Morning @ Cantor
Morning
@ Cantor 7/27
Today’s
Stories From Cantor Fitzgerald
Sal
Catrini (908) 517-5067
CONTENTS: All
Headings Are Functioning Links
Sector News: Energy, Industrials, Transports, TMT, Materials, Autos, Fins, Real Estate, Consumer, Gaming/Lodging, HC, Europe
Trading Wrap, Asia Trading
Wrap
Investment Banking Wrap: M&A, Money Raising
·
US
Stock Futures, SPs up 5, Europe
stocks off highs, up 1% at 7am et
o Dow Back
In Black for Year..The rally that erased the Dow Jones Industrial Average’s
2010 loss yesterday and carried the Standard & Poor’s 500 Index above its
200-day MA
o buzz
that Stock purchasing hits bull market record at mutual funds while US indices rallied back to unchanged
for YTD returns – per TTN
o Earnings
story coninues to impress today…
§ DD ups guidance…. Daimler
ups guidance
§ Banks lead EU
gains after UBS up 7%, DB reported, up 2%
o Data
favorable today, too…Eurozone
M3 money supply growth accelerated; Germany import prices higher than
expectations
o In
Tokyo, the country's big three banks were outperforming mild broader market
gains after the Basel Committee on
Banking Supervision agreed Tuesday on broadening the rules over how to
calculate banks' new core capital requirements.
o
Dollar DXY
off highs….. trades up small at 7am et
o
EUR
trades up small at 7am et
o
EUR/USD tested 1.3020 before dipping back below
1.2990
o
Yen, Swiss Franc Decline on Stocks, Signs of
Economic Recovery
o Crude ticks dn today
§ Crude
oil traded near an 11-week high in New York as equity markets recovered and
Goldman Sachs said prices are too cheap.
o Copper dn 1% falls from 10 week high today
o Spot
gold was down $6 yesterday…this morning, spot gold is up a buck
to $1184.50
o Rates are up again tues: Treasury 10-year note yields rose above 3
percent for the first time in more than a week
§ The
US government prepared to sell $104 billion in notes this week.
o Libor
dn again…3-month: Dollar: 0.481% vs prior 0.488%
o If EU banks are in such excellent shape, why
doesn’t EUR Libor come in?? Uwe
Parpart asks
o Global Rates:
§ India rate hike today, more than expected …India
Raises Rate More Than Forecast to Tame Prices
§ Bank of Israel …
Monday unexpectedly increased the rate by a quarter percentage point to 1.75
percent. Only five of 16 economists surveyed by Bloomberg had predicted the
decision, while eleven expected no change.
to Prevent Real Estate Bubble
o Biggs
Buys Stocks Three Weeks After Cutting Holdings: BBG
§ Barton Biggs, the hedge fund manager who sold half his
equity holdings at the start of July, said Monday that signs the U.S. economy
will avoid a recession spurred him to build the stakes back up
§ Biggs, whose Traxis Partners LLC gained 38 percent in
2009 when he bought shares as the Standard & Poor’s 500 Index fell to a
12-year low, said bets that stocks will advance make up 75 percent of his fund,
up from about 35 percent three weeks ago.
§ “I’ve definitely changed
my mind to the degree of risk out there,” Biggs said in a radio
interview“Economic data around the world in the last 10 days to two weeks has
turned more positive
o Telegraph,
in a survey of 680 executives
conducted by the Economist Intelligence Unit, nearly a third of those surveyed
said the biggest threat was a double dip in H2; 20% though sovereign debt
default and 10% said weak governance; 86% were confident that their businesses
would survive the uncertainty
o China Banking body warns on lending risk to
local govts
o Spain
sold 3-month and 6-month T-bills at lower yields than its previous auction
·
Overseas
Action
o
Europe stocks off highs, up 1% at 7am et
o Asia:
Nikkei (0.07%); Hang Seng 0.64%; Shanghai Composite (0.51%)
o Asian
stock markets were mostly higher Tuesday, inspired by a spate of deal-making
around the region, while Wall Street's rise helped the Australian market tap a
fresh four-week high.
·
Data:
§ Nasdaq
OMX, NYSE and NYSE Amex announce total short interest as of 15-Jul
§ European Loan Growth
Accelerated in June … Loans to the private sector rose 0.3
percent from a year earlier after growing 0.2 percent in May, the European
Central Bank in Frankfurt said today. That’s the strongest increase since
October 2008. M3 money supply, which the ECB uses as a gauge of future
inflation, increased an annual 0.2 percent in June after contracting 0.1
percent in May.
§ Germany
Jun Import Prices +9.1% y/y vs consensus +8.6%
§ quarterly report from
Federation of German Industry (BDI), it noted that it cautious about the pace
of the economic recovery though optimistic on second half growth.
§ China
coal data shows big weekly drop this week ..BBG
§ Confidence
among big South Korean firms fell to a one-year low for August,
reflecting the uncertain economic outlook, a survey by a business lobby group
showed
- Economics
today
o ICSC-Goldman Chain Store at 07:45 ET
o Redbook Chain Store at 08:55 ET
o May Case-Shiller Home Price Index at 09:00 ET
o Jul Consumer Confidence, Jul Richmond Fed
Manufacturing Index at 10:00 ET
- Earnings:
o Companies due to report before the bell
include: ABC, AKS, BMS, CMI, DD, ECL, IVR, LLL, LMT, LXK, NDAQ, ODP, OXY,
PCAR, RE, SVU, TLAB, VLO, WU, X
o Companies due to report after the close
include: AET, AFL, BRCM, BXP, CBG, CEPH, CHRW, FISV, IGT, ILMN, KIM, MEE,
NBR, NSC
- tues,
the Treasury auction calendar kicks off with $38Bln 2 year notes. We do
not expect any major concession to build in with the short end stuck in an
extremely narrow trading range.
Primary dealer
·
delegates
from the European and International Monetary Fund began a two week visit to
Greece to determine whether to continue funding.
·
An FDA advisory panel will evaluate
Medtronic’s Amplify, starting at 8 a.m.
·
Apple has some kind of product announcement
today, Gizmodo and other tech blogs
are reporting. Exactly what will be unveiled is unclear
·
GOVERNMENT: The chairmen of the FTC and FCC,
as well as representatives from Apple, Google, AT&T and Facebook, are
scheduled to testify before the Senate Commerce Committee on online privacy,
2:30 p.m. Other events:
·
SEC Chairman Mary Schapiro will discuss the
need to modernize the agency and the
challenges ahead in implementing new
financial regulations at a U.S. Chamber of Commerce event.
·
House Energy and Commerce Committee holds
hearing on effects of the Gulf oil spill
on tourism. 10 a.m.
·
Census releases data on housing and home
ownership, 10 a.m.
·
House
Financial Services Committee marks up Internet
gambling, 10 a.m.
·
The Senate Armed Services Committee hears
Gen. James Mattis for confirmation as
chief of Central Command; watch for the
latest on Afghanistan, 3 p.m.
·
Top
M&A
o
BP, which replaced Tony Hayward as CEO with
U.S.-born Robert Dudley effective Oct. 1, pledged to accelerate asset sales to
as much as $30b
o
Icahn sues Lions Gate (IGF) over
debt-to-equity deal
·
Top $
Raising
o TRIBUNE EXAMINER CONCLUSIONS ARE PARTIAL VICTORY FOR
COMPANY – BBG
·
Credit Markets: Junk’s
Best Rally Since March Entices Borrowers
o
Returns of 2.99 percent this month are
prompting a surge in U.S. speculative-grade offerings with Advanced Micro
Devices Inc., the second-largest maker of microprocessors, and Vantage Drilling
Co. leading $12.5 billion of July issuance..BBG
·
Credit Markets: flood
of new debt issuance expected in coming
weeks
o
Some of the biggest industrial companies in
the US are rushing to take advantage of soaring investor demand for corporate
debt, with a flood of new issuance expected in coming weeks
o
Barclays Capital expects net new supply by
companies with investment grade ratings to be $25bn in July
o
http://www.ft.com/cms/s/0/f8665e00-98e1-11df-9418-00144feab49a.html
·
Credit Markets: Credit-default swaps on 14 of the world’s
biggest banks, including JPMorgan Chase & Co. and Deutsche Bank AG, fell to
a 12-week low
·
Credit Markets: Ford
debt sales is back on this week…NYP
§
Ford plans to sell $1.08 billion of bonds
tied to auto loans after the Securities and Exchange Commission created a
six-month window for companies to offer asset- backed debt without including
ratings in marketing documents.
