decline as a result of air traffic tax
- Air Berlin [AB1.GE] Spokesman said draft law on airlines exceed worst expectations; expect price and job cuts

TECH/MEDIA/TELECOM

o HPQ, AAPL: HP's webOS 2.0 to take on iPhone 4, iPad later this year- AppleInsider

� http://feeds.appleinsider.com/click.phdo?i=38bb1faf0e5ea74567da940fbdb47383

o Broadband: FCC, public safety at odds over broadband plan- AP

� http://hosted.ap.org/dynamic/stories/U/US_TEC_PUBLIC_SAFETY_BROADBAND?SITE=OKOKL&SECTION=HOME&TEMPLATE=DEFAULT

o HDD: Global shipment goal lowered for 3Q10, say Taiwan makers- Digitimes

o HTC to form alliances with China's big 3 carriers (China Mobile, China Telecom and China Unicom)- Economic Daily News

o Touch Panels: orders rebound in July, but uncertainties still ahead- Digitimes

o DRAM: prices to rebound in August, says Powerchip chairman- Digitimes

o Notebooks: shipments from Taiwan makers to grow 11.3% sequentially in 3Q10- Digitimes Research

o Compal lands about 50% of Acer 2011 notebook orders- Digitimes

o LCDs: Taiwan makers see LCD TV shipments rise 11% in 2Q10- Digitimes Research

o AAPL, GOOG: 77% Of iPhone Owners Say They'll Buy Another -- Versus Just 20% Of Android Owners- Silicon Valley Insider

o AAPL, VZ, MOT, GOOG: Apple puts Verizon and Motorola Droid X on blast, shows antenna problems on video- IntoMobile

� http://feedproxy.google.com/~r/IntoMobile/~3/WGSPsmDlSYE/

o Tablets: India unveils a $35 tablet computer prototype- intoMobile

o AMZN: Amazon's weakness only for short term, say analysts- Reuters

� http://feeds.reuters.com/~r/reuters/technologyNews/~3/hluwx6k6fBk/idUSTRE66M2JE20100723

o DIS Disney in talks to buy game startup Playdom- Reuters

o ORCL Oracle says president misspoke on M&A budget- Reuters

o Pace buys U.S. broadband company 2Wire- Reuters

o VOD Vodafone may sell minority stake in Bharti- Reuters

o SNWL: Holders OK Merger With Thoma Bravo Invest- PR

o MSFT, ARMH: Microsoft struck a licensing deal with ARM Holdings that allows the software giant to design chips based on ARM's technology

o RIMM: U.A.E.: BlackBerry Is Security Risk- WSJ

� http://online.wsj.com/article/SB10001424052748704719104575389590496820952.html?mod=rss_Technology

o From Barron�s this weekend

� AAPL: positive, saying stock is cheap

� MSFT positive calls it one of its best value opportunities

� NOK: negative; saying it is failing to capitalize on booming smartphone market

� YHOO: negative on YHOO, because it says it is unsure about the future.

� NFLX: remains cautious on NFLX

� AMZN: comments mixed, but long term positive

o VZ: WSJ is negative on VZ�s FIOS strategy

� http://online.wsj.com/article/SB10001424052748703294904575385403283773626.html?mod=WSJ_Heard_LEFTTopNews

o CYOU Changyou.com reports and guides mixed� to better

o SOHU Sohu.com reports reports and guides mixed

o RDCM RADCOM reports

o POWI Power Integrations says the government found Fairchild Semi willfully infringed its patents

o GOOG Google misses deadline for shifting L.A. city email system -- LA Times

o Hollywood: LA Times notes the possibility of a Teamsters strike against Hollywood studios

o DELL WSJ is positive on Dell

o SBSA Spanish Broadcasting names Marko Radlovic to Chief Revenue Officer

o MSFT NY Times discusses the popularity problem suffered by Microsoft

MATERIALS

o Demand positive:� Shipping Bottoming as China Steel Rebound Lifts Ore � BBG

� The smallest profits in the commodity shipping market in 18 months may be ending as a rebound in steel and iron-ore prices signal improving Chinese demand that will ease the transport glut

� Chinese steel prices rose 4.7 percent last week, the most in 11 months. Derivatives for fourth-quarter iron-ore prices jumped 23 percent between July 9 and 21

o Commodities Corner says wheat could keep climbing if the weather stays bad. - Barron�s

o Barron�s� Up and Down Wall Street notes one contrarian view on gold that says it could be fraught with risk, quality stocks might spend the next several years underpriced.

o CGA China Green Agriculture files $200M mixed shelf

o Australian mining lobby plans to resume their advertising campaign against the mining tax � TTN

o China govt to limit output of certain kinds of non-ferrous metals to 41M tons by 2015 - China Securities Journal citing industry association

o Zamin Ferrous, a Brazilian iron-ore projects company, may raise up to USD 2.5bn from an initial public offering in London, the Financial Times reported. Zamin Ferrous may fetch from USD 2bn to USD 2.5bn in an IPO. Zamin Ferrous is considering floating in London.

o Severstal (CHMF.RU) reports Q2 crude steel output 4.56M tonnes up +11% q/q.

o Is uranium's three-year bear market over? from Telegraph Finance

� In the early part of this century, soaring energy demand from Asian economies sparked a renaissance for nuclear power.

