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o Debt-Laden Belgium's Finances Questioned � CNBC link

o Caution!!: China Could Jolt Markets With PMI Below 50, SocGen, Westpac Say � BBG

� Chinese manufacturing data due in four days could jolt global markets by showing the first contraction in 17 months, according to Societe Generale SA and Westpac Banking

� Seasonal factors mean there is a �tangible risk� the government-backed Purchasing Managers� Index for July will slip below 50 for the first time since February 2009

� A PMI released by HSBC Holdings Plc could also show a contraction

� Overseas Action

o Europe stocks lose steam�at 7am et�

� EU Banks pare back gain as 7am et approaches�

o Asia: Nikkei +2.70%; Hang Seng 0.56%; Shanghai Composite +2.26%

o Asia� Stocks Rise sharply �

� European equity indices at lows,. Dn 0.2% at 7am et�have mostly traded lower as profits are taken following 6 days of gains.

� Nikkei Gains 2.7%

� Canon, the world�s largest camera maker, surged 5.7 percent. After reporting

� China's� rose 2.3 per cent to its highest close in two months after the central bank said economic growth would slow but there would be no double-dip in the economy

� China has �good� economic fundamentals-PBOC

� Data:

� ABC Consumer Confidence (48) in 25-Jul week vs (45) in prior week�

� Bullish sentiment increases to 38.2% from 35.6% in the latest Investor's Intelligence poll

� Germany Jul Saxony CPI M/M: 0.2% v 0.1%

� The Australian dollar slips against its U.S. counterpart, after Australia's quarterly consumer price figures rises less than economists expected

� Weak Q2 Australia CPI kills slim chance of RBA rate hike next week

Economics today

o MBA mortgage data at 7:00 ET

o Jun Durable Goods at 08:30 ET

o DOE Crude Inventories at 10:30 ET

o Treasury Auctions in 5-yr notes at 13:00 ET

o Fed's Beige Book at 14:00 ET

Earnings:

o Companies due to report before the bell include: ATI, AVY, BA, CCE, CEG, CMCSA, CMS, COP, EK, GD, GLW, HES, HSP, IP, MMV, NEM, PX, ROK, S, SEE, SO, VMED, WAT, WLP, WLP, WYN

o Companies due to report after the close include: AIZ, AKAM, AMP, BMC, CERN, CINF, CLF, CTXS, EFX, EQR, ESRX, FLS, FMC, LNC, LSI, MYN, OI, ORLY, PDX, SYMC, TER, TMK, TSO, V, VAR, VRTX

� Fed watch, Today:� The Senate Banking Committee tomorrow will probably approve the nomination of three candidates for the Federal Reserve Board, including San Francisco Fed President Janet Yellen for vice chairman, lawmakers said.� BBG

� Global rates, today:� New Zealand Central Bank Interest Rate Decision: Expected to raise the Official Cash Rate by 25bps to 3.00%

� To watch: China PMI hits in� 4 days..street getting cautious in front of it

TODAY�S BIG STORIES

� Top M&A

� SLM: ��Sallie Mae, America's largest student lender, has tapped Goldman Sachs to help it consider a possible breakup of the company, The Post has learned. The Reston, Va.-based loan originator is working with Goldman to possibly sell or spin off its student-loan servicing business �.NYP

� Soros Set to Buy Stake in Bombay Exchange � NYT link

� Apollo raises takeover offer for Brit Insurance Holdings (BRE.LN) to �10.75 per share in cash.� BBG

� Top $ Raising

o Tiger Global Said to Invest in LinkedIn at $2 Billion Valuation � BBG

o Molycorp is trying to convince investors it can loosen China�s grip on everything from smart bombs to hybrid cars by reopening the largest non-Chinese deposit of rare-earth metals in the world.�� The company is seeking $478 million in a U.S. initial public offering today - BBG

� Money flows:

o investors in leveraged exchange-traded funds�many of whom are day traders�do not think the stock� gains will last. In the past week, leveraged long ETFs redeemed 3.4% of assets, while leveraged short ETFs issued 3.9% of assets.

o Retail investors have only recently started the chase the stock market�s gains. We estimate that U.S. equity funds took in $3.1 billion (0.08% of assets) on Friday, July 23 and Monday, July 26. Even counting these inflows, however, U.S. equity funds have lost an estimated $9.6 billion (0.3% of assets) in July, even though the average fund is up a hefty 7.1%.� TrimTabs

� Technical Analysis Fails as Money-Making Strategy, Birinyi Says - BBG

o Analysts who use patterns in price and volume charts to forecast gains or losses in the stock market fail to make investors money, according to a study of technical analysis by Birinyi Associates

o The advance-decline line, which represents the number of daily gains minus declines, is an example of technical analysis that fails to forecast market moves, according to a report yesterday

o �Most indicators are descriptive, not indicative,� a group of researchers led by Laszlo Birinyi, the firm�s founder, wrote in the report e-mailed to clients yesterday. �They tell us what is going on, but seldom predict future moves.�

� In Study, 2 Economists Say Intervention Helped Avert a 2nd Depression �NYT link

o A new paper represents a first stab at comprehensively estimating the effects of the economic policy responses of the last few years

o The economists predicted that US GDP would be 6.5% lower, have 8.5 million fewer jobs, and would have experienced deflation instead of low inflation

� Gartman Slams Europe's 'Untoward' Tax Decision from CNBC

o Europe has chosen the wrong way to cut debt and unfortunately the United States will follow, Dennis Gartman, author and publisher of the Gartman Letter, told CNBC Wednesday

� Bank of England posts �5.5bn loss on QE book - telegraph

o The Bank of England has made a �5.5bn full-year loss on the assets bought under its quantitative easing (QE) "money printing" programme to prop up the battered UK economy.

o http://www.telegraph.co.uk/finance/economics/gilts/7913316/Bank-of-England-posts-5.5bn-loss-on-QE-book.html

� Jim Rogers predicts a new recession in 2012 - telegraph

o Jim Rogers, the market sage, has warned the global economy is just two years away from another recession, but remains ill-prepared to cope with the after-effects

o http://www.telegraph.co.uk/finance/economics/7913302/Jim-Rogers-predicts-a-new-recession-in-2012.html

� China�s currency is [censored]

o There�s a missing word somewhere in the IMF�s latest Article IV consultation on Chinese economic policy

o Directors agreed that the exchange rate was undervalued � but not substantially undervalued, as that would offend the Chinese government, according to Reuters.

� I.M.F. Gives Ground on Yuan Exchange Rate Debate from NYT

o The International Monetary Fund has chosen not to call the yuan �substantially� undervalued, a move that recognizes China�s efforts to free up its exchange rate and avoids friction with Beijing

� China at risk of bad loans, warns IMF from Telegraph

o The International Monetary Fund has warned China to be vigilant over bad loans as its economy begins to slow.

� BP dn 1% today��.Washington Post says federal criminal oil spill probe to focus on BP, Transocean and Halliburton

� Reg reform law aims to diversify Wall St. from POLITICO

o It grants gov't powers to compel financial firms to hire more women and minorities

� Citigroup May Move Prop Traders to Hedge Funds for Volcker Rule � BBG

o Citigroup may move a team of proprietary traders into its hedge-fund unit, one of at least three alternatives the U.S. bank is studying to comply with the Dodd-Frank Act

� Arcelor Mittal (-1.9%). 2Q figures are better than expected, but the outlook was cautious.

o ArcelorMittal, the world�s biggest steelmaker, forecast third-quarter profit will slump as much as 30 percent from the prior three months as China�s economy slows, costs rise and demand weakens during the European summer.