§
The bonds may be sold as soon as this week,
according to a person familiar with the offering.
§
Ford is the first issuer to sell asset-backed
bonds since President Obama signed the overhaul of financial regulations last
week.
§
http://www.nypost.com/p/news/business/sec_stokes_ford_bonds_pwLtelB1qgsie2zS55TDwN
o
During
the past two years, U.S. corporations have faced a range of debt defaults, but
investors holding their debt fared better during the most recent downturn
compared with previous periods of economic trouble. Moody's Investors Service
said the difference was a proliferation of distressed-debt transactions
conducted outside bankruptcy court. The Wall Street Journal (27 Jul.)
- Geithner and Bernanke differ on
a tax issue
o
U.S.
Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke
have been in sync on most issues during the past three years, but recent comments
from the officials suggest they are on opposite sides of a tax issue, according
to The Wall Street Journal. Bernanke told lawmakers that he supports continuing
tax rates that expire early next year. Geithner, on the other hand, said those
tax rates should be allowed to expire. The Wall Street Journal (27 Jul.)
·
Fed Speak: Plosser Says
Weaker Data Don’t Yet Justify More Fed Stimulus
§
Federal Reserve Bank of Philadelphia
President Charles Plosser said it’s too soon for the Fed to bolster record U.S.
monetary stimulus in response to slower- than-forecast gains in economic growth
and employment.
§
“Talk of new efforts to stimulate the economy
are premature right now,” Plosser said yesterday in an interview with Bloomberg
News in Washington. “I don’t think the data have been sufficiently compelling
one way or another.”
§
Plosser’s viewpoint may help explain why Fed
Chairman Ben S. Bernanke last week outlined potential steps to spur growth,
including asset purchases, without saying that such actions were imminent – BBG
·
Money
Flows: Strong Recent
Returns Not Enough to Draw Retail Investors into Equities. U.S. Equity
Funds Lose Estimated $12.9 Billion (0.3% of Assets) in July. Global
Equity Funds Lose Estimated $1.9 Billion (0.2% of Assets) in July. TRIMTABS
·
US States, munis:
States Expect Tax Collections to Rise –
WSJ
o
State governments expect tax collections to
grow for the first time in two years as tax increases and a recovering economy
lead to higher collections.
o
But states are still likely to face at least
two more years of financial troubles and about half will see gaps in this
year's budgets if Congress doesn't extend special Medicaid payments that were
part of the 2009 stimulus act, according to a report expected to be released
Tuesday by the National Conference of State Legislatures.
o
at least half of state legislatures wrote their 2011
budgets with the assumption that Congress would extend the program. Congress
continues to debate an extension, and it isn't clear whether it will pass
o
http://online.wsj.com/article/SB10001424052748704700404575391374053385804.html?mod=WSJ_hps_MIDDLEThirdNews
·
US States, munis:
Crisis-Era Munis Haunt Wall Street – WSJ
o
Two years after the credit-market meltdown
hit a once-booming sector of the municipal-bond market, Wall Street brokerage
firms are being ordered to pay millions to investors who lost big on what some
thought were low-risk investments.
o
These messes involve highly leveraged
investments, which amplified losses when financial markets turned rocky.
·
US States California Mayor Regrets ‘Indefensible’
Salaries – BBG
o
he mayor of Bell, California, whose municipal
pay records have been subpoenaed by Attorney General Jerry Brown, apologized
for what he called the city’s “indefensible administrative salaries.”
o
Brown said he’s subpoenaed hundreds of
employment, salary and contract records
from the city of Bell, whose manager had an annual salary of almost $800,000
and resigned last week
·
Debate Heats Up Over Stimulus Spending – WSJ link
o
Eighteen months after Obama administered a
massive dose of spending increases and tax cuts, a fight has broken out about
whether fiscal-stimulus medicine is curing the illness or making it worse.
·
No Double-Dip Recession for World: Richard Branson – cnbc link
·
Obama's 'Slamming of Business' Unhealthy: Diller – cnbc link
·
Exec pay: WSJ.com/ExecPay: Complete Coverage
o
Oracle's Larry Ellison topped the list of
best-paid executives of public companies during the past decade, according to a
Wall Street Journal analysis of CEO pay.
·
Banks, Basel
Committee: Risks Rulebook Is Nearly Done – WSJ
o
Key Aspects of Banks' New Restraints Are
Agreed Upon; Germany Is Holdout
o
International
regulators and central bankers agreed on key aspects of new global standards
aimed at constraining risk at the world's largest banks, a significant move
toward putting a final agreement in place by a November deadline.
o
Monday's
pact tackles one fundamental question: What constitutes the "capital"
banks are required to hold to ward off insolvency and bailouts? Officials
punted on some other issues and, to build consensus, agreed to delay making
some new rules binding until 2018 or beyond.
o
Germany,
alone among the 27 countries participating in the Basel Committee on Banking
Supervision, refused to sign onto the accord for now
·
China vs US: China Fuels Trade Tension, Report Says – WSJ link
o
China's drive to support domestic
technologies is likely to continue to cause trade disputes and political
tensions with the U.S., says a new report from the U.S. Chamber of Commerce.
·
China vs US: IMF Sees Yuan as Undervalued – WSJ link
o
IMF
determination was bound to put pressure on Beijing to let the currency
appreciate more than the 0.7% it has risen since China loosened the yuan's peg
to the dollar on June 19th
- Legg Mason LM
-5.1% (earnings miss) …
outflows continue
- UBS Stock +7.1%..net beats…. debt trading write-ups
help,
o
IB revenue trends were
mixed vs. US peers
o
ongoing slowing of net new money outflows and
the slight increase in wealth management gross margins are pleasing
o
UBS is confident on the outlook, which hasn't
been the case for a while – DJ
·
DB Shares +2%
o
Transaction Banking comes out stronger than
expected as Deutsche seems to have profited from the export boom in Germany
o
Deutsche Bank (DB) 2Q pretax profit is in
line with expectations and net profit ahead of expectations due to a lower tax
rate, Nomura says.
o
Investment banking is in line with
expectations in a tough quarter and continues to be the main driver keeping the
group on track with the 2011 business plan,
Nomura
o
Sales and trading at the investment bank, run
by Anshu Jain, fell 15 percent from a year earlier and 42 percent from the
first quarter, tracking declines at competitors including Credit Suisse and
Goldman Sachs
·
BP trades up today
o
BP
plans to sell assets worth $30bn to meet the costs of its massive oil spill in
the Gulf of Mexico, and has confirmed the departure of its chief executive Tony
Hayward.
o
BP reported its Q2 earnings with an impressive
loss of $17.2B mainly due to replacement cost loss. Revenues came slightly
higher than estimates at $75.9B
o ONGC
(ONGC.IN), PetroVietnam to make a joint bid for BP's Vietnam asset in a few
weeks -- Reuters citing India's oil secretary
·
DD ups guidance….pre open Tuesday
·
Tech
Trading mixed:
o
VECO +4.4% (earnings)
o
IDTI +4.2% (earnings, buyback)
o
ZRAN -8.1% (earnings)
o
SANM -7.9% (earnings)
o
PLT -7% (earnings)
o
RMBS +8.4% (ITC ruling)
o
UCTT +8.9% (earnings)
o
PLXT -3.7% (earnings)
o
VLTR -4.7% (earnings)
o
SAP Raises Sales Outlook..but mostly in line with street thinking
§ Although
Q2 EPS was a shade light of consensus ,
investors may focus on the strong performance in new license revenue,
confirming the ongoing recovery.
§ as expected the guidance range was revised
towards the upper end
§ Margin guidance of 30-31% reiterated
§ guidance
raised to reflect Sybase
o
Canon., the world’s largest camera maker, posted its
third straight quarterly profit increase, beating analysts’ estimates as the economic recovery boosted demand for single-lens
reflex cameras and laser printers. BBG
§ Canon kept unchanged its April forecast for an 82 percent
increase in annual net income to 240 billion yen
o ARM holdings reported earnings and revenues
above estimates but did not impress with its outlook. The management expects Q3
and Q4 seasonal uptick to have a flatter trajectory than normal. Shares opened
down and are trading down by 6 points
·
Daimler
off lows post reporting….dn 0.5% -
reported this morning..beats ests…
·
Danone Boosts Sales Target
o
Danone Shares -2.4%
…Strong 1H and 2Q sales have made management comfortable enough to
increase sales growth target for the year to over 6% from over 5%
previously..note Consensus
stands at 5.9% already
·
Xstrata
trading higher as production volumes increased
·
Miners
and Metals
·
Xstrata (-1%). 1H production figures come out a
little light.