AUTOS

o Japan's seven major automakers :� The Nikkei newspaper reports that the yen's recent surge is expected to push down the combined fiscal 2010 operating profit of Japan's seven major automakers by more than 500 billion yen compared with the previous fiscal year.

o TM: big EPS expected�May post Q1 Op profit about �100B (profit �82Be, loss �195B y/y) � Nikkei

o Nissan Motor (7201.JP) reported March orders in Japan for the revamped subcompact reached 12,147 units as of Sunday, representing more than three times the monthly target after less than two weeks on the market

o TSLA NY Times profiles Tesla Motors and CEO Elon Musk

o Auto bailouts' consequence on assembly line: Unequal wages � WP link

� �Among workers building the Jeep Grand Cherokee here, there are few obvious distinctions. Clutching lunch sacks and mini-coolers, they trudge together through the turnstiles at the plant's main gate each day to tinker with the same vehicles, along the same assembly line, performing the

o Ford Asks Buyers to Pay More for Smaller Engine in New Explorer

� Bloomberg) -- When Ford Motor Co. starts selling its re-engineered Explorer sport-utility vehicle, it will ask U.S. buyers to do something unusual: Pay more for less

� �Bucking an automotive tradition of charging extra for more horsepower, Ford will ask buyers of its redesigned 2011 Explorer to pay a premium for a small, 4-cylinder engine when the vehicle goes on sale in December. The Explorer�s standard engine will be a 3.5-liter V-6 with 290 horsepower, 53 more ponies than the optional 4-cylinder.

� �Ford will start trying to convince consumers they should spend to save when it unveils the Explorer at events in New York, Chicago and other locations today. The smaller engine has technology Ford said will give the seven-passenger SUV the same fuel economy as Toyota Motor Corp.�s Camry sedan that gets 19 mpg in city driving and 26 mpg on the highway

o Hero Honda Declines on Report Honda May Sell Stake : Hero Honda Motors Ltd., maker of half the motorcycles sold in India, fell the most in almost a year in Mumbai after CNBC-TV18 reported Honda Motor Co. may sell a stake of about 6 percent in the company.�� Hero Honda slumped as much as 6.5 percent

o Maruti Suzuki India Ltd., the nation�s biggest carmaker, fell the most in more than a year in Mumbai after first-quarter net income unexpectedly declined and Citigroup Inc. and Nomura Holdings Inc. lowered their ratings.

o Hyundai Motor Vice Chairman Chung Eui-sun: Company's H2 outlook for sales does not seem "rosy" - Korean press

FINANCIALS

o Banks:�� 103 failures for the year in US�after weekend� failures

� Regulators shut seven banks late Friday, pushing the failure total this year to 103. Though the pace of failures briefly slowed earlier this month, it appears to be picking up

o A.I.G. Failure Would Have Cost Goldman � NYT link

o Apollo exploits loophole to create new bank

� Private equity group Apollo Management will establish a new bank under an obscure provision buried in the US financial regulations signed into law last week

� Apollo is to take advantage of a change that allows banks to operate in multiple US states without a national charter, lawyers say

� http://www.ft.com/cms/s/0/9b04ecc4-9817-11df-b218-00144feab49a.html?ftcamp=rss

o Buyout Groups Persist in Pursuing Failing Banks from DealBook

� Private equity firms and hedge funds are trying to prove to regulators that they are capable of running failed banks, where big profits are possible, by recapitalizing troubled banks that have yet to fail.

o Midtier Banks Rise in the IPO Ranks

� Some midsize investment banks are moving up in the pecking order of IPO deal makers.� No one is displacing Morgan Stanley or Goldman Sachs Group Inc. from the top spots on completing initial public offerings in the U.S. But some companies that used to rank far lower are edging up in the list of banks picked to help underwrite deals in 2010, according to data from Dealogic. Names such as Piper Jaffray Cos., Robert W. Baird & Co. and RBC Capital Markets are ranking higher now than when the IPO market was chugging along at a faster clip in 2007.

� http://online.wsj.com/article/SB10001424052748703954804575381221139138074.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

o Goldman's Share Of AIG Money Went Far And Wide

� �Goldman Sachs Group Inc. (GS) sent $4.3 billion in U.S. bailout money to 32 banks, hedge funds and pension funds, including some overseas banks, the Des Moines Register reported, citing a statement from Sen. Chuck Grassley (R., Iowa).

� �Goldman received $5.5 billion in bailout money as payment for the then-worthless securities it held in American International Group (AIG), the Register reported. And although Goldman had already hedged its risk on these securities, it entered into agreements to further spread that risk with the 32 entities named in the report. "It's a little bit like a farmer, if you got crop insurance, you shouldn't be getting disaster aid," Grassley said.

� Complete report:

� http://www.desmoinesregister.com/article/20100724/BUSINESS/7240337/Goldman-Sachs-reveals-where-bailout-cash-went

o Goldman threatened with audit by US panel � FT

� Goldman Sachs is facing a threat by the Financial Crisis Inquiry Commission to hire outside accountants to comb through the bank�s systems for data on its derivatives business, the panel�s chairman has said

� http://link.ft.com/r/A1TNOO/S3CP4K/5ZX3X/ZB4R52/OJ1PS8/SN/h

o Goldman Sachs Relied on Citigroup, Lehman for AIG Protection - BBG

o Goldman Sachs documents show that it depended on banks including Citigroup Inc. and Lehman Brothers . for protection against a failure of American International Group

o �Citigroup, which received the biggest government bailout of any U.S. bank, was Goldman Sachs�s largest provider of credit- default swaps on AIG as of Sept. 15, 2008, according to documents released by Senator Charles Grassley.

o Banks told: lend more or lose bonuses from Telegraph Finance

o Bankers are to be forced to lend to businesses under plans to be outlined by Vince Cable, the Business Secretary.