� NEM: Newmont 2nd-Quarter Profit Misses Analysts� Estimates

� Newmont Boosts Quarterly Dividend by 50%

� Nippon Steel's (5401.JP) full-year outlook was below market consensus as slowing growth in China threatens prices and margins

� Air France up 5% today�Says Business Travel, Freight Boost Profit �.Air France-KLM Group, Europe�s biggest airline, said resurgent business travel and freight traffic helped it return to operating profit in the fiscal first quarter, excluding the effect of a volcanic eruption in Iceland

� GOOG:� Google�s Cash Hoard Makes It Prime for Stock Buyback, Dividend � BBG

� IGT -3.5% ..IGT International Game Technology guides full year EPS

o IGT International Game Technology guides full year EPS mixed.� EPS in line with sterr..revs better

� Gaming operations mixed

� For fiscal 2010, IGT now expects EPS of $0.82-$0.85 versus its prior expectations of $0.77-$0.85.

� AFL, ACE

� CHRW

� British American Tobacco PLC reports a EPS miss� the world�s second-largest traded cigarette maker

� Canon beats././JPM upgrades

� SANYO ups forecast..Sanyo Electric� the battery maker acquired by Panasonic Corp., returned to profit in the first quarter and raised its profit forecasts, citing stronger earnings from solar panels and electronic components.

� Infineon up 2.5%...- raising guidance again

o �Infineon , Europe�s second-largest chipmaker, raised its fiscal 2010 outlook for a third time on semiconductor demand from makers of cars and consumer electronics

� LG Electronics� misses�, the world�s second largest TV maker, reported a bigger-than-expected 90 per cent slump in quarterly profit, hit by a loss in its mobile phone business as it falls behind rivals in launching new models

� Aetna Raises Outlook, Inks Pharmacy Deal with CVS

� Climate Bill May Still Pass This Year, White House�s Gibbs Says - BBG

o Climate-change measures scrapped by the Senate may still be passed this year, according to White House press secretary Robert Gibbs

� Jeb Bush Says No to 2012 Run

o Bush apparently sought to quiet the murmurs today, telling a Kentucky TV reporter that he isn�t running.

� Rangel Says He Is Seeking House Ethics Settlement

o Rangel confirmed to reporters today that his lawyers were in discussions with staff lawyers for the House ethics committee, which has scheduled a July 29 hearing where details of the allegations against the New York Democrat would be detailed. BBG

� Al Qaeda No. 2 Threatens More U.S. Attacks

o Ayman Al-Zawahiri Also Mentions Times Square Attack in Audio Message

o http://abcnews.go.com/Blotter/al-qaeda-message-ayman-zawahiri-threatens-us-attacks/story?id=11262121

� North Korea might launch internet attack on its South Korean counterparts � TTN

� California city OKs tax rates for marijuana Reuters

o Anticipating California voters will back a November ballot measure to legalize casual marijuana use, officials in Oakland have approved two tax rates on pot sales in their city, already a hub of the state's medicinal marijuana scene.

� Immigrant rights groups adjust focus to passage of AgJobs, Dream Act from Wash Post

o Some immigrant rights groups are shifting the strategy in their so-far unsuccessful push to overhaul immigration law: They're calling the new tactic the "down payment" approach

� Afghanistan War Logs Could Lead to Revenge Killings, Say Intelligence - Telegraph

� Drinking Alcohol Regularly Cuts Risk of Arthritis, Study Finds� Bloomberg

� China vs US:� : ��Reportedly China initiated large scale military drill on the east coast, and live fire exercises near the Yellow River � TTN

� China: ��New York Times) --The Chinese government has called for an end to the public shaming of criminal suspects, a time-honored cudgel of Chinese law enforcement but one that has increasingly rattled the public.

� China: ��China's Government News Chief 'Missing' in Britain

o Telegraph) -- The head of China's domestic news service has gone missing during a trip to Britain amid speculation he has defected.� Wan Wuyi, 58, disappeared after being sent to complete a training course at Oxford University.

� Somali Pirates Deterred by Cargo Ship Defense Efforts, UN Says

o The success rate of pirates operating off the coast of Somalia will fall to below 20 percent this year, from 63 percent in 2007, in part due to defensive measures cargo ships are taking

CANTOR TRADING RECAP

� Equity Recap

o Another interesting day ,seemed they sold the stocks with good earnings and take the ones that were missed out back to shoot them. The economic data was better on the case/shiller housing and Richmond fed front but tad light on the consumer confidence front(50 which is the contraction level). To think that the summer of 07 it was at 111 is crazy but such is reality.

o �They still continue to feel tired here and technically challenged as well with the market not being able to take out its 150 day moving average on the spz(1,122) but no one thought they would take out 1,113 either

o Breadth to the market had declining issues outnumber advancing issues by 1 � -1 while internally here, Buy and sell names were about equal

o Overnight, Asian markets were mixed. European markets followed our lead and traded up between �% and 1%. S&P futures were adding to yesterday�s gains as traders awaited the Case Shiller Housing data. When this came in better than expected, S&P�s rallied through resistance at 1113, and got as high as 1118, as traders settled in for the cash open. The early rally held until the 10:00 release of consumer confidence which fell from last month (and also came in below expectations: 50.4 vs. 51). The next hour was spent in a 12 point decline to 1106. This ended up establishing the range for the entire session, as we held above the 200 Day MA, but proved unable to generate any real gains due to the gloomy consumer number (as a point of reference, compare today�s reading of 50.4 with the average reading of 98 which prevailed during the economic expansion which ended in 2007). S&P�s closed about flat, up marginally on the day.

o Of the 10 S&P Industry groups, Utilities were strongest, up 1.6%; Consumer Discretionaries were weakest, down 1.2%. Most of the individual stock action was earnings driven as we are entering the heaviest part of the reporting session. UBS rose 8.9% after reporting better numbers, while letter X fell 6.4% on weak numbers.

o Billy Clark and Team

Converts recap

o Many short dated yield bonds are still getting bid up. We�ve seen some names up 1-2 points over the past 2-3 days alone.

o AMD announced a $500MM straight bond deal today. The proceeds will be used to tender for the 6% Convertibles outstanding. This adds more fuel to the Yield to tender or Yield to take out speculation going on in our market.

o We are seeing more paper go away than we are seeing in new issuance. Although the past 3 days have been good Bankers�last week we saw GNK and APA bring issue new Convertibles and today, Gilead (GILD) announced a $2.2 billion Convertible deal that will be done in 2 traunches�2014 & 2016.� This brings new issuance to about $3.5 billion in the past 3 days. Fair pricing and strong market technical factors should provide good demand for this deal.

o Tom Fazio

Rates Commentary

o The relatively quiet market continued today in Treasuries ahead the pending $104Bln of Treasury supply. Treasuries opened up the New York session lower with the curve modestly changed. The market traded near its intraday lows throughout the morning and into the $38Bln 2 year note auction. The 2 year note auction came .5bp through at .665%, with a much smaller than average non dealer participation 32.8% indirects, 13.5% directs, bid to cover, however was strong at 3.33. Treasuries mainly in the intermediate and long end found a small bid in the afternoon on rate locks and short covering but this dissipated into the close with the benchmarks closing nearly their intraday lows, yields ~5-6bps higher across the curve.

o Wed� the second part of this weeks auction schedule will take place with $37Bln 5 year notes. The calendar picks up with durable goods at 8:30AM and the Fed Beige book in the afternoon.

o Primary Dealer

CMBS Recap

o Another strong day in CMBS with spreads in ~5pbs with GG10s +345/$100-03.� For the past couple weeks, CMBS has decoupled a bit from corps and the stock mkt.� Saw $421mm in BWICs with AM/AJ paper taking center stage- $255mm in BWICs.� The paper traded well with the Duper/AM basis spread in ~30bps over the past week.� The Duper/AM spread basis for clean '07 paper is low to mid 300s in from mid to high 300s.� Still positive on clean '06/'07 AM paper.� We sold our small piece of BACM 05-5 AJs and are a $85-12 bid for $10mm.