·
African
Barrick Gold
(-3%). 2Q Net profit comes in ahead of estimates, but the company cuts output
forecasts.
·
Macro positive: DP World Handles
16% More Containers in First Half
o
DP World Ltd., the Middle East’s biggest port
operator, said it handled 16 percent more cargo in the first half of the year
at the 50 terminals the company operates, boosting profit
o
Growth in container shipping will come
primarily from Asia this year, the company said
o
“Whilst uncertainty remains over the
sustainability of trade volumes reported in the first half of the year, we
currently expect to deliver full-year results in line with expectations,”
Sharaf said.
o
The company plans to announce first-half results on Aug.
18.
·
Wikileaks Afghanistan: 'War
Crime' Evidence to Be Published – BBG
o
Julian Assange, the founder of the Wikileaks
website, said the 92,000 items he had released so far had "only scratched
the surface" of what he had in his possession, and claimed he had evidence
of possible war crimes.
·
Cameron Vows to Support Turkish Quest to Join European
Union
o
(Bloomberg) -- U.K. Prime Minister David
Cameron called on other European Union nations to drop their objections to
Turkey’s joining the 27-nation bloc.
·
Equity Recap
o
They were unchanged when we walked in this morning
but gained momentum as the July new home sales were better by 20,000 yet last
months was revised 33,000 lower so a wash, The earnings boost by FDX is what
really set the tone and the market reacted accordingly. Again, these are the
first to lead us out and Buffett’s favorite indicator(traded +5%). They still
couldn’t take out that 1,113 level on the cash which is our 200 day moving
average. Yet we still didn’t, next up 1,122 which is the 150 day moving
average. Breadth to the market had 4 advancing issues vs. every 1 declining
issue, while internally here, buy and sell names were equal and we did see some
value money coming off of the sidelines. Still the volume has been summer like
and didn’t even break the billion mark in nyse which is still 20% of the
overall volume but light by standards. We saw more short covering and not
many willing to lay them out at this point(makes sense, wait till next snow
fall), Not much amongst quant’s and deep value on both sides
o
o
With Europe and Asia essentially unchanged,
S&P futures started down a point in the early going. Just
before 9:00, FDX preannounced stronger than expected earnings; S&P’s
immediately moved into positive territory (for its part FDX finished up 5.6% on
the day). At 10:00, New Home Sales came in 20k better at 330k, and S&P’s
surged again, trading to the 1110 level, well above their 200-day MA (1104),
but shy of their next resistance level (1113). Around 2:00, there was a brief 5
point fade back to the 200 day MA. After holding this level, futures turned up
and went to new highs for the session (1111.50), before settling in to close at
1109.50, up almost 9 on the day.
o
All 10 S&P Industry groups ended up on
the day, with Industrials strongest (up 1.73%) and Consumer Staples weakest (up
0.44%). In specific stock action, CAL and UAUA each gained a bit more than
5.5%. Homebuilders also acted well: HOV rallied 6.5%, while BZH rose 6.2%. In
other news, BP rose 4.9% as Tony Hayward will step down as CEO. Bloomberg notes
that Institutional Investors are increasing their equity allocations as retail
investors grow more bearish. The last time this occurred to such a degree was
March 2009, just before the market began a 63% advance.
o Billy Clark and Team
·
Rates Commentary 0
o Treasury market opened up mixed in New York
with a small flattening bias. Price action was extremely choppy early as the
market continued to trend lower. The selloff was attributed to auction setups
ahead of this weeks $104Bln of Treasury issuance, rate locks for the large
corporate issuance calendar and MBS tied selling in the belly, higher equities,
and new home sales (up 23.6% expectations for 3.7%, sales were better than
expected by 19K but last month was revised down by 33K). Treasuries made their
lows shortly thereafter with short covering, dip buying and corporate rate lock
unwinds pushing the market higher in the late morming and afternoon. At
3PM benchmarks were unchanged to 1bp higher in yield.
o tues, the Treasury auction calendar kicks off
with $38Bln 2 year notes. We do not expect any major concession to build in
with the short end stuck in an extremely narrow trading range.
o Primary Dealer
- CMBS Recap
o Break out the champagne-
GG10s break through par (offered side).
Last time that happened was after the Jan CMSA conference and only lasted
a few seconds. CMBS put in a nice day
tightening 5-15bps. GG10s
finished 12bps tighter (+353/$99-28) vs IG in 3.5bps and HY CDS up $0.6pts.
o Typical Monday with
light selling- $125mm BWICs. Today's focus was $70mm A2 paper and $38mm
AM/AJs. One of the more interesting
trades in A2s were the WBCMT 06-C26 A2s that covered +255/$106-13.
o We continue to have strong demand for Tier 1/2+ AM
paper. With the rally in Dupers and AMs,
would expect CLEAN '05/'06 AJ paper to be next in line.
o . BACM 02-2 Ks today traded mid-high $60s: BBB+/CCC, 4.5%
credit support/8.8% defease adjusted credit support. Nice deal but worried about Michigan
exposure.
o Geordie
Walker
o
TLM Talisman Energy reports
o QEP
+6.3% (Q2 production)
o
OKS ONEOK Partners LP announces plans to
build ~$595M-$730M in natural gas liquids projects
o
RRC Range Resources reports Q2 non-GAAP EPS
o
VTG Vantage Drilling 45.4M share secondary
priced at $1.10 per share through Jefferies and Johnson and Rice
o
CFW Cano Petroleum retains Canaccord Genuity
and Global Hunter Securities, LLC., to assist in its review of strategic
alternatives
o
AVA Avista announces settlement in Idaho rate
request
o
PCX Patriot Coal reports better
o DD ups guidance….pre open Tuesday
o SOA Solutia reports Q2 EPS $0.44 ex-items vs Reuters $0.39 …
§ Company reports revenues of $518.0M vs Reuters $486.5M.
§ Guides full year EPS to $1.40-1.50 vs Reuters $1.47;
guides revenues to growth of 10-15% vs Reuters $1.93B.
o
BEAV
BE Aerospace reports and guides in line to better
o JEC Jacobs
Engineering reports and guides mixed… Q3 EPS $0.63 ex-items vs Reuters $0.63... revenues of $2.51B
vs Reuters $2.57B. Narrows full year guidance to a range of $2.30-$2.65 from
previous range of $2.15-$2.65, Reuters consensus $2.47.
o CPO Corn
Products reports.. $0.75 ex-items vs Reuters $0.58, revenues
of $1.00B vs Reuters $984.4M. Guides full year EPS to $2.55-$2.75,
ex-items, above prior $2.25-$2.60 vs Reuters $2.53
o Weekly
USDA crop report says 72% of corn in good or excellent condition; compares to
72% last week and 70% in prior year.
o
GE House committee expected to keep
second F-35 engine alive -- NY Times
o Daimler
raises FY forecasts
o
RKT Rock-Tenn reports Q3 EPS
o CR
+4.3% (earnings) CR Crane reports Q2 EPS
o
MAS Masco reports Q2 EPS ..mixed
o
LLL Consensus segment results for L-3
Communications
o
CTS CTS Corp reports Q2 EPS
o
INSU Insituform Technologies reports Q2 EPS
o
TRNS Transcat reports Q1 EPS
o
SANM Sanmina-SCI reports Q3 EPS
o
AYI Acuity Brands acquires LED luminaire
company
o
FLR Fluor reports Q2 EPS
o
HXL Hexcel reports Q2 EPS
o
BLL Ball acquires Neuman Aluminum
o
ECOL US Ecology reports
§
US Ecology reports Q2 EPS 13c vs. consensus
of 14c - Reports Q2 revenue $19.8M vs. consensus of $21.64M
§
US Ecology sees 2010 EPS 57c-67c vs.
consensus of 59c
o PPD
Pre-Paid Legal Services Inc. said the U.S. Federal Trade Commission closed its
investigation of the company without taking action.