o FIG Fortress Investment denies NY Post report that the Weinstein Brothers and Ron Burkle had lost its financial backing

o US Officials Won't Pursue Another Swiss Bank Like UBS

� U.S. officials don't plan to pursue another Swiss bank in the same style as UBS AG (UBS), according to an interview with U.S. ambassador to Switzerland Donald Beyer in Saturday's edition of daily Le Temps

� "To my knowledge, no such action is foreseen. The U.S. government appreciates the good faith shown by Switzerland in ratifying the settlement, and its efforts to break with its past as a tax haven," Beyer says,

o WFC� WSJ on Wells Fargo relatively positive�would do well if a Japan-style slump hit the U.S

o AFL Barron's is positive on Aflac, portfolio concerns are overdone Considers the stocks of companies recently emerged from bankruptcy. - Barron�s

o IBKC IberiaBank to purchase certain assets and assume certain deposits of Sterling Bank of Lantana, FL

o RNST Renasant acquires banking operations of Crescent Bank and Trust of Jasper, GA in an FDIC assisted transaction

o PBIB Porter Bancorp raised additional $4.255M in private placement

o PBIB Porter Bancorp reports Q2 EPS, including preferred dividend

o FMCC Freddie Mac announces Jun monthly volume; The total mortgage portfolio decreased at an annualized rate of 0.9% in June.

o Australian banks are expected to proceed with fund raising efforts internationally after the successful completion of the European stress tests - Sydney Morning Herald

o Mizuho, Sumitomo Mitsui Financial, and Mitsubishi UFJ each may have exceeded �100B in profit for the quarter ended June � Nikkei

o �Softbank Corp denies press speculation that it may report �190B op profit in Q1 (�133Be)

o Earnings at Japan's three largest banking groups (MUFJ, SMFG, Mizuho) are back to pre-crisis levels. All three are likely to report net profits of over 100 billion yen for the April-June period. For the April-June quarter of 2009, earnings at the megabanks ranged from a net loss in the billions of yen to a net profit of about 70 billion yen. Uwe Parpart

o Deutsche Bank pressured over lack of transparency �- MW link

o

REAL ESTATE

o Barron's(7/26) Renter Nation�Barron's� Cover: Home ownership levels are likely to fall to early 1990s levels by 2015. - Barron�s

� �The American Dream of owning a home is still very much alive, but it will be no more than a dream for a growing number of people over the next five years. That's bad news for home builders, who already have big troubles, as June's reports on housing starts, existing-home sales, building permits and unsold-home inventories showed. But it is good news for anyone renting out a home, apartment or condo, or any real-estate investment trust specializing in residential rental properties

� �Most U.S. households own the dwelling they live in, and that isn't likely to change. But demographic and economic forces, together with some perversities of government policy, are combining to push the share of ownership back to where it was in the early 1990s. Already, in the wake of the housing bust that brought on the Great Recession, the share of U.S. households owning homes has slid steadily -- from 69% at its peak in 2004 to 67.2% in this year's first quarter. And the rate is likely to fall to its 1993-94 level of 64% by 2015.

� �The flip side of this trend is a rising rental rate, which probably will hit 36% by 2015, versus 32.8% in 2004

o WSJ: Geithner: US Should Retain 'Some Type' Of Govt Mortgage Backstop

� Treasury Secretary Timothy Geithner said Sunday the government should retain "some type" of federal guarantee to ensure that Americans can easily finance home loans, in what could be the latest salvo between the Obama administration and Republicans over the future role of the public sector in the housing market.The statement cuts to the heart of one of the most vexing policy questions in Washington: what to do with the costly government-run mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC)?

o delinquencies At Freddie Mac Decline In June � DJ

� Freddie Mac (FMCC) said delinquencies in its single-family mortgage portfolio fell in June. In May, they were flat after declining in the previous two months for the first in three years.

� �Data in recent months have shown that mortgage delinquencies have at least stopped getting worse. Last month, the Federal Housing Administration said home mortgages it insures were falling into delinquency at a slower rate than in the past. Delinquencies across most industries have fallen recently as the economy heals from the depths of the recession

� �June delinquencies on single-family residences decreased to 3.96% from 4.06% a month earlier but rose from 2.89% a year earlier, according to the Freddie Mac report

� �Friday's report also showed that Freddie's portfolio decreased at an annualized rate of 0.9% in June, closing out the month at $2.22 trillion.

� �Refinance-loan purchase volume was $19.1 billion in June, up 12% from May.

o The Roller-Coaster Ride Called a Short Sale � NYT

� In the months after the Lehman Brothers crash, most of the short-sale action was in the boroughs outside of Manhattan and in the suburbs. This year, however, short sales appear to be picking up in Manhattan

� The number of lis pendens filings � a first step in the foreclosure process for houses and condos � doubled in 2009 in Manhattan, to 724 from 334 in 2008; this year, 382 had been filed by the end of June, according to the Furman Center for Real Estate and Urban Policy of New York University.

