Morning @ Cantor 8/2

Today’s Stories From Cantor Fitzgerald

Sal Catrini (908) 517-5067

 

CONTENTS: All Headings Are Functioning Links

 

 

Early US Landscape

Today’s Big Stories

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

Today’s Events

Cantor Trading Recap

EARLY US LANDSCAPE****

 

 

·         US Stock Futures

§  SPs up 12....Macro data in Chain not as bad as bears previewed…GDP ion Fri in US not bad as headlines… per Wall Street economists

§  EU stocks up 1.75% ..near highs at 7am et

·         Most data overseas better today…EU PMIs, South Korea data etc..

·         Reflation  trade in full force

·         China PMI slightly less than exp but still at expansion levels

·         European PMIs basically beating expectations

·         BIG STORY IS THE REMAINIG STUMUIUS EXPECTED OUT OF CHINQ..AND MORE CALLS FOR US FED TO EASE..THE PUNCH BOWL IS HERE..GOOD FOR RISK

·         Libor dn again…3-month: Dollar: 0.444% vs prior 0.454%

§  But…Stress stays a EU banks:  Three-Month Euribor Advances to 0.898% From 0.896%

·         The euro interbank offered rate, or Euribor, for such loans fell for the first time in more than three months on July 30 after reaching a one-year high of 0.899 percent on July 29.

o   On Monday, the Institute for Supply Management will likely add to the downbeat tone, as it's expected to say that its index of U.S. manufacturing activity fell in July for the third consecutive month.  Per WSJ

o   Two of the biggest banks in Europe, HSBC and BNP Paribas, reported strong earnings on the strength of decreasing losses in retail banking..both up 4-5% today

o   FX:

§  Yen, Dollar Decline on Signs Asian Recovery Gathering Momentum

o   The dollar hit a three-month low against a basket of currencies on Monday, hurt by concerns that the recovery in the U.S. economy is slowing.

§  Commodity currencies remain firm as CRB registered its largest one month gain in 14 months.

§  Australian Dollar Rises to Highest Since May on Growth Outlook

§  The pound rose to a five-month high against the dollar on signs the U.K. economy is recovering faster than some economists had forecast.manufacturing expanded for a 10th straight month in July.

·         speculation that China’s government may cut back on policy tightening after manufacturing slowed in the country -  BBG

o   China Manufacturing Faces ‘Slowdown, Not a Meltdown’ (good news!)

·         Australia’s manufacturing grew for a seventh month and South Korea’s consumer prices rose

·         Rates up Monday …Debt mkts. “haven” bonds are in sell-off mode, however, including the benchmark US Treasury, with yields up 3 basis points at 2.94 per cent. German Bunds are also up 4 basis points, yielding 2.70 per cent.

·         Spanish sovereign debt is also in demand in early trading, down 2 basis points

·         JGBs yields hit 7 year lows at 1.045%

·         Oil up $1 ….. Rises to Highest in Four Days on Outlook for Chinese Growth

·         Spot gold was up $13 on Friday….for the week: gold and silver were down small…this morning, spot gold is down $2 to $1179

·         Copper Rises to Three-Month High as China May Ease Tightening

·         Base metals were higher on Friday on good volumes...Aluminum was up 4%, copper was up 2.15 cents to $3.3115 on the comex

o   this morning, base metals are adding on to Friday’s gains…volumes are good…Lead  up 2%, copper up more than 1.5%

·         Wheat futures surged to the highest price since 2008..wheat is up 2% this morning; wheat was up 41% for July, best month for wheat since 1959

·         AIR LIQUIDE'S POTIER: INDUSTRIAL DEMAND BACK TO 'NORMAL' LEVEL

·         Fed watch, dovish comments :    (FOMC Aug 10)

§  Indications of late are that policy will loosen further. Alan Greenspan, former Federal Reserve chairman, said over the weekend that the economy was “very distorted”, heavily relying on a manufacturing rebound, and “on pause” at the moment. Fed-watchers at Nomura said that they expect the Fed to loosen policy at its next meeting on August 10.

§  Fed Will Ease Monetary Policy on Aug. 10: Nomura Economist – CNBC

·         The deterioration in expectations for growth and inflation argues for an easing of monetary policy, Paul Sheard, the global chief economist at Nomura, wrote in his latest report.

·         "We expect the Fed to at least stop the passive contraction of its balance sheet," he added.

·         http://www.cnbc.com/id/38517193

§  Big Investors Fear Deflation – WSJ link

·         Some of the world's leading investors are re-shaping their portfolios to prepare for a possible period of falling prices.

o   Greek truck drivers call off strike after tourist industry is crippled

o    EARNINGS: With roughly two-thirds of the S&P 500 reporting so far, 85% of companies have either beaten (75.6%) or matched (9.5%) expectations. At about the same period in the 1Q, 77.9% of cos. had beaten and 8.5% had matched.   Bloomberg

·         Overseas Action

o   Data:

§  EU stocks up 1.75% ..near highs at 7am et

§  Asian markets: Nikkei +0.35%; Hang Seng +1.78%; Shanghai Composite +1.33%

§  China PMI slightly less than exp but still at expansion levels

§  China’s July PMI came in at 51.2, down a point from the June reading, but still signaling manufacturing sector expansion. The sub-index for output fell to 52.7 from 55.8, new orders slid to 50.9 from 52.1 and export-orders fell for a third consecutive month, to 51.2 from 51.7. Of 11 sub-indexes, only the employment one gained, rising to 52.2 from 50.6. There had been market rumors last week that the headline number might come in below 50 pointing to contraction. Indeed, if there was to be a below-50 month, July was probably it. Going forward, export growth may still decline somewhat further, but there can be no doubt that now that inflation appears to have been brought under control the government will re-accelerate infrastructure and low-cost housing investment and consumption will benefit from higher minimum wages for an overall expansion of domestic demand.  Uwe PArpart

o   Manufacturing Growth Slows in China – WSJ link

§  China's manufacturing activity expanded at the slowest pace in 17 month, as tightening measures and growing uncertainty over global demand weighed on economic expansion

o   China is successfully  cooling economy without derailing global recovery?  

§  Investors see bright side of China slowdown

§  That dip, however, is still consistent with double-digit growth, according to HSBC economists who produce a private index, which also showed a decline. The move is also not unexpected after China said last week its intention was to allow the economy to slow in order to cool inflation  - FT

o   Banks Push European Shares Higher

§  BNP up 4%... reported Monday morning..a bunch of other EU banks report this week as well

§  BNP The beat was across all divisions

§  France’s biggest listed bank trumps profit expectations thanks to lower loan provisions and strong retail banking, offsetting volatile financial market conditions that hit investment banking

 

§  HSBC up 5% today…reported better…“The big positive from today’s results is the loan provision figures, which have dropped very significantly.”

§  European PMIs basically beating expectations

§  Asia was boosted by confidence in growth around the region, even as the rise in PMIs in South Korea and Thailand also slowed. South Korea’s exports rose more than forecast in July, it was reported over the weekend, and India’s own PMI index ticked back up to a multi-year high.

§   India’s manufacturing growth accelerated in July, increasing pressure on the central bank to raise interest rates. Bond yields touched a three-month high

§  Thai Inflation Accelerates, Supporting Rate Increase (BBG)

§  Swiss Manufacturing Growth Unexpectedly Accelerates to Record

§  Swiss Jul SVME-Purchasing Managers Index: 66.9 v 65.0e; highest reading on record

§  France July Final PMI Manufacturing: 53.9 v 53.7e

§  Germany PMI Manufacturing: 61.2 v 61.2e

§  Euro Zone July Final PMI Manufacturing: 56.7 v 56.5e

§  Spain July Manufacturing PMI: 51.6 v 51.2 prior

§  Australia’s manufacturing grew for a seventh month

§  South Korea's trade surplus shrank less than expected in July to $5.67 billion from $6.43 billion in the preceding month as robust semiconductor and car exports remained on the expansionary phase.

• Economics today:

o   Jun Construction Spending, Jul ISM Index at 10:00 ET

• Earnings:

o   Companies due to report before the bell include: AGN, HSIC, L, NRG

o   Companies due to report after the close include: DVA, HOLX, PFG, VMC, VRSN

o   MOS Mosaic conference call regarding preliminary injunction on mine extension to be held at 16:30 ET; 866-543-6403, passcode 33172955.

 

·         US highlights this week:

o   This  week will be about more earnings, Jobs, ISM and China data

o   BNP reported Monday morning..a bunch of other EU banks report this week as well

o   ISM Monday

o   Autos Sales next week

o   Retail SSS next week …special attention on Back-to-School spending

o   Wedbush Securities Life Sciences Best Ideas Conference next week

o   Thurs:  US: San Francisco Fed hosts hearing on the Home Mortgage Disclosure Act

o   Rates, Treasury supply:  Thurs we find auction sizes for following week: 

§  The next round of supply will be at the August refunding two weeks from now.

§  Next US treasury auction is Aug 10 -  US: 3yr Note auction

o   About 6 IPSs on the schedule next week

o   Taxes news next week?:   Geithner to Speak on Obama’s Fiscal Plans, this week -  BBG

o   BP could start "static kill" on well Monday says official

TODAY’S BIG STORIES

 

 

·         Top M&A

o   BP has asked Kuwait's sovereign wealth fund to raise its share in the company to three percent, the al-Anba newspaper reported on Monday.

o   ARG: AIR LIQUIDE CEO SAYS HE'S NOT INTERESTED IN AIRGAS - BBG

o   Buyout Barons Face Inflation on Prenups

§  Call it the post-bubble prenup. In response to some messy breakups during the credit crunch, when agreed private-equity deals fell apart, target companies are now demanding much bigger upfront agreements on how much they will get if the union doesn't work out.

§  Some acquisition targets, such as United Rentals and PHH saw their shares plummet when respective buyers Cerberus and Blackstone walked away from deals

§  http://online.wsj.com/article/SB10001424052748703314904575399580629781458.html?mod=WSJ_newsreel_markets

·         Top $ Raising

o   Gordmans Stores Tests IPO Market WSJ link

§  The week's hottest IPO could be in Omaha: Gordman Stores, which competes against firms like TJX

§  March of the Profitless IPOs: More to Come – CNBC link

·         Credit markets: 

o   BofA Cuts Some CD Rates from WSJ.com

·         Bank of America cut some rates on certificates of deposits this week, the latest in a round of cuts that will leave consumers and businesses with fewer options to stash their cash

o   FDIC Securitizes Mortgages from Failed Banks from American Banker

·         The Federal Deposit Insurance Corp. said Friday it sold securities backed by $471.3 million of performing single-family mortgages originated by 16 failed banks.

o   Mortgage investors scale back from FT.com

·         Mortgage investors have been scaling back positions on fears that the US government might again intervene in the home loans market.

o   Banks on Europe’s Edge Face $122 Billion Bill

§  Banks in Europe’s most indebted nations need to refinance $122 billion of bonds this year, likely paying high interest costs even after receiving a clean bill of health from regulators.