·
Macro positive: DP World Handles
16% More Containers in First Half
o
DP World Ltd., the Middle East’s biggest port
operator, said it handled 16 percent more cargo in the first half of the year
at the 50 terminals the company operates, boosting profit
o
Growth in container shipping will come
primarily from Asia this year, the company said
o
“Whilst uncertainty remains over the
sustainability of trade volumes reported in the first half of the year, we
currently expect to deliver full-year results in line with expectations,”
Sharaf said.
o
The company plans to announce first-half results on Aug.
18.
o
TECH/MEDIA/TELECOM
o VDSI
VASCO Data Security reports…. Reduces full year revenues guidance
o
RDWR Radware reports
o
UIS
Unisys reports
o RMBS up
8.4%. ITC rules in favor of Rambus in case against NVDA and others – Barron’s
o
http://feedproxy.google.com/~r/barrons/techtraderdaily/feed/~3/Uy4dJUwDKMA/
o
QTWW Quantum Technologies completes $10.9M
private placement
o
NAVI NaviSite retains Raymond James as
independent financial advisor
o
GOOG Google may be close to winning the search
business of Yahoo Japan - All Things Digital
o
VVTV ValueVision files $75M mixed shelf
o
IDTI IDT announces $225M common stock repurchase
program
o
PANL, LPL Universal Display discloses renewal of
commercial supply agreement with LG Display through 31-Dec-10
o
KNXA Kenexa announces acquisition of The Centre
for High Performance Development
o
Apple Sued Over Claims IPad
Tablet Overheats in Warm Conditions- BBG
o
The complaint, filed July 23 in federal court
in Oakland, California, seeks unspecified damages and class action, or group,
status
o
It claims the iPad “does not live up to the
reasonable consumer’s expectations created by Apple” because it “overheats so
quickly under common weather conditions.”
o
T, AAPL: AT&T iPhone 4 upload
speed fix expected in 2-3 weeks- AppleInsider
o
Handsets: revenue to increase
about 4% in 2010- ABI
o
HTC to adopt Sony SLCD for 3.7-inch screens of
smartphones- Digitimes
o
Solid capacitor
prices to rise on tight supply- Digitimes
o
DRAM supply to outgrow demand in 4Q10- Digitimes
o
IBM: EU opens anti-trust probe of IBM mainframe
business- Reuters
o
o ADVS-
better Q2 on solid performance across the board.
International revs continued to grow, reaching 15%. Mgmt’s goal is for this rev
to reach 20% in the next 305 yrs. Mgmt also noted sales cycles in Europe are
starting to normalize.
o IDTI-
up 4.2%. Better Q1 driven by outperformance
in enterprise computing and comm End customers. GMs were better with a
strong product mix as the main reason. IDTI guided below seasonality, but still
above street forecasts. Continued strength in Communications and enterprise
computing should help to drive the beat. IDTI announces a $225 million common
stock repurchase program
o PLT- down
7%. better Q with weak rev guidance. The upside to the Q came from
strong performance in the office and call center segment. The weaker guidance
is a result of weaker sales in Bluetooth and in Europe.
o SANM-
down 7.9%. mixed Q. solid performance was
cancelled out by bad debt expense, higher taxes, and other higher expenses. Q4
guidance looks better with mgmt calling for a 1.5-4.6% increase in revs. The
focus in the coming Qs looks to be on the components business. Strong or weak
result in that segment could drive results either way. The segment does appear
to be gaining traction.
o SFSF-
slightly better Q2 with 35% booking growth providing the upside. Mgmt also
raised Q3 guidance on performance from acquisitions and organic growth.
Billings strength is expected to continue in Q3 and mgmt raised their billing
guidance for the Q. The company completed its two acquisitions (Inform
and Cubetree) at the end of the Q.
o VECO-
up 4.4%. Very strong Q2 driven by strong LED
Demand. Bookings reached a new record level up 30% sequentially. HDD orders
were up 89% q/q. Much of LED strength came from China, where VECO saw
significant market share gains in the Q. Mgmt guides Q3 higher on the
strong demand, and expects to expand to greater capacity by Q4.
o VLTR-
down 4.7%. better Q2 with upside coming from
enterprise computing strength. Server strength helped to balance weaker
notebook shipments in the Q. Cost controls helped to provide a record GM of
63.4%. Q3 guidance is slightly better due to expected seasonal strength and
share gains in the notebook segment. Enterprise computing looks to be
flattening in the near term. VLTR added Acer as an OEM customer in the Q
and now ships to 5 of the top 7 notebook OEM companies in the world
o ZRAN-
down 8.1%. disappointing Q2 with DTV remaining the
story down 30% y/y. Although there was sequential improvement of 9% in the area
Rev guidance is very light once again due to expected weaknss in DTV. Due to
top-tier price cuts, mid tier DTV players like ZRAN are feeling the heat in
DTV.
o SAP- down
2% in Europe. Top line beats due to positive FX swings. Licenses grew in the Q,
but growth looks to have slowed and is decelerating. Raised FY10 guidance on
strong growth.
o
ARM- better Q on the
back of good licensing revs. Demand for smartphones and netbooks was
very strong in the Q.
o
AWRE- better Q2 despite revs
declining y/y
o
PLXT- in line to slightly
worse Q2 and guidance looks in line.
o CTS- better
Q and guides higher, but guidance still looks short of expectations
o MSPD-
mostly in line Q and in line guidance. The street looks
to have expected more.
o ININ-
mixed Q with revs better, but EPS a little light.
o
UCTT- up 8.9. Strong Q on the
top and bottom line. Also showed strong margin growth in the Q.
o
Iron ore prices jumped 5% yesterday-The Steel
Index
o
According
to a China Iron and Steel Assoc (CISA) official, profits for China's 77 biggest
steelmakers fell about 38% m/m in June because of falling steel prices
o
AK Steel and US Steel
report this morning
o
Xstrata issues production report for 6M ended
30-June; H1 mined copper output fall (3.0%) y/y
§ Xstrata (up 1%). 1H production figures come out a
little light.
o
African
Barrick Gold
(-3%). 2Q Net profit comes in ahead of estimates, but the company cuts output
forecasts.
o
FOE Ferro reports Q2 (from 10-Q filing) EPS
o
WPP Wausau Paper reports Q2 EPS
o
SOA Solutia reports Q2 EPS
o
ECL Consensus segment results for Ecolab
o
PCL Plum Creek reports Q2 EPS
o
ALB Albemarle reports Q2 EPS
o
Daimler raises FY forecasts
o
DORM Dorman Products reports..beats street
o
Ford
debt sales is on this week…NYP
§
Ford plans to sell $1.08 billion of bonds
tied to auto loans after the Securities and Exchange Commission created a
six-month window for companies to offer asset- backed debt without including
ratings in marketing documents.
§
The bonds may be sold as soon as this week,
according to a person familiar with the offering.
§
Ford is the first issuer to sell asset-backed
bonds since President Obama signed the overhaul of financial regulations last
week.
§
http://www.nypost.com/p/news/business/sec_stokes_ford_bonds_pwLtelB1qgsie2zS55TDwN
o
Cramer:
Who Will Win Between Ford and GM?
o
Enterprise Rent-A-Car to buy 500 Nissan Leaf
electric cars – WSJ
o
TM:
Reports Jun global vehicle production at 654K units, up 16% y/y
- HMC: Reports June global vehicle production +18% y/y (303K units)
o Credit
Markets:
Credit-default swaps on 14 of the world’s biggest banks, including
JPMorgan Chase & Co. and Deutsche Bank AG, fell to a 12-week low
o In
Tokyo, the country's big three banks were outperforming mild broader market
gains after the Basel Committee on
Banking Supervision agreed Tuesday on broadening the rules over how to
calculate banks' new core capital requirements.
- Basel Committee eases up on proposed capital and liquidity rules
- The Basel Committee on
Banking Supervision introduced limits on global banks' leverage to restrict
their risk-taking, but it softened proposals for banks' capital and
liquidity requirements. However, insiders said the rules still would
affect financial institutions. "Even after all the compromises, the
banks aren't off the hook from tighter capital and liquidity
rules," said Frederick Cannon, chief equity strategist at Keefe,
Bruyette & Woods. Bloomberg (27 Jul.) , The Wall Street Journal (27
Jul.) , The New York Times (free registration)
(26 Jul.)
- Banks, Basel Committee:
Risks Rulebook Is Nearly Done – WSJ
§
Key Aspects of Banks' New Restraints Are
Agreed Upon; Germany Is Holdout
§
International
regulators and central bankers agreed on key aspects of new global standards
aimed at constraining risk at the world's largest banks, a significant move
toward putting a final agreement in place by a November deadline.