� �Short sales are happening and they�re all over the map,� said Melissa Cohn, the president of the Manhattan Mortgage Company. �We�re seeing multimillion-dollar foreclosures and short sales that no one ever anticipated in New York City.�

� http://www.nytimes.com/2010/07/25/realestate/25cov.html

o Doubling Down on Housing � WSJ

� Record-low interest rates and a scary stock market are prompting investors to sink even more money into their homes.

o CSA Cogdell Spencer ERDMAN announces the acquisition of St. Francis outpatient center in Greenville, SC for $16M

o �Chesapeake CEO Sets Ranch Auction � WSJ link

o Originators Lend Less But Profit More on Mortgages from American Banker

� A combination of historically low interest rates and reduced competition are fattening home lenders' profit margins, making up for lost volume.

o Housebuilders hit by US tax credit hangoverfrom FT.com

� The last day of April and the end of the first-time buyer tax holiday was expected to be a dark day for US housebuilders. Yet few anticipated how sharply activity levels would fall once government support was removed

o Fed mortgage securities tough to unload from The Real Deal New York

� After lending in excess of $1 trillion to American homeowners last year in a largely successful attempt at propping up the flailing U.S. housing market, the country's central bank is now left with a slew of mortgage securities that will be difficult to get rid of, the New York Times explained. Even as the Fed plans to sell off the securities gradually (hanging onto them could be costly and might make it difficult to fight inflation, but selling them too quickly could hamper the economic recovery) some lawmakers and economists are calling on the bank to take on even more assets. [more]

o

CONSUMER

o WMT Wal-Mart's apparel chief has resigned -- NY Post

o CLX Clorox Said to Get More Than 12 Bids for STP, Armor All Brands- BBG

� Blackstone Group LP, Golden Gate Capital and Castle Harlan Inc. are among the private-equity firms and consumer-products companies interested in the assets. Clorox is seeking about $750 million for the assets

� JPMorgan Chase & Co. is handling the sale for Clorox, and first-round bids were due two weeks ago

� http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a.VaXDHURe7c

o CORE Core-Mark enters definitive agreement to acquire assets of Finkle Distributors, inc. for ~$43M

o ALCO Alico reports signing of foreclosure agreement

o JNY Jones Apparel group announces exclusive licensing agreement with Inter Parfums (IPAR) subsidiary

o CALM Cal-Maine Foods reports mixed� Q4 EPS $0.88 vs Reuters $0.62 � revenues of $222.1M vs Reuters $223.1M. CALM expects f11 to "be a good year," though says feed costs will remain relatively high and volatile.

GAMING, LODGING, & LEISURE

o MHGC Morgans Hotel Group holder Ronald Burkle discloses a 9.9% stake in an amended 13D filing

HEALTHCARE

o GlaxoSmithKline Plc may seek �small� acquisitions, CEO Andrew Witty told daily La Tribune

o A look at M&A in the biotech space- WSJ

� Speculating on biotech M&A presents investors with the laws of roulette: Place money on every number on the table, and the house wins.

� Waiting for a deal to arrive means stomaching the ups and downs of the biotech industry, which is prone to unforeseen struggles that can crush stocks

� http://online.wsj.com/article/SB10001424052748704719104575389022267860794.html

o Key facts about GENZ Genzyme, a possible takeout target- Reuters

� Genzyme shares jumped 16.1 percent to $62.89. The company is just beginning to emerge from a manufacturing crisis that has caused shortages of two of its biggest drugs for rare disorders

� The Facts: http://www.reuters.com/article/idUSN2316902020100723

o SNY Sanofi approaches GENZ Genzyme for acquisition- Reuters

� Sanofi, which was said to be considering deals in the $15b range, approached Genzyme informally about two weeks ago and is still waiting for a formal response

� The two companies have so far had "low-level conversations,"

� http://www.reuters.com/article/idUSN2315532420100723

o GSK Glaxo made casual approach to GENZ Genzyme- WSJ

� Drugmaker GlaxoSmithKline (GSK.L) made a "very casual approach" to Genzyme Corp (GENZ.O), asking to be notified if Genzyme considered selling itself,

� There have been no further discussions between the two companies

� http://www.reuters.com/article/idUSN2516014520100725

o GSK GlaxoSmithKline Plc may seek �small� acquisitions, CEO- La Tribune

o PFE Pfizer, Eisai announce FDA approval for new higher-dose Aricept

o ISRG Intuitive Surgical announces share repurchase program

o SNY Sanofi-Aventis says it is considering all legal options related to FDA's generic Lovenox approval

o ONXX Onyx Pharmaceuticals to host conference call on 26-Jul to provide a clinical update on carfilzomib; at 8 ET: 847-619-6547 use the passcode 27571112.

o XOMA XOMA enters into $30M committed equity financing facility

o XOMA To Sell Up To $30M In Shrs To Azimuth Opportunity Ltd. >XOMA

o MEND Micrus Endovascular shareholder Gabelli discloses stake of 7.69% in initial 13D filing

OTHER

� HWD Kinross discloses sale price of previously disclosed sale of Harry Winston Diamond stake

� Changes in the latest Investor's Business Daily 100 List: Added: CAAS, AAPL, INFA, CPLA, FOSL, SLH, MANH, CSFS, ISLN, ARO, ALB, AMT. Deleted: ISRG, ASPS, CISG, HSP, EC, XEC, LCAPA, SNDK, PNRA, FDO, NUS, HSNI.

� Barron's summary:�

o Cover: Home ownership levels are likely to fall to early 1990s levels by 2015.

o Interview: Lou Harvey, financial researcher and founder of Dalbar, discusses the 2010 Quantitative Analysis of Investor Behavior.

o RSG Barron's says Republic Services is set to rally Positive on Silver.

o AFL Barron's is positive on Aflac, portfolio concerns are overdone Considers the stocks of companies recently emerged from bankruptcy.

o NFLX, AMZN, HBI The Trader is still cautious on Netflix, longer term positive on Amazon, and is positive on Hanesbrand with the end of its restructuring.

o European Trader says the real benefit of the bank stress tests was to release publicly information about individual bank's exposure to sovereign debt and other assets.

o Asia Trader notes the increasingly positive investment environment in Malaysia, positive on RHBC.MK, CIMB.MK.

o The Striking Price says volatile volatility is here to stay.

o Current Yield notes the new record low in short-term Treasuries.

o Commodities Corner says wheat could keep climbing if the weather stays bad.

o YHOO, AVII Follow Up would be a seller of Yahoo at about $18 because the longer term trend is unclear, there could be considerable upside to AVI Bio-Pharma .

o KKR Streetwise considers a range-bound market and says KKR may be undervalued.

o Up and Down Wall Street notes one contrarian view on gold that says it could be fraught with risk, quality stocks might spend the next several years underpriced.

o AAPL, MSFT Technology Trader is positive on Apple and says Microsoft is one of the best value opportunities.

o NOK Plugged In is negative on Nokia noting its complete failure to capitalize on the surging smartphone market.