o Geordie Walker

o CBG +6.2% � CB Richard Ellis Group big beat EPS

o Call 10:30am EST. Number: (800)-288-8968

o Trucker�CHRW +2.5% - nice beat

o C.H. Robinson upgraded to Outperform from Market Perform at BMO Capital

o Manitowoc MTW +2.4%....- nice beat.. reaffirmed its full-year 2010 guidance: 10am ET: 888-215-6881, password: 1235484

o Century Aluminum CENX -6% �EPS of $0.19, vs.� Consensus of $0.25.

o BP Washington Post says federal criminal oil spill probe to focus on BP, Transocean and Halliburton

o BP Great news.... BP Oil From Spill Is Biodegrading, Easing Threat to East Coast

� probably eliminating the risk that crude will go around Florida and hit the U.S. East Coast, the National Oceanic and Atmospheric Administration said

o Criminal probe of oil spill to focus on 3 firms and their ties to regulators from Wash Post

� A team of federal investigators known as the "BP squad" is assembling in New Orleans to conduct a wide-ranging criminal probe that will focus on at least three companies and examine whether their cozy relations with federal regulators contributed to the oil disaster in the Gulf of Mexico

o U.S. Decision on Pipeline Is Delayed � NYT

� The State Department said it would delay its decision on a permit for a contentious $7 billion pipeline project intended to deliver crude oil from the oil sands of the province of Alberta in Canada, to refineries on the Texas Gulf Coast.

� http://www.nytimes.com/2010/07/28/business/energy-environment/28keystone.html?_r=1&ref=todayspaper

o Congress Moves to Restrict Drilling Without Curbing Carbon � BBG

� Congressional Democrats proposed tougher rules for offshore drilling in response to the worst oil spill in U.S. history, while spurning calls to place a price on carbon emissionsHouse and Senate leaders presented legislation yesterday rewriting oil and natural-gas drilling rules more than three months after a rig leased by BP Plc exploded in the Gulf of Mexico. The bills would strengthen safety and environmental standards for exploration in federal waters, give Congress direct oversight of offshore energy production, and require companies that cause spills to pay all damages.

� Centrica, the British Gas owner, fell 6.3p to 301.4p even though profits nearly doubled while its former associate BG is down 8p at �10.55.

o Climate Bill May Still Pass This Year, White House�s Gibbs Says - BBG

� Climate-change measures scrapped by the Senate may still be passed this year, according to White House press secretary Robert Gibbs

o GLBL Global Industries awarded $40M pipeline project in Pemex's Bay of Campeche Ku-Maloob-Zaap field

o MEE Massey Energy reports Q2 GAAP EPS

o BAS Basic Energy Services reports Q2 EPS

o PVR Penn Virginia Resource Partners reports Q2 GAAP EPS

o PVG Penn Virginia GP reports Q2 adjusted net income per unit

o AHGP, ARLP� Wells Fargo upgrades Alliance Holdings upgraded to outperform from market perform; valuation range is $40-$42; Alliance Resource upgraded to outperform from market perform; valuation range is $56-$58

o DPM DCP Midstream Partners increases quarterly distribution by 1.7% to $0.61 from $0.60

o MMP Magellan Midstream Partners announces long-term pipeline throughput agreement, $65M expansion of Texas storage capacity

o EVEP EV Energy Partners announces quarterly cash distribution of $0.757 per unit

o XEC Cimarex announces Q2 production volumes averaged 594.4M MMcfe/d; +31% y/y

o WPZ Williams Partners increases quarterly dividend by 2.3% to $0.6725 from $0.6575

o API reports crude inventories +3.084M vs. Reuters (1.6M); distillate inventories +407K vs. Reuters +1.8M; gasoline inventories +877K vs. Reuters +400K

o SXL Sunoco Logistics reports Q2 EPS

o STR Questar reports Q2 EPS

o OKS ONEOK Partners LP announces expansion of Sterling pipeline

o NBR Nabors Industries reports Q2 EPS

o APU AmeriGas Partners reports Q3 EPS

o UGI UGI Corporation reports Q3 EPS

o BRY Berry Petroleum reports

o CEG Constellation Energy reports

� Reaffirms full year EPS guidance of $3.05-3.45 vs Reuters $3.31.

� Reaffirms 2011 EPS guidance of $3.25-3.65 vs Reuters $3.45.

INDUSTRIALS

o RMIXQ U.S. Concrete receives commitment letter for $75M

o Manitowoc MTW +2.4%....- nice beat.. reaffirmed its full-year 2010 guidance: 10am ET: 888-215-6881, password: 1235484

o PX� reports�Praxair reports Q2 EPS $1.19 vs Reuters $1.14; authorizes new $1.5B for share repurchases..guides mixed�Guides full year EPS to $4.60-$4.70, above prior $4.50-$4.65, vs Reuters $4.62; guides revenues to be in the area of $10B vs Reuters $10.04B.

o SEE Sealed Air reports Q2 adjusted EPS ..SEE reported ..reits guidance�Sealed Air increases quarterly dividend by 8.3%

o Calls for EU to Halt Corrupt Defense Deals link from BusinessWeek -

o Mitsubishi Chemical may report Q1 Op profit of �60B (�32Be) on strong sales of LCD material � TTN

o GVA Granite Construction awarded $29M roadway project in New Mexico

o NLC Nalco Holding reports Q2 EPS

o MTW Manitowoc reports Q2 EPS

o PKOH Park-Ohio reports Q2 EPS

o AP Ampco-Pittsburgh reports Q2 EPS

o LAWS Lawson Products reports Q2 EPS

o NSC Norfolk Southern increases stock repurchase program

o NEWL NewLead Holdings reports 1-for-12 reverse split of common shares, effective upon 3-Aug

o TRMB Trimble Navigation reports Q2 EPS

o CBI Chicago Bridge reports Q2 EPS

o NSC Norfolk Southern reports Q2 EPS

o NATI National Instruments reports Q2 EPS

TRANSPORTS

o Air France Says Business Travel, Freight Boost Profit �.Air France-KLM Group, Europe�s biggest airline, said resurgent business travel and freight traffic helped it return to operating profit in the fiscal first quarter, excluding the effect of a volcanic eruption in Iceland

o Deutsche Lufthansa AG, the region�s No. 2, is scheduled to announce results tomorrow, followed by British Airways Plc on July 30.

o Trucker�CHRW +2.5% - nice beat

� C.H. Robinson upgraded to Outperform from Market Perform at BMO Capital

o XJT ExpressJet announces results of initial bond redemption and final settlement of auction rate securities

o LFL Lan Airlines reports Q2 net income of $60.6M vs year-ago $4.2M

o HA Hawaiian Airlines reports Q2 EPS

TECH/MEDIA/TELECOM

o Infineon- Solid Q3 and another FY guidance raise. Automotive, Industrial, Wirless, and Chic card segments all came in better. The Q raise came as demand from carmakers and and consumer electronics makers is still very high.

o Sanyo- Very Strong Q1FY11 driven by outperformance in the photovoltaic cells, optical pickups, capacitors, and navigation. Sanyo did lower its 1HFY11 forecast due to downward revisions from the discontinuation of the semiconductor business.

o LG- Record loss in the Q. LG attributed its weakness to competition from the iPhone and other smartphones. Losses in mobile were 101m vs gains the previous year of about 500m. LG plans to introduce about 20 smartphones this year to compete in the smartphone market.

o BLKB- in line to slightly better Q2 and better Q3 guidance. Tha major positive was there was license growth for the first time in two years. The spending environment looks to be stabilizing. BLKB is increasing its investment in services headcount, sales, and marketing to help get the remainder of their 31eCRM clients up and running. Currently only 14 are up and running.

o BRCM- beat and raise Q2 with Mobile and Wireless the biggest contributors, and broadband was also strong. Inventories increased in the Q, but mgmt points out 60% of the inventory growth was for cellular chips to be shipped in 2H10 and in particular for one BRCM customer BRCM has a deal woith to store inventories at their hub. Some on the street believe this to be Nokia.