§
Monday's
pact tackles one fundamental question: What constitutes the "capital"
banks are required to hold to ward off insolvency and bailouts? Officials
punted on some other issues and, to build consensus, agreed to delay making
some new rules binding until 2018 or beyond.
§
Germany,
alone among the 27 countries participating in the Basel Committee on Banking
Supervision, refused to sign onto the accord for now
o
LM -3.4% (earnings)
o
SBNY Signature Bank reports
o
WSFS WSFS Financial reports Q2 EPS
o
CVBF CVB Financial announces 31-Dec-10
projected retirement of CFO Edward Biebrich, Jr.
o
MET, BLK Potential ResCap bidders include
Metlife , Private National Mortgage Acceptance and Blackrock, Centerbridge --
Reuters, citing sources
o
LKFN Lakeland Financial reports Q2 adjusted
EPS
o
GBNK Guaranty Bancorp reports Q2 EPS
o
LEGC Legacy Bancorp reports Q2 EPS
o
RGA Reinsurance Group reports Q2 operating
EPS
o
CME CME Group holder Bolsa de Valores, Mercadorias
e Futuros discloses a 5% stake in a 13D filing
o
FISI Financial Institutions reports Q2 EPS
o
WRB W.R. Berkley reports Q2 operating EPS
o
NARA Nara Bancorp reports Q2 EPS
o
NBTB NBT Bancorp reports Q2 EPS
o
SBX SeaBright Holdings says subsidiary has
filed a 15.3% rate increase with the California Department of Insurance
o
EGBN Eagle Bancorp reports Q2 EPS
o
TRH Transatlantic Holdings reports Q2 EPS
o
FCNCA First Citizen Bancshares reports Q2 EPS
o
BFIN BankFinancial reports Q2 EPS
o
WSBC WesBanco reports Q2 EPS
o
PBNY Provident New York Bancorp reports Q3
EPS
o
WSFS WSFS Financial to recover all of its
funds that were involved in the previously reported incident of alleged fraud
and theft by armored car company.
o
FNB FNB Corp /PA reports Q2 EPS
o
ACGL Arch Capital Group reports Q2 after tax
operating income
o
HTLF Heartland Financial reports Q2 EPS
o
MRH Montpelier Re reports Q2 EPS
o
Nomura Holdings Inc., Japan’s biggest
brokerage, may report its first loss in five quarters this week on a slump in
trading and investment banking earnings, according to analysts. BBG
o
Daiwa Securities Group Inc., Japan’s
second-largest brokerage, reported a second straight quarterly loss as
underwriting fees and trading profit slumped.
BBG
o CMBS
Recap: Break out the champagne- GG10s break through
par (offered side). Last time that
happened was after the Jan CMSA conference and only lasted a few seconds. CMBS put in a nice day tightening 5-15bps. GG10s finished 12bps tighter (+353/$99-28) vs
IG in 3.5bps and HY CDS up $0.6pts. Gordie Walker
o U.S. new-home sales
rebound, but builders are forced to slash prices
§ New-home sales increased 23.6% last month
compared with May, topping economists' forecasts, but the sales level, 330,000,
was the second-lowest since the government started tracking such data in 1963.
Builders were forced to keep cutting prices to get those sales. The average
selling price dropped to $242,900, the lowest for June since 2003. The Christian Science
Monitor/The New Economy blog
(26 Jul.) , Investment Advisor (26 Jul.) , Los Angeles Times (27 Jul.)
o Report: Foreclosures Reduce Home Values by 27% - WSJ link
o Supply of Homes Set to Grow
– WSJ
§ Sales
of new homes are near 47-year lows, yet the supply of new and existing homes is
expected to grow in the months ahead as construction ramps up and a wave of
foreclosed homes hits the market.
§ In
June, new-home sales were running at a seasonally adjusted annual rate of
330,000 units, the Commerce Department said Monday. While that was up 23.6%
from the all-time low of 267,000 in May, the June figures were the second
lowest on record.
§ "The
last time we were running these kinds of numbers was the 1982-1983 recession,
when we had 100 million less people."
§ http://online.wsj.com/article/SB10001424052748704700404575391582687553008.html?mod=WSJ_hps_LEFTWhatsNews
o Australia’s Hardie Industries jumped 4.9% after the
positive U.S. housing data as the company is heavily leveraged to the U.S.
market, accounting for 77% of its sales in the 2009 fiscal year.
o Commercial Property Loan
Disposals ‘Anemic,’ Credit Suisse Says (BBG)
§ Servicers
are liquidating soured commercial property loans bundled into bonds at an
“anemic” pace as large mortgages delay the process, creating uncertainty as to
the size of losses
§ Of nearly 4,900 troubled loans, 86 totaling
$494 million were liquidated last month
§ More
than 80 percent of those loans were less than $10 million and the largest had
only $27 million in balance
§ Roughly
50 loans with balances greater than $50 million have been with special
servicers, firms that handle troubled loans packaged in bonds, for at least one
year, the report said.
o Apartment Rentals Surge in
U.S. on Home Foreclosures, Job Gains - BBG
§ U.S.
apartment landlords are seeing a surge in rentals as mounting foreclosures
reduce homeownership and an improving job market for young adults encourages
them to find their own places to live
§ The
number of occupied apartments increased by 215,000 in the 64 largest U.S.
markets in the first half of the year, according to MPF Research, almost twice
the units added in all of 2009 and the most since the firm began tracking the
data in 1992. The vacancy rate declined to 6.6 percent last month from 8.2
percent in December
§ “Overall demand is pretty stunningly strong in
the first half,” Greg Willett, a vice president at the Carrollton, Texas- based
apartment-industry research firm, said in an interview
§ Investors are betting the expanding ranks of
renters will lead to earnings increases next year of about 5 percent to 10
percent or more for apartment real estate investment trusts such as Equity
Residential and AvalonBay Communities Inc. UBS AG this month raised its rating
on AvalonBay and others
o
AEC Associated Estates reports Q2 FFO
o
FUR Winthrop Realty Trust acquires First
mortgage loan and rake bond
o
SLG SL Green Realty reports Q2 FFO
o
LRY Liberty Property Trust reports Q2 FFO
o
BDN Brandywine Realty trust announces over
840,000 square feet of leasing activity
o
GRT Glimcher Realty announces 12.5M share
secondary offering through Goldman Sachs and Wells Fargo
o
MAT: WSJ chronicle MAT vs Bratz
§ Last
week, Mattel said it "looks forward to a full trial on Mattel's claims
against MGA."
§ Mr. Larian, the founder of MGA Entertainment Inc., lost
control of the Bratz line of dolls two years ago when a federal court ruled
against him and in favor of toy giant Mattel Inc. in a
copyright-infringement suit.
§ Last week, an appellate court ruled in his favor and
returned the dolls to MGA, citing mistakes in instructions given to the jury
and other problems.
§ While the entire case might have to be retried, the
decision was a victory for Mr. Larian, who for years was both distracted and
strapped for funds because of the battle with Mattel.