EUROPE TRADING WRAP

o Oils

o BP (+2%). Press speculation makes it look likely that BPs board will be seeking to replace Tony Hayward and will announce it this evening, likely replacement will be American Bob Dudley. Also, relief well work recommences after Storm Bonnie has weakened.

o Tullow Oil (+3%). Exploration well Owo-1 in Ghana has encountered a significant column of light oil

o Heritage Oil (-0.5%). The Ugandan government have said they will not approve Heritages sale of Ugandan assets to Tullow until Heritage have paid the Capital gains tax on the transaction in full.

o Utilities

o National Grid (-0.3%). Company sees trading inline, continuing with current Dividend policy and plan on putting cash towards bond buybacks.

o Miners

o UK Coal (+3.5%). Chairman and CEO to step down in a board structure shuffle.

ASIA TRADING WRAP

Japan

� NKY +0.77%, TPX +0.55%

� Buoyed by the rise in US stocks last Friday, a weaker yen and hopes for robust F1Q corporate earnings, the NKY traded in the positive territory all day. Investors appeared assured by the results of the European stress tests for banks, which helped sentiments. The index capped gains in late trading as investors took profit. Turnover on the TPX rose to 1.23 trillion yen from 1.22 trillion yen last Friday

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

� Exporters rose after most European banks passed the stress test: autos +0.02%, CE +0.11%, precision +1.91%.

� Banks +0.08% after the Nikkei reported the megabanks are likely to report net profits of over 100B yen for the Apr-Jun period, back to pre-crisis levels

� Best performing sectors on the TPX: mining +3.98%, glass & ceramics +2.20%, precision +1.91%; worst performing sectors: insurance -1.21%, electric power & gas -0.52%, fishery, agriculture & forestry -0.22%

Hong Kong

� HSI +0.12%; HSCEI -0.34%

� Stocks rose after the city�s home prices climbed and European banks� stress test results eased concerns over economic conditions in that region. Turnover on the HSI rose to HK$21.19B from HK$12.08B last Friday

� Local properties rose after Centaline Property Agency reported Hong Kong home prices rose 0.35% for the week ended Jul 18 to the highest level since 1997

� Mainland banks fell after report they may struggle to recover local government infrastructure loans

China

� SHCOMP +0.65%; SZCOMP +1.12%

� Stocks rose after the results of European banks� stress tests eased concerns about Europe�s economic conditions and speculation of policy easing in China helped sentiments. Turnover on the SHCOMP rose to 96.17B yuan from 92.86B yuan last Friday

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

� Banks fell after report they may struggle to recover local government infrastructure loans

INVESTMENT BANKING

M&A

o A look at M&A in the biotech space- WSJ

o Speculating on biotech M&A presents investors with the laws of roulette: Place money on every number on the table, and the house wins.

o Waiting for a deal to arrive means stomaching the ups and downs of the biotech industry, which is prone to unforeseen struggles that can crush stocks

o http://online.wsj.com/article/SB10001424052748704719104575389022267860794.html

o Key facts about GENZ Genzyme, a possible takeout target- Reuters

o Genzyme shares jumped 16.1 percent to $62.89. The company is just beginning to emerge from a manufacturing crisis that has caused shortages of two of its biggest drugs for rare disorders

o The Facts: http://www.reuters.com/article/idUSN2316902020100723

o SNY Sanofi approaches GENZ Genzyme for acquisition- Reuters

o Sanofi, which was said to be considering deals in the $15b range, approached Genzyme informally about two weeks ago and is still waiting for a formal response

o The two companies have so far had "low-level conversations,"

o http://www.reuters.com/article/idUSN2315532420100723

o GSK Glaxo made casual approach to GENZ Genzyme- WSJ

o Drugmaker GlaxoSmithKline (GSK.L) made a "very casual approach" to Genzyme Corp (GENZ.O), asking to be notified if Genzyme considered selling itself,

o There have been no further discussions between the two companies

o http://www.reuters.com/article/idUSN2516014520100725

o GSK GlaxoSmithKline Plc may seek �small� acquisitions, CEO- La Tribune

o Russia plans $29 billion asset sale- Reuters

o The sources told Reuters the plan to sell minority stakes in 10 major companies in 2011-2013 had been discussed and approved at a preliminary meeting chaired by Prime Minister Vladimir Putin.

o The sales would include 27.1 percent in state oil pipeline monopoly Transneft, 24.16 percent of Russia's largest oil producer Rosneft, 24.5 percent of Russia's No.2 bank VTB, 9.3 percent of largest lender Sberbank, 25% minus one share of rail monopoly RZhD.