·         Higher Profits Fueling Buybacks from WSJ.com

§  Higher profits aren't making executives more confident. Instead of investing in new markets or expanding existing businesses, many are using profits to buy back shares.

·         Big Investors Fear Deflation – WSJ link

o   Some of the world's leading investors are re-shaping their portfolios to prepare for a possible period of falling prices.

·         Supply chain woes threaten global recovery from Financial Times

o   Large industrial companies around the world are defying fears of a “double-dip” recession, reporting signs of increasing strength in demand and striking a cautiously optimistic note about the growth of the global economy.

·         Chinese data add to global recovery fears from Financial Times

o   The world’s economic rebound continues to sputter, with news of slowing expansion in Chinese manufacturing sector adding to disappointing growth in the US

·         Hurdles Deter Obama’s Pledge to Double Exports from NYT

o    Comments filed with the Commerce Department highlighted numerous industrial concerns, including the dollar’s rising value, high tariffs and traveling difficulties

·         Survey Shows Rising Optimism for Rebound  – WSJ link

o    U.S. executives are optimistic about revenue growth over the next year, but have modest expectations for hiring, says a survey of 6,200 companies by KPMG International.

·         Is Gold Pointing to Lehman II?   – CNBC link

o    Gold and oil prices are warning that this summer resembles the season before the collapse of Lehman Brothers, according to Simon Derrick, head of currency research at Bank of New York Mellon.

·         Discount Window Borrowings Plunge To Just $11 Million, Lowest Since 2007; And Other Observations On The Future Of Fed Liabilities from zero hedge

·         Earnings Show Europe's Sluggishness  – WSJ link

o    Leading European companies' quarterly results show the contrast between booming demand from overseas and stagnating markets at home

·         Jobs stories:

o   States Force Workers to Retire Later  – WSJ link

o   Have Jobs Become a Leading Indicator?  – CNBC link

o   With Recovery Slowing, the Jobs Outlook Dims  – CNBC link

o   Cramer: A Weak Jobs Report Will Erase Your Profits – CNBC link

o   Higher Education Is Overrated. Skills Aren't from BusinessWeek

·         Wave of strikes bring Chinese workers a step nearer new rights from guardian.co.uk

·         Rising Wages Rattle China's Small Businesses  from WSJ.com

o   The effects of China's rising wages and stronger currency are rippling through the close-knit group of textile and garment makers in the eastern town of Zhili.

·         Chinese State-Owned Firms Fueling Real Estate Boom – CNBC link

·         Alan Greenspan warns that US could be heading for double-dip recession from Telegraph

o    Former Federal Reserve chairman says country is "in a pause in a recovery" and believes that another crisis "is possible if home prices go down".

·         Greenspan marvels at unprecedented 'animosity' between Wall Street, D.C.

o    Former Federal Reserve Chairman Alan Greenspan cautioned Sunday that a "very distorted economy" was showing recovery in relatively few areas

·         Temasek's Next Boss: Insider or Outsider? from WSJ.com

o    The search for a new CEO at Singapore sovereign-wealth fund Temasek will soon get under way, and the question of who might be hired, an insider or a foreigner, has become controversial.

·         Hungary Does Without EU and IMF from WSJ.com

o    The new Hungarian government is determined to set its own economic agenda, even if that costs it the support of the International Monetary Fund and European Union.

·         Corporate top news: 

o    Baltic Dry was up 1.3% on Friday, up 7.7% for the week, but down 18% for the month

o    Macro positive:  AIR LIQUIDE'S POTIER: INDUSTRIAL DEMAND BACK TO 'NORMAL' LEVEL -  BBG

§  AIR LIQUIDE'S POTIER: DEMAND GROWTH IS STRONGEST IN CHINA

o    Macro pos:  Shipping rates double y/y as retailers, distributors attempt to ensure they will get merchandise by Christmas - London Times

§  http://www.thetimes.co.uk/tto/news/

o    Banks Balance Sheets murky…..look at recent loan sales..per WSJ

§  Loan Sales by Banks Shed Light on Their Balance Sheets

§  But a closer look at banks' second-quarter asset sales suggests some reserves and write-downs may not be adequate.

§  Exhibit one is Winston-Salem-based BB&T $1.43 billion of foreclosed property. It is equivalent to 33% of BB&T's nonperforming assets.

§  http://online.wsj.com/article/SB10001424052748703314904575399592715122512.html?mod=WSJ_newsreel_markets

o    Regulators Close Five Banks; U.S. Bank Failures In 2010 Reach 108

o    Goldman Details Its Valuations with AIG – WSJ link

§  Two years after collateral demands from Goldman helped spark a cash crunch at AIG, a mystery remains: How did Goldman come up with the mortgage-securities prices it used to extract cash from AIG?

o    BNP reported Monday morning..a bunch of other EU banks report this week as well

§  BNP up 4% after reporting this morning…

o    HSBC  rallies 5%  after reporting

o    Honda ups guidance – BBG

o    Hitachi  beat estimates , ups guidance

o    TNT 2Q misses expectations on weak express results

o    Retailer miss…Disappointing numbers from Metro which reported worse than expected numbers and flat growth in its cash and carry and real revenues. Company reaffirmed their FY10 outlook but sales growth for FY10 still falls short of the medium term target level of 6% growth per year

·         Africa on cover:  The Final Frontier from Barron's This Week Magazine link

o    Investors will lose a huge opportunity if they avoid vibrant and changing Africa. Fast growth in a continent of misconceptions.

·         Political stories; 

o    Mullen: Washington has plan to attack Iran 'if it comes to that' – The Hill

§  The chairman of the Joint Chiefs of Staff said Sunday both a nuclear-armed Iran and a U.S. attack gave him concern.

o    Iran's Ahmadinejad calls for TV debate with Obama Reuters

§  Iranian President Mahmoud Ahmadinejad called on U.S. President Barack Obama on Monday to face him in a televised one-on-one debate to see who has the best solutions for the world's problems

o    Poll: Plurality expect Obama tax hike – The Hill

§  The figure has risen since the beginning of his term, when it was at 31 percent, to today's 44 percent

o    Wall Street Expects Better Times After Mid-Term Elections from CNBC

§  Expected Republican gains at the congressional elections are likely to tone down some of the anti-Wall Street rhetoric coming from Democrats since President Barack Obama took office last year.

o    House Passes Oil Spill Measure, Other Bills Before Adjourning Roll Call

§  Democratic leaders shepherded a hodgepodge of bills through the House Friday before lawmakers departed for a six-week recess that will be a high-stakes messaging period as both parties jockey for control of the chamber after the November midterms.

o   Move to Repeal Tax Rule Tied to Health Overhaul Fails

§  House Democrats voted in favor of repealing a small part of the health overhaul involving tax-reporting rules, in a move with symbolic significance four months after the overhaul passed.

§  The repeal move failed to pass because it fell short of the two-thirds support required under a special House rule applied in this case. The vote was 241-154.

§  Democrats included a provision in the legislation that would have raised taxes on U.S. multinational firms, leading most Republicans to vote no

§  http://online.wsj.com/article/SB10001424052748703314904575399850844687526.html?mod=WSJ_hps_sections_health

o   W.H.'s late push for $26B state aid bill from POLITICO

§  Duncan has emerged as the most forceful admin. voice for the package

o   Obama pushes for Rangel exit from POLITICO

§  President Barack Obama called ethics charges against Representative Charles Rangel "very troubling" on Friday and said he hoped the lawmaker could end his career "with dignity."

o   Ethical Woes Fog Democrat Hopes

§  Two possible ethics trials of senior Democratic members of Congress are compounding the governing party's political woes and raising GOP hopes of large gains in November elections.

§  http://online.wsj.com/home-page

o   Pelosi Feels ‘Very Confident’ About November Elections from Top Stories from CQ

·         Speaker Nancy Pelosi dismissed concerns that Democrats could lose control of the House in this fall’s elections, and the California Democrat argued that her party will do much better than has been predicted.

o   U.S. commanders in Afghanistan have eased a rule covering the use of force that has been a source of discontent among American troops, according to military officials.  WSJ

o   U.S. worried more secret documents may be released  Reuters

§  U.S. officials are worried about what other secret documents the whistle-blowing website WikiLeaks may possess and have tried to contact the group without success to avoid their release, the State Department said on Friday.

o   Colombia says "never" thought to attack Venezuela from Reuters

§  BOGOTA (Reuters) - Colombia rejected on Saturday accusations by Venezuelan President Hugo Chavez that Bogota was planning an attack on neighboring Venezuela, saying the socialist leader was deceiving his people with such charges.

o   U.S. nears key step in European defense shield against Iranian missiles from Wash Post

§  The U.S. military is on the verge of activating a partial missile shield over southern Europe, part of an intensifying global effort to build defenses against Iranian missiles amid a deepening impasse over the country's nuclear ambitions

o   Graham Wants Immigration Overhaul Next Year from Roll Call

§  Sen. Lindsey Graham called on Congress to turn to border security and fix the nation's "broken" immigration laws next year

o   The new al-Qaeda recruits from washingtonpost.com

§  How the recent arrest of a Virginia man spotlights al-Qaeda's recruitment efforts in the U.S

o   Dutch become first NATO member to quit Afghanistan from USATODAY

o   Fox News to move to front-row White House briefing room seat

§  NPR, which lobbied for Helen Thomas' seat along with Fox and Bloomberg, will take Fox's former second-row seat.

o   Cartels dictate media coverage from washingtonpost.com

§  Coerced by drug gangs, journalists in Mexico's Nuevo Laredo adhere to near-complete blackout.

o   Rockets hit Israel and Jordan resorts; four hurt in Aqaba from Reuters

§   Rockets from Egypt's Sinai, an area where Islamist militants have operated in the past, struck Israel's and Jordan's Red Sea port resorts on Monday, injuring four civilians, Jordanian and Israeli police said.

o   Obama-Clinton ticket for 2012 from POLITICO

§  Opinion: Biden has not distinguished himself, other than to be prone to gaffes

o   Obama's climate 'Plan B' in hot water from POLITICO

§  The president's 'Plan B' for tackling global warming is under attack

o   GOP pushes health reform defunding agenda from POLITICO

§  GOP hopes to deny Obama administration money it needs to implement health care reform