§ Sears Holdings and Toys 'R' Us both confirmed that they
have bought the new Bratz lines
o
Jack Hartung, CFO of Chipotle Mexican Grill (CMG),
tells Cramer that even with 1K restaurants in the US, the company still has the
opportunity to add thousands of new locations, and that is where it will be
focused for the foreseeable future.
o
Kirin to pay $970M for
14.7% stake in Fraser and Neave from Temasek – FT
o
LUB Luby's completes acquisition of
Fuddruckers; conference call on Thursday, July 29, 2010 at 17:00ET. (480)
629-9678
o
OSK Oshkosh awarded $41.4M US Army contract
on 22-Jul
o
PRGX PRGX Global reports Q2 EPS
o
RCII Rent-A-Center increases stock repurchase
plan to $600M from $500M; initiates quarterly dividend
o
RCII Rent-A-Center reports Q2 EPS
o
WSM Williams-Sonoma initiated neutral at
Janney Capital; target is $24.
o
AAN Aaron's reports Q2 EPS
o
LF Leapfrog reports Q2 EPS
o
o Teva
Pharmaceutical reports
§ Teva
reports Q2 EPS $1.08 vs. consensus of $1.04 - Reports Q2 revenue $3.80B vs.
consensus of $3.79B
§ CONF
CALL: TEVA - 7/27/10 8:30 AM
o ICLR ICON plc reports
o RiskMetrics opposes CRL Charles River/WX WuXi deal-
Reuters
§ Proxy advisory firm
RiskMetrics recommended on Monday that Charles River Laboratories International
shareholders vote against a proposed acquisition of WuXi PharmaTech
§ "We remain concerned
that the full price being paid leaves very little room for error, amplifying
the potential execution risk, and we therefore recommend Charles River
shareholders vote against the deal,"
§ http://www.reuters.com/article/idUSN2622597420100726
o GENZ Genzyme Said to Rebuff SNY Sanofi-Aventis
Buyout Approach- BBG
§ Genzyme rebuffed Sanofi-
Aventis SA’s takeover approach last week
§ Genzyme can command at
least $22 billion, or $80 a share, on the potential for revenue to surge after
the company resolves manufacturing defects depressing sales of existing
products and introduces new medicines, investors and analysts said today
§ http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aiHu2525LJv0
o GENZ Genzyme still weighing SNY Sanofi approach-
Reuters
§ Bloomberg reported
earlier on Monday that Genzyme had rebuffed Sanofi's overture. Genzyme,
however, has not responded to Sanofi or rejected the French company
§ http://www.reuters.com/article/idUSN2621150120100726
o WSJ discusses the deal and the opportunity for
Genzyme
o ECLP Allscripts (MDRX) amends framework agreement
with Misys (MSY.LN) to reduce size of planned secondary offering
o TMO : Thermo Fisher Scientific reports
§ Reaffirms
full year EPS guidance of $3.40-$3.50, adjusted, vs Reuters $3.47; guides
revenues to $10.60-$10.75B, below prior $10.65-$10.80B, due to forex rates, vs
Reuters $10.77B; First Call $10.78B.
o CNC Centene reports..guides mixed: f10 EPS
$1.78-$1.86, above prior $1.73-$1.83; Reuters is $1.79
o SQNM Sequenom receives letter from FDA regarding
SensiGene
o KCI Kinetic Concepts reports
§ Guides
full year EPS to $4.19-$4.29 vs First Call $4.26 and prior guidance of
$4.32-$4.46; guides revenues to $2B-$2.03B vs First Call $2.06B and prior
$2.05B-$2.09B.
o VTIV inVentiv
Health guides Q2 revenue to $277M-$291M vs Reuters $277.4M
o
OMI Owens & Minor reports Q2 EPS
o
ADPI American Dental Partners reports Q2 EPS
o
HSTM Healthstream reports Q2 EPS
o
CMS issues final ruling for bundling of
kidney dialysis services
o
ACL Alcon reports Q2 EPS
o
ALXA Alexza Pharmaceuticals reports Q2 EPS
o
HMA Health Management reports Q2 EPS
o
IPCM IPC The Hospitalist Company reports Q2
EPS
o
IDIX Idenix Pharmaceuticals reports Q2 EPS
o
SONO SonoSite reports Q2 EPS
o GPRO
FDA clears Prodesse's Profast+ assay to identify three strains of influenza A
o UHS
Universal Health reports Q2 EPS
·
Stocks mentioned on CNBC's Mad Money with Jim
Cramer - TheStreet.com
·
+ CMG, NUE, SWKS, SHLD, CME and BIDU
·
- AA, ATHR and CELG
o
·
Oils
·
BP (+0.4%). Confirmation came from the board of
Tony Haywards departure and replacement by Bob Dudley ahead of 2Q figured. The
figures were mostly inline, Net Loss of $17.2bn, and an overall pre-tax charge
for the Gulf spill of $32.2bn, inline with median estimates.
·
Tullow
Oil (+1.8%). The final
purchase of Heritage
Oils (+3%) Ugandan assets by Tullow Oil has gone through.
·
Miners
and Metals
·
Xstrata (-1%). 1H production figures come out a
little light.
·
African
Barrick Gold
(-3%). 2Q Net profit comes in ahead of estimates, but the company cuts output
forecasts.
·
Norsk
Hydro (+0.1%). 2Q figures inline
with estimates.
·
Utilities
·
Verbund (-1.3%). 1H results are slightly light of
estimates.
·
Gas
Natural
(-1.3%). 2Q figures disappoint.
·
Chemicals
·
Croda (+6.9%). 1H figures please across the board.
Japan
• NKY -0.07%, TPX +0.03%
• Most Japanese stocks rose led by
banks after the Basel Committee on Banking Supervision eased some bank capital
rules. Turnover on the TPX fell to 943.75B yen from 1.23 trillion yen yesterday
• Stocks were mixed. Financials,
telecom, utilities and health care rose while materials, tech, industrials and
oil & gas fell. consumers were mixed
• Exporters fell on a strong yen: autos
-0.71%, CE +1.01%, precision -0.44%
• Banks +1.69% after the Basel
Committee on Banking Supervision eased some bank capital rules
• Best performing sectors on the TPX:
bank +1.68%, airline +0.99%, textile & apparel +0.93%; worst performing
sectors: iron & steel -1.52%, traders -0.82%, oil & coal -0.75%
Hong Kong
• HSI +0.74%; HSCEI +0.53%
• Stocks rose after UBS and DB beat
earnings. Turnover on the HSI fell to HK $16.60B from HK$21.19B yesterday
• Tourism stocks rallied after the
State Council said China will extend financing support to tourism companies and
projects by setting reasonable loan period and rates
China
• SHCOMP -0.51%; SZCOMP -0.12%
• Stocks fell for the first time in 5
days. Turnover on the SHCOMP fell to 86.61B yuan from 96.17B yuan yesterday
• Stocks fell across most sectors led
by materials, telecom, financials, oil & gas and utilities. Health care
rose
• Banks extended fall, falling another
0.96% after report they may struggle to recover local government infrastructure
loans
• Coal -0.92%. The price of Qinhuangdao
coal fell 1.3% WoW to between 740 yuan and 750 yuan, the steepest decline in 4
mths, according to the China Coal Transport and Distribution Association
o
• Tourism stocks
outperformed after the State Council said China will extend financing support
to tourism companies and projects by setting reasonable loan period and rates.
Companies will be encouraged to sell bonds and shares to raise funds
INVESTMENT
BANKING
o RiskMetrics opposes CRL Charles River/WX WuXi deal-
Reuters
o Proxy advisory firm
RiskMetrics recommended on Monday that Charles River Laboratories International
shareholders vote against a proposed acquisition of WuXi PharmaTech
o "We remain concerned
that the full price being paid leaves very little room for error, amplifying
the potential execution risk, and we therefore recommend Charles River
shareholders vote against the deal,"
o http://www.reuters.com/article/idUSN2622597420100726
o GENZ Genzyme Said to Rebuff SNY Sanofi-Aventis
Buyout Approach- BBG
o Genzyme rebuffed Sanofi-
Aventis SA’s takeover approach last week
o Genzyme can command at
least $22 billion, or $80 a share, on the potential for revenue to surge after
the company resolves manufacturing defects depressing sales of existing
products and introduces new medicines, investors and analysts said today
o http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aiHu2525LJv0
o GENZ Genzyme still weighing SNY Sanofi approach-
Reuters
o Bloomberg reported
earlier on Monday that Genzyme had rebuffed Sanofi's overture. Genzyme,
however, has not responded to Sanofi or rejected the French company
o http://www.reuters.com/article/idUSN2621150120100726
o WSJ discusses the deal and the opportunity for
Genzyme
o BP Replaces Hayward as CEO, Quickens Asset Sales on
Record Loss- BBG
o BP appointed U.S.-born
Robert Dudley as chief executive officer and pledged to accelerate asset sales
to as much as $30b after the GoM oil spill led to a record loss
o ResCap Auction Advances, but Hurdles Remain-
Dealbook
o An auction of Ally
Financial's Residential Capital unit has advanced into the second round, with
some buyers circling the assets, but a sale of the mortgage lender still faces
hurdles
o The list of potential
bidders includes the private equity firm Centerbridge Partners, the insurer
MetLife Inc and the Private National Mortgage Acceptance Company, a specialty
asset management firm also known as PennyMac, in a bid that would be backed by
the money manager BlackRock
o But there is no guarantee
that any of these firms will actually put in bids.
o DIS Disney sets Wednesday deadline on Miramax-
Reuters
o Disney wants the buyers
to put up a non-refundable $40 million down payment on the deal by Wednesday
o they don't agree, Disney
could end their exclusive negotiating period and turn to other buyers, or pull
the 611-film library off the market and proceed with distribution of the
handful of unreleased Miramax movies
o http://www.reuters.com/article/idUSTRE66P0ZC20100727
o DIS- A Miramax Deadline Could Re-Open Door for
Weinsteins- NYT
o Reached on Monday, Mr.