o http://www.reuters.com/article/idUSTRE66N0ZH20100726

o CLX Clorox Said to Get More Than 12 Bids for STP, Armor All Brands- BBG

o Blackstone Group LP, Golden Gate Capital and Castle Harlan Inc. are among the private-equity firms and consumer-products companies interested in the assets. Clorox is seeking about $750 million for the assets

o JPMorgan Chase & Co. is handling the sale for Clorox, and first-round bids were due two weeks ago

o http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a.VaXDHURe7c

o FIG Fortress Says Report Weinsteins Lost Firm�s Backing Is �False�- BBG

o Fortress Investment Group said a report that the Weinstein brothers and investor Ron Burkle had lost Fortress�s backing in their bid for Miramax is �patently false.�

o The New York Post reported yesterday that Harvey and Bob Weinstein had lost the financial support of the buyout and hedge-fund firm.

o DIS Disney in talks to buy game startup Playdom- Reuters

o Playdom builds games that run on social networking sites such as Facebook and MySpace. The company claims more than 38 million monthly active users, and its games include popular titles such as "Mobsters."

o The Wall Street Journal said on Friday Disney is discussing a deal to buy Playdom for more than $500 million

o http://www.reuters.com/article/idUSTRE66M5BK20100723

o Damning verdict on buy-out groups- FT

o Private equity groups were accused on Monday of producing disappointing returns while charging their investors fat fees amid glaring conflicts of interest in one of the most scathing critiques of the industry published to date.

o http://www.ft.com/cms/s/0/e6cb4960-980c-11df-b218-00144feab49a.html

o Dana resists pressure to start serious sale talks with Koreans- Independent

o Dana Petroleum rejected calls to step up talks with Korean National Oil Corporation as it came under pressure from investors over a 1,800p-a-share approach from the state-owned company

o Investors, including Dana's largest shareholder, Schroders, have called on Dana to enter talks on the latest offer. "Dana management do not seem to be engaging with what most in the market see as a fair and reasonable offer,"

o http://www.independent.co.uk/news/business/news/dana-resists-pressure-to-start-serious-sale-talks-with-koreans-2034258.html

o APC Anadarko looks at onshore oil- Independent

o Anadarko Petroleum, the Texan partner in BP's Deepwater Horizon oil well which exploded in April, is eyeing a 75% stake in the onshore Jolly Ranch scheme in Colorado.

o The Jolly Ranch scheme is a 50:50 joint venture between Running Foxes Petroleum in Colorado and the London-listed Nighthawk Energy. They require a big-name partner with a strong balance sheet to help develop the potentially lucrative project

o http://www.independent.co.uk/news/business/news/anadarko-looks-at-onshore-oil-2034669.html

o ORCL Oracle says president misspoke on M&A budget- Reuters

o Silicon Valley technology giant Oracle Corp publicly corrected one of its top executives after he said the company would double the pace of acquisitions over the next five years.

o Company President Charles Phillips told a conference sponsored by Fortune Magazine in Aspen late on Thursday that Oracle could "easily" spend about double the $35 billion it had spent over the past five years

o http://www.reuters.com/article/idUSN2317349320100723

o Pace buys U.S. broadband company 2Wire- Reuters

o Pace, the world's largest set-top box maker, has agreed to buy U.S. broadband technology firm 2Wire for $475 million (306.6 million pounds) to broaden its customer base beyond cable and satellite into the Internet TV market

o 2Wire is owned by a consortium including ALU Alcatel-Lucent, AT&T, Telmex and Oak Investment Partners

o http://uk.reuters.com/article/idUKTRE66P1E220100726

o GMR Seeks Buyer for InterGen Stake- WSJ

o GMR Infrastructure Ltd. of India is seeking buyers for its 50% stake in U.S. power-generation company InterGen NV

o The process is in its early stages and GMR is canvassing a limited number of buyers, these people said. The company could decide not to sell the stake if bidders don't meet price expectations, they said, which are in the $1 billion range

o http://online.wsj.com/article/SB10001424052748704249004575385452260319576.html?mod=WSJ_hps_LEFTWhatsNews��

o VOD Vodafone may sell minority stake in Bharti- Reuters

o Vodafone Group (VOD.L) may sell its minority stake of 4.39 percent in Bharti Airtel that is valued at around 52 billion rupees ($1.1B)

o The sale would be part of Vodafone's plan to get out of the company's smaller investments in companies across the world

o http://www.reuters.com/article/idUSTRE66P1OW20100726

o Virgin Active in talks with private equity firms over �1bn sale- Guardian

o Sir Richard Branson's Virgin Active is in early discussions with a handful of private equity groups over a possible �1bn sale of the health and fitness chain.

o The UK's second-biggest gym operator is thought to be exploring a possible sale after being approached by a number of big private equity houses with experience in the leisure sector, including CVC Capital Partners, KKR, Blackstone and Advent

o http://www.guardian.co.uk/business/2010/jul/25/virgin-active-private-equity-sale

o Grupo Mexico plans to unite SCCO Southern Copper, Asarco- Reuters

o Mexico's Grupo Mexico said on Friday it planned to combine its Arizona-based miner Asarco with its Latin American mining operation to cut costs, after pulling the U.S. miner out of bankruptcy last year

o http://www.reuters.com/article/idUSN2318083620100723

o BP is considering the sale of some Russian assets, including part or all of its stake in TNK-BP Holding- London Times

o The sale is thought to be under consideration, as are possible sales of assets in Vietnam, Argentina and Pakistan. Gazprom and Rosneft are seen as the most likely buyers

o SNWL SonicWall: Holders OK Merger With Thoma Bravo Invest

o ONGC May Consider Bidding With PetroVietnam for BP Field Stake- BBG

o Oil & Natural Gas Corp., India�s biggest energy exploration company, may consider bidding jointly with Vietnam Oil & Gas Group for partner BP Plc�s stake in a natural gas field in Vietnam to secure fuel supplies