 

CANTOR TRADING RECAP

 

 

·         Equity Recap

·         They made an attempt at marking them up Friday for month end July while the theme for the week was to sell the news, in spite of earnings that were better for the most part and the cheap money fueling the M & A game.  Amazing, “how was your week honey” oh ho hum, The index’s barely moved for the week, DOW -45, Sp 500 exactly unched, Nasdaq -14 and Russell right on the nose unched,  but hey, we’ll take it. The data  was crummy for the most part of the week and the consumption component left allot to be desired, showing us the consumer is not as healed as people think. That 1,081 level on the sp 500 seems to hold while we rolled over when we got up near 1122 noticeably off the 150 day. The volume continues to be very light, especially during the up days while from the action internally, we are seeing some guys adding to positions but it seems the more seasoned guys weren’t afraid to sell them, shorts did a bunch of covering but most were in holding pattern still

·         Breadth to the market had Advancing issues outnumbering declining issues by 1 ˝ -1 while internally here, albeit quiet, sell names outnumbered buy names 2-1

·         We still feel very tired here and long in the tooth as the farmer’s say and as crowded as the bond funds have become, it still remains the guys with any cash are looking for the right shoulder at spx 850. I can’t find money and conviction in the same area.

o   Billy Clark and Team

·         Rates Commentary

o   The Treasury market opened up well bid overnight after St Louis Fed President James Bullard published his research report yesterday which stated the Fed should purchase Treasuries if deflation risks grow and extended period policy may instill Japan like result coupled with the weak data from Japan and Germany.  Initially when the New York session opened, the UST curve was led by the belly which was outperforming the wings by ~2-3bps.  The first look at 2Q GDP was worse than anticipated 2.4% versus 2.6% and consumption significantly lower 1.6% versus 2.4% aided in the Treasury rally. During the rally the long end crept back in line with the belly as the July month end extensions aided the sector. A small selloff after the better than expected Chicago PMI (62.3 versus expected 56.0) was the only downtick the market would see. Treasuries were rather quiet in the late morning and throughout the afternoon edging higher throughout the session as they closed near their intraday highs. At 3PM benchmarks were ~5-10bps lower in yield, the 2 year once again traded at an historically low yield .546%.

o   Sunday night the data for the week kicks off with China's PMI, this will be followed by ISM, personal income, housing and the all important July employment reports. The ECB and BOE will have their rate decision on Thursday and the Treasury will announce its August refunding package on Wednesday. There is certainly fear and uncertainty in the market with investors preferring the safety of the UST market.

o   Primary Dealer

• Converts recap

o   Trace volumes were light today with Amgen and Medtronic making up 22% of the total. Much of the balance of trading was related to earnings releases today and over the past 2-3 days. Both GAP and HTCH converts are well above their lows after reporting poor earnings this week. SYMC 0.75% holding steady as IG buyers are using as a cash surrogate with an equity kicker if the stock rallies over the next 11 months. Convertibles are trading sideways with no clear direction from Equities and High Yield. Market direction is security specific. SVVS extended their tender offer as they had received $339MM out of $345MM. These types of events combined with an empty calendar are leaving our investors with the dilemma of what to do with their cash?  

o   Tom Fazio

 

 

 

 

 

o   Energy Markets Hedge Funds Boost Gas Bets First in Six Weeks – BBG

§  Hedge funds increased their bets that natural gas prices would rise for the first time in six weeks after hotter-than-normal weather stoked air-conditioning demand

§   Natural gas climbed every day last week, the longest- winning streak since November

o   Heritage Oil Plc declared a special dividend of 1 pound ($1.57) a share after completing the sale of the company’s oil fields in Uganda to Tullow Oil Plc.

o   House Passes Oil Spill Measure, Other Bills Before Adjourning Roll Call

§  Democratic leaders shepherded a hodgepodge of bills through the House Friday before lawmakers departed for a six-week recess that will be a high-stakes messaging period as both parties jockey for control of the chamber after the November midterms.

o   BP could start "static kill" on well Monday says official

o   Gulf of Mexico coastal homes may lose as much as $56,000 each in value as buyers shun areas marred by the worst oil spill in U.S. history, according to CoreLogic Inc.

o   Britain slams 'unconstitutional' plan to ban BP from drilling in US from Telegraph

§  BP to fight "unconstitutional" proposal to ban it from US offshore drilling, which the British Embassy has warned could be seen as protectionism.

o   Move to block BP from US drilling from Financial Times

§  BP would be blocked from winning future drilling permits in the US because of its safety record under energy legislation passed by the House of Representatives

o   Dudley visit to mend fences with TNK-BP from Financial Times

§  Bob Dudley, BP’s incoming chief executive, will fly to Moscow to meet shareholders in its Russian joint venture TNK-BP, a visit that will underscore a thawing in relations between the two companies

o   Congress questions BP's use of dispersants in Gulf

§  (Reuters) - BP's use of dispersant chemicals on the Gulf of Mexico oil spill is sparking questions from a U.S. congressional panel, which says the company used more of these compounds than the U.S. Environmental Protection Agency had directed.

o   BP Prepares to Finally Plug Gulf Oil Leak on Monday – CNBC link

o   BP asks Kuwait sovereign fund to raise stake-report from Reuters

§  BP Plc has asked Kuwait's sovereign wealth fund to raise its share in the company to three percent, the al-Anba newspaper reported on Monday.

o   BP eyes German gas station sale from FT

§  BP is seeking to sell its German petrol station chain Aral for around €2bn (Ł1.66bn) German magazine Wirtschaftswoche reported a the weekend, citing people familiar with BP’s plans,...

o   Big Bullish Bet on Natural Gas – CNBC link

o   Time to Exit Oil Trade: Dennis Gartman – CNBC link

o   Linc Energy in Talks With Adani Enterprises  – WSJ link

o   Locals to BP: Don't Leave Town Yet– WSJ link

o   CAM etc…lf Spill Triggers New Oil-Field Work – WSJ lnk

§  The Gulf of Mexico oil spill is triggering new work for safety equipment makers such as Cameron International, which built the failed blowout preventer for the Deepwater Horizon rig

o   BP, Exxon to Team Up in Arctic from WSJ.com

§  BP formed a joint venture with Exxon Mobil and its Canadian subsidiary to explore for oil and gas in the Beaufort Sea.

o   Intertek ertek shares jumped by 6%, or 99p to Ł16.76 by 9:05am after the product testing company lifted its full-year revenue forecasts.

§  The company said in a statement: "Environmental regulations, the expansion of renewable energy industries and consumers' concern over the health and safety of their products continue to drive good growth and offset some weaker markets."

o   Iraq to Sweeten Terms for Gas Bidders from WSJ.com

§  Iraq is set to sweeten contract terms for its third bidding round for its three prized natural gas fields, in an attempt to entice international companies to enter the auction.

o   Warm Temperatures Turn Utilities Into Hot Investments from CNBC

o   BP London Times discusses Miller amendment and implications for BP

o   BP BP looking to sell German gas station chain Aral - Wirtschaftswoche

o   EQU Equal Energy updates 2010 drilling program; see full year production at low end of guidance range

o   HE Hawaiian Electric files 2011 rate request

o   US House votes to end 6-month moratorium on offshore deepwater oil drilling-- wires 

o   CLNE Clean Energy Fuels anticipates that it will record a non-cash gain of approximately $16.6M related to valuing Series I warrants in Q2

o   ME Mariner Energy reports estimated net production through 30-Jun

o   CXO Concho Resources provides update regarding preferential purchase rights related to its Marbob acquisition

o   ENB Enbridge says not estimate yet of costs of cleaning up Kalamazoo River spill-- Reuters

o   CLNE Clean Energy Fuels files mixed securities shelf of indeterminate amount

o   Dana Petroleum and KNOC agree to meet this

o   BP EU starts to make noise about preventing BP from drilling off Libya - FT  

o   SWWC Southwest Water receives clearance for proposed merger from three of five required states

o   HOO Sembcorp says stake in Cascal N.V. rises to 96.43%

o   L Loews reports

o   NRG NRG Energy reports…. Guides f10 adjusted EBITDA to $2.45-$2.55B, above prior guidance of $2.20B

 

 

	INDUSTRIALS

 

 

·         GE NY Times reports that radiation overdoses in CT brain perfusion scans larger and more widespread than previously known

·         NWPX Northwest Pipe Audit committee concludes that consolidated financial statements for fiscal years 2006 through H1-2009 should not be relied upon

·         B Barnes Group files mixed securities shelf of indeterminate amount

·         B Barnes Group reports Q2 EPS $0.26 vs Reuters $0.25 (s revenues of $281.9M vs Reuters $286.6M) . Reaffirms f10 EPS guidance of $0.90-$1.10 vs Reuters $1.04.

 

	TRANSPORTS

 

 

o   Macro pos:  Shipping rates double y/y as retailers, distributors attempt to ensure they will get merchandise by Christmas - London Times

§  http://www.thetimes.co.uk/tto/news/

o   Ocean shipping lines cut speed to save fuel costs – LAT

§  'Slow steaming' upsets some customers, who worry about delays in delivery. But it also keeps more ships in service and lowers emissions

§  http://www.latimes.com/business/la-fi-slow-sailing-20100731,0,3362974.story

o   Baltic Dry was up 1.3% on Friday, up 7.7% for the week, but down 18% for the month

o   Greek airline merger faces in-depth EU probe from FT.com

§  An attempt by Aegean Airlines, the listed Greek carrier, to acquire troubled state-owned Olympic Airlines will be subject to a full probe by European antitrust authorities, potentially delaying any deal until the end of the year

o   Airfares may be 'bargains,' but extra fees have soared from L.A. Times

§  Also: Plane tickets at Long Beach Airport and Burbank's Bob Hope Airport are among the nation's cheapest, and passengers nationwide have ideas to improve flying

§  Domestic airfares across the nation increased nearly 5% in the first three months of 2010 from the same period in 2009, and yet the trade group that represents the nation's airlines calls the numbers good news for passengers.

o   CNI Canadian National Railway announces plan to buy back up to 2M shares through private agreements

	TECH/MEDIA/TELECOM

 

 

o   ORBK Orbotech reports

o   TV: Internet-enabled TV trumps 3D TV in 2010- iSuppli

o   AAPL: Apple has mysteriously pulled the videos of rival phones suffering a drop in signal bars due to "death grip."