Tutor, who is the chief executive of the Tutor Perini Corporation construction
company, said he was blocked from discussing the proposed purchase by a
confidentiality agreement that expires on Thursday
o On Monday, the
Burkle-Weinstein group appeared poised to re-enter the bidding if the Tutor
effort failed
o Apollo Management plans to back new bank- Reuters
o Apollo Management is
looking at creating a bank along with other investors, becoming the latest
among private equity firms to eye the U.S. banking sector
o Private firms have to
bring in other investors to stay below certain ownership thresholds and avoid
becoming bank holding companies, which can lead to restrictions on their other
activities
o http://www.reuters.com/article/idUSN2622147220100726
o Icahn to sue LGF Lions Gate over note exchange-
Reuters
o Billionaire Carl Icahn on
Monday accused Lions Gate Entertainment Corp of using
"scorched-earth" tactics to thwart his bid to take over the Hollywood
studio and pledged legal action to stop it.
o http://www.reuters.com/article/idUSTRE66P3M620100726
o JFE invests $1 billion for India's JSW Steel stake-
Reuters
o JFE Holdings Inc , the
world's No.5 steelmaker, will spend about $1 billion for a 14.9 percent stake
in India's JSW Steel Ltd, just shy of a mandatory takeover trigger level, in
its bid to gain a foothold in the fast-growing Indian market
o http://www.reuters.com/article/idUSTRE66Q15R20100727
o TEVA-Ratiopharm deal to close this qtr- Reuters
o EMI Deal Ruling Against C Citigroup Explained by
Judge- BBG
o Citigroup Inc. lost its
bid to toss a lawsuit accusing it of tricking Terra Firma Capital Partners Ltd.
into buying EMI Group Ltd. because none of the deal documents forced Terra
Firma to sue in England
o Parkway shares rise 1 pct on Khazanah's improved
bid- Reuters
o Khazanah -- in its
biggest acquisition overseas -- on Monday offered S$3.95 per share for all
Parkway shares it did not own in a move that valued the hospital operator at
$3.3 billion, topping the S$3.80 offered by Fortis
o http://www.reuters.com/article/idUSSGC00368420100727
o NYX NYSE Not Mulling Minority Stake Buy In Warsaw
Bourse Now- WSJ
o NYSE Euronext (NYX),
which in July signed a strategic partnership with the Warsaw Stock Exchange,
isn't currently considering buying a minority stake in the Polish stock market
o http://online.wsj.com/article/BT-CO-20100726-709217.html
o NWSA- a successful purchase of BSkyB opens the door
for further buys in the region- S&P
o Neither European nor
British regulators are likely to block the deal. However, it added that the
British government could determine that the deal would diminish plurality in
the country's media and halt the transaction
o A UK inquiry on plurality
issues could take up to 12 months and will be highly monitored by UK media.
o BK BNY Mellon wants more Asian investors in firm-
Reuters
o Bank of New York Mellon
Corp is seeking more Asian investor ownership of the company
o The U.S. custody bank,
which has had a presence in China for more than 15 years, recently obtained
regulatory approval to set up a Chinese fund venture, and to set up a banking
branch in Beijing
o http://www.reuters.com/article/idUSTST00028820100727
o Brazil's Eletrobras mulls U.S. purchase- Reuters
o The company is currently
analyzing 11 possible investments, among power generators and transmitters,
Gama told reporters
o Eletrobras has signaled
repeatedly it wants to expand in Latin America by participating in auctions and
partnering with other companies to diversify its revenue sources. The U.S.
acquisition could take place before the end of the year
o http://www.reuters.com/article/idUSN2619996220100726
o KCG Knight Capital to buy asset management firm for
$20 mln- Reuters
o Knight Capital Group
agreed to buy privately held Astor Asset Management LLC for $20 million in a
cash and stock deal
o Knight Capital expects
the deal to close in the fourth quarter and add to its earnings per share in
2011.
o http://uk.reuters.com/article/idUKSGE66P0HX20100726
o Samuel Manu-Tech says agrees to go private; shrs
jump- Reuters
o Canada's Samuel Manu-Tech
Isaid it agreed to go private following a C$68m deal with its largest shareholder,
Samuel Son & Co, which has offered to acquire shares of the company it does
not already own
o It said Samuel Son
intends to fund the deal through its existing cash resources and by funds drawn
down on an existing credit facility
o http://www.reuters.com/article/idUSSGE66P0M720100726
o TRLG True Religion forms JV with international
distributor- Reuters
o True Religion Apparel
formed a joint venture with its largest overseas distributor on Monday, to
expand its wholesale business, and roll out retail stores in mainland Europe
o True Religion will own 60
percent interest in the joint venture, while UNIFA Premium will own the rest
o http://www.reuters.com/article/idUSSGE66P0LQ20100726
o Japan Minister Urges Full Privatization of NTT-
Nikkei
o The minister spoke at a
regular briefing today following a cabinet meeting.
o The company is missing
out on business opportunities, Nikkei cited the minister as saying in reference
to the government’s stake in the phone company, which exceeds 33%.
o Pinafor agrees to acquire Tomkins for about £2.89B-
BBG
o Tomkins holders have
recommended the cash purchase
o Under the deal terms,
Tomkins shareholders will receive £3.25 in cash for each Tomkins share,
resulting in £13.00 in cash for each Tomkins ADR.
o DPTR Delta Petroleum Corporation to Sell Non-Core
Assets for $130 Million- PR
o "This asset sale is
an important step for Delta and allows us to continue to reduce our overall
leverage and meaningfully strengthen our liquidity position.”
o The Company also
announced that it signed a new amendment to its credit agreement of its senior
credit facility.
o Kirin buys F&N stake from Temasek- FT
o Kirin, one of Japan’s
leading beer companies, is paying Y84.6bn ($970m) for a 14.7 per cent stake in
the largest beverage company in Malaysia and Singapore, underlining Japanese
corporations’ ambitions to expand in neighbouring growth markets in Asia
o The Japanese group, which
has been highly acquisitive in recent years, said the deal would give it an
important foothold in a growing area where it is under-represented
o http://www.ft.com/cms/s/0/8f84a796-98bb-11df-a0b7-00144feab49a.html
o Clayton, Dubilier Said to Be in Talks for
Harrington Holdings- BBG
o Clayton, Dubilier &
Rice and Goldman Sachs Group’s private-equity unit are in talks to buy medical
supply distribution company Harrington Holdings for about $850m including debt
o The purchase from
private-equity firm The Jordan Company may be announced as early as today, said
the people, who asked not to be identified because the talks are private. The
transaction would be financed with 48 percent equity and the remainder in debt
$ RAISING
·
China approves
Everbright Bank's IPO plan- AFP
o China's securities
regulator has given the green light to China Everbright Bank's planned initial
public offering, which could raise up to 20 billion yuan (2.9 billion dollars).
o Mid-sized lender
Everbright plans to issue up to 6.1 billion shares at the Shanghai listing,
according to the draft prospectus for the initial public offering
o http://www.google.com/hostednews/afp/article/ALeqM5il8Ny2ijc4eq1F915Fkj3pmNCdiQ
·
Billion dollar
ironsands IPO in Prospect- Business Day
o Developers of an offshore
Taranaki ironsands mining project say it could be greenlighted within the next
3 years, and require infrastructure costing between $500m and $1 billion
o Such a large investment
in what could prove to be New Zealand's largest single source of exports would
lend itself to an initial public offering
o http://www.stuff.co.nz/business/industries/3962564/Billion-dollar-ironsands-IPO-in-prospect
·
MakeMyTrip Files
for $100 Million IPO in U.S.- WSJ
o The 10-year-old company
expects its shares to be traded on the Nasdaq Global Market under the symbol
MMYT. It plans to use proceeds from the IPO for acquisitions and other efforts.
o http://online.wsj.com/article/SB10001424052748703977004575392473034161914.html?mod=googlenews_wsj
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 45.4M share secondary priced at $1.10 per share through Jefferies and
Johnson and Rice
o
RVSB Riverview
Bancorp$19.3m secondary expected to price wk of 7/26
NEWS
o
Ford debt sales is back on this week…NYP
§ Ford plans to sell $1.08 billion of bonds tied to auto
loans after the Securities and Exchange Commission created a six-month window
for companies to offer asset- backed debt without including ratings in
marketing documents.