o The explorer is considering all options and hasn�t taken a decision on bidding with PetroVietnam

o http://www.businessweek.com/news/2010-07-22/ongc-may-consider-bidding-with-petrovietnam-for-bp-field-stake.html

o Taiwan's Tsai family to buy Carlyle's cable unit- Economic Daily

o Taiwan's Tsai family, which controls Taiwan Mobile, will pay T$65 billion ($2.0 billion) for Carlyle Group's Taiwan cable TV unit Kbro

o The Tsai family set up a private firm to buy the unit, and would pay about T$40 billion and assume Kbro's debt of more than T$20 billion

o Apollo exploits loophole to create new bank

o Private equity group Apollo Management will establish a new bank under an obscure provision buried in the US financial regulations signed into law last week

o Apollo is to take advantage of a change that allows banks to operate in multiple US states without a national charter, lawyers say

o http://www.ft.com/cms/s/0/9b04ecc4-9817-11df-b218-00144feab49a.html?ftcamp=rss

o MHGC Morgans Hotel Group holder Ronald Burkle discloses a 9.9% stake in an amended 13D filing- SA

o RNST Renasant acquires $1 billion Georgia bank- BBG

o On Friday, Renasant said it was acquiring Crescent Bank &� Trust of Jasper, Ga., in an Federal Deposit Insurance� Corp.-assisted transaction. The deal adds $1 billion in assets,� pushing Renasant's ledger to $4.6 billion.

o Under the terms of the Crescent deal, Renasant acquired� more than $600 million of loans and other real estate and about� $50 million of investment securities. Renasant also assumed� about $900 million in deposits.

o Crescent's closure is expected to cost the deposit� insurance fund about $242.4 million.

o VIV Vivendi could face $1.7 bln fine in Brazil due to takeover- Reuters

o Brazil's securities regulator could fine French media company Vivendi as much as 3b reais ($1.7b) for allegedly committing fraud in its takeover of Brazilian phone company GVT

o The regulator, known as CVM, found that Vivendi had purchased less than the minimum 40% stake in GVT when it announced it won control of the company last November

o http://www.reuters.com/article/idUSN253514020100725

o Honda denies it may sell some stake in Hero Honda- Reuters

o Honda Motor Co (7267.T) said on Monday it had no intention of selling any part of its 26 percent stake in India's profitable motorcycle maker Hero Honda Motors

o http://www.reuters.com/article/idUSTFA00670020100726

o Khazanah wins battle for Parkway; Fortis bows out- Reuters

o Malaysian state investor Khazanah trumped India's Fortis Healthcare in a takeover battle for Parkway with an offer that values Asia's biggest listed hospital operator at $3.3 billion

o "This is a good price for investors to cash out," said Lynette Tan, an analyst at DMG & Partners in Singapore, referring to the offer price

o http://www.reuters.com/article/idUSTRE66P0JK20100726

o Fraport in talks with Chinese partner- Frankfurter Allgemeine Sonntagszeitung.

o German airport operator Fraport is in talks with a Chinese partner as it seeks expansion opportunities overseas

o �We are watching the development in Brazil very closely, where large airports are set to be privatized. And in China we are in talks about a further participation,"

o http://www.reuters.com/article/idUSTRE66O0RR20100725

$ RAISING

� Envestnet Is Likely to Be Week's Only Draw- WSJ

o This final week of the month has a handful of initial public offerings of stock that are likely to get a tepid reception at best�if they are received at all.

o Compared to recent weeks, when companies such as debit-card issuer Green Dot Corp. and tech firms RealD Inc. and Qlik Technologies Inc. made first-day trading gains of between 22% and 28%, this week doesn't appear to have a clear standout performer.

SB10001424052748704249004575385564204959800.html?mod=WSJ_hps_sections_markets

� Zamin Ferrous considers London flotation- FT

o Swiss-based iron ore mining start-up Zamin Ferrous is considering a London flotation valuing the company at between $2 billion ($3.1 billion) and $2.5 billion pounds

o The company's main project is Bahia Mineracao (Bamin), a 50-50 joint venture in Brazil with London-listed Kazakh miner ENRC (ENRC.L) which plans to mine iron ore in the western state of Bahia

o http://www.reuters.com/article/idUSTRE66N10S20100724

� China Kanghui Holdings files $75M IPO through Morgan Stanley and Piper Jaffray- SA

� Midtier Banks Rise in the IPO Ranks

o Some midsize investment banks are moving up in the pecking order of IPO deal makers. No one is displacing Morgan Stanley or Goldman Sachs. from the top spots on completing initial public offerings in the U.S.

o But some companies that used to rank far lower are edging up in the list of banks picked to help underwrite deals in 2010, according to data from Dealogic. Names such as Piper Jaffray Cos., Robert W. Baird & Co. and RBC Capital Markets are ranking higher now than when the IPO market was chugging along at a faster clip in 2007.

o http://online.wsj.com/article/SB10001424052748703954804575381221139138074.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

� NeoPhotonics Revenue, Profit Grow As Company Awaits IPO- DJ

o NeoPhotonics kicked off the second-quarter earnings season for venture-backed companies awaiting IPOs with promising results that show the 14- -old maker of modules and subsystems for communications networks building up its rev and profit

o The company registered for an initial public offering in April and has applied to list its common stock on the New York Stock Exchange under the symbol NPTN