o   DCM NTT DoCoMo plans to invest ~ Ą10B to make PacketVideo a wholly-owned unit -- Nikkei

o   RIMM Research In Motion's Blackberry services suspended by UAE - WSJ

o   TSEM Tower Semiconductor drops plans to acquire US foundry - Globes

o   TER, HPQ, XRX, EFII, GLW Technology Trader discusses tech investors increasing fears. Seligman’s Paul Wick like Teradyne, Hewlett-Packard, Xerox and Electronics for Imaging. Corning’s CFO thinks the stock is underappreciated.

o   IM Plugged In is positive on Ingram Micro.

o   DISH, CMCSA DISH Network to complain to FCC that Comcast is not letting it carry Comcast SportsNet Philadelphia - AP

o   CIDM Cinedigm Digital Cinema enters stock purchase agreement with Grassmere Partners

o   SVR Syniverse terminates shareholder rights plan

o   COOL Majesco Entertainment company announces resignation of CFO John Gross effective 20-Aug

o   MENT Mentor Graphics holder Carl Icahn discloses a 14.13% stake in amended 13D filing

o   ICOG ICO Global Communications receives unfavorable ruling in UK judicial review

o   Hackers: A computer security researcher has built a device for just $1,500 that can intercept some kinds of cell phone calls and record everything that's said- AP

o   Twitter: The microblogging site was out of commission for a couple of hours early Sunday for some of the roughly 100 million users around the world- AP

o   GOOG: Security experts release software to attack Android phones- AppleInsider

o   AAPL: Apple sues "inferior quality" iPod, iPhone and iPad accessory makers- AppleInsider

o   NSN: Private equity eyeing NSN Nokia Siemens stake- Reuters

o   Facebook: Would-Be Owner Says He Owes His Claim to Arrest, Cuomo- BBG

o   Ceglia’s arrest and a suit by New York Attorney General Andrew Cuomo two months later got him looking through old files to find assets to pay back customers those files held a forgotten 2003 contract with Mark Zuckerberg

o   T, VZ, AT&T and Verizon Said to Target V Visa, MA MasterCard With Smartphones- BBG

o   The partnership, which also includes Deutsche Telekom AG unit T-Mobile USA, may work with DIS Discover Financial and Barclays to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone

o   http://www.thestreet.com/story/10823411/1/att-verizon-planning-payments-venture.html

o   DRAM revenues grow 15% on quarter in 2Q10- DRAMeXchange

o   Compal sets to ship 60 million notebooks in 2011

o   INTC Intel Nears Chip Pact- WSJ  

o   http://online.wsj.com/article/SB10001424052748703999304575399551848849256.html

o   GOOG, Smartphones: Analysts at Canalys have crunched the latest facts and figures from everyone’s Q2 financial results and have unearthed that smartphones shipments grew 64% world wide compared to Q2 2009, and that the number of Android device that have shipped in the same year on year period has increased a startling 886%- IntoMobile

o   UMC: Hon Hai Precision acquires stake in the company - Taiwan press (TTN)

 

	MATERIALS

 

 

o   HUN Huntsman acquires chemicals business of Laffans Petrochemicals Ltd.

o   VALE Vale SA reports Q2 EPS

o   SVM Silvercorp Metals files $120M mixed securities shelf

o   MOS Mosaic conference call regarding preliminary injunction on mine extension to be held at 16:30 ET; 866-543-6403, passcode 33172955.

o   No Merger of Rusa, Norilsk Planned from WSJ

§  A merger of Russian aluminum giant United Co. Rusal and Norilsk Nickel isn't on the cards, Oleg Deripaska, Rusal's major shareholder and CEO said

o   Rise in demand prompts mining consolidation from Financial Times

§  Small and mid-cap mining companies are consolidating their assets so they are ready to speed up production in line with an improvement in global demand

o   Barrick  2 (Reuters) - Barrick Gold , the world's biggest gold producer, said on Monday it had no plans to spin off its Australian assets, Gary Halverson, president of Barrick's Asia Pacific division said.

o   Barrick rules out Lihir bid from Business Spectator

§  Miner says it will not seek to compete with Newcrest. 2 Aug

o   Newmont in talks with Indonesia strikers from Business Spectator

·         Miner says lines of communication open with pay-strikers. 2

 

 

	AUTOS

 

 

o   Ford Motor Company Completes Sale of Volvo Cars to Geely

·         F Barron's sees even better days ahead for Ford

o    

o   Auto Sales May Rise to Highest of Year on U.S. Closeout Deals - BBG

§  U.S. auto sales probably rose to the highest level of 2010 last month as model-year closeout deals drew consumers back to showrooms

§  Industrywide deliveries, which are released tomorrow, may reach an annualized rate of 11.9 million vehicles in July, the average of eight analysts’ estimates compiled by Bloomberg. That would be 5.3 percent higher than last year’s 11.3 million pace and the best month since August 2009, when the U.S. government’s “Cash for Clunkers” incentive program inflated sales

§  Automakers are offering discounts that are 3.8 percent higher than a year earlier to clear out 2010 vehicles and make room for new models, according to industry researcher TrueCar.com. The gains would indicate that sales, while still below historical levels, are steadily improving, analysts said

o   China July Car Sales Grow at Faster Pace on Discounts – BBG

§  China’s passenger-car sales grew at a faster pace in July as the government introduced subsidies for fuel-efficient models and dealers offered discounts to clear inventories in the world’s biggest automobile market

§  Retail deliveries of cars, sport-utility vehicles and multipurpose vehicles rose 15.4 percent last month from a year earlier to 822,300, the China Automotive Technology & Research Center said in a statement today. That compared with 10.9 percent growth in June.

o   Honda ups guidance – BBG

o   Obama claims credit for auto industry rescue – FT link

§  With the insipid economic recovery and the persistently high unemployment rate chief among voters’ concerns, the US president sought to use Detroit as an example of how his government had saved jobs

o   Visteon union seeks bigger role in exit plan vote from Automotive News

§  A union for Visteon Corp. retirees is seeking greater influence over the auto parts maker's bankruptcy exit plan, saying it has a claim for $100 million that entitles it to more votes on the proposal.

o   Chinese parts makers eye U.S., Europe to close technology gap from Automotive News

§  Chinese auto parts makers are moving into the overseas mergers and acquisitions fast lane, eyeing a distressed global market to close a technology gap with world leaders to meet sizzling demand at home and eventually sell overseas.

o   Dealer giants drool over Detroit 3 stores from Automotive News

§  Roger Penske is known for hefty investments in luxury and import dealerships. But the head of the nation's second-largest auto retailer says he has spotted a new opportunity: domestic franchises. Other big groups already are on the offensive.

o   Geely hits 2-month high ahead of Volvo buy news from Reuters

·         Shares of China's Geely Automobile Holdings rose 5.6 percent to their highest level in more than two months ahead of news its parent would complete its $1.8 billion purchase of Ford Motor's Volvo unit on Monday.

o   Hyundai Motor Co: Chairman of Hyundai and Kia Motor says company expected to meet 2010 sales target of 5.4M units; Aiming to sell 6M cars in 2011 - Korean press

	FINANCIALS

 

 

o   Regulators Close Five Banks; U.S. Bank Failures In 2010 Reach 108

o   UK Treasury warns banks that higher lending and capital are preferable to higher bonuses and dividends - Guardian

o   Banks Push European Shares Higher

§  BNP up 4%... reported Monday morning..a bunch of other EU banks report this week as well

§  BNP The beat was across all divisions

§  France’s biggest listed bank trumps profit expectations thanks to lower loan provisions and strong retail banking, offsetting volatile financial market conditions that hit investment banking

§  HSBC up 5% today…reported better…“The big positive from today’s results is the loan provision figures, which have dropped very significantly.”

o   Stress tests help boost Europe bank funds from Financial Times

§  International investors have rushed back in to fund the activities of Europe’s banks following the publication 10 days ago of the regulator’s stress tests

o   Banks Balance Sheets murky…..look at recent loan sales..per WSJ

§  Loan Sales by Banks Shed Light on Their Balance Sheets

§  But a closer look at banks' second-quarter asset sales suggests some reserves and write-downs may not be adequate.

§  Exhibit one is Winston-Salem-based BB&T $1.43 billion of foreclosed property. It is equivalent to 33% of BB&T's nonperforming assets.

§  http://online.wsj.com/article/SB10001424052748703314904575399592715122512.html?mod=WSJ_newsreel_markets

o   Goldman Details Its Valuations with AIG – WSJ link

§  Two years after collateral demands from Goldman helped spark a cash crunch at AIG, a mystery remains: How did Goldman come up with the mortgage-securities prices it used to extract cash from AIG?

o   SEC Gets a FOIA Foil from WSJ.com

§  A provision in the new financial-regulation law that limits public access to documents collected by the Securities and Exchange Commission is stoking a debate over the proper level of disclosure.

o   Banks Already Working Around FinReg Rules from The Washington Independent

§  Daniel Indiviglio explains that banks including Goldman Sachs are just reclassifying “proprietary traders” — ones who trade the company’s own money — as “asset managers.”

o   The New Credit-Card Tricks  WSJ link

§  Just months after historic legislation banned certain billing practices, card issuers have dreamed up new ones designed to trip up consumers.

o   Parsing the Citi Settlement

§  To Bolster Lawsuits, Stockholders, Bondholders Ask: Was Fraud Involved?

§  Was it fraud or wasn't it?

§  When regulators filed civil charges against Citigroup Inc. on Thursday for the failure to disclose $40 billon in toxic mortgage assets in mid-2007, the word "fraud" was nowhere to be found in the announcement or formal complaint.

§  Instead, the Securities and Exchange Commission said it was accusing the New York bank of "misleading investors."