o DST- strong Q2 with upside coming from the financial segment which helped to contribute $0.22 of the EPS upside. DST upped its FY guidance for accounts serviced .

o FORM- weak Q, but there is new management in place, and they will need more time to implement their own goals. FORM did not see profits from the recovery in DRAM because old FORM mgmt had drastically cut ASPs on Harmony to gain market share. FORM is aggressively restructuring and will take a market share hit as it tries to condition customers to accept higher ASPs.

o JDAS- mixed Q with higher revs and an EPs miss due to some higher expenses. The Dillard�s and Oracle lawsuits drove up legal expenses and cause the EPS miss. The major positive from the Qwas stronger licensing revenues.

o NATI- mixed Q, with some of the EPS miss coming from a slightly higher tax rate and FX headwinds. Revs were in line and GMs were very strong at 77%. Guidance looks slightly better for Q3.

o PMTC- slightly better Q3 and FY guidance remains the same. The Q3 upside came from strong PLM license sales. Domestic revs declined due to timing issues, but it appears to be primed to return to growth in the coming Q. Other geographies showed growth across the board.

o RFMD- mostly in Line Q. The cellular products group performed well, but GMs decreased 30 basis points in the Q. Guidance is slightly disappointing heading into a usually seasonally strong September Q. The company�s transceiver business is expected to bring the Sept Q downside. Weakness in the handset end market is also dragging on RFMD earnings, and could for Qs to come as handset makers are already or are expected to report weaker earnings in many cases.

o TRMB- Strong Q2 results and better guidance. E&C revs were the major driver to better earnings, but were slightly offset by FX headwinds and weakness in MS margins. TRMB saw the first rebound in the survey segment in two years, which could be a major positive driver for future earnings.

o ULTI- slightly better Q2 and worse Q3 guidance, but kept FY10 guidance unchanged. Recurring revs grew 27% in the y/y and billings in the Q were strong. The recurring revcs is a positive, but will be offset by weaker margins in Q3.

o WBSN- weak Q and disappoiting billings causes FY guidance to be lowered. Softening demand in Europe also contributed to the weak Q and lowered guidance. The sales mgmt transition is still underway and there are questions on how long it will take to work through it. Lower renewal rates in some segments also provided some downside to the Q.

o CTGX- Q2 looks better and Q3 guidance is increased

o EPIQ- in line to slightly worse Q2.

o HTCH- disappointing Q3.

o IRIS- in line to slightly better Q2, but FY EPS guidance is lowered drastically.

o ISSI- better Q3 and guides Q4 higher, but guides GMs lower in the coming Q.

o KEYN- in line to worse Q3 and slightly higher Q4 guidance.

o RSYS- better Q2, but Q3 guidance looks light.

o SIMG- up 14.9% on better Q2 and higher Q3 guidance.

o SUPX- mixed Q1 with revs missing, but EPS a beat on strong GMs.

o VOCS- in line to slightly better Q2 and guides Q4 and FY10 slightly higher

o ZIXI- better Q2 and higher Q3 and FY guidance

o GOOG: Google�s Cash Hoard Makes It Prime for Stock Buyback, Dividend- BBG

o Google in talks to build Facebook competitor- Reuters

o Vivo: Telefonica and Portugal Telecom Agree on 7.5B Vivo deal-El Pais

o DIS: Tutor, Colony Said to Move Ahead With Miramax Buy- BBG

o DIS: Disney buying Playdom for at least $563 million- Reuters

o TRB Tribune deal marred by �dishonesty�- FT

o ADBE Agrees to Buy Day Software in 255 Million Franc Deal- BBG

o JNPR Buys SMobile for $70 Million to Expand Mobile Security- BBG

o SAP is interested in further acquisitions after the takeover of Sybase- Die Welt

o HRS Harris Corp awarded $78.5M US Army contract

o MTSC MTS settles patent-infringement litigation; preannounces Q3

o ADCT ADC and AFL resolve pending litigation, reach FTTX licensing agreement

o GOOG: Android Market to Stop Unauthorized App Use- eWeek

o Acer to launch dual-OS netbook

MATERIALS

o NEM: Newmont 2nd-Quarter Profit Misses Analysts� Estimates

� Newmont Boosts Quarterly Dividend by 50%

o SWC Stillwater Mining reports.. Lowers FY guidance

o Australian Opposition Labor Party: Mining tax would be reduced to 28.5% v 30% if elected on August 21st

o Arcelor Mittal (-1.9%). 2Q figures are better than expected, but the outlook was cautious.

� ArcelorMittal, the world�s biggest steelmaker, forecast third-quarter profit will slump as much as 30 percent from the prior three months as China�s economy slows, costs rise and demand weakens during the European summer.

o London sees surge in steel futures trading from Financial Times

� Export problems support prices for sugar while tin touches two-year highs after supply disruption in Indonesia

o Miners Likely to Skip Afghan Auction � WSJ link

� Afghanistan is preparing to auction off a round of iron ore, copper and natural gas deposits over the next year, but the major international miners aren't likely to go in until stability returns

o Nippon Steel posts Q1 profit, forecast below consensus from Business Spectator

� Steel giant's prices, margins hurt by Chinese growth. 28 Jul 2010 3:15 PM

o PX Consensus segment results for Praxair

o HWKN Hawkins Chemical reports Q1 EPS

o DEL Deltic Timber reports Q2 EPS

o USLM U.S. Lime & Minerals reports Q2 EPS

o CMP Compass Minerals reports Q2 EPS

o Century Aluminum CENX -6% �� EPS of $0.19, vs.� Consensus of $0.25.

o TCK Teck Resources reports Q2 EPS

AUTOS

o Cramer: Should Ford Investors Expect a Dividend?

� Alan Mulally, CEO of Ford (F), tells Cramer that the company now makes a whole family of cars in the US profitably. He adds that the company is now profitable all over the world and is seeing some of its best results in ten years. He also notes that the company paid down $7B in debt last quarter and is on its way to becoming investment grade in 2011. Cramer remains positive.

o Regions' Auto Lending Push, Settlement Talks Show New CEO's Hand from American Banker

� Regions' CEO, O.B. Grayson Hall, said during a 2Q conference call Tuesday that the company will reenter the indirect auto lending business this quarter after quitting

o Visteon suppliers urged to vote down plan to exit bankruptcy from Automotive News

� Visteon's reorganization proposal has divided creditors owed at least $2.8 billion. Bondholders, who are sponsoring the plan, would own 95 percent of Visteon, with current shareholders getting the rest.

o GM prices Volt at 41G from NY Post

� General Motors Co., the largest US automaker, will sell its Chevrolet Volt for a starting price of $41,000 and lease terms similar to those on Nissan Motor Co.'s Leaf electric car...

o PSA Peugeot Citroen, Europe�s second-largest carmaker, reported six-month net income that beat estimates and forecast its first full-year operating profit in two years as a global economic recovery spurs demand.

� Peugeot Citroen returns to profit, revenue up 21% from MarketWatch.com

o Daihatsu Motor Co. soared 8.3 percent after the Japanese carmaker said fiscal first-quarter profit surged almost sixfold

o Mazda Motor started reducing production in US on weaker than expected sales � TTN

o TM Toyota Motor looking to expand overseas production because of strong yen -- Nikkei

o

FINANCIALS

o Reg reform law aims to diversify Wall St. from POLITICO

� It grants gov't powers to compel financial firms to hire more women and minorities

o Citigroup May Move Prop Traders to Hedge Funds for Volcker Rule � BBG

� Citigroup may move a team of proprietary traders into its hedge-fund unit, one of at least three alternatives the U.S. bank is studying to comply with the Dodd-Frank Act

o Sallie sale days from NY Post

� Sallie Mae, America's largest student lender, has tapped Goldman Sachs to help it consider a possible breakup of the company, The Post has learned. The Reston, Va.-based loan originator is working with Goldman to possibly sell or spin off its student-loan servicing business �.NYP

o WFC Wells Fargo accused of predatory lending by Pennsylvania Human Relations Commission -- Philly Inquirer

o DB:� NYT cautious article�

� The new Basel proposals don't yet specify what exactly constitutes capital for the leverage-ratio calculation. But one proxy is to use public numbers for banks' Tier 1 common capital in the U.S. and core Tier 1 capital in Europe. Under that approach, Bank of America, Citigroup and J.P. Morgan Chase all sail past the 3% threshold with Basel-like leverage ratios of more than 5%. Wells Fargo appears to be over 6%.