§ The bonds may be sold as soon as this week
§ Ford is the first issuer to sell asset-backed bonds since
President Obama signed the overhaul of financial regulations last week.
§ http://www.nypost.com/p/news/business/sec_stokes_ford_bonds_pwLtelB1qgsie2zS55TDwN
o
Junk’s Best Rally Since March Entices Borrowers- BBG
§ Returns of 2.99 percent this month are prompting a surge
in U.S. speculative-grade offerings with Advanced Micro Devices Inc., the second-largest
maker of microprocessors, and Vantage Drilling Co. leading $12.5 billion of
July issuance.
o
Fuddruckers, Uno
chains get through bankruptcy- Reuters
§ Two U.S. casual dining
chains have emerged from bankruptcy as Luby's bought the operator of Fuddruckers
and the parent of the Uno Chicago Grill pizza chain emerged from six months
under Chapter 11.
§ Luby's on Monday said it
bought most of the assets of Magic Brands LLC, the parent of the Fuddruckers
hamburger chain and Koo Koo Roo chicken chain, for $63.5m in cash
§ http://www.reuters.com/article/idUSN2616198820100726
o
China's Sun Life
Everbright gets nod for revamp- Shanghai Security News
§ China's insurance
regulator has approved Sun Life Everbright's proposals to raise funds and
revamp its shareholding structure
§ Under the proposals, Sun
Life Everbright will issue new shares and bring in new shareholders, in moves
that will turn the company into a Chinese-owned entity
§ http://www.reuters.com/article/idUSTOE66Q01020100727
o
Barclays Capital is placing 30M
InterContinental Hotels shares in the range of £11.20 to £11.30 per share- SA
o
MDRX Allscripts
Cuts Size of Secondary Offering in Misys Pact- BBG
§ Allscripts cuts offering
to 25m shrs vs 36m.
§ Misys holder (ValueAct
with 25.7%) to subscribe to 5m shrs at $16.50; MDRX closed at $16.43 yesterday
o
TRB Tribune Gets
Partial Victory From Court Report on 2007 Buyout- BBG
§ The biggest piece of
Tribune Co.’s 2007 buyout is “reasonably likely” to survive a court challenge
by creditors who claim it was an intentional fraud
§ The finding related to
the majority of the company’s disputed loans went in favor of Tribune and the
lenders who financed the deal led by real-estate billionaire Sam Zell.
o
TRB Tribune Faces
New Hurdle in Report- WSJ
§ A bankruptcy investigator
lent credence to claims that Tribune Co.'s $8.2 billion buyout deal in 2007
left it too shaky to survive, throwing up another possible hurdle to the media
company's efforts to exit bankruptcy protection after nearly 20 months.
§ The investigator, Kenneth
Klee, said in a report Monday that it's "highly likely" that Tribune
was "rendered insolvent and without adequate capital" as a result of
the second half of the debt-reliant deal
o
Consumer: VVTV ValueVision files $75M mixed shelf
o
Real estate: GRT Glimcher Realty announces 12.5M
share secondary offering through Goldman Sachs and Wells Fargo
o CONFERENCES
o
Always On, Llc & STVP Summit at Stanford Conference
- Jul 27, 2010 - Jul 29, 2010
o
American Association for Clinical Chemistry
Investor Event
·
1PM: ROG.S
o
Bank of America Merrill Lynch Indonesian
Corporate Day - New York - Jul 27, 2010
o
Institute for Health Technology
Transformation Summer Health IT Summit - Jul 27, 2010 - Jul 28, 2010
o
Keefe, Bruyette & Woods, Inc. Community
Bank Investor Conference - Jul 26, 2010 - Jul 28, 2010
·
8AM: WCBO
·
9AM: CCBG
·
9:30AM: HBHC , SNBC , STL
·
10AM: BMRC
·
11:30AM: RBCAA
·
2:30PM: UCBI
·
4PM: GABC , HFWA , PBIB
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
TODAY’S EVENTS
o
Shareholder Meetings
§
VOD, LM, PLT, CBK, ESLR, MHR, NMTI, SCR, CA
o
CMCO Analyst meeting
o
PII Analyst Meeting
o
SPB Analyst Meeting
o
IVZ Analyst Meeting
o
XTA trading statement
o
BP reports and estimates total cost of Gulf
spill
o
An FDA panel reviews Medtronic's Matrix
device for disc disease
o
A Senate Committee examines the
deepwater-drilling moratorium
o A New
York judge hears arguments over wiretap evidence in an insider- trading case
against the founder of hedge fund Galleon Group
o
ECONOMICS
o
0745 ICSC-Goldman Sachs Chain Store Sales
Index
o
0855 Johnson Redbook Retail Sales Index
o
0900 S&P / Case-Shiller Home Price Index
o
1000 Business Activity Survey - Fifth
District Survey of Manufacturing Activity
o
1000 Consumer Confidence Index
o
1000 U.S. Housing Vacancies
o
1100 CFMMI Chicago Fed Midwest Manufacturing
Index
o
1630 API Weekly Statistical Bulletin
o
1700 ABC News Consumer Comfort Index
o EARNINGS
o Autos
·
ABG, GPI
o Materials
·
DEL, CENX, DD, CMP, ECL, FOE, NLC, ROC, CAS,
X, SCL, AKS
o Industrials/Homebuilders
·
MTH, PCAR, LMT, TIN, BEAV, CRDN, LLL, WAB,
LII, CBI, JEC, AGCO, CMI, MTW, AME, TRNS, NATI, ECOL, CSL, LECO, BMS, KSU, NSC,
BUKS, CPO, ATAC, TASR, ACPW, FSTR
o Consumer/Retail/Education
·
UA, RSH, ICON, BWLD, DPZ, FRS, KONA, PNRA,
ODP, RCKY, ENR, CPLA , GAI, BBSI, HSII, BGS, USNA, CBZ, SVU, SNAK, NTY
o Financials
·
CHFC, RF, AMG, IVZ, WRLD, EHTH, OXPS, AFL,
DFG, ACE, SBX, UFCS, CATY, EWBC, TNCC, FCNCA, FMER, GABC, HAFC, LKFN, NBTB,
OLBK, PNBC, PVTB, SBNY, SSBI, SUPR, TRMK, UMBF, WTNY, ENH, RNR, CIT , NDAQ,
BNCL, CFFN, FBC, FPTB, HFFC, NAL, AJG, VPFG, GPN, WU, WXS, FCBC, MBTF, UMPQ,
WBCO, WIBC, MSL, STSA
o Gaming
lodging & Leisure
·
CHH , IGT
o Tech/Telecom
·
PXLW, PVSW, VOCS, DST, RIMG , RMTR, BLKB,
EPIQ, JDAS, PMTC, ULTI, HTCH, IMN, LXK, CSGS, FISV, GSIGQ, PTC, RSYS, TRMB,
INOD, CTGX, UIS, ENTG, FORM, BRCM, ISSI, SIMG, SUPX, VIMC, RDWR, LVLT, DHX,
ELNK, IIG, KEYN, ZIXI, RFMD, VDSI, WBSN, AXE, ENWV, NMRX, TLAB, IIN
o Healthcare
·
NUVA, CEPH, CHTP, GTCB, ITMN, OXBT, SGEN,
CYNO, IRIS, KCI, HGR, LCAV, ADPI, INMD, PFWD, ABC, CGEN, ILMN, PPDI, TMO, AET,
CNC, SUPG , DCTH
o Media
·
VISN, ETM, DWA, VIA/B, SPMD
o
Energy
·
NBR, MMEX, MEE, PVG, PVR, STR, OXY, BAS, CIE,
MILL, SNRV, VLO, EEQ, SXL, PCX
o Real
Estate
·
TCO, EGP, CT, DX, HTS, MFA, BXP, CBG, JLL,
ACC, SUI, AKR, KIM, RPT, SKT, DRH
o Utilities
·
ENOC, UTL
o Transportation
·
HA, CHRW, DAC, SB
***All eco data from Bloomberg and DJ
Prepared
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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
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