§  http://online.wsj.com/article/SB10001424052748703787904575403433520380548.html?mod=WSJ_hps_LEFTWhatsNews

o   Brazil's Aspirational Banks  – WSJ link

o   What will Ace's Greenberg do with $6 billion? from MarketWatch.com

§  Ace, one of the world’s largest commercial insurers, has billions of dollars in extra capital and analysts are wondering what Chief Executive Evan Greenberg is going to do with the stash.

o   RBS Plans Asset Sales from WSJ.com

§  Royal Bank of Scotland Group is likely to announce two asset sales worth up to a total of $6.71 billion as early as Tuesday, as it continues efforts to shrink its balance sheet.

o   Santander Pursues Local Listings from WSJ.com

§  Santander appears to be moving forward on a strategy of giving more autonomy to local units by listing subsidiaries in its main markets, boosting their independence from headquarters in Spain.

o   Visa Negotiates to Settle Justice Probe from American Banker

§  Visa is in talks with the Department of Justice to resolve its concerns over payment network rules barring merchants from imposing surcharges on credit card purchases, and related

o   UBS signs Broadgate deal from Telegraph

§  UBS, the Swiss bank, will remain at Broadgate keeping 5,000 jobs in the City after agreeing a new deal with British Land and Blackstone.

o   Russian Bank Earnings May Top 2007 Record, Troika Dialog Says

§  Russian banks’ earnings may surpass the pre-crisis record this year as lending increases, Troika Dialog said.  “Banks earned almost $3 billion in pre-provision revenues in June and over $8 billion in net income in the first half, putting them on target to possibly top 2007’s record earnings in ruble terms,” or 508 billion rubles ($16.82 billion), Troika said in an e-mailed note today.

o   Banks on Europe’s Edge Face $122 Billion Bill

§  Banks in Europe’s most indebted nations need to refinance $122 billion of bonds this year, likely paying high interest costs even after receiving a clean bill of health from regulators.

o   IBN ICICI Bank reports Q1 net income $221.0M vs year-ago $189.0M

o   HUN Huntsman acquires chemicals business of Laffans Petrochemicals Ltd.

o   Streetwise discusses economic indicators in the context of July’s market performance of +7%

o   NEM, ABX, NSC, IFF, TAL, SSW Speaking of Dividends looks at Newmont Mining, Barrick Gold, Norfolk Southern, International Flavors & Fragrances, TAL Industries and Seaspan.

o   PRE, ACGL, RE, ENH, WRB, AFG, BRK.A, CB, HIG, TRV D.C. Current discusses how offshore insurers are concerned about a bill drafted by Rep. Richard Neal of Massachusetts that would close a tax loophole. The bill could be negative for Partner Re, Arch Capital Group, Everest Re Group, and Endurance and positive for W.R. Berkley, American Financial Group, Berkshire Hathaway, Chubb, Hartford Financial Services Group and Travelers.

o   FNGN Fund of Information talks about high valuations in small caps; positive on Financial Engines.

o   Economic Beat says better real GDP must be higher for the recovery to be over and expansion to begin.

o   Barron's discusses sizable ownership of US Treasury debt by emerging market powers such as China, Brazil, India and Russia 

o   BAC Barron's sees a buying opportunity in Bank of America

o   HFWA Heritage Financial acquires banking operations of Cowlitz Bank

o   HOME Home Federal Bancorp announces purchase and assumption of LibertyBank

o   PMI PMI Group sells investment in FGIC Corporation

o   HOMB Centennial Bank buys operations of Coastal Community Bank through loss-sharing agreements with FDIC

o   TNCC Tennessee Commerce Bancorp files amended S-1; to offer up to 12.5M shares through Macquarie Capital

o   CBC Capital Bancorp completes divestiture of interest in Community Bank of Lincoln to local investor group

o   PMACA, ORI PMA Capital says MMCap Asset Management agrees to vote shares in favor of purchase by Old Republic

o   CAFI Camco Financial appoints James Brundrett CFO

o   RBS Royal Bank of Scotland expected to announce two sales on Tuesday – WSJ

o   CAN CNA Financial reports

o   MET MetLife now expects purchase of ALICO Holdings to increase 2011 operating EPS by ~$0.40-$0.45…. revision reflects an assumed issuance of 75M shares of common stock in a public offering

	REAL ESTATE

 

 

o   FDIC Securitizes Mortgages from Failed Banks from American Banker

§  The Federal Deposit Insurance Corp. said Friday it sold securities backed by $471.3 million of performing single-family mortgages originated by 16 failed banks.

o   Mortgage investors scale back from FT.com

·         Mortgage investors have been scaling back positions on fears that the US government might again intervene in the home loans market.

o   Fed Finds No Good Deed Goes Unpunished as Mortgage Trades Fail - BBG

§  For all the good the Federal Reserve’s $1.25 trillion of mortgage-bond purchases have done, they’ve also left part of the market broken

§  By acquiring about a quarter of home-loan bonds with government-backed guarantees to bolster housing prices and the U.S. economy, the Fed helped make some securities so hard to find that Wall Street has been unable to complete an unprecedented amount of trades. Failures to deliver or receive mortgage debt totaled $1.34 trillion in the week ended July 21, compared with a weekly average of $150 billion in the five years through 2009, according to Fed data.

§  The difficulty of executing transactions may eventually drive investors away from the $5.2 trillion mortgage-bond market, which has historically been the most liquid behind U.S.

§  Treasuries, potentially causing yields to rise

o   House Passes 'Slimmed Down' Version of FHA Reform from American Banker

§  The House quickly passed a slimmed-down FHA reform bill Friday that appears to be an attempt to make it easier for the Senate to pass legislation before the August recess.

o   UBS's U.S. Mortgage Push  – WSJ link

§  UBS said on Sunday it plans to hire executives from Goldman Sachs and Bank of America to build its mortgages and lending business in the U.S.

o   data-center REITs, including Digital Realty and smaller rivals DuPont Fabros Technology and CoreSite, also stand to benefit.

§  Building on U.S. Data Boom

§  Thanks to easy access to stock and debt markets, and to the credit crisis shutting out rivals, Digital Realty Trust is among the biggest winners of the Internet-bandwidth boom, and one of the few bright spots in commercial real estate.

§  http://online.wsj.com/article/SB10001424052748703999304575399372101377614.html?mod=WSJ_newsreel_markets

o   SPG:  Simon Pares Outlet Deal

§  Mall giant Simon Property Group Inc. has pared three properties from its $700 million acquisition of outlet-mall company Prime Outlets Inc. as the Federal Trade Commission continues to review the deal for antitrust issues.

§  "There has been a modification to the transaction," said David Simon, Simon's chairman and chief executive, during a conference call with investors and analysts Friday. He added later, "We remain confident that we will close the remainder of the transaction."

§  Mr. Simon declined to give the specifics of why the three properties noware being excluded or how the details of the deal have changed due to the reduced number of centers.

§  However, a person familiar with the talks said the omissions are being made to mollify the FTC

§  http://online.wsj.com/article/SB10001424052748703314904575399622265579144.html?mod=WSJ_hps_LEFTWhatsNews

o   Housing Bust Benefits Subsidized Tenants  – WSJ link

§  Overbuilding during the housing boom has left so many homes empty that landlords are now wooing government-subsidized renters.

o   Chinese State-Owned Firms Fueling Real Estate Boom – CNBC link

o   14.7 Million (19%) Of US Mortgages Have $770 Billion In Underwater Equity, $2.4 Trillion In Total Debt Impaired from zero hedge

o   Record Commercial Real Estate Deterioration In June As CMBS Investors Pray For 50% Recoveries from zero hedge –

§  peruse the most recent RealPoint June 2010 CMBS Delinquency report. The result: total delinquent unpaid balance for CMBS increased by $3.1 billion to $60.5 billion, 111% higher than the $28.6 billion from a year ago, after deteriorations in 30, 90+ Day, Foreclosure and REO inventory. This represents a record 7.7% of total outstanding CMBS exposure. Even worse, total Special Servicing exposure by unpaid balance has taken another major leg for the worse, jumping to $88.6 billion, or 11.3%, up 0.7% from the month before. And even as cumulative losses show no sign of abating, average loss severity on CMBS continues being sky high: June average losses came to 49.1%, a slight decline from the 53.6% in May, but well higher from the 39.6% a year earlier. Amusingly, several properties reported loss % of 100%, and in some cases the loss came as high as 132.4%

o   Builders' pricing strategies are aimed at creating sales urgency from L.A. Times

§  Even in the toughest times, price hikes are far more common in the new-home business than price cuts.

o   'Double-dip' worries hinge on housing from NY Post

§  If the current economic recovery is feeling like a recession, you're in good company. Ex-Fed boss Alan Greenspan called our current mood a "quasi-recession" yesterday, warning the economy might contract again if home prices decline

·         PKY Parkway Properties purchases note for $33M

·         U.S. homeownership slides toward the lowest rate in a half century

o   The rate of homeownership in the U.S. could fall to 62% by 2012, the lowest figure in 50 years, according to an industry estimate. The proportion of families owning their homes has been in steady decline since the housing bubble collapsed in 2006, the Census Bureau said. USA TODAY (02 Aug.)

o    

 

 

o  

	CONSUMER

 

 

o   Altria Vulnerable to Any Slide in Marlboro

§  http://online.wsj.com/article/SB10001424052748703314904575399632882251718.html?mod=WSJ_newsreel_markets

o   APOL:   Apollo Group Draws Call-Buying Activity from TheStreet.com

§  Traders were buying calls in Apollo Group as the education company's stock climbed off multi-year lows.

o   Metro's second-quarter profit falls 15% from MarketWatch.com

§  Germany’s biggest retailer increases its capital expenditure budget in what it describes as a sign of confidence

o   COCO Corinthian Colleges approves $200M repurchase program

o   USTR United Stationers upgraded to buy from gradually accumulate at Great Lakes Review, a division of Soleil Securities; target increased to $82 from $73.

 

	GAMING, LODGING, & LEISURE

 

 

o   BYD Boyd Gaming discontinues efforts to acquire Station Casinos assets

o   MGMMGM MACAU enters into new senior secured credit facility in the amount of HKD7.41B

	HEALTHCARE

 

 

·         CMS finalizes payment rate changes for inpatient stays in acute care and long-term care hospitals in f11 

·         GENZ Genzyme downgraded to hold from buy at Citi; target increased however to $76 from $64. The firm says its checks and recent reports indicate that an offer from Sanofi (SNY) will be coming soon. The firm discusses various scenarios, but feels an eventual bid price would likely be in the $74-$77 range, and thinks a deal is likely.

·         STXS Stereotaxis extends Biosense Webster's exclusive distribution rights for STXS's non-irrigated catheters until 31-Dec-10

·         GNOM Complete Genomics files $86.25M IPO through UBS and Jefferies  

·         CTIC Cell Therapeutics provides unaudited monthly information at request of CONSOB

·         TEVA Competition Bureau of Canada will not challenge Teva's acquisition of Ratiopharm

·         DVAX Dynavax Technologies reports Q2 EPS

·         WPI Watson Pharmaceuticals considering a bid for Sigma Pharmaceuticals' generics business - Sydney Morning Herald

·         ETRM EnteroMedics receives conditional approval for its Investigational Device Exemption application with the FDA

·         HLS Healthsouth reports

·         HUM Humana reports

·         WX WuXi PharmaTech reports

·         PPCO Penwest Pharmaceuticals names Kevin Tang chairman

·         ACL Alcon notes that RiskMetrics Group, Glass Lewis recommend against all five of Novartis (NOVN.VX)'s candidates for Alcon's board …The RiskMetrics report came out yesterday; the Glass Lewis one was released 29-Jul. An extraordinary general meeting is scheduled for 16-Aug.