� However, Deutsche Bank's leverage ratio, using an adjusted core Tier 1 figure and a U.S.-style assets calculation, appears to be at only 2.5%.

� http://online.wsj.com/article/SB10001424052748703977004575393683187234528.html?mod=ITP_moneyandinvesting_13

o ECB Expects Banks to Tighten Lending Rules Further from CNBC

o

o BofA, Citi, Wells Fargo Outlook Negative: Moody's

o BBVA dn 1%� beats�.bad loan provisions rise�.

� Banco Bilbao Vizcaya Argentaria SA, Spain�s second-biggest bank

o Soros Set to Buy Stake in Bombay Exchange � NYT link

o Sumitomo Mitsui Financial Group, Japan�s third-largest traded bank by assets, said first-quarter profit tripled, beating analysts� estimates as bad-loan charges fell and trading income climbed.

o FBCM FBR Capital Markets reports Q2 EPS

o FUBC 1st United Bancorp reports Q2 EPS

o EHTH eHealth awarded contract to provide software platform and services for HSS Health Plan Data Collection and Services Web portal-- conf. call

o JLL Jones Lang LaSalle reports Q2 EPS

o CBG CB Richard Ellis reports Q2 EPS

o BUSE First Busey reports Q2 EPS

o MBTF MBT Financial reports Q2 EPS

o EWBC East West Bancorp reports Q2 EPS

o TRMK Trustmark reports Q2 EPS

o AJG Arthur J. Gallagher reports Q2 EPS

o CTBI Community Trust Bancorp increases quarterly dividend by 1.7% to $0.305 from $0.30

o STSA Sterling Financial/WA reports Q2 EPS

o RNR RenaissanceRe reports Q2 EPS

o CATY Cathay Bancorp reports Q2 EPS

o EHTH eHealth reports Q2 GAAP EPS

o SHBI Shore Bancshares reports Q2 EPS

o COF Capital One initiated perform at Oppenheimer

o FCBC First Community Bancshares reports Q2 EPS

o CFFN Capitol Federal Financial reports Q3 EPS

o SBX SeaBright Holdings reports Q2 EPS

o PZN Pzena Investment Management reports Q2 EPS

o ENH Endurance Specialty reports Q2 operating EPS

o DFG Delphi Financial reports Q2 EPS

o ACE ACE Limited reports Q2 EPS

o NAL NewAlliance Bancshares reports Q2 EPS

o TNCC Tennessee Commerce Bancorp announces common stock offering; expects to sell up to $60M of its common stock

o FBC Flagstar Bancorp reports

o MKTX beats�. Marketaxess Holdings reports Q2 EPS $0.18 vs Reuters $0.17 ..Company reports revenues of $35.3M vs a single estimate of $34.5M.

REAL ESTATE

o CMBS Recap: Another strong day in CMBS with spreads in ~5pbs with GG10s +345/$100-03.� For the past couple weeks, CMBS has decoupled a bit from corps and the stock mkt.� Saw $421mm in BWICs with AM/AJ paper taking center stage- $255mm in BWICs.� The paper traded well with the Duper/AM basis spread in ~30bps over the past week.� The Duper/AM spread basis for clean '07 paper is low to mid 300s in from mid to high 300s.� Still positive on clean '06/'07 AM paper.� We sold our small piece of BACM 05-5 AJs and are a $85-12 bid for $10mm.� Geordie Walker

o White House plans to address Fannie, Freddie in August meeting

� A conference at the U.S. Treasury Department in August will address the direction of housing finance, including government-controlled entities Fannie Mae and Freddie Mac. The gathering will bring together industry leaders, academics, community organizations and other stakeholders, the White House said in a statement. MarketWatch (27 Jul.)

o FNM, FRE�Many Ideas, Little Direction for GSEs' Future

� If the Obama administration was looking to comments filed by more than 300 individuals, banks, trade groups and other companies for guidance in crafting a future for the government-sponsored enterprises, it had better have a Plan B.

� About the only common theme in the letters is the utter lack of consensus among various players. In the nearly two years since the government seized Fannie Mae and Freddie Mac, the coming debate promises to be a black hole.

� The proposals range from abolishing Fannie and Freddie to nationalizing them, creating a mortgage insurance fund to back mortgage-backed securities or just returning the GSEs to the way they were before the crisis. Other suggestions included creating a covered bond market to allow banks to issue mortgage-backed debt to finance loans, or allowing each of the 12 Federal Home Loan banks to securitize loans

� http://www.americanbanker.com/issues/175_143/gses-1023046-1.html?ET=americanbanker:e3921:2269326a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=AB_Daily_Briefing_072810

o Deutsche Bank Said to Shut Commercial Real Estate Adviser Group (Bloomberg) -- Deutsche Bank AG, Germany�s largest lender, is dismantling a group that advises companies on commercial real estate transactions

o CBG +6.2% � CB Richard Ellis Group big beat EPS

� Call 10:30am EST. Number: (800)-288-8968

o DJSP -8.9% (withdraws guidance) �.mortgage processing company..only $51M mkt cap

o HIW Highwoods Properties acquired Crescent Center for $56.2M

o RPT Ramco-Gershenson reports Q2 FFO

o BXP Boston Properties reports Q2 FFO

o CSWC Capital Southwest Corp reports net assets as of 30-Jun of $495.9M vs year-ago $424.3M

o AKR Acadia Realty Trust reports Q2 FFO

o TCO Taubman Centers reports Q2 FFO

o EGP EastGroup reports Q2 FFO

o CT Capital Trust reports Q2 EPS

o SKT Tanger Factory reports Q2 FFO

o ACC American Campus reports Q2 FFO

o KIM Kimco Realty reports Q2 FFO

CONSUMER

o CVS Caremark Receives 12-Year Aetna Pharmacy Services Contract

o British American Tobacco PLC reports a EPS miss� the world�s second-largest traded cigarette maker

o CVS Aetna confirms that it has awarded PBM contract to CVS Caremark

o CVS WSJ reports that Aetna contracts PBM business to CVS Caremark

o EEFT Euronet reports Q2 EPS

o WTSLA Wet Seal CEO Edmond Thomas will step down; effective 8-Oct

o MTH Meritage Homes reports Q2 EPS

o CRWS Crown Crafts enters amendment to rights agreement

o CSS CSS Industries reports Q1 EPS

o BBSI Barrett Business Services reports Q2 EPS

o ATAC ATC Technology reports Q2 EPS

o ICON Iconix Brand Group promotes Yehuda Shmidman to COO

o WINN Winn-Dixie reaffirms fiscal 2010 guidance; to close 30 underperforming stores

o USNA USANA reports Q2 EPS

o KONA Kona Grill reports Q2 EPS

o BGS B&G Foods reports Q2 EPS

o BWLD +7.6% BWLD Buffalo Wild Wings reports Q2 EPS

o GPN Global Payment reports Q4 EPS

o DWA DreamWorks Animation reports Q2 EPS

o PNRA dn 2%..mixed guicance� Panera Bread reports Q2 EPS

o RCKY Rocky Brands reports Q2 EPS

o Groupe Danone to sell approx 23% stake in China�s biggest pure-juice maker Huiyuan to venture capital fund Saif Partners for about �200M � BBG

o PEP PepsiCo to make major push for oatmeal business � WSJ

o ELY Callaway Golf announces restructuring of global operations

o DEST Destination Maternity reports and guides better�.but not street had rev above its range�so mixed

GAMING, LODGING, & LEISURE

o IGT International Game Technology guides full year EPS mixed.� EPS in line with sterr..revs better

� Gaming operations mixed

� For fiscal 2010, IGT now expects EPS of $0.82-$0.85 versus its prior expectations of $0.77-$0.85.

o WYN Wyndham Worldwide reports.. guidesb beter� revenues of $963.0M vs Reuters $940.2M.