� SKS Microfinance raised its IPO to as much as 16.3 billion rupees- BBG

o the Indian lender backed by Sequoia Capital and George Soros will offer shares from July 28 for 850 rupees to 985 rupees each, with a 50 rupees discount for retail buyers

PRICINGS

o Initial Offerings

o TSRX Trius Therapeutics 6m sare IPO expected to price 7/27 via Citi: Price Talk $12-14

o CHKM Chesapeake Midstream Partners 21.3m share IPO expected to price 7/28 via UBS, Citi, MS: Price Talk $19-21

o ENV Envestnet 7.7m share IPO expected to price 7/28 via MS, UBS, and Barclays: Price Talk $12-14

o MCP Molycorp 28.1m share IPO expected to price 7/28 via JPM and MS: Price Talk $15-17

o SRGV SurgiVision 2.5m share IPO expected to price wk of 7/26 via Rodman & Renshaw

� Price talk cut to $9-11 from $13-15

o Secondary Offerings

o VTG Vantage Drilling $50m secondary expected to price 7/26 via Jefferies and Johnson Rice

o RVSB Riverview Bancorp$19.3m secondary expected to price wk of 7/26

NEWS��

o Best Bets for Post Bankruptcy Stocks- Barron�s

� Of companies that have come out of Chapter 11 since late 2009, Barron's prefers SSCC, LALLF and AVRW and would avoid SIX, DEXO, SPMD and CCMM.

� http://online.barrons.com/article/SB50001424052970203587804575379393292287972.html

o Bankruptcy auction set for US envelope maker NEC Holdings- Reuters

� Los Angeles-based private-equity firm The Gores Group, which is looking to buy NEC for $134.5 million, will be the stalking horse bidder for the assets and set the floor at the auction

� NEC also has a $140 million offer from rival Cenveo Corp (CVO.N).

� http://www.reuters.com/article/idUSSGE66M0J520100723

o Xoma enters $30M equity financing deal- San Fran Business Times

� Xoma Ltd. can pull down up to $30 million in financing over 12 months in exchange for selling discounted shares to Azimuth Opportunity Ltd.

� Xoma alone will determine the timing, dollar amount and floor price per share of each draw under the facility

� http://www.bizjournals.com/sanfrancisco/stories/2010/07/19/daily96.html

o PBIB Porter Bancorp Raises Additional $4.25 Million in Stock Offering- Marketwatch

� The private placement included the sale of 370,000 shares of convertible preferred stock at a price of $11.50 per share

� The proceeds of the offering will be used for working capital, general corporate purposes and for augmenting the balance sheet

� http://www.marketwatch.com/story/porter-bancorp-inc-raises-additional-425-million-in-stock-offering-2010-07-23?reflink=MW_news_stmp

o CTIC Cell Therapeutics Announces Private Offering of $4.06 Million of Securities- PR

� The securities consist of 4,060 shares of Series 6 preferred stock, no par value per share, together with warrants to purchase an aggregate of 5.8 million shares of common stock

� The offering is scheduled to close on or about July 27, 2010, subject to the satisfaction of customary closing conditions

� http://www.prnewswire.com/news-releases/cell-therapeutics-inc-announces-private-offering-of-406-million-of-securities-99214249.html

o Materials: CGA China Green Agriculture files $200M mixed shelf

TODAY�S EVENTS

o CONFERENCES

o American Association for Clinical Chemistry Investor Event

� 9PM: ROG.S

o Bank of America Merrill Lynch Indonesian Corporate Day - Boston - Jul 26, 2010

o Keefe, Bruyette & Woods, Inc. Community Bank Investor Conference� - Jul 26, 2010 - Jul 28, 2010

� 3:30PM: COBZ

� EVBS , FCAL , FISI , SYBT , V

� PFGD , WASH

o Society of Actuaries Actuarial Research Conference� - Jul 26, 2010 - Jul 28, 2010

o Terrapinn Africa Mining Congress� - Jul 26, 2010 - Jul 28, 2010

o Terrapinn Hotel Investment World Africa Conference� - Jul 26, 2010 - Jul 29, 2010

o The Center for Business Intelligence Market Research and Product Forecasting Summit� - Jul 26, 2010 - Jul 27, 2010

o TODAY�S EVENTS

o Shareholder Meetings

� NTIA, ASI, AUTH, CMCO

o ECONOMICS

o 0830 Chicago Fed National Activity Index

o 0930 Texas Manufacturing Outlook Survey

o 1000 U.S. New Residential Sales

o EARNINGS

o �Materials

� SOA, WPP, PCL, ALB, RPM

o Industrials/Homebuilders

� CR, HXL, MAS, FLR, INSU, ROP, CSR, RKT

o Consumer/Retail/Education

� LF, PRGX, AAN, CALM, ACV, LO

o Financials

� BOH, EGBN, LM, WRB, FNB, HTLF, MBVT, NARA, ONB, STL, ACGL, MRH, RGA, TRH, CITZ, FFCH, LEGC, PBNY, BBNK, WSFS

o Tech/Telecom

� LOCM, KVHI, PCTI, ADVS, ININ, SFSF, RCII, CTS, SANM, CYOU, UCTT, VECO, IDTI, MSPD, PLXT, VLTR, ZRAN, GLBC, HSTM, SOHU, SVVS, AWRE, CRNT, PLT, SILC

o Healthcare

� IDIX, OMI, SONO, HMA, UHS, IPCM, ACL, ALXA��

o Real Estate

� LRY, SLG, AEC

o Media

� AHC

o Energy

� AHGP, ARLP, DEP, FTI, RRC, BWP, EDP

o Transportation

� NM, NMM

***All eco data from Bloomberg and DJ

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