·         CRL Charles River Laboratories reports Q2 EPS $0.49 vs Reuters $0.50

o   Company reports revenues of $292.0M vs Reuters $305.7M.

o   Guides full year revenue (3%)-(2%) vs. prior guidance of low single digit growth. Guides full year EPS to $1.90-$2.00 vs Reuters $2.18 and prior $2.20-$2.40

 

	OTHER

 

 

·         Changes in the latest Investor's Business Daily 100 List: Added: IDSA, BOFI, LFL, GMCR, CIB, LOPE, AGP, AHGP, HS, SYNA, CLF, CRR, LXK, ASPS, NEU, UNP, BBD, FDO, LCAPA, ALK, ARUN, LVS, SNDK. Deleted: OPEN, LSTZA, TPX, NVO, SRCL, AMT, ORLY, ALB, CMCSA, ARO, CSFS, CSTR, MANH, RMD, SLH, IAG, EZPW, PTI, SCL, DTV, TSL, THOR, BMA.

 

·         Barron’s summary:

o   Up and Down Wall Street questions whether more Fed easing is on its way

o   Streetwise discusses economic indicators in the context of July’s market performance of +7%

o   TER, HPQ, XRX, EFII, GLW Technology Trader discusses tech investors increasing fears. Seligman’s Paul Wick like Teradyne, Hewlett-Packard, Xerox and Electronics for Imaging. Corning’s CFO thinks the stock is underappreciated.

o   NEM, ABX, NSC, IFF, TAL, SSW Speaking of Dividends looks at Newmont Mining, Barrick Gold, Norfolk Southern, International Flavors & Fragrances, TAL Industries and Seaspan.

o   PRE, ACGL, RE, ENH, WRB, AFG, BRK.A, CB, HIG, TRV D.C. Current discusses how offshore insurers are concerned about a bill drafted by Rep. Richard Neal of Massachusetts that would close a tax loophole. The bill could be negative for Partner Re, Arch Capital Group, Everest Re Group, and Endurance and positive for W.R. Berkley, American Financial Group, Berkshire Hathaway, Chubb, Hartford Financial Services Group and Travelers.

o   FNGN Fund of Information talks about high valuations in small caps; positive on Financial Engines.

o   IM Plugged In is positive on Ingram Micro.

o   Economic Beat says better real GDP must be higher for the recovery to be over and expansion to begin.

o   Barron's discusses sizable ownership of US Treasury debt by emerging market powers such as China, Brazil, India and Russia 

o   F Barron's sees even better days ahead for Ford

o   BAC Barron's sees a buying opportunity in Bank of America

o   STRA, CPRT, AMD Barron's interviews Mark Roberts, founder of Off Wall Street Consulting Group; Highlighted picks of Roberts firm include: Short Strayer: concerns about overly aggressive enrollment expectations, student's ability to pay tuition and the industry's bad debt. Short Copart: concerns that growth has peaked, used car prices starting to soften and market share losses to Insurance Auto Auctions. Short Advanced Micro Devices: concerns over Fusion chip delays, relative performance of Magny-Cours, overly aggressive expectations.

o   Barron's cover says investors will miss a great opportunity if they avoid investing in Africa

	EUROPE TRADING WRAP

 

 

·         Oils

·         BP (+0.4%). BP denies German press speculation that it intends to sell it's German petrol station network Aral.

·         Heritage Oil (+4.6%). Announces a special Ł1 dividend to redistribute the proceeds of it's Ugandan asset sale, it had previously announced it would be between 75p-100p.

·         Miners

·         Rangold Resources (-1.1%). Rangold revise down gold production expectations from its Loulo mine in Mali.

·         Chemicals

·         Linde (+2.6%). 2Q figures come in better than expected.

·          Air Liquide (+1%). 1H figures inline with expectations and the company maintain 2010 guidance.

·         Metro's second-quarter profit falls 15% from MarketWatch.com

§  Germany’s biggest retailer increases its capital expenditure budget in what it describes as a sign of confidence

o   METRO 2Q earnings below expectations, ups investment

·         LINDE quarterly earnings top expectations

·         TNT 2Q misses expectations on weak express results

·         COFIDE - EBITDA up 31.2% in 1H as CIR margins rise

·         UCB 1H beats consensus, confirms outlook

·         ALBA: 1H net profit falls 55% y/y

·         Spain cuts into solar subsidies – S&P

·         HAMMERSON: 1H PTP climbs 7%

·         HERITAGE OIL to pay special 100p dividend

·         INTERTEK: Positive outlook, dividend up 13.4%

·         KELLER: 1H results in line with guidance

·         PRUDENTIAL to lift dividend  – S&P

·         RANDGOLD cuts Loulo production guidance

·         ULTRA ELECTRONICS: 1H PTP up 18%, good visibility

·         WS ATKINS: 1Q trading in line

 

 

	ASIA TRADING WRAP

 

 

 

Japan

•       NKY+0.35%, TPX +0.14%

•       NKY rose as investors snapped up shares of firms with robust corporate earnings, helping the market shrug off a strong yen and lackluster US economic data. Turnover on the TPX rose to 1.38 trillion yen from 1.19 trillion yen last Friday

•       Stocks were mixed. Exporters, tech, oil & gas and industrials rose while utilities, materials, financials, health care and telecom fell

•       Banks -0.32% despite Mitsubishi UFJ (8306) -0.47% and Mizuho (8411) -0.71% reporting better-than-expected earnings after the close last Friday

•       Best performing sectors on the TPX: airline +2.37%, transport equipment +1.67%, rubber products +1.37%, traders +1.11%; worst performing sectors: shippers -1.15%, metal products -0.98%, iron & steel -0.69%

Hong Kong

•       HSI +1.82%; HSCEI +2.32%

•       Stocks rose ahead of HSBC (5 HK) earnings and on speculation China will ease tightening policies after China’s manufacturing growth slows. Turnover on the HSI fell to HK$13.78B from HK$15.10B last Friday

•       Mainland properties rose on speculation China will ease tightening policies after the manufacturing PMI showed growth is slowing:

China

•       SHCOMP +1.33%; SZCOMP +2.01%

•       Stocks rose on speculation the government will eased tightening measures amid slowing economic growth. Turnover on the SHCOMP fell to 92.70B yuan from 128.66B yuan last Friday

•       Stocks rose across most sectors led by health care, consumer, materials and tech

•       Coal rebounded, rising 1.60%. China discovered more than 1B tons of coal reserves in the northeastern Liaoning Province. It is the largest coal field found in China’s northeastern regions in almost 2 decades

•       Autos +1.82%. China’s passenger-car sales rose 15.4% YoY in July (compared to 10.9% in June, 25% in May and 34% in April) as the government introduced subsidies for fuel-efficient models and dealers offered discounts to clear inventories

•       Beverages +3.11% on anticipation of strong earnings

 

 

INVESTMENT BANKING

 

 

 

M&A

 

 

o   Merger market slows to a crawl as caution rules- Reuters

o   The merger market is crawling at its slowest pace ever, with deals taking longer to close as players at every step move with extra caution amid fluctuating stock prices.

o   The median time from announcement to deal completion has risen to 85 days in the third quarter. compared with fewer than 70 days in the second quarter and about 63 days in the first quarter

o   http://www.reuters.com/article/idUSN3014504620100730

o   Buy-out firms turn to ‘passing the parcel’- FT

o   The share of private equity activity coming from “pass-the-parcel” deals between buy-out firms reached a record level in the first half of the year, accounting for more than half the nearly €20bn of European buy-outs in the period

o   Private equity groups fishing in each others’ portfolios is driving the price of bigger deals to new highs, according to research published on Monay by the Centre for Management Buy-Out Research at Nottingham University in the UK.

o   http://www.ft.com/cms/s/0/c190d806-9d8c-11df-a37c-00144feab49a.html?ftcamp=rss

o   Buy-outs set to reach €1.6bn- FTA

o   Buy-out groups are this week set to sign a string of tertiary deals – in which the company is sold to its third private equity owner – worth more than €1.6bn ($2.1bn), highlighting the growth of such deals in Europe’s private equity market

o   http://ftalphaville.ft.com/thecut/2010/08/02/302836/buy-outs-set-to-reach-e1-6bn/

o   Rise in demand prompts mining consolidation- FT

o   Small and mid-cap mining companies are consolidating their assets so they are ready to speed up production in line with an improvement in global demand

o   In the past fortnight several Aim-listed mining companies in the nickel, diamond, chrome and coal mineral sectors have launched takeovers or been the targets of acquisitions in expectation that demand, especially from Asia, will keep prices high

o   http://www.ft.com/cms/s/0/7554f2ce-9da0-11df-a37c-00144feab49a.html?ftcamp=rss

o   AIR LIQUIDE CEO SAYS HE'S NOT INTERESTED IN ARG AIRGAS- BBG

o   White knight could be elusive for GENZ Genzyme- Reuters

o   Chances are, every big pharmaceutical company is running the numbers and weighing the pros and cons of acquiring Genzyme

o   In theory, Genzyme, which makes high-priced drugs for rare diseases, could prove attractive to almost all the big drug makers, most of whom are facing patent expirations on drugs that have fueled their growth for years. But no one bidder has an overwhelming strategic case for stepping in.

o   http://www.reuters.com/article/idUSN3019872620100730

o   What Happened to the Sanofi-Genzyme “Bear Hug” Letter?- WSJ

o   Genzyme investors have been on notice to expect the formal overture of interest from the French pharma giant. And yet going into the weekend, the companies are silent

o   No letter? The most logical interpretation is that it’s no longer needed — that the two sides are now in friendly discussions. At the very least, the lack of disclosure a letter shows that Sanofi is not playing hard ball just yet.