� Guides Q3 EPS to $0.60-$0.64 vs Reuters $0.58.

� Guides full year EPS to $1.78-$1.88 vs Reuters $1.69 and prior $1.56-$1.71; guides revenues to $3.7B-$4.0B vs Reuters $3.77B and prior $3.6B-$3.9B.

� Guides Lodging RevPAR to 0%-3% vs. prior (3%)-0% Guides Vacation ownershipo VPG to 10%-14% vs. prior 6$-9%.

o MGM MGM Resorts confirms intent to sell Atlantic City assets

o GMTC Gametech International CFO Marcia Martin resigns, effective 23-Jul

o HOT, CME Starwood Hotels, CME Group added to Recommended List at Citi�

o MPEL Consensus property results for Melco Crown Entertainment

o CHH Choice Hotels reports Q2 adjusted EPS

HEALTHCARE

o HMA's Road to Recovery from Barron's

� A recent stock selloff makes shares of this rural hospital chain a healthy choice.

o AET:� Aetna Raises Outlook, Inks Pharmacy Deal with CVS

o WLP reports and guides better

o �SPNC Spectranetics reports mostly in line first blush

o MDT US FDA panel votes 6-5 saying the benefits of Medtronic's AMPLIFY spine device outweigh the risks - Reuters

o WLP Consensus metrics for WellPoint Health

o CPD Caraco Pharmaceutical names G.P. Singh Sachdeva as COO

o HGR Hanger Orthopedic reports Q2 EPS

o DVAX Dynavax Technologies appoints Chief Medical Officer Tyler Martin to newly created position of president

o NUVA Nuvasive reports Q2 non-GAAP EPS

o PPDI PPD, Inc reports Q2 EPS

o IRIS IRIS International to acquire CLIA certified laboratory AlliedPath

o IRIS IRIS International reports Q2 EPS

o CEPH Cephalon reports Q2 diluted EPS

o MRK, LH Merck grants license to Labcorp for development of test for potential identification of patients responsive to Hepatits C therapy

o AFL Aflac reports Q2 operating EPS

o SGEN Seattle Genetics reports Q2 EPS

o ILMN Illumina reports Q2 EPS

o ITMN InterMune reports Q2 EPS

OTHER

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

+ F, BRCM, CMI and NTAP

�- ALU

EUROPE TRADING WRAP

� Metals and miners

�

� Arcelor Mittal (-1.9%). 2Q figures are better than expected, but the outlook was cautious.

�

� Oils

�

� Tullow (+0.5%). Tullow encounter oil at a Ugandan exploration well.

�

� BG Group (-1.3%). 2Q figures slightly light, output is down and write-downs have been made on some commodity contracts.

�

� Utilities

�

� Centrica (-2%). 1H figures inline with estimates.

ASIA TRADING WRAP

� NKY +2.70%, TPX +2.29%

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

� Exporters rose as the yen traded near a 2-mth low against the euro: autos +2.02%, CE +2.07%, precision +3.50� Banks extended gains rising another 2.94% after the Basel Committee on Banking Supervision eased some bank capital rules

� Best performing sectors on the TPX: insurance +5.16%, other financing +4.60%, real estate +3.81%; worst performing sectors: airline -0.32%, electric power & gas +0.16%, mining +0.34%

Hong Kong

� HSI +0.56%; HSCEI +0.35%

� Stocks rose as banks extended gains. Turnover on the HSI fell to HK$16.43B from HK$16.60B yesterday

� Local properties fell after the government sold a Peak site for HK$10.4B below the median estimate expected by analysts:

� Cement advanced after the Economic Information Daily reported China aims to eliminate inefficient cement capacity and close polluting factories

China

� SHCOMP +2.26%; SZCOMP +2.15%

� Stocks rose led by banks, properties and coal stocks. Turnover on the SHCOMP fell to 84.09B yuan from 86.61B yuan yesterday

� Stocks rose across most sectors led by materials, financials, consumer, industrial s and tech

� Real estate +3.49%, banks +2.19% on continued expectations the government will relax property curbs and allow more bank lendings to counter a slowdown in economic growth

� Coal +4.03% despite considering for introduction of a coal production ceiling

� Airlines +3.36

� Cement stocks rose after report the new cement industry policy had been revised to eliminate inefficient cement capacity, possibly signalling the start of consolidation within the cement industry

INVESTMENT BANKING

M&A

o BP�s Garage Sale: A Look at Which Assets May Go- Dealbook

o BP may look to sell its interests in one of the 20 other oil fields that it controls or has a significant interest in along Alaska�s North Slope. Most of those oil fields are declining in production like Prudhoe Bay, but some are natural gas fields that have yet to be tapped

o The most likely buyers of BP�s Alaskan assets at this point seem to be BP�s partners at Prudhoe Bay, XOM Exxon Mobil and COP ConocoPhillips, which each hold a 36 percent interest in the field

o If there is no deal for BP�s Alaskan stake, the company may need to consider selling other peripheral assets like those in Colombia and Argentina.

o http://dealbook.blogs.nytimes.com/2010/07/27/bps-big-garage-sale-a-look-at-which-assets-may-go/

o Telefonica and Portugal Telecom Agree on 7.5B Vivo deal-El Pais

o The deal has the approval of the Portuguese government headed by Jos� Socrates.

o The final offer price is 350 million higher than it was accepted by the meeting of shareholders on June 30 but was vetoed by the Portuguese State through the action of gold, then declared illegal by the EU court.

o http://www.elpais.com/articulo/economia/Telefonica/pacta/comprar/Vivo/Portugal/Telecom/7500/millones/elpepueco/20100728elpepueco_1/Tes

o SLM Sallie Mae lender hires Goldman to test options- NYPOST

o The Reston, Va.-based loan originator is working with Goldman to possibly sell or spin off its student-loan servicing business and do the same with its $145 billion government-subsidized loan portfolio.

o As a part of its strategic thinking, Sallie, run by CEO Albert Lord, also has considered converting part of its platform into a traditional deposit-taking bank

o http://www.nypost.com/p/news/business/sallie_sale_days_YLrKTxcsO58Bdm09wQwZsM?CMP=OTC-rss&FEEDNAME=#ixzz0uxzb8VW6

o UNH UnitedHealth near $1.5 bln services firm deal-BBG

o Executive Health, which is backed by private equity firm Abry Partners, would be added to UnitedHealth's Ingenix unit

o The agreement could be days away and may still fall apart, the report

o http://www.reuters.com/article/idUSN2711132420100727

o Tutor, Colony Said to Move Ahead With DIS Miramax Buy- BBG

o Construction executive Ronald Tutor and private-equity firm Colony Capital LLC plan to make a deposit on their proposed purchase of Walt Disney Co.�s Miramax film division

o An announcement may come as soon as tomorrow, they said.

o http://www.businessweek.com/news/2010-07-27/tutor-colony-said-to-move-ahead-with-miramax-buy.html

o DIS Disney buying Playdom for at least $563 million- Reuters

o Walt Disney Co will acquire start-up Playdom for $563.2 million, as the media giant aims to take a leading role in the fast-growing market for games played on sites such as Facebook and MySpace

o The deal, which is expected to close by the end of Disney's 2010 fiscal year, includes an additional performance-linked earn-out of up to $200 million

o http://www.reuters.com/article/idUSTRE66Q6DL20100727

o TRB Tribune deal marred by �dishonesty�- FT

o A court-appointed examiner of the $8.3bn leveraged buy-out of Tribune Co in 2007 said it had found evidence of �dishonesty and lack of candour� in the second part of the two-step transaction

o The examiner alleged that during the second part, Tribune�s management pushed a faulty valuation report that �went beyond the optimism that sometimes characterises management projections�.

o http://www.ft.com/cms/s/0/f66c11ac-99b4-11df-a852-00144feab49a.html?ftcamp=rss

o HES Hess to Buy AEZ American Oil & Gas in An All-Stock Transaction- WSJ

o Hess has agreed to acquire American Oil & Gas Inc. pursuant to a merger agreement approved by the boards of directors of both companies in an all-stock transaction.

o Under the deal, Hess will issue 0.1373 common shares in exchange for each outstanding American Oil & Gas' share, representing a 9.4% premium on the target company's Tuesday closing share price

o http://online.wsj.com/article/BT-CO-20100727-721428.html

o GS Goldman Sachs, CS buy stakes in Bank of Moscow- Reuters

o As part of a $29 billion fund-raising effort to plug gaps in the budget, Russia is looking at the sale of minority stakes in major state-owned lenders Sberbank and VTB

o Goldman Sachs bought a 3.88 percent stake in Bank of Moscow (MMBM.MM), and Credit Suisse 2.77 percent

o http://www.reuters.com/article/idUSTRE66Q4OI20100727

o Tomkins 'hopeful' of takeover- Telegraph

o The chairman of Tomkins says he is "hopeful" of securing shareholder support for a �2.9bn takeover of the engineer despite investor anger at the pay deal executives will collect after the deal.

o Standard Life, a top 10 shareholder, last night reiterated its opposition to the deal, referring to the "massive incentives" the outgoing managers of Tomkins were being offered by the Canadian bidders.

o http://www.telegraph.co.uk/finance/newsbysector/epic/tomk/7913420/Tomkins-hopeful-of-takeover.html

o ADBE Adobe Agrees to Buy Day Software in 255 Million Franc Deal0- BBG

o Adobe Systems has agreed to buy Switzerland-based Day Software Holding for about $240 million, to strengthen its enterprise software segment and add web content management software to its portfolio

o Day shareholders will receive 139 Swiss francs per share, a 34 percent premium to Day's Tuesday close of 104 Swiss francs

o http://www.reuters.com/article/idUSSGE66R08A20100728

o JNPR Juniper Buys SMobile for $70 Million to Expand Mobile Security- BBG

o Juniper Networks is acquiring security-software maker SMobile Systems Inc. for $70 million to capture a bigger slice of the mobile-security market.

o SMobile Systems Inc. makes software that protects smartphones from viruses and spyware and lets system administrators remotely wipe personal data from handsets.

o MGM Resorts to Sell Leases, Property at Borgata for $73 Million- BBG

o MGM Resorts International said it agreed to sell four long-term ground leases and their underlying real property parcels consisting of about 11.3 acres at the Borgata Hotel Casino & Spa in Atlantic City, New Jersey, to VNO Vornado Realty Trust and Geyser Holdings for about $73 million.

o Areva, EDF Should Cooperate to Foster Exports, Lagarde Says- BBG

o Areva, the world�s largest maker of nuclear reactors, will sell a maximum 15 percent in new shares this year to improve finances and sign a partnership with EDF

o The share sale will be open to partners Areva �has been working for a long time� with, Lagarde said, citing Mitsubishi Heavy Industries Ltd. and wealth funds of Kuwait and Qatar. �If EDF also wants to there is no reason to keep them out.�

o Brit Opens Books to Apollo After $1.3 Billion Offer- BBG

o Brit Insurance granted Apollo Global Management permission to review its books after the private equity firm made an 851m-pound ($1.3b) offer, its third bid for the company.

o Brit received a cash offer of 10.75 pounds a share from Apollo. That�s 47 percent higher than Brit�s closing share price on June 10, the day before the first takeover offer was announced. The insurer rejected a bid of 10.50 pounds a share on July 2.

o http://www.businessweek.com/news/2010-07-28/brit-opens-books-to-apollo-after-1-3-billion-offer.html

o Morrisons acquires Simply Fresh Foods- the Independent

o The new chief executive of Morrisons has made his first acquisition by purchasing Simply Fresh Foods, a supplier of packaged vegetables, to enhance its distribution services as it expands in the UK.

o http://www.independent.co.uk/news/business/news/morrisons-acquires-simply-fresh-foods-2036892.html

o Tiger Global Said to Invest in LinkedIn at $2 Billion Valuation- BBG

o Tiger Global Management, a hedge fund founded by Chase Coleman, paid $20 million for a stake in LinkedIn, valuing the professional-networking website at more than $2 billion

o The purchase, at $21.50 a share for about a 1 percent stake, was from existing shareholders and doesn�t represent new investment

o http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aYclrBvOZg6M

o KNOL Knology Close To $127M Sunflower Buy- MultiChannel

o According to an executive in the cable financial community, a handful of companies have looked at Sunflower, but Knology quickly rose to the front

o http://www.multichannel.com/article/455271-Knology_Close_To_Sunflower_Buy.php

o Tullow to start $10bn Uganda development- FT

o Tullow Oil will begin a $10b development of Uganda�s oil reserves after completing the $1.45b cash acquisition of Heritage Oil�s 50% stake in the country�s Lake Albert oil blocks.

o Tullow will now finalise a sale of two-thirds of the project to be split equally between Total of France and the Chinese state oil company CNOOC.

o http://www.ft.com/cms/s/0/7d57d2f2-997c-11df-9834-00144feab49a.html

o Thai tuna firm TUF hooks big one with MW Brands deal- Reuters

o Thai Union Frozen Products PCL, the owner of the "Chicken of the Sea" canned tuna brand, said on Wednesday it would buy MW Brands Holdings SAS for $884 million to become the world's biggest seafood firm

o MW was formerly part of HJ Heinz Co (HNZ.N) and is being sold by private equity firm Trilantic Capital Partners, which bought it in 2006

o http://www.reuters.com/article/idUSSGE66R02J20100728

o SAP is interested in further acquisitions after the takeover of Sybase- Die Welt

o HGI changes hands in $850 mln private equity deal- Reuters

o Private equity firms Clayton, Dubilier & Rice and Goldman Sachs' (GS.N) unit GS Capital Partners are to buy medical products provider HGI Holdings from another buyout firm

o The firms are buying HGI from rival private equity firm Jordan Company

o http://www.reuters.com/article/idUSN2710656420100727

o SAIF May Buy Danone�s Huiyuan Stake for $260 Million- BBG

o SAIF Partners, a venture capital fund focused on China and India, plans to buy Groupe Danone SA�s stake in China�s biggest pure-juice maker for about $260 million

o The Hong Kong-based fund, which manages $4 billion, is seeking to buy Danone�s entire 22.98 percent stake in China Huiyuan Juice Group

o Soros set to buy stake in Bombay exchange- BBG

o George Soros is in final talks to buy Dubai Holding�s 4 per cent stake in the Bombay Stock Exchange, as foreign investor interest in India�s fast-growing financial markets rises

o Soros Fund Management is planning to pay about $40m for its stake, valuing Asia�s oldest bourse at about $1bn

o http://www.ft.com/cms/s/0/ff294da0-99b4-11df-a852-00144feab49a.html

$ RAISING

IPOs

� RealD Insiders Capitalize on IPO- WSJ

o Insiders and investors at RealD Inc. raised more money in the company's recent initial public offering than the company did. The company sold 6 million shares at $16 a share, and selling stockholders sold almost 8.4 million shares.

o http://online.wsj.com/article/SB10001424052748703977004575393682140681088.html?mod=ITP_moneyandinvesting_5

� RP RealPage files amended S-1; to offer 13.5M shares in range of $13-15 through Credit Suisse and Deutsche Bank

o Recall, of the shares to be offered, RealPage is offering 6M and shareholders are offering 7.5M. IPO initially filed on 29-Apr. Proposed symbol is RP.

� UCI Int'l files $200M IPO through BofA Merrill Lynch and Deutsche Bank- SA

� Everbright Wins IPO Approval- Ticker Magazine

o Everbright Bank gained regulatory approval yesterday for its IPO in Shanghai. The Beijing-based bank will sell up to 6.1 billion shares in the offering, according to China Securities Regulatory Commission

o The bank is selling 15.4% of its enlarged capital in the offering before over allotment and can expand the sale to as many as 7 billion shares after exercising the over-allotment option

� Makemytrip to raise Rs 470 cr in US IPO- Business Standard

o Online travel company Makemytrip is going to raise $100 million (Rs 470 crore) on the Nasdaq Stock Market. Makemytrip would be the first Indian company in four years to hold its initial public offering (IPO) in US

o Makemytrip is the first to list in the US after Mumbai-based back-office services provider WNS Holdings Ltd raised $255 million in July 2006

o http://www.business-standard.com/india/news/makemytrip-to-raise-rs-470-cr-in-us-ipo/402724/

� Nexon eyeing listing on Japanese bourse in 2011- Trading Markets

o Nexon, the largest online game maker in Japan by revenue, is aiming to list its shares on the Japanese bourse next year as it hopes to secure capital for long-term growth

o "We will put all efforts to list shares next year," Choi told reporters in Tokyo. "It is impossible this year."

o http://www.tradingmarkets.com/news/stock-alert/jpclf_nexon-eyeing-listing-on-japanese-bourse-in-2011-1070342.html

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

NEWS��

o RMIXQ U.S. Concrete receives commitment letter for $75M

o VSTNQ Visteon Suppliers Urged to Vote Down Bankruptcy Exit- BBG

� Visteon Corp.�s suppliers are being asked to vote down the car-parts maker�s plan to exit bankruptcy in order to win more money.

� In a letter to Visteon�s suppliers and other unsecured creditors, Fulcrum Credit Partners LLC said if the bankruptcy exit plan fails, the company may be forced to negotiate a higher repayment

� http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a4v9SwmA7CAo

o CAR Avis amends credit agreement for DTG� Dollar Thrifty offer- Reuters

� In a regulatory filing, Avis said it amended its JP Morgan-led facility to revise definition of consolidated EBITDA and exceptions to permit first-lien and second-lien secured debt to finance a possible acquisition of Dollar Thrifty.

� Dollar Thrifty has already signed a merger agreement with Hertz Global Holdings (HTZ.N). But Avis has said it was interested in making a "substantially higher bid" for the company, and is yet to make an offer.

� http://www.reuters.com/article/idUSSGE66Q0MR20100727

o TNCC Tennessee Commerce Bancorp announces common stock offering

o Materials: TTT Tera Nova announces rights offering for about $50m

TODAY�S EVENTS

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

� 10:30AM: IRIS

o Financial Services Exchange Conference - Jul 28, 2010 - Jul 31, 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: WABC

� 8:30AM: FIBK

� 9:30AM: EBTX

� 10AM: WSFS

� 10:30AM: FULT

� 11:30AM: PVTB

� 1:30PM: HOMB

� 2PM: BANR

� 2:30PM: FFCH , OFG

� 3PM: CTBI , FBP

o SEMI's SOLARCON India - Jul 28, 2010 - Jul 30, 2010

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

o Standard & Poors Structured Finance Investor Breakfast: Student Loan ABS - 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 Annual Summit on Evolving the Pharma Sales Model - Jul 28, 2010 - Jul 29, 2010

o TODAY�S EVENTS

o Shareholder Meetings

� IVNSY, HAFC, MCK, IRSN, TESS, KEM, ATEC, CFFC, HWKN, SUI, GNBT

o IRIS Analyst Meeting

o The Fed issues the beige-book data on the regional economic picture.

o SCHW Charles Schwab's business update

o ECONOMICS

o 0700 MBA Weekly Mortgage Applications Survey

o 0830 Advance Report on Durable Goods

o 1000 Metropolitan Area Employment & Unemployment

o 1030 EIA Weekly Petroleum Status Report

o 1400 U.S. Federal Reserve Beige Book

o EARNINGS

o Materials

� CTHR, CBT, FMC, NEM, TIS, PX, IP, MWV, HL, KWR, ATI, CLF, USAP

o Industrials/Homebuilders

� MHO, RYL, BA, GD, ISSC, TGI, ARII, WGOV, WIRE., TRN, ROK, BKYI, ESIO, ID, ITRI, KEI, NEWP, HCCI, SRCL, TTEK, AP, CFX, FLS, KAI, WTS, OI, SLGN, SEE, SE, RA, ODFL, QLTY, TWI, POPE

o Consumer/Retail/Education

� DEST, JNY, SKX, TBL, DXYN, IFSIA, NUS, DAVE, JAX, PFCB, ELY, MPX, IRBT, MSA, ROL, SPTN, SFN, ABD, AVY, GMCR, TR, EFX, HURN, CCE, ATX

o Financials

� AMP, PZN, WDR, JMP, WSH, LAZ, LNC, SYA , TMK, AIZ, HMN, AHL, ASI, CINF, SIGI, FBCM, BPFH, CAC, CCNE, FRME, NYB, GLBZ, HBNK, HUVL, ISBC, MORE, PMBC, RBNF, SUSQ, TCBK, TOBC, WTFC, RE, MKTX, ABCW, CHFN, ESSA, FFBH, FXCB, HFBC, INCB, TSBK, CFR, AEA, EEFT, CPBK, V, UVSP, ANAT, FBMI, SHBI

o Gaming, Lodging, & Leisure

� WYN , LVS

o Tech/Telecom

� CTXS, CYBE, LRCX, TER, HGRD, EQIX, CDNS, CNQR, FICO, TLEO, TYL, VOLT, SSYS, CML, QTM, BTUI, AVX, KEME, THQI, VPRT, ACXM, DRCO, MANT, NSTC, RNOW, VRTU, ACLS, AATI, CEVA, ENTR, LSI, MPWR, NETL, SLAB, TQNT, BMC, DBTK, FALC, ARW, PCCC, EGHT, ASIA, NSR, GLW, HTCO, SFLY, AKAM, BVSN, CTCH, DRIV, GSIC, IACI, LOGM, LOOP, SDXC, FIRE, SYMC, ALVR, ARRS, AUDC, CTV, IDCC, WRLS, CCI, S, SHEN, USMO

o Autos

� SRI, WBC, ORLY

o Healthcare

� CHE, VRTX, CYH, KV/A, ALTH, AMAG, CYTK , EXAS, LXRX, MBLX, NBIX, PDLI, SGMO, SNSS, UTHR, PSSI, GB, HRC, HSP, LMAT, OFIX, SPNC, SRDX, VAR, FVE, PSYS, SUNH, AHS, AIQ, BEAT, CLRT, ESRX, ODSY, IMA, MMSI, DYAX, CERN, CAD, BRKR, CVD, WAT, UAM, WLP, CPD, FLML,, MDCO, NKTR, QCOR, VPHM, SPAN

o Media

� ISIG, CETV, CMCSA, VMED, MORN, MSO

o Real Estate

� AGNC, CMO, CXS, BDN, BMR, HIW, EQR CDR, O, EXR

o Energy

� ICO, WLT, PLUG, COP, HES, DVR, HLX, OII, RES, SPN, BRY, ENP, GMET, PSE, PXD, REN, WLL, TSO, TCLP

o Utilities

� ITC, SO, APU, UGI, CEG, CMS, D, CWT, SJW

o Transportation

� PKOH, DRYS, ISH, KEX, GMR

***All eco data from Bloomberg and DJ

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