o   http://blogs.wsj.com/deals/2010/07/30/what-happened-to-the-sanofi-genzyme-bear-hug-letter/

o   BP offers Aral for sale- Wirtschaftswoche

o   The 2500 gas stations in Germany are estimated to be valued at about 2 billion Euros

o   Rosneft has already shown interest to BP, to go into the Western European retail business and Aral to supply gasoline, which is obtained from private Russian oil production

o   http://www.wiwo.de/unternehmen-maerkte/bp-bietet-aral-zum-verkauf-an-437135/

o   BP asks Kuwait sovereign fund to raise stake- Reuters

o   BP Plc (BP.L) has asked Kuwait's sovereign wealth fund to raise its share in the company to three percent

o   Quoting a Kuwait Investment Authority official it did not identify by name, the paper said BP's outgoing chief executive, Tony Hayward, made the offer in a telephone call to the KIA which owns 1.75 percent of BP

o   http://www.reuters.com/article/idUSLDE67104I20100802

o   No Merger of Rusal, Norilsk Planned- WSJ

o   merger of Russian aluminum giant United Co. Rusal PLC and OAO Norilsk Nickel isn't in the cards, Oleg Deripaska, Rusal's major shareholder and chief executive said

o   Mr. Deripaska on Friday said that Rusal, which owns a 25% stake in Norilsk, still wants to call an emergency general meeting of the world's largest nickel producer to debate the composition of the board and that preparation of legal documents is behind the delay

o   http://online.wsj.com/article/SB10001424052748703999304575399481282347718.html

o   ABX Barrick says no plans to spin off Australian assets- Reuters

o   "At the end of the day, we see Australia as providing a firm foundation we want to hang onto," Halverson said in a presentation

o   http://www.reuters.com/article/idUSSYU01038520100802

o   T, VZ, AT&T and Verizon Said to Target V Visa, MA MasterCard With Smartphones- BBG

o   AT&T and Verizon, the biggest U.S. mobile carriers, are planning a venture to displace credit and debit cards with smartphones, posing a new threat to Visa and MasterCard

o   The partnership, which also includes Deutsche Telekom AG unit T-Mobile USA, may work with DIS Discover Financial and Barclays to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone

o   http://www.thestreet.com/story/10823411/1/att-verizon-planning-payments-venture.html

o   China's Geely to announce completion of Volvo buy- Reuters

o   The privately held parent of China's Geely Automobile Holdings will announce on Monday that it has closed its $1.8 billion purchase of Ford Motor Co's (F.N) Volvo unit

o   Geely told Reuters last week that it had received all necessary government approvals for the landmark deal, including from the commerce ministry and the state planner.

o   http://www.reuters.com/article/idUSHKV00246020100802

o   Knoc provides proof of funding for Ł1.7bn deal to buy Dana Petroleum- Telegraph

o   South Korea's national oil company has sent a letter to Dana Petroleum proving it has the financial firepower to fund a Ł1.7bn takeover of the London-listed rival

o   The letter, which was delivered to Dana representatives on Friday, will heap pressure on Dana's board to end the current stand-off and open talks with the Koreans.

o   http://www.telegraph.co.uk/finance/newsbysector/epic/dnx/7919619/Knoc-provides-proof-of-funding-for-1.7bn-deal-to-buy-Dana-Petroleum.html

o   Dana Petroleum agrees to meet Koreans to discuss Ł1.7bn deal- Telegraph

o   Although the precise terms of the meeting are yet to set, the meeting is expected to result in an agreement by Dana to open its books and begin talks relating to a Ł1.7bn takeover

o   Other top shareholders, including Blackrock and JP Morgan Asset Management, the company's second and third biggest investors, are also thought to back calls to start proper takeover talks.

o   http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7920358/Dana-Petroleum-agrees-to-meet-Koreans-to-discuss-1.7bn-deal.html

o   RBS Plans Asset Sales- WSJ

o   Royal Bank of Scotland Group is likely to announce two asset sales worth up to a total of Ł4.3 billion ($6.71b) as early as Tuesday, as it continues efforts to shrink its balance sheet

o   RBS is selling 318 U.K. branches to Spain's Banco Santander SA for around Ł1.8 billion and its Global Merchants Services division to Advent International Corp. and Bain Capital LLC for between Ł2 billion and Ł2.5 billion

o   http://online.wsj.com/article/SB10001424052748703999304575399382941327558.html

o   Private equity eyeing NSN Nokia Siemens stake- Reuters

o   Plans are at an early stage, the source said. The Wall Street Journal first reported the news, saying that they could buy a minority stake for at least $1 billion.

o   http://www.reuters.com/article/idUSWEN818720100730

o   ACL: RiskMetrics and Glass Lewis Recommend Shareholders Vote Against NVS Novartis' Board Designees at Extraordinary General Meeting- Marketwatch

o   The Alcon Independent Director Committee today announced that RiskMetrics Group, Inc. and Glass Lewis & Co., two global leaders in risk management, corporate governance and proxy advisory services, have both recommended that Alcon minority shareholders vote against all five of Novartis AG's designees to the Alcon board of directors

o   TSEM Tower Semiconductor drops plans to acquire US foundry, Globes- SA

o   In May, Tower CEO Russell Elwanger told "Globes" that the company was in talks with a foreign company to acquire a fab with an annual production capacity of $200-300M

o   He noted at the time that the TSEM expected to have a signed deal by by late June or early July. Globes is reporting today that TSEM has dropped its plans to acquire the US foundry and will focus on procuring equipment to boost internal production capacity

o   http://www.globes.co.il/serveen/globes/docview.asp?did=1000578590

o   Sage quits €600m TeamSystem takeover battle- FT

o   Sage, the accounting software group, has pulled out at the last minute from the €600m (Ł499m) auction of TeamSystem

o   The surprise decision, made at a meeting of Sage’s board on Thursday, has left the door open to HgCapital and Cinven, the remaining private equity bidders

o   http://www.ft.com/cms/s/2/543946b6-9c11-11df-a7a4-00144feab49a.html

o   BYD Boyd Gaming drops Efforts to Acquire Station Casinos Assets- PR

o   "Over the last eighteen months, we have devoted significant resources in our attempt to acquire the Opco assets of Station Casinos.”  

o   “Unfortunately, given bidding procedures that favor Station insiders, and our current view of the limited potential value of the operating and development assets, we have concluded this opportunity no longer makes sense for our company,"

o   http://articles.moneycentral.msn.com/news/article.aspx?feed=PR&Date=20100730&ID=11766931

o   Crompton makes $400-mn bid for EMR Emerson's transformer business- The Standard

o   In what could be its biggest acquisition, power equipment maker Crompton Greaves has offered $400m for the transformer division of the US-based Emerson Electric Company

o   http://www.business-standard.com/india/news/crompton-makes-400-mn-bid-for-emerson/s-transformer-business/403234/

o   HOMB Centennial Bank Acquires Banking Operations Of Coastal Community Bank- RTT

o   Home BancShares said that its subsidiary Centennial Bank has acquired the banking operations of Coastal Community Bank headquartered in Panama City Beach, Florida and Bayside Savings Bank headquartered in Port Saint Joe, Florida through loss-sharing agreements with the FDIC

o   http://www.rttnews.com/Content/QuickFacts.aspx?Node=B1&Id=1377916

o   BK BNY Mellon Agrees To Buy BHF Asset Servicing GmbH For US$343 Mln- RTT

o   BNY Mellon, the corporate brand of The Bank of New York Mellon has agreed to acquire BHF Asset Servicing GmbH from BHF-BANK Aktiengesellschaft and Sal. Oppenheim jr. & Cie. S.C.A. for EUR 253 million, or US$343 million

o   http://www.rttnews.com/Content/QuickFacts.aspx?Node=B1&Id=1232537%20&Category=Quick%20Facts

o   HFWA Heritage Bank Acquires Banking Operations of Cowlitz Bank of Longview- PR

o   Cowlitz Bank, including its division Bay Bank, was closed today by the Washington Department of Financial Institutions, which appointed the FDIC receiver

o   The FDIC and Heritage Bank entered into a modified whole bank loss-share transaction to acquire approximately $280 million of Cowlitz Bank's assets and approximately $350 million in deposits

o   http://www.prnewswire.com/news-releases/heritage-bank-acquires-banking-operations-of-cowlitz-bank-of-longview-washington-99669394.html

o   Banks chosen for United Biscuits auction- FT

o   The private equity owners of United Biscuits have hired JPMorgan and Goldman Sachs to run a Ł2bn ($3bn) auction for the maker of McVitie’s and Penguin biscuits that is expected to attract some of the world’s biggest food groups

o   Blackstone and PAI, which bought UB for Ł1.6bn in 2006, are considering splitting the business into two parts, snacks and biscuits, to make it more palatable for potential bidders.

o   http://www.ft.com/cms/s/0/aa4b32b0-9c2c-11df-a7a4-00144feab49a.html?ftcamp=rss

o   NTT DoCoMo plans to invest Ą10B to make WAVE’s PacketVideo, Nikkei- SA

o   According to the report, NTT DoCoMo plans to invest appx Ą10B before the end of the year to make PacketVideo a wholly-owned unit, and has reached an agreement parent NextWave Wireless (WAVE) to acquire the remaining shares it doesn't already own

o   DCM phones currently use PacketVideo software and, through the purchase of the remaining shares, DCM hopes it can encourage development of new video sottware for its next-gen high-speed mobile handset service expected to be launched in December

o   http://e.nikkei.com/e/ac/TNKS/Nni20100801D01JFF02.htm

o    Another buyer in the wings for SIP Sigma generics- Sydney Morning Herald

o   SIGMA PHARMACEUTICALS has attracted a new bidder for its generics business, valued at about $600 million, with the US-based specialty healthcare company WPI Watson Pharmaceuticals considering a grab for the division

o   http://www.smh.com.au/business/another-buyer-in-the-wings-for-sigma-generics-20100801-111i8.html

o   Nestle says acquired Britain's Vitaflo- Reuters

o   Food giant Nestle said on Monday it had purchased for an undisclosed price British company Vitaflo which makes food for people suffering from genetic metabolic problems

o   This strategic transaction allows Nestle to enter the fast-growing global market for clinical nutrition products tailor-made for people with inherited metabolic disorders,"

o   http://uk.news.yahoo.com/18/20100802/tbs-nestle-says-acquired-britain-s-vitaf-5268574.html

o   WS Atkins buys PBSJ for Ł178m- Yorkshire Post

o   BRITISH engineering and construction firm WS Atkins said it had agreed to buy American firm The PBSJ Corporation for Ł178m, further expanding its geographic footprint

o   http://www.yorkshirepost.co.uk/businessnews/WS-Atkins-buys-PBSJ-for.6451406.jp

o   Reliance, NBC’s Universal near deal on India park-FT

o   Executives from Universal, a unit of General Electric Co's (GE.N) NBC Universal, travelled to Mumbai to meet Ambani's Reliance Big Entertainment and the two groups are in exclusive talks to create India's first film-themed amusement park

o   http://www.reuters.com/article/idUSSGE66U00220100731

o   Orange may grab 40% stake in Meditel- Le Matin

o   Upon inquiry, negotiations are indeed underway, but nothing is yet decided, we said a source very close to the matter. However, no detail has been provided.

o   http://www.lematin.ma/Actualite/Journal/Article.asp?idr=110&id=137250

o   Greek airline merger faces in-depth EU probe- FT

o   An attempt by Aegean Airlines, the Athens-listed Greek carrier, to acquire its local rival Olympic Airlines will be subject to a full probe by European antitrust authorities, potentially delaying any deal until the end of the year

o   Officials at the European Commission said their initial investigation had shown that the proposed merger could raise serious competition concerns, with the combined business having “very high, if not monopolistic market shares on all domestic routes

o   http://www.ft.com/cms/s/0/465f8ca0-9d5e-11df-a37c-00144feab49a.html

o   Eurazeo in exclusive B&B Hotels talks with Carlyle- Reuters

o   French financial holding firm Eurazeo said on Saturday it is in exclusive talks to sell its B&B Hotels chain to U.S. private equity firm the Carlyle Group

o   The negotiations assume an enterprise value for the business of 485 million euros ($633 million

o   http://www.reuters.com/article/idUSLDE66U04920100731

o   Abu Dhabi SWF joins MS M.Stanley in UK rail bid- Reuters

o   The Abu Dhabi Investment Authority has agreed to join Morgan Stanley and private equity group 3i in a bid for the high-speed railway linking London with the Channel Tunnel

o   The sale process could fetch 1.5 billion to 2 billion pounds ($2.34 billion to $3.12 billion) according to the paper

o   http://www.reuters.com/article/idUSLDE67002M20100801

o   INTC Intel Nears Chip Pact- WSJ           

o   Intel Corp. appears close to a deal with Infineon Technologies AG that could aid the Silicon Valley giant's quest to play a major role in smartphones, including Apple Inc.'s high-profile iPhone 4.

o   People familiar with situation say Intel is in advanced talks to acquire Infineon's wireless chip unit, whose products include cellular baseband chips used by Apple and other phone makers

o   http://online.wsj.com/article/SB10001424052748703999304575399551848849256.html

o   Linc CEO says coal deal imminent, more to come- Reuters

o   Australia's Linc Energy expects the sale of its Galilee coal tenement in Australia to be finalised this week and sees a separate deal on a second coal tenement within weeks

o   "We expect an announcement on the sale of the Galilee tenement to be fairly imminent, probably by end of the week," said Linc CEO

o   http://www.reuters.com/article/idUSSYU01038320100802

o   Aevum rebuffs Stockland's $241 million takeover offer- Reuters

o   Stockland aims to use its expertise as Australia's top residential developer to tap growth in a fast growing sector, with a fifth of the country's population projected to be over-65 in 20 yrs

o   Stockland, Australia's second-largest property trust, offered A$1.50 a share for Aevum, a 37.6 percent premium to Aevum's closing price on Friday.

o   http://www.reuters.com/article/idUSTRE67101Q20100802

o   Lion Capital mulls Wagamama restaurant sell-off- Reuters

o   Noodle restaurant chain Wagamama is being put up for sale by its private equity owner for up to 230 million pounds ($359.3 million), the Times reported on Monday.

o   Lion Capital, a consumer-sector focused private equity firm whose portfolio companies include Weetabix breakfast cereal, will hire Rothschild ROT.UL to find a buyer

o   http://www.reuters.com/article/idUSTRE67107H20100802

o   TransCanada reports bids from "major" players- Reuters

o   TransCanada Corp said late Friday it has received bids from several companies interested in shipping natural gas on a 1,700-mile (2,735-km) pipeline it proposes to build from Alaska's North Slope to North American markets

o   http://www.reuters.com/article/idUSTRE66U0B920100731

o   ACL Alcon notes that RiskMetrics Group, Glass Lewis recommend against all five of Novartis (NOVN.VX)'s candidates for Alcon's board …The RiskMetrics report came out yesterday; the Glass Lewis one was released 29-Jul. An extraordinary general meeting is scheduled for 16-Aug.

 

 

$ RAISING

 

 

·         Complete Genomics Files $86-Million IPO- Bio IT World

o   Genomics, which provides next-generation sequencing of human genomes as a service, has filed papers for an initial public offering (IPO) that could be worth $86 million. The company's proposed stock ticker symbol is GNOM

·         Enel appoints banks for green business IPO- FT

o   Enel has appointed Credit Suisse, Goldman Sachs and Mediobanca to list a minority stake in its renewable energy business, which is expected to be one of the biggest European initial public offerings this year.

o   The three banks will be joint global co-ordinators for the sale, while other banks involved in the IPO are expected to include Morgan Stanley, JPMorgan, Bank of America-Merrill Lynch, Barclays Capital, Intesa Sanpaolo, Unicredit and BNP Paribas

o   http://www.ft.com/cms/s/0/127aec3c-9c04-11df-a7a4-00144feab49a.html

·         China wind turbine maker plans $500 million U.S. listing- Reuters

o   Mingyang Electric, one of the five biggest wind power turbine suppliers in China, plans to raise $500 million in a share sale in the United States in September, in what could be the largest such listing by a Chinese company this year

o   China is the world's largest market for wind turbines, and domestic wind equipment manufacturers such as Mingyang supply 80 percent of the market

o   http://www.reuters.com/article/idUSTRE6710I120100802

·         Sateri files $1 billion IPO application to HKEx- Reuters

o   Brazilian dissolving pulp and viscose fiber maker Sateri International Group has filed a listing application with the Hong Kong Stock Exchange, aiming to raise $1b as early as October

o   Bank of China International has joined Credit Suisse (CSGN.VX) and Morgan Stanley (MS.N) to arrange Sateri's IPO.

o   http://www.reuters.com/article/idUSTRE67108R20100802

·         In IPO-signaling move, Zynga adds fancy CFO- CNET

o   Zynga, the fast-growing social-gaming site, said it had hired Allen & Co. investment banker David Wehner as its new CFO.

o   The move is yet another indication that the San Francisco-based start-up is prepping for an initial public offering, rounding out its executive team, which is headed by founder and CEO Mark Pincus.

o   http://news.cnet.com/8301-1023_3-20012294-93.html?part=rss&subj=news&tag=2547-1_3-0-20

 

PRICINGS

o   Initial Offerings

o   AMBO Ambow Education 21.4m share IPO expected to proce 8/4 via JPM and GS: Price Talk $10-12

o   TSRX Trius Therapeutics -6 million shares expected to price Monday via Citigroup. Price talk: $12 to $14.

o   IL IntraLinks 11m share IPO expected to price 8/4  via MS, DB, and CS: Price talk $14-16

o   NXPI NXP Semiconductors 34m share IPO expected to price 8/5 via CS, GS, BoA, MS, and Barclays: Price Talk $18-21

o   GMAN Gormans Stores 5.4m share IPO expected to price week of 8/2 via Piper and Wells Fargo: Price Talk $13-15

o   PATH NuPathe 5m share IPO expected to price week of 8/2 via Leerink and Lazard: Price Talk $14-16

o   Secondary Offerings

o   FTLK Funtalk China Holdings 12m share secondary expected to price 8/3 via BoA

o   TNCC Tennessee Commerce Bancorp secondary expected to price 8/3 via

 

NEWS                              

·         Ex-star pitcher re-bids on bankrupt baseball team- reuters

o   A group led by former all-star pitcher Nolan Ryan and a minor league baseball team owner made a new bid to buy the bankrupt Texas Rangers in a move that would block an auction for the Major League Baseball team set for next week

o   http://www.reuters.com/article/idUSN3018841520100730

 

o   Energy: CLNE Clean Energy Fuels files mixed securities shelf of indeterminate amount

o   Materials: SVM Silvercorp Metals files $120M mixed securities shelf

o   Industrials: B Barnes Group files mixed securities shelf of indeterminate amount

o   Financials: TNCC Tennessee Commerce Bancorp to offer up to 12.5M shares through Macquarie Capital

 

 

 

 

	TODAY’S EVENTS

 

 

 

 

 

o   CONFERENCES

o   Chinese Society of Rare Earths' International Conference on Rare Earth Development and Application - Aug 02, 2010 - Aug 06, 2010

o   Deutsche Bank Access Indonesia Corporate Day - Aug 02, 2010

o   Global Pacific & Partners Australasian Energy Pacesetters - Aug 01, 2010 - Aug 02, 2010

o   JPMorgan Mexico CEO/CFO Conference - Aug 02, 2010 - Aug 04, 2010

o   Marcus Evans Affordable Housing Projects Conference - Aug 02, 2010 - Aug 03, 2010

o   TODAY’S EVENTS

o   Shareholder Meetings

§  COGT, ACXM, MGS

o   ECONOMICS

o   0945 Dow Jones Economic Sentiment Indicator

o   1000 Online Help Wanted Index

o   1000 Construction Spending - Construction Put in Place

o   1000 ISM Manufacturing Report on Business

o   EARNINGS

o   Autos

·         DW, SMP

o    Materials

·         KALU, VMC, IPHS, POL

o   Consumer/Retail/Education

·         TXRH, ASF, SUMR, TSTY, HLF, EXBD

o   Energy

·         ALME, TGE, CRK, DMLP, EPL, FST, SM, TIV, VNR, NS, AHD, APL, NSH

o   Financials

·         AB, GAIN, VRTS, HF, GFIG, PFG, AFG, L, UTR, AGII, AMPH, CAN, FMR , MCY, MIG, HFWA, IIVI, PGC, FSR, GLRE, ECPG, III, TNS

o   Healthcare

·         BMRN, MNKD, MNTA, HSIC, CUTR, HOLX, STXS, WMGI, BKD, HLS, LPNT, DVA, HAE, CRL, WX, HUM, AGN, SNTS, SUPG, VRX, VVUS

o   Industrials/Homebuilders

·         DCO, GFF, FIX, GVA, BGC, ESLR, RBC, CGNX, ORBK, AIMC, B. CIR, LDL, CGI, OSK, FELE

o   Media

·         CKEC, NAVR

o   Real Estate

·         GKK, PSB, FR, RSO, PKY, PPS, UDR, LTC, NHP, SNH

o   Tech/Telecom

·         ACTU, AZPN, GUID, MGIC, SNCR, UNCA, IVAC, ROG, TNL, NTE, ISYS, SYKE, RTEC, POWI, PTEC, CYDE, PRTS, NSP, VRSN

o   Utilities

·         NVE, OTTR

 

 

 

 

 

***All eco data from Bloomberg and DJ

